What I Would Check Before Accepting a £1m Residential Construction Tender

A £1m contract is not automatically a good contract. The larger the project, the more damage it can do if it is underpriced, badly programmed or accepted without understanding the risk.

First I would interrogate the information. What exactly have we priced? How developed are the drawings and specification? What assumptions have been made? What remains subject to design development?

Then I would look at margin, not simply contract value. Are labour and materials realistic? Are subcontract quotations current? Are preliminaries and management resource properly allowed for? What happens to the margin if the programme moves?

Cashflow is equally important. When will the business actually be paid? What expenditure must be carried first? Are there major deposits, material purchases, retentions or payment terms that create a working-capital gap?

Then comes programme and resource. Can we genuinely deliver the project in the proposed period with the information, procurement and people available?

I would also assess the client and professional team. A substantial residential project may last a year or more. Decision-making, information flow, contract administration and working relationships matter.

Finally I would ask whether the project genuinely suits the business. Winning work is not the objective in itself. The objective is taking on work that can be delivered properly, profitably and without compromising existing commitments.