5 Advanced Strategies for Tendering & Estimating | KPMC

Clients assessing infrastructure tenders are looking for more than competitive pricing. They expect submissions to demonstrate a clear understanding of risk, cost certainty, and the technical demands of delivery. Yet many tendering processes still rely on standard estimating methods and legacy bid approaches that can’t meet these heightened expectations.

To compete effectively, contractors need structured, data-informed strategies that strengthen both their bid submissions and delivery readiness. At Kubri Project Management & Consulting, we apply advanced methods developed through our work on Australia’s largest infrastructure projects.

This blog explores five proven strategies we use to support clients in the construction tendering process, from improving project cost estimation to early market positioning.

Strategy #1: Applying Value Engineering Early Through 5D BIM

Value Engineering is a structured method for optimizing project designs to achieve their required functionality at the lowest total cost. It focuses on identifying opportunities for efficiency in materials and construction methods without compromising performance or quality.

This method is most effective when applied during tender preparation, rather than after contract award.

5D Building Information Modelling (BIM) – an extension of 3D BIM with cost and time data – supports value engineering during tendering by linking the digital design model with cost and time. This allows teams to test alternatives and immediately understand their impact on both budget and schedule.

At KPMC, we apply a structured value engineering process during tender development:

• Conduct functional analyses to clarify essential performance criteria.
  
• Identify opportunities for alternative materials, methodologies, or sequencing.
• Use 5D BIM to quantify the cost and time implications of each alternative.
• Validate proposals through engineering review to ensure compliance and performance standards are maintained.

On a Melbourne bridge tender, we replaced a traditional steel beam arrangement with a combination of mono-piles, cast-in-situ piers, and Super T beams. This alternative achieved a 40% cost reduction while maintaining the required structural performance. Modelling and validating this solution within the tender period was made possible through the early application of 5D BIM and structured value engineering.

Embedding these methods into the tendering and estimating process strengthens the submission by demonstrating technical rigour and proactive cost management.

Strategy #2: Adopting Probabilistic Risk-Based Estimating

Fixed contingency percentages are common practice in estimating, but they often lack structured risk evaluation. For complex infrastructure projects, this approach is inadequate; it risks either inflating costs unnecessarily or leaving bids vulnerable to unpriced risks during delivery.

A probabilistic risk-based estimating helps develop contingency allowances grounded in data and structured analysis. This method quantifies risk exposure to produce a range of potential outcomes rather than a single figure. By applying this approach, estimators can define tender prices with confidence levels aligned to project complexity, such as P70 or P80 certainty (a 70% or 80% probability that the actual cost will not exceed the estimated amount).

The process involves:

• Developing a comprehensive risk register that captures uncertainties related to design, site conditions, supply markets, and contract obligations.
• Assigning probability and impact assessments to each risk.
• Running simulations, including Monte Carlo analysis, to model potential cost and schedule outcomes.
• Calibrating contingencies to reflect the actual level of risk exposure instead of applying a standard percentage.

This structured risk assessment enhances the credibility of the bid and provides clients with greater transparency into how risk is priced and managed.

Strategy #3: Data-Driven Pricing Using Historical Data and Parametric Models

Early-stage estimating in infrastructure projects usually relies on incomplete design information. This limitation leads to either underpricing the bid or including conservative allowances that weaken competitiveness.

KPMC addresses this challenge through data-driven pricing models that combine historical project data with parametric estimating techniques.

Parametric models establish a relationship between key project characteristics (such as area, structural type, or material quantities) and cost outcomes, based on trends observed in previous projects. By referring to historical data sets, estimators can produce structured and defensible preliminary cost estimates, even when detailed designs are not yet available.

Our approach involves:

• Building and maintaining comprehensive databases of past project costs
• Identifying key cost drivers specific to project typologies.
• Applying statistical techniques (including regression analysis) to develop models that predict costs based on those drivers.
• Continuously updating these models as new data becomes available

This method is particularly effective during feasibility assessments or when preparing bids under compressed timelines.

Strategy #4: Developing Win Themes & Strengthening Bid Narratives

Non-price criteria can also play a decisive role in winning a construction tender, particularly in public infrastructure projects. Methodology, risk management, technical capacity, and contributions to social outcomes are all closely evaluated.

A Win Theme is the central idea or message that a bidder uses to position their proposal as the most suitable choice. It links the strengths of the bidding organization to the client’s priorities and is reinforced consistently across every section of the tender submission.

A well-crafted win theme ensures evaluators not only understand the technical competence of the bidder but also gain confidence in their ability to deliver outcomes aligned with the project’s broader objectives.

At KPMC, we approach win theme development through:

• A structured review of the client’s published objectives and evaluation criteria.
• Crafting specific value propositions aligned to these objectives, supported by project evidence and performance metrics
• Ensuring consistency of messaging across all technical and commercial submission components.
• Engaging subject matter experts to strengthen the credibility of the narrative.

In the Western Program Alliance, KPMC provided project management advisory services that included feasibility studies, pricing option reviews, and constructability assessments. These inputs helped address public sector priorities such as rail network safety and congestion reduction, ensuring the submission aligned closely with the asset owner’s objectives.

Strategy #5: Engaging Early to Strengthen Tender Readiness

In large infrastructure projects, tendering success often starts well before the formal Request for Tender (RFT) is issued. Contractors who engage early with clients and project stakeholders gain clearer visibility of project objectives and potential risks. This understanding enables a more informed and tailored approach to tendering and estimating.

Early engagement can take various forms:

• Participating in technical consultations and industry forums.
• Sharing technical insights or project experience that is relevant to upcoming scopes.
• Releasing targeted statements that align with the client’s priorities.

By establishing market presence ahead of tender release, contractors reduce their reliance on pricing competitiveness alone. Instead, they enter the tendering process with a clearer understanding of client expectations and stronger positioning against evaluation criteria.

Strengthen Your Next Bid with KPMC

A successful tender is a statement of capability. Clients want to see a proposal that reflects a thorough technical understanding and a clear delivery plan. At KPMC, we help our clients achieve this balance with precise cost estimation, structured risk analysis, and carefully crafted bid strategies, giving each submission the depth and confidence it needs to stand out and win.

If you’re preparing to bid for an infrastructure project, we’re here to support you.

Talk to KPMC to learn more about how our tendering and estimating services can help you submit a stronger proposal.