Principles of Construction Cost Assessment During Preparation for Tender

Construction cost assessment during bid preparation is the most tedious and responsible stage. Evaluators have to take into account a multitude of various factors affecting construction cost. They include the following in case of the conventional construction pattern: the chosen methods and technologies of facility construction; options of construction provision with machinery and mechanisms, labour and material resources; conditions of payment for executed works and supplied resources, which affect the formation of financial flows during construction. The construction schedule illustrates the time association of all construction processes and is the basis for determination of the actual volume of the required resources and funds at each time point. Given the many-sidedness of the arising problems, construction cost assessment should be conducted based on the following principles: construction schedule optimization; accounting of market cost of resources; generating the best plan of construction resource provision; cost minimization and financial flow optimization; risk accounting; project approach. Using these principles during assessment of facility construction cost within the framework of bid preparation allows increasing its competitive ability according to the main winner choice criteria-construction cost and periods.