Careful study of the contract documents
The contract documents issued to the contractor or supplied for his inspection include general contract conditions, drawings, specifications, bills of quantities etc. These documents are to be studied carefully to check if any unusual conditions, specifications, or any feature of the work would demand special attention during pricing.
Sub-contractor’s work: Make relative inquiries about prices with sub-contractors and material suppliers for their respective portions of the job.
Site visit: This is important to ascertain the conditions under which the work has to be carried out and their impact on pricing.
* Difficulty to access the site
* Limited space on the site for vehicle movements
* Type of soil and depth of water table
* Availability of space for storing materials on site
* Availability of materials, their sources and prevailing market prices
* Local availability of skilled and unskilled labor, prevailing wages for workmen
* Source and cost of water needed for construction
* Power and lighting source, and the cost of erecting, marinating and dismantling power connection to the site
Time for completion
The bidder then estimates the length of time the work will take and the number and category of permanent staff suggested by the nature of the work for construction management . This helps to calculate the establishment charges.
The value of any temporary works needed to commence the construction and to clear away on completion, such as temporary office required for construction management purpose, store sheds for building materials, access road, water supply, depreciation of construction equipments, insurances, taxes, etc