Estimating and tendering procedures
It is important to note the estimator’s prime role is to estimate, as accurately as possible, the true cost of doing the work on the site. This excludes any overheads and profit management may wish to add. This net cost is called the estimate. The tender price is that which is quoted to the client (the employer) and is the estimate plus the overheads and profit. If the estimator has a proven record of being accurate with the estimate, the more confidence management has in making strategic decisions as to the amount of overheads and profit they should add to be truly competitive, and being surer of attaining their planned financial returns for the business.