A tender is the formal process and documentation requesting prices and method statements, while a bid is your priced offer submitted in response to that tender.

In UK construction, clients issue a tender (RFP/ITT) and contractors submit a bid that is evaluated on price and quality. Typical SME bid-preparation costs run £500 to £4,000 per tender, or 0.3% to 1.0% of contract value for complex submissions. Region: Great Britain. Base date: Q4 2025. VAT: Costs stated ex VAT. Units: item, day, %, GBP.

• Cost Summary
• Assumptions and Methodology
• Definitions: Tender vs Bid
• How the Tender Process Works
• Typical Bid-Preparation Costs
• Quality Questions and Evidence
• Pricing the Bid
• Programme and Durations
• Regional Variation
• Inclusions and Exclusions
• Risks and Allowances
• FAQs
• Sources
• Key Facts & Assumptions (At a Glance)

This post is part of our professional business workflow series. For wider business systems and procurement hygiene, read Running a Successful Construction Business. If you need help structuring estimates that convert, see What Does a QS Include in a Cost Estimate? and our guide to Preliminary Estimating in Construction. For tools, compare Construction Estimating Software.

Cost Summary

Base date: Q4 2025. VAT: Ex VAT. Typical SME ranges for preparing a competitive submission:

• Pre-qualification (PQQ/SQ): £200 to £800 per submission or 0.1% of target contract value.
• ITT bid build (small works): £500 to £1,500 per tender, 1 to 3 staff-days.
• ITT bid build (complex): £1,500 to £4,000+, 3 to 10 staff-days including method statements.
• Bid bonds and warranties: Usually not required for small domestic works; framework or larger public sector may require evidence rather than payment.
• Post-tender clarifications: £200 to £600 typical internal time for responses and interviews.

Assumptions and Methodology

Costs reflect UK SME contractors and specialist trades responding to private tenders and lower-value public opportunities. Labour time includes estimator, project manager and admin support. Ranges exclude outsourced writing, legal advice, or third-party design. We map stages to common UK procurement steps and align pricing workflow to RICS NRM for consistent estimate structure.

Definitions: Tender vs Bid

Tender

The client’s formal request for prices and proposals. Often called an ITT, RFQ or RFP. It sets the scope, terms, return requirements and evaluation criteria.

Bid

Your response to the tender. A priced offer that includes your proposal, method statements and compliance evidence, returned by a deadline in the required format.

How the Tender Process Works

1. Opportunity identified: Direct invite, framework lot, portal listing or referral.
2. PQQ or Selection Questionnaire: Basic capability, references, policies, accreditations.
3. ITT issued: Scope, drawings, specification, evaluation weighting, return templates.
4. Clarifications window: Ask questions early; responses are shared with all bidders.
5. Bid preparation: Takeoff and pricing, quality responses, programme, risk register, prelims and OHP.
6. Submission: On portal or email in the required format. Check file names and version control.
7. Evaluation and interview: Price and quality scored per weighting. Prepare for scenario questions.
8. Award and debrief: Request feedback whether you win or lose to improve future bids.

Typical Bid-Preparation Costs

Use these defensible ranges to budget time and decide which opportunities to pursue.

Scope	Unit	Low £	High £	Typical £	Base date	Notes
PQQ/SQ submission	item	200	800	450	Q4 2025	Policies, references, capability statements
Small works ITT bid build	item	500	1500	900	Q4 2025	1–3 staff-days inc pricing and quality answers
Complex ITT bid build	item	1500	4000	2500	Q4 2025	3–10 staff-days, workshops, programme, risk
External bid writer	day	350	650	500	Q4 2025	Optional; improves quality submissions
Site visit and survey time	day	250	600	400	Q4 2025	Estimator or PM time
Design partner input	item	300	1200	700	Q4 2025	Outline temp works or buildability checks
Post-tender clarifications	item	200	600	350	Q4 2025	Responses and interview prep
Bid cost as % of contract	%	0.3	1.0	0.6	Q4 2025	Guide for opportunity costing

Quality Questions and Evidence

Expect scoring on health and safety, quality management, programme, social value and sustainability. Build a library of polished, UK-compliant evidence: RAMS approach, training, supply chain management, waste strategy, carbon reduction actions and case studies that match the scope.

Pricing the Bid

• Use a repeatable takeoff and estimating workflow aligned to RICS NRM so quantities and prelims are traceable.
• State inclusions and exclusions clearly in the bid return. Avoid vague allowances.
• Structure preliminaries by time-related, charge-related and one-off costs so evaluators understand value.
• Carry a concise risk register with quantified owner and treatment to de-risk negotiations.
• Price alternates or value options that reduce programme or maintenance without cutting quality.
• Use software to standardise outputs and reduce admin. See Construction Estimating Software.

Programme and Durations

• PQQ/SQ window: 1 to 2 weeks typical.
• ITT tender period: 2 to 4 weeks for small works; 4 to 6 weeks for complex tenders.
• Clarifications: Ongoing during the period, last responses 2 to 5 days before deadline.
• Evaluation and interview: 1 to 3 weeks after submission.
• Contract award and mobilisation: 1 to 3 weeks subject to conditions and approvals.

Regional Variation

Public sector tenders in England and Wales follow the Public Contracts Regulations with portal-based submissions and high documentation standards. Scotland and Wales have their own portals and guidance. Private residential and commercial tenders vary more in format and often prioritise programme and references over formal scoring.

Inclusions and Exclusions

Included in this guide: Typical UK tender process, bid-prep cost ranges, quality and pricing tips. Excluded: Legal advice on contract terms, detailed public procurement thresholds, and sector-specific social value metrics. Always read the ITT carefully and seek professional advice for contractual risk.

Risks and Allowances

• Bid-no-bid discipline: Use a gate checklist so you only chase opportunities you can win.
• Scope gaps: Clarify drawings and specs early. Carry provisional sums only where unavoidable.
• Inflation and lead times: Offer validity periods and substitution options where appropriate.
• Compliance risk: Maintain up-to-date policies, insurances and training records ready to attach.

Cost disclaimer: Ranges are indicative at Q4 2025 and depend on complexity, sector and return requirements. Always confirm time and cost against the specific ITT.

FAQs

What is the difference between a tender and a bid?

A tender is the client’s request for prices and proposals. A bid is your priced response to that request.

Is a tender legally binding?

The tender invitation itself is not a contract. The binding agreement arises when the client accepts your bid and issues a contract or order.

How much should I budget to prepare a bid?

Allow £500 to £1,500 for small works, rising to £1,500 to £4,000 for complex bids, or use 0.3% to 1.0% of the expected contract value as a guide.

How are tenders evaluated?

Usually on a weighted score of price and quality. Read the evaluation criteria and tailor responses to each question.

What documents belong in a bid return?

Price summary, detailed estimate or BoQ, method statements, programme, risk register, policies and evidence of experience.

Can I ask questions during the tender?

Yes. Use the clarifications window early. Answers are shared with all bidders.

How do I avoid underpricing preliminaries?

Split prelims into time-related, charge-related and one-off items. Align with RICS NRM so costs are transparent.

What is the right number of tenders to chase?

Focus on fewer, better opportunities where you meet capability, location, value and capacity requirements.

Sources

• GOV.UK public sector procurement policy
• RICS New Rules of Measurement overview
• Public Contracts Regulations 2015 overview
• Crown Commercial Service: Construction frameworks

Key Facts & Assumptions (At a Glance)

• Primary keyword: tender vs bid in construction
• Audience: Builder and trade professionals; SME main contractors and subcontractors
• Region: Great Britain
• VAT stance: Ex VAT
• Units: item, day, %, GBP
• Method: UK procurement steps with RICS-aligned estimating workflow
• How we calculated this: Normalised SME time and cost patterns for bids at Q4 2025

Next step: Request a Custom Estimate for your tender return, including takeoff, pricing and quality response support.

This post is part of our Running a Successful Construction Business series. For the full guide, read Running a Successful Construction Business.