top of page
Search

Clients Should Choose Value, Not Lowest Price

Writer: Gerard GrahamGerard Graham

Updated: Mar 7, 2024

I regularly review tenders and continue to see a varying price/quality ratio. Just recently I was involved in a substantial tender for an extension to a well-respected fee-paying school in Belfast. A firm of building surveying and project management consultants were acting as Managing Agent on behalf of their client. I was disappointed to see that the criteria for tender evaluation was simply lowest price. I queried this with them and asked why they decided to allocate zero points to quality. Unsurprisingly I got a pause followed by a wobbly answer, something along the lines that it was due to 'time pressure'. Ultimately it costs less time for the Managing Agent to evaluate a tender which is simply down to price, so unless there is an incentive to do so, I cannot see why the default position will change from lowest price. Unfortunately, that is unsustainable for progressive contractors that need to make a fair and reasonable profit to re-invest in their staff and apprenticeships to safeguard the future of the construction industry. Hopefully things will change in the private sector, but I doubt it.



Photograph by Brett Jordan.

 
 
 

Comments


Subscribe

Join us on mobile!

Download the Spaces by Wix app and join “GG Consulting” to easily stay updated on the go.

Scan QR code to join the app
Download on the App Store
Get it on Google Play

©2025 by Gerard Graham Consulting

bottom of page