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The normalisation of financial aspects of tender. Returns perhaps most complex part of tender analysis and requires someone with high degree of skill and experience in reviewing tender return to properly analyze them
Number of methods & techniques at disposal of quantity surveyor to normalise tender.
Average of submitted costs.Highest price from tender return.Cost plan allowance for particular element.
Each method had its advantages and disadvantages and there is no correct method key is to be consistent in application. These can be worked through with preferred contractor up on selection.
Up on analysis, if there are any particular rates or costs that seem extremely out of place or unduly high or low then tender's attention should be drawn to item and they should be given chance to confirm or explain apparent disparity.
No useful purpose is served in spotting potential errors in pricing or rates and keeping this from tenderer.The idea of tender analysis process is to ensure that right price is being paid for proposed Project.A duty to make tenderers aware of any thing that seems to be an error.If a bill of quantity or pricing schedule is not used then price may be submitted in various forms ( although it is not recommend that proposed form in tender documents).This may give rise variances in descriptions attached to prices in pricing documents.Queries also may raised on basis of description to ensure like- for- like comparison is carried out.The pricing of preliminary and overheads should also be normalize or equalise.This can be done by using either RICS nrm1 or nrm2 .
The normalisation of tender's must ensure that all tender's have priced preliminary in same way. So that element of work can be ring fenced.If there are any provisional sum in tender these must also be equalised if any tender's come back with concerns regarding adequacy of provisional sum then it must be changed for all tenderers.If day works is to be used on project then thses submitted rates are also analysed and taken in to account in over all tender analysis.
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