As a subcontractor how do you price work … do you take off the quantities then apply your standard rates against the items?

This is what we typically see.

But how often do you really scrutinise the programme during the bid stage to see that:

a. It’s workable

b. You can comply

c. Your standard rates are sufficient

In this post we’re talking about pricing so we’ll put aside a & b (these should be standard checks you’re not going to issue a bid based on a programme that’s not workable or you can’t comply with hoping that you can change it if you win the job .. are you??).

The programme may change your rates due to:

  • Non continuous working
  • Out of hours / weekend working
  • Working alongside other trades
  • Out of sequence working

The consequences of which may lead to increased input costs & commercial risk due to:

  • Inefficiencies
  • Disruption
  • Additional management time
  • Increased labour cost
  • De/remobilisation costs

Reviewing the programme and factoring into your price the above may or may not affect your price – but it will mean that it is the right price and having the right price means that you have significantly reduced your commercial risk.

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