Comparative variability in tender bids for refurbishment and new build work

This paper presents the results of a comparative analysis of the variability in tender bids for refurbishment and new work. The investigation has been prompted by a suggestion by a large body of UK Contractors that they were subjected to higher risks in refurbishment work and that this was reflected in the tender bids for such work. Utilizing the premise that the risks in submitting a tender is related in some way to the dispersion in the tenders submitted by competitors, it was found that the variability in tender bids for refurbishment work was consistently higher than that for new build work, thereby supporting the Contractors' claims. Risks in the context of this investigation means both uncertainty and the results of uncertainty, and will include both the lack of predictability with regard to outcomes and all elements of the problem structure.