Eight Cost Items Commonly Missed in Quotations
A scope-based quotation review covering preliminaries, logistics, testing, coordination and other frequently underpriced obligations.
A low quotation is not necessarily competitive if the scope has not been priced completely. The risk usually appears after award, when an obligation is found in a drawing, specification, preliminaries clause or interface note but no allowance exists in the price.
Professional tender preparation begins with coordinated information. HKIS tendering guidance emphasises complete and appropriate tender documents, checking drawings against specification clauses, identifying information deficiencies and applying a consistent measurement and checking process. A subcontractor can use the same principles when reviewing an enquiry.
1. Project preliminaries and management
Allow for supervision, coordination meetings, permits, safety submissions, progress records, temporary facilities, insurances and bonds where they fall within the subcontract scope. A trade price based only on measured permanent work may not cover the time-related cost of performing the contract.
2. Access, protection and temporary works
Consider access equipment, working platforms, opening-up, temporary support, protection of completed work and reinstatement. On fit-out and renovation projects, protection and phased access can require more labour than the permanent installation.
3. Delivery, handling, storage and disposal
The supplier’s delivered price may not include restricted delivery hours, booking systems, hoisting, horizontal distribution, off-site storage, return trips, waste sorting or disposal charges. Confirm where delivery ends and who is responsible thereafter.
4. Testing, commissioning and statutory submissions
Identify testing equipment, witnessing, specialist attendance, reports, certificates, authority submissions, re-testing and commissioning support. MEP and specialist packages often remain incomplete commercially even when physical installation is nearly finished.
5. Design, coordination and production information
Check responsibility for shop drawings, builder’s work information, coordinated drawings, calculations, samples, mock-ups, BIM input and as-built records. “Design and build” wording may transfer more coordination and design responsibility than the estimator assumed.
6. Out-of-hours, phasing and restricted productivity
Night work, weekend work, occupied premises, small work zones, repeated mobilisation and permit-to-work arrangements reduce productivity. The estimator should state the assumed working hours and access conditions instead of silently using normal production rates.
7. Attendance and trade interfaces
Clarify who provides power, water, scaffolding, lifting, openings, sleeves, fire stopping, making good, testing attendance and protection. An interface matrix is more reliable than assuming another trade will carry an item.
8. Defects, warranty and close-out obligations
Allow for snagging, defects attendance, spare parts, operation and maintenance manuals, training, warranties, record drawings and return visits. Retention and delayed release also affect cash flow, even if they do not change the direct cost.
A disciplined quotation review
- Create a register of every drawing, specification, addendum and enquiry document received.
- Build a scope matrix showing included work, excluded work, by-others items and unclear interfaces.
- Measure or price from one controlled document revision.
- Record every query and the pricing assumption used while waiting for a reply.
- Check quantities by trade and location, then perform a high-level bulk check.
- Reconcile supplier and subcontract quotations to the same scope, quantity and programme.
- State exclusions and qualifications clearly in the final submission.
Fictional example
A ceiling subcontractor prices ceiling boards and suspension only. The enquiry also requires night delivery, protection to an operating retail area, access towers, coordinated reflected ceiling drawings, fire stopping around services, two mock-ups and return attendance after testing.
If those obligations are not priced or qualified, the apparent margin in the measured rates may be consumed before the main installation is complete.
Final quotation checklist
- The document register is complete and revisions are current.
- Scope and interfaces are written down.
- Preliminaries and time-related obligations are allowed.
- Logistics and access assumptions are stated.
- Testing, submissions and close-out requirements are included.
- Supplier quotations match the required scope and validity period.
- Exclusions do not conflict with mandatory tender requirements.
- Arithmetic, quantities and major rates have been independently checked.
When professional support may help
A commercial review may be useful when the enquiry contains multiple drawings and specifications, when design responsibility is unclear, or when the price must be submitted before major queries are answered. The review should identify scope gaps and assumptions; it cannot remove risks that remain unresolved in the contract.
Professional references
- Tendering. The Hong Kong Institute of Surveyors, Association of Consultant Quantity Surveyors and Hong Kong Construction Association, November 2012.
- Procurement Strategy. The Hong Kong Institute of Surveyors and Association of Consultant Quantity Surveyors, July 2021.
- Hong Kong Standard Method of Measurement of Building Works, Fourth Edition. The Hong Kong Institute of Surveyors, HKSMM4.
This article is for general commercial QS education and reference. It is not legal advice or project-specific professional advice. Actual entitlement, valuation methods and notice requirements must be checked against the relevant contract documents.