# Running a Fair Fit-Out Tender: The Process, Step by Step

> A fit-out tender process is the sequence by which a client gets comparable, competitive prices from contractors: shortlist on capability, issue one complete tender pack, hold a site visit, answer every query to all bidders, level the returned bids, hold structured clarification meetings and award in writing. Its purpose is bids that price the same work under the same rules.

## A tender is fair when every bidder prices the same thing

Most problems blamed on a contractor after award were created during the tender.
Bids came back pricing different scopes, one bidder learnt something on a phone
call the others never heard, the drawings changed halfway through, and the
decision was made on a number nobody could fully explain. The project then
starts with a contract whose scope is less settled than it looks, and the
difference returns as variations priced without competition.

The common belief is that a tender is about getting the lowest price. **A tender
is really about getting prices you can compare.** Competition only works if every
bidder prices the same pack, sees the same answers, works to the same deadline
and is judged on criteria they knew in advance. That is what "fair" means here,
and it protects the client as much as the bidders.

This article is about the process. Reading the returned bids line by line, once
they are in, is covered in [comparing fit-out quotes line by line](/blog/comparing-fit-out-quotes-line-by-line),
and judging the contractor itself, including references and site team, in
[choosing a fit-out contractor](/guides/choosing-a-fit-out-contractor).

## The tender process at a glance

| Stage | What happens | What makes it fair | What goes wrong |
| --- | --- | --- | --- |
| Shortlist | Pre-qualify contractors on capability before inviting prices | Same criteria applied to every firm | Inviting firms you would never appoint, to "test the market" |
| Tender pack | Issue drawings, specification, BOQ or brief, contract terms, programme and site rules | One complete pack, issued to all at once | Incomplete design, missing site rules, unclear pricing basis |
| Site visit | Bidders inspect the space and the building's constraints | Same access and same information for all | Answers given verbally to one bidder |
| Queries | Bidders submit questions in writing | Every answer issued to all bidders as an addendum | Private answers; late changes without extra time |
| Return | Bids received by a fixed deadline in a set format | Same deadline, opened together | Late bids accepted; inconsistent pricing formats |
| Levelling | Bids normalised to the same scope | Adjustments recorded and explained | Comparing totals before exclusions |
| Clarification | Structured meetings with the leading bidders | Same agenda and questions for each | Negotiating by playing one bid against another |
| Award | Recommendation, approval, letter of award, contract | Decision traceable to stated criteria | Starting work on a verbal award |

**ISO 10845-1** sets out generic processes, methods and procedures for a
construction procurement system intended to be fair, equitable, transparent,
competitive and cost-effective. Few private fit-out clients adopt it formally,
but its principles are a useful test of any tender process.

## Shortlisting: decide who could win before asking for prices

Only invite contractors you would genuinely be willing to appoint. Before the
tender, check each firm on the same criteria: comparable projects of similar
size and type, capacity to take on the work at your dates, ability to deliver
the services packages, financial standing, the site manager they would assign,
and their approach to health and safety on an occupied building if that applies.

A short, serious shortlist produces better bids than a long one. Contractors
put real effort into pricing when they believe they can win, and the client can
level and interview every bidder properly.

## The tender pack decides the quality of the bids

Bids can only be as consistent as the documents they price. A complete pack
usually includes:

- **Instructions to tenderers**: the deadline, the format of return, the
  validity period required, how queries are handled and the evaluation criteria.
- **Drawings and specification**, at a stated stage of design, with the approved
  make list for key items.
- **The pricing basis**: a bill of quantities, a pricing schedule or a
  performance brief, with the method of measurement stated where quantities will
  be re-measured. **IS 1200** is the method of measurement commonly referenced
  for building works.
- **Draft contract terms**: payment, retention, liquidated damages if any,
  insurance requirements, variations and defects liability. The way the contract
  allocates risk is explained in [turnkey vs item-rate fit-out contracts](/compare/turnkey-vs-item-rate-fit-out-contract).
- **The programme and constraints**: target dates, access, working hours, lift
  and loading rules, and the landlord's fit-out guidelines.
- **Scope boundaries**: what the landlord, nominated parties or the client's
  other contractors will do, and where each package stops.

The choice between a BOQ and a performance brief follows the design. A BOQ
against developed drawings gives the most comparable bids. A performance brief
suits design-and-build, where bidders contribute design, but then the brief has
to state outcomes clearly enough to compare. How the procurement route shapes
this choice is covered in [contract structures for interiors projects](/guides/contract-structures-for-interiors-projects).

## During the tender: site visit and the query log

**Site visit.** Every bidder should see the space, the services, the access route
and the building's constraints. Hold a joint visit or separate visits with the
same information given, and record what was said.

**Query log.** All questions should come in writing to one named person. Each
answer goes to every bidder, without identifying who asked, as a numbered
clarification or addendum that forms part of the tender documents. Keep the log:
it is the record of what the bids were based on.

**Changes to the pack.** If the drawings or scope change during the tender, issue
the change to all bidders and consider extending the deadline. A change sent too
late to price properly will be priced as an assumption or an exclusion.

## Levelling and clarification: compare, then question

Once bids are in, level them before ranking them: line up exclusions,
assumptions, allowances, makes and the services boundary, and record every
adjustment made. The detail of that work is in the line-by-line comparison
article linked above.

Then hold clarification meetings with the leading bidders, using the same agenda
for each. Ask the named site manager to attend. Ask how they read the programme,
what they see as the risks, what their exclusions mean in practice, and how they
will price changes. Construction project management guidance such as **IS 15883
(Part 1)** treats procurement as one of the managed processes of a project, and
the same discipline applies here: write down what was asked and answered, and
confirm any agreed changes in writing to the bidder.

If your process allows a best and final offer, ask all remaining bidders at the
same time, on the same basis. Do not reveal one bidder's prices to another.

## Award: put it in writing before work starts

Make a written recommendation that explains the decision against the stated
criteria, get it approved, then issue a letter of award or the contract itself.
If a letter of intent is used to start early work, it should say what work it
authorises, up to what limit, and what happens if the contract is not concluded.
Collect the contractor's insurance certificates and any security before site
access. Then inform the unsuccessful bidders.

## Common mistakes

- **Inviting too many bidders.** Effort per bid falls and levelling becomes
  unmanageable.
- **Tendering an unfinished design as if it were complete.** Bids fill the gaps
  with assumptions, which return as [variation orders](/blog/variation-orders-fit-out-why-a-change-costs-more).
- **Answering a query by phone.** One bidder now prices on different information.
- **Changing the scope late without more time.** The change is priced as an
  exclusion.
- **Leaving the evaluation criteria unstated.** The decision cannot be explained,
  and bidders cannot price to it.
- **Bid shopping.** Using one bidder's price to push another down damages the
  tender and future ones.
- **Starting on a verbal award.** Scope and terms are then settled after work has
  begun.

## What to ask before you issue the tender

- Is every bidder on the list a firm we would genuinely appoint?
- Is the design at a stage that supports the pricing basis we have chosen?
- Does the pack state the deadline, return format, validity and evaluation
  criteria?
- Are the landlord's rules, working hours and scope boundaries included?
- Who is the single point of contact for queries, and how will answers be issued?
- Is the tender period long enough for proper pricing?
- Who approves the award, and what will the contract look like on day one?

## Standards referenced

Construction procurement processes, methods and procedures in **ISO 10845-1**;
method of measurement of building works in **IS 1200**; construction project
management guidance in **IS 15883 (Part 1)**. Tender procedures for a private
project are set by the client, and the contract terms, letters of intent and
award documents should be settled with the client's legal adviser; the scope and
specification are for the project's designers and engineers to confirm.

## Frequently asked questions

### How many contractors should we invite to a fit-out tender?

Enough to be competitive, few enough that each bidder takes the work seriously and you can evaluate every bid properly. Many clients invite a small shortlist, often three to five, after a capability check. Inviting many firms tends to reduce the effort each puts in, and makes levelling and clarification much harder.

### Should the tender use a BOQ or a performance brief?

A BOQ priced against developed drawings gives the most comparable bids and suits a design that is largely settled. A performance brief, which states outcomes and leaves design to the bidder, suits design-and-build where the client wants bidders' design input. The choice follows how complete the design is. Mixing the two without saying which governs is what makes bids impossible to compare.

### What is a tender query log?

It is the record of every question a bidder asks during the tender and the answer given. In a fair process each answer is issued to all bidders, without naming who asked, usually as a numbered addendum or clarification that becomes part of the tender documents. It ensures nobody prices on information the others do not have.

### Can we negotiate with the lowest bidder after the tender?

You can clarify and, if your process allows it, ask for a best and final offer. What undermines a tender is sharing one bidder's prices with another to drive the number down, or changing the scope for one bidder only. If scope changes after bids are in, issue the change to all remaining bidders and let them all re-price it.

### How long should the tender period be?

Long enough for bidders to read the documents, visit the site, ask questions, get prices from their own suppliers and subcontractors, and price properly. That depends on the size and completeness of the pack. A period that is too short produces bids full of assumptions and exclusions, which cost more time to level than they saved.

### Should we tell unsuccessful bidders why they lost?

It is good practice to inform them promptly once the contract is signed, and a short debrief helps them and you in future tenders. Keep it to how their bid compared on your stated criteria, without disclosing other bidders' prices. A process that bidders see as fair attracts better contractors next time.

## Sources

- [ISO 10845-1](https://www.iso.org/standards.html) — Construction procurement - processes, methods and procedures
- [IS 1200](https://standards.bis.gov.in/website/published-standards/department-wise) — Method of measurement of building and civil engineering works
- [IS 15883 (Part 1)](https://standards.bis.gov.in/website/published-standards/department-wise) — Construction project management - guidelines - general

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Source: https://hagerstone.com/blog/running-a-fair-fit-out-tender