15/08/2026
š” Saturday: Did You Know?
A tender price and the cost of doing the work are not the same thing.
A Contractorās tender is based on assumptions made at a particular point in time: productivity, resources, sequence, duration, quantities and market conditions.
Once construction begins, reality takes over.
The actual cost of an activity may bear little resemblance to the rate used to price it years earlier.
This is why, when analysing the financial consequences of events on a project, simply reaching for a tender rate does not always tell you what the Contractor actually spent.
Price is what was allowed. Cost is what was incurred.
Understanding the difference matters.