- Estimated Cost
The estimated cost is a comprehensive estimate prepared by the announcing entity to determine the expected financial value of a project or required services before announcing the tender. This cost serves as a fundamental reference used to evaluate financial bids submitted by competitors and ensure they align with the available budget.
The estimated cost includes the following elements:
- Material Costs: The cost of purchasing raw materials or products necessary for the project.
- Labor Costs: Expected wages and salaries for workers and technicians involved in project execution.
- Operational Expenses: Any additional operational costs, such as electricity, fuel, or equipment maintenance.
- Financial Reserves: An additional percentage added to cover emergencies or unexpected expenses.
Preparing the estimated cost relies on precise studies including market research, analysis of current prices, and comparison with similar projects. The announcing entity may consult financial and technical experts to prepare this estimate.
Importance of Estimated Cost:
- Reference for Comparison: Used to compare financial bids and ensure they align with project expectations.
- Ensuring Competitiveness: Helps identify unreasonable bids (either too high or too low).
- Budget Management: Enables the announcing entity to allocate the necessary financial resources for the project effectively.
Despite its importance, the estimated cost should remain confidential until the evaluation phase is completed to ensure the integrity of the process and prevent its influence on submitted bids. If any applicant's financial bid is significantly lower than the estimated cost, explanations may be requested to ensure the seriousness of the bid.
Table of Content
- - Personalized Alerts
- - Alerts through WhatsApp and Email
- - Instant Search
- - Export to Excel
- - Excel Quantity Tables
- - Awarding and Proposals Data
- - Suppliers Data
- - Complete Data (including what was removed from Etimad)
- - Preparing Technical and Financial Proposals
Related Links
- ◾ Bidding in Government Projects
- ◾ Classification Certificates for Tenders
- ◾ Construction Tenders in Saudi Arabia
- ◾ Data Collection and Analysis in Tender Evaluations
- ◾ Are You Eligible to Enter a Tender?
- ◾ Preparing Tender Approval Documents
- ◾ Etimad Subscription Fee
- ◾ Local Content Preference
- ◾ Pre-registration in Etimad Tenders
- ◾ Organizing Unified Procurement via Endorsing Competitions
- ◾ Localization of Saudi Industries
- ◾ Excellence in Government Tender Offers
- ◾ Qualifying for Government Tenders
- ◾ Tender Application Guide
- ◾ What is the benefit of the Etimad Platform?
- ◾ Comprehensive Guide for Government Tenders
- ◾ Legal Compliance in Competition Accreditation
- ◾ Avoid These Mistakes
- ◾ Government Bidding System
- ◾ Etimad Platform for New Companies
- ◾ Pricing Services and Purchases
- ◾ Successful Bids
- ◾ Types of Tenders
- ◾ Regulations and Laws
- ◾ Tenders Guide
- ◾ Bid Evaluation
- ◾ Strategies for Winning Tenders
- ◾ Technical Standards for Tenders
- ◾ Preparing Technical Proposals
- ◾ Tenders and Investment
- ◾ Tender Strategies
- ◾ Electronic and Traditional Tendering
- ◾ Bid Evaluation in Tenders
- ◾ Modify Bid After Submission
- ◾ Finding Open Tenders
- ◾ Improving Winning Chances
- ◾ Participating in Government Tenders
- ◾ Criteria for Selecting the Winning Bid
- ◾ Obtaining Government Tenders
- ◾ Objecting to Tender Results
- ◾ Common Mistakes
- ◾ Documents Required for Tenders
- ◾ Steps for Submitting an Offer in a Tender
- ◾ What are Tenders?
- ◾ Etimad Platform for Government Entities
- ◾ Etimad Platform for Individuals
- ◾ Etimad Platform and Government Tenders
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