Quantity Surveying·7 min read·15 January 2025

Pre-Contract Services Explained: What Happens Before Construction Starts

The pre-contract phase sets the financial foundation for your entire project. Here's what good pre-contract quantity surveying involves.

AW
Adam Whitehouse
AssocRICS, MCIArb, MCIOB · RICS Registered Valuer

The pre-contract phase — everything that happens before a building contractor is appointed and construction begins — is where projects are won or lost. Cost overruns that materialise on site almost always have their roots in poor pre-contract management. Investing in thorough pre-contract services is one of the most effective ways to protect your budget.

What Are Pre-Contract Services?

Pre-contract services cover all the quantity surveying and cost management work carried out before the main construction contract is awarded. This includes:

1. Feasibility and cost advice

2. Cost planning and budgeting

3. Specification and procurement advice

4. Tender documentation

5. Tender management and evaluation

6. Contract negotiation and award

Stage 1: Feasibility and Early Cost Advice

The earliest cost advice is typically given at feasibility stage, before the design has been developed. This might be based on nothing more than a site area, a brief description of the proposed building, and knowledge of comparable projects.

At this stage, the quantity surveyor's job is to give the client a realistic sense of whether the project is financially viable — and to identify any assumptions or risks that could significantly change the cost.

Feasibility cost advice should always include:

  • A clear statement of what is and isn't included
  • Approximate cost ranges, not false precision
  • Identification of the main cost risks
  • Stage 2: Cost Planning

    As the design develops, the quantity surveyor produces increasingly detailed cost plans at each RIBA stage (see our Cost Planning Guide for more detail). Good cost planning is iterative — the budget is set early and then managed through the design development process.

    Key disciplines in cost planning:

  • Maintaining cost discipline as the design develops
  • Flagging immediately when design changes have cost implications
  • Identifying value engineering opportunities
  • Ensuring the design stays within the client's approved budget
  • Stage 3: Procurement Advice

    Before going to tender, the procurement strategy needs to be agreed. This includes:

  • Selecting the procurement route (traditional, design and build, two-stage)
  • Selecting the form of contract (JCT, NEC, or bespoke)
  • Deciding whether to use a single contractor or specialist packages
  • Agreeing the tender list
  • Volarex advises on all these decisions, drawing on knowledge of the local contractor market and the specific requirements of the project.

    Stage 4: Tender Documentation

    The quality of tender documents directly affects the quality of contractor bids received. Poor tender documentation leads to:

  • Inflated prices (contractors add contingency for scope uncertainty)
  • Incomparable bids (contractors have priced different things)
  • Disputes during construction (contractors claim extras for items they "didn't price")
  • Good tender documentation includes:

  • Clear scope of works / employer's requirements
  • Full specification or specification notes
  • Bill of quantities (NRM2) or schedule of rates
  • Programme requirements
  • Contract particulars
  • Information and queries procedure
  • Stage 5: Tender Management

    Once tender documents are issued, the quantity surveyor manages the tender period:

  • Fielding and logging contractor queries
  • Issuing addenda where clarifications or changes are needed
  • Monitoring contractor progress (to anticipate withdrawals)
  • Receiving and opening tenders
  • Stage 6: Tender Analysis

    Received tenders are analysed in detail:

  • Arithmetic check of bills of quantities
  • Comparison of each section across all tenders
  • Analysis of significant rate differences (unusually low rates may indicate pricing errors)
  • Clarification of anomalies with contractors
  • Report to client with recommendation
  • Stage 7: Contract Award and Negotiation

    Once the preferred contractor is selected, the quantity surveyor manages the contract award process:

  • Negotiating commercial terms (payment terms, retention, fluctuations)
  • Reviewing any qualifications to the tender
  • Agreeing contract particulars
  • Reviewing and executing the contract documents
  • Why Pre-Contract Services Matter

    The pre-contract phase is where you have maximum influence over project cost with minimum expenditure. A project that starts on site with a realistic budget, a well-appointed contractor, and clear contractual terms is far more likely to finish on budget than one that was rushed to site before the foundations of good contract management were laid.

    Volarex provides comprehensive pre-contract services for projects of all sizes. Contact us to discuss how we can help you start your project on the right financial footing.

    AW
    Adam Whitehouse
    AssocRICS · MCIArb · MCIOB · RICS Registered Valuer

    Founder of Volarex, with over 20 years' experience in residential surveying and commercial quantity surveying. Adam provides RICS home surveys across Yorkshire and the UK, and full QS services for developers and contractors.

    About Adam →

    Have a Specific Question?

    Contact Adam directly for advice specific to your property or project.

    Contact Us