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What to watch in the market

📐 Article6 min read

What you will learn Four things to watch, what already works, one test that checks everything, the direction the market is taking, and what to do as a client.

Budgeting practice changes slowly. Four things show the direction, and one simple test shows where a particular project stands.

1. Four things to watch

In order of importance, and the first is the most influential. It concerns the conditions of the procurement.

What to watch Why
Whether contracting authorities require a common structure public procurement practice shapes the private sector too
Whether design contracts begin to provide for a schedule of works and quantities it determines who prepares the structure
Whether the use of machine-readable models widens it makes calculating quantities cheaper
Whether the standard is updated the current version dates from 2005

Public procurement is a large part of the Estonian construction market and its requirements shape habits. The public procurement regime is covered in a separate guide, including the 2026 amendments.

2. What already works

Two things argue against the impression that nothing exists. A standard and published recommendations both exist.

Professional providers of construction measurement services classify forecast budgets and schedules of quantities according to the current standard on the classification of construction costs, which means the standard is used in practice and not only in theory. And according to professional sources, the software used for measuring quantities also reads model-based formats.

The tools and the structure exist and are in use. What is missing is asking for them in an ordinary procurement, which is the conclusion of the whole guide.

3. One test that checks everything

A check question formulated in a professional source, simpler than the rest of this guide put together. The answer shows whether tenders are comparable.

If the builder handed the same tender tomorrow to a bank, to a site supervisor or to another construction professional to read, would they understand exactly what is to be done for that price. If the answer is no, the tender is not sufficiently structured.

The test is useful precisely because it requires no budgeting skill. The same source recommends asking directly, in the case of the cheapest tender, what has been left out of the price, and offers a better question than asking about price: does this price include every item of work needed to move in and obtain the use permit. That question covers most omissions.

4. The direction the market is taking

Three observations, all from material aimed at the Estonian market. They describe the situation as it stands.

According to professional sources, the surest approach is to send every builder the same design, the same intended state of completion and the same list of works to be included in the price. According to the same source, the probability that a cheap tender becomes more expensive in the course of the works grows the more is left open. And the same source stresses that the pricing of variation works must be agreed before the works begin.

That such recommendations are being published shows the understanding is spreading: the direction exists, the question is the speed. The shift takes years.

5. What to do as a client

Three steps require no waiting, and the third has the greatest effect. It is providing the quantities.

Use the test to check an existing tender. In the case of the cheapest tender, ask what has been left out. And agree the pricing of variations before the works begin, as covered by the article on variations.

Summary and four practical rules

Four things are worth watching, of which the most influential is public procurement practice, since it shapes private-sector habits too. Providers of construction measurement services already classify forecast budgets according to the current standard and the software reads model-based formats, so the tools and the structure exist and only the requirement is missing. One test checks everything without any budgeting skill, and a better question than asking about price is whether the price includes every item of work needed to move in and obtain the use permit.

Four rules: watch public procurement practice, which shapes private-sector habits. Use the readability test, which requires no budgeting skill. Ask about omissions directly, especially with the cheapest tender. Agree the pricing of variations before the start, not after.

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

Three things in order of importance, the most influential being what the client itself requires in the conditions of the procurement. There is no need to wait.

Yes, two things: the standard for classifying construction costs and recommendations published in the field. The impression that nothing exists does not hold.

With a check question formulated in a professional source, which presumes no budgeting skill. The answer shows at once whether the tenders cover the same content.

Slowly. The publication of recommendations shows the understanding is spreading, but the shift takes years, so a client should not wait for it.

Construction budgeting and cost control