Contract tendering has the potential to bring or win significant business for a construction business, it is also an opportunity for a client to carefully consider and select the right contractor for the project.
- Evaluate Project Risks
- Comply with the project requirements and selection criteria
Construction Contract Risk
- Completion Risk – the risk that the project will not be completed, or will be completed
sufficiently late to affect the viability of the project.
- Construction Cost Risk – the risk that the project budget will be exceeded.
- Environmental Risk – the risk that the project will be sensitive to environmental and/or heritage issues, and/or environmental conditions of approval.
- Industrial Relations Risk – the risk that the project will be affected by industrial relations concerns.
- Technological Risk – the risk that the project will be sensitive to the application of new technologies.
- Operational Risk – the risk that the facility will not operate within the design specification.
- Market Risk – the risk that sufficient cashflow will not be generated by the completed facility.
- Political Risk – the risk that a change in government or in taxation legislation will affect the return on investment.
How to Identify Project Risks in Tendering