A Case Study of a Negotiated Tender within a Small-to-Medium Construction Contractor: Modelling Project Cost Variance

This research explores the failure of competitively tendered projects in UK construction industry to procure most suited contractor(s) conduct works. Such work may have equal relevance for other developed nations globally. seeks teach clients and their representatives that “lowest price” does not mean “best value”, by presenting a case study successfully negotiated tender undertaken small-to-medium enterprise (SME) contractor; SME studies are relatively scant academic literature. By applying “lessons learnt” principle, this improve future practice through development novel alternative procurement option (i.e., negotiation). A mixed philosophical stance combining interpretivism pragmatism was used—interpretivism critically review literature order form basis inductive discuss negotiation as viable route, analyse perceptions tendering procurement. The methods used follow three-stage waterfall process including: (1) pilot study; (2) quantitative analysis data; (3) qualitative data collection via focus group. Our underscores need advise importance understanding scope works allowed within submission before discounting it based solely on price. In addition, we highlight failings competitive tendering, which results increased costs project duration once commence site. These findings provide new contemporary insight into industry, with emphasis contractors, existing relationships, open-book negotiation. illustrates adverse effects early cost estimates produced without first securing true buildability programming. concludes an involves contractor involvement environment, third-party control.