Tendering Your Build Is a Costly Disaster

“At some point, someone’s paying for that tender.” Tendering sounds fair on paper. Same drawings, three builders, pick the best price, move on. But once you understand what it actually costs to price a job properly, and how tendering rewards omissions, risk loading, and variations, it starts to look less like a “market test” and more like a costly way to kick off a relationship. In this episode, Hamish and Matt break down what a tender really is, why the classic draw, bid, build model creates isolation and blame, and why negotiated tendering (paid pre-construction with clear costing stop points) changes the incentives for everyone. They also get into the uncomfortable bits architects and clients don’t always see: the real cost of tendering, why prices can come back wildly different, how gaps in documentation become legitimate variations, and why trust matters more than pretending you can compare builders like-for-like. If you’ve ever wondered why a project can look “fully resolved” and still blow out, or why builders hate competitive tendering, this one will probably ruffle a few feathers. ## CHAPTER MARKERS 00:00 Introduction 01:05 The Classic Tender Process And Why It Starts Badly 02:10 What “Resolved Documents” Really Means 04:19 What Gets Left Out Becomes Variations 05:12 Why Projects Go Over Budget And Who Gets Blamed 09:06 Tender Vs Negotiated Tender Depends On The Builder 11:17 Risk Loading And Why Tendering Increases Markups 13:01 Variations In Tender Jobs Vs Negotiated Jobs 16:00 Wild Price Gaps And Why Tender Numbers Can Be Useless 23:00 What A Negotiated Tender Actually Is 35:26 Trade Quotes, RFIs, And Reducing Risk Before Site 41:22 Tendering Feels Like Isolation **Our Sponsors:** Pro Clima - https://mindful-builder.captivate.fm/proclima MEGT - https://mindful-builder.captivate.fm/megt Biz Tech Guru: https://www.biztechguru.com.au/ **Connect with us on Instagram:** @themindfulbuilderpod **Connect with Hamish:** Instagram: @sanctumhomes Website: https://www.yoursanctum.com.au/www.yoursanctum.com.au/ **Connect with Matt:** Instagram: @carlandconstructions Website: https://www.carlandconstructions.com/www.carlandconstructions.com/