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What a client can require

📐 Topic6 min read

What you will learn Why change begins with the client, what can and cannot be required, when to require it, what happens if nothing is required, and who counts as a client in this guide.

A construction company calculates in detail. The structure in which it presents the result, however, depends on what it is asked for.

1. Why change begins with the client

Three reasons, and they run through the whole guide. A company does not change the form of its tender without a reason, because the present form works for it. No single tenderer can impose a common form alone, since it is not theirs to decide. And the client sets the conditions of the procurement, which is why only the client can prescribe the form.

According to professional sources, the client's awareness and requirement is the lever that should move matters towards a common tender form. This is therefore not a Quostra position but a conclusion already formulated in Estonian professional literature: the standard exists, companies calculate in detail, and what is missing in between is only the requirement.

2. What can and cannot be required

The boundary is simple and worth remembering word for word. A selling price is negotiable, a purchase price is not.

Can be required Not worth requiring
A common structure in which prices are presented showing costs and margin separately
Quantities, provided by the client or presented in a common form subcontractors' purchase prices
Unit prices, which are selling prices the company's internal accounts

The three on the left are covered in more detail by the article on three things to ask for, and none of them reveals the company's costs or margin. All three already exist within the company, so the requirement creates no new work for it but changes how the result is presented.

A client is entitled to know what is inside the price. It does not need to know how much the tenderer earns. Crossing that boundary does not produce a better price and may lead the strongest tenderer to withdraw.

3. When to require it

One moment that cannot be replaced later, and this is the most practical conclusion in the whole guide. It is the drafting of the procurement conditions.

The requirement must be made before tenders are invited. Once tenders have been received the structure can no longer be changed, since that would mean a new procurement, and once the contract is signed unit prices can no longer be agreed, since competition has ended.

The three requirements cost little in preparation, and their absence cannot afterwards be repaired at any price. Pricing variations without unit prices is meanwhile a cost that runs for the whole construction period, as covered by the article on variations.

4. What happens if nothing is required

Four consequences, all of them arising from one decision that was not taken. The decision concerns the form of the tender.

Consequence When it appears
Tenders are not comparable at evaluation
A missing item of work does not show during construction
Variations are priced without competition throughout construction
Costs cannot be tracked at line level throughout construction

The last two run for the whole of construction, as covered by the article on tracking costs. The decision that would have prevented all four would have taken one page in preparation.

5. Who counts as a client in this guide

Three roles, to which it applies equally, though the volumes differ. The lever is the same for all three.

A private individual building or reconstructing. An apartment association commissioning work. And a company or institution commissioning construction. A public contracting authority has separate rules in addition, which are covered in a separate guide.

All three have the same lever: the client sets the conditions of the procurement, and the form of the tender follows them. The form cannot be changed afterwards.

Summary and four practical rules

Change begins with the client, because a company does not change the form without a reason and no single tenderer can impose a common form alone, which is why professional sources name the client's requirement as the lever. What can be required is a common structure, quantities and unit prices, all of which already exist within the company and none of which reveals a margin, whereas showing costs and margin separately is not worth requiring. The requirement must be made before tenders are invited, since after they are received changing the structure would mean a new procurement, and after the contract competition has ended.

Four rules: put the structure in the procurement conditions, not in later correspondence. Hold the boundary: what is inside the price, not how much anyone earns. Agree unit prices while competition still lasts. Bear in mind that four consequences follow from one decision left untaken.

This article offers professional orientation as at the date of verification. It replaces neither a quotation nor the assessment of a competent specialist.

Frequently asked questions

Unit prices, a common classification, and a statement of whether the quantities are binding. The boundary is simple: a selling price is negotiable, a purchase price is not.

When the procurement conditions are drafted, because that moment cannot be replaced later. The form of the tender is not changed once tenders have arrived.

No, and it is not worth asking. A unit price is a selling price and it gives the client comparability without the company's costs or margin becoming public.

Yes. The same lever applies to three roles, including private clients and apartment associations, though the volumes differ: the client sets the conditions of the procurement.

Explore the articles in this guide

Construction budgeting and cost control