How we saved our client over $700,000

Sorrento, Victoria - Design, Tender & Value Management

I want to walk you through a recent project where our process made the difference between the project proceeding and being cancelled. I'll explain each stage we ran, why we ran it, and the benefit it delivered to the owner.

Where the project stood when we were engaged.

Build Success Partners was engaged after the project had completed conceptual design and design development. The owner wanted the remaining documentation completed in a way that improved construction efficiency without compromising the tender process.

That work needed to be managed by a construction professional who understood current building markets, construction methodology and how builders price risk. The design team had done its job — developing the design and addressing the regulatory requirements. Our role was different. We brought a buildability and procurement lens to the documentation before the project went to market.

The benefit: the owner went to tender with documentation that builders could price sharply and confidently, rather than documentation that invited padded pricing to cover unknowns.

Why competitive pricing mattered

Competitive pricing is essential in today's building market. It is particularly important for institutional and retail investors, but it is just as important for private owners and developers who may not be familiar with construction pricing, subcontractor markets, supplier options or the way risk is priced into a tender.

On this project, the owner wanted three things: a clear scope, better coordinated documentation and sharper pricing. Everything we did was directed at those three outcomes.

Stage 1 — Expressions of Interest: pre-qualifying the right builders

Before going to tender, we organised and ran an Expressions of Interest process to pre-qualify builders who could meet the owner's specific requirements. We weren't just testing capability and price — we tested availability and willingness to meet specific contract conditions.

The benefit: the owner only spent tender time on builders who were genuinely suitable, available and prepared to contract on acceptable terms. No wasted rounds, no dead-end bids.

Stage 2 — Running the tender

Once the design reached a suitable stage of completion, we commenced the tender process. We set the tender terms and conditions, prepared tender forms to standardise responses so bids could be evaluated on a like-for-like basis, answered bidder queries and built trust with all parties so the outcome could be properly assessed and respected.

The tenders came back competitive, complete and on time. That was no accident — it happened because issues and queries were dealt with clearly and promptly during the tender period.

The tenders ranged from around $2.8 million up to more than $3.3 million — a spread of close to $500,000, with the highest price more than 17% above the lowest. That spread alone illustrates the benefit of a properly run competitive tender: without one, an owner has no way of knowing where their builder sits in that range.

The benefit: the owner received genuinely comparable bids, a tender field that took the process seriously, and clear visibility of the market. Builders price better when they trust the process.

Stage 3 — Value management: when the prices came in high

The tender prices came in higher than the owner expected. (Note: Cost planning had not been carried out on this project). Rather than accept that, we examined the assumptions and pricing from each bidder. The objective was to identify where savings could be made, and where builders had priced risks that could be better managed by the owner.

We developed and implemented a value management and cost reduction strategy with a clear goal: reduce cost, manage risk more efficiently, and protect the design intent of the works.

This was where the process delivered its greatest value. We compared the bids line by line, identified areas for further review, developed alternative subcontracting strategies and sat down face to face with the two preferred bidders to help them produce their best and final offers.

Trust was essential to that exercise. Both bidders complimented the process in separate communications with the owner.

The benefit: a negotiated value more than $700,000 below the lowest tender, a saving of around 26% delivered by a detailed and robust value management process, without compromising the design intent.

How we worked with the owner throughout

Throughout the process, we communicated clearly and regularly with the owner. Technical issues were explained in plain language and regulatory complexity was worked through so the owner could make informed commercial decisions at every step.

Build Success Partners acted independently, without conflict of interest or bias, and maintained transparency and accountability throughout. We don't take commissions from builders and we don't have a preferred builder to protect. Our only interest was the owner's outcome.

The result

As a result of our involvement, more than a quarter of the cost — around 26% — was removed from the best price as tendered. Had the owner simply accepted the highest tender, they would have paid more than $1.2 million — around 37% — above the final negotiated outcome. That saving meant the difference between the project proceeding or being cancelled.

By the end of the process, the major risk and cost issues had been identified, discussed and locked in. That gave all parties a much stronger basis to proceed with confidence.

A note on the detail

We've deliberately written this case study in broad terms, with the figures rounded to protect the identity of the project and the confidentiality of the bidders' pricing.

If you're genuinely interested in understanding how we achieved this result, book a meeting with me. With the owner's blessing, I can sit down with you and take you through the figures in detail — what we did, how we did it, and where the savings actually came from.

The client has also very kindly offered to be available to anyone who would like to speak with him directly about his experience and the benefit he received from Build Success Partners' input.

Book a meeting: https://enquire.buildsuccess.au/

Jeremy Bacon

Director, Build Success Partners