A low tender number feels like a win before the build even starts. But in industrial construction, Christchurch projects that end up costing the most often started with the lowest price on the table. Owners, QS teams and finance sign-offs feel it when the number that looked best on day one isn’t the number they pay. Here’s where those costs hide, and what to check before you sign.
Key takeaways
- A tender priced 10%+ below the rest of the field usually means missing scope
- Provisional sums for drainage, ground conditions and boundary connections are where real costs hide
- A longer build programme can cost more in lost rent than the tender ever saved
- Ask what’s excluded before you sign: fit-out, service connections, site supervision
- We’ll read through your tender with you, free of charge, even if it doesn’t lead to a job for us
What's the Real Risk of Choosing the Cheapest Tender?
The lowest number on the page rarely shows the real cost of the build. Industrial construction projects in Christchurch carry site-specific variables, such as ground conditions and boundary service connections, that a stripped-back tender can leave out. Once those costs resurface mid-project, you’re locked into a contract with little room to push back.
What's Usually Missing from a Tender That Looks Too Good?
Scope, nearly always. A builder chasing the win trims provisional sums to figures that don’t match your site.
Take drainage: one company might allow $50,000, a flat standard rate. Another, having built several sheds in the same part of the region, prices it closer to $200,000 because they know what that ground will demand. Guess which number gets left off the tender, then added back once the ground’s dug up.
Before you sign, ask your builder to show you:
- How provisional sums were calculated, not just the final total
- Whether internal fit-out is included, or priced as an extra
- Who covers the cost of connecting services at the boundary
Exclusions deserve the same scrutiny. Every company defines them differently, so what’s included in one tender might sit outside another. Line up the exclusion lists across every quote before you compare the pricing, or you’re not comparing the same build at all.
How Do Ground Conditions Change Your Final Price?
Ground conditions can add tens of thousands before construction even starts.
A brownfield site with a history of industrial or agricultural use can carry contaminated soil that needs removing at real cost. Sites in Rolleston and other flood-prone parts of Canterbury can require raised floor levels, adding real cost before you’ve added a single square metre of usable space. A builder who knows the region prices for this upfront.
Why Does the Build Programme Matter as Much as the Price?
Because time costs money too. A tender that’s $50,000 cheaper but runs four months longer can cost you far more in lost rental income than it ever saved on paper. Watch how variations are handled too: some contracts add margin, overheads and a processing fee to every change, turning a modest adjustment into an expensive one.
How Can You Tell if a Quote Is Accurate?
An accurate tender explains provisional sums, includes site supervision, and prices in ground conditions.
Signs of an accurate tender:
- Provisional sums explained line by line
- Site supervision and reporting included
- Ground conditions and flood requirements priced in
- Timeframe backed by a realistic build programme
Signs of a gap in scope:
- One flat figure for drainage, fit-out or services
- No mention of who manages the site day-to-day
- Silence on existing site conditions
- A build time that looks too fast for the scope
If two tenders differ by more than 10%, the gap is almost always down to scope. Ask both builders to walk you through it side by side.
What Do We Need to Give You an Accurate Estimate?
Just the address, your intended use for the building, and your timeframe. From there, we run the district planning checks, talk with structural engineers, and tell you what’s achievable on that site, even before you’ve secured the land.
Where Does Our Tendering Process Differ?
We keep design, quantity surveying and consenting in-house for every industrial building construction project we take on. It’s why we’re one of the industrial construction companies locals return to for complex builds. You can see it play out on Cochranes of Canterbury’s 15,000m² logistics facility in Ashburton. We back that up with monthly reporting, fortnightly meetings, and a live site feed for owners managing the build from outside the region.
Working through feasibility at the beginning, including high-level cost estimates and return considerations, provides clarity on what is achievable and financially viable.
This approach ensures decisions are based on long-term performance rather than short-term cost savings.
Get a Second Opinion Before You Sign
As one of Christchurch’s most established industrial builders, we’re happy to read through your tender line by line, free of charge, even if it doesn’t lead to a job for us. Explore our design, consent and project costing capabilities, or talk to our team about your next industrial construction project.
