Pricing
and Quotes

Managing Your Quote

Before you can win a job, you have to quote it. That quote is based on your interpretation of the scope at the time or based on a site visit, an enquiry form, a set of drawings, BOQ, a set of minutes or a scrap of paper with a sketch on it.

Enquiries come in all different forms, from text messages, scraps of paper to formal enquiries with 100s of CAD/PDF shop drawings, Revit files, BOQs, project presentations, MC terms of agreement. Generally the more info you have the better you can price. However, the MC will often dump 100s of documents on you, 80% of which serve no purpose to your scope and only waste time sifting through. This is intentional, it allows them to claim you were provided with the full scope, if you didn't review it properly the risk is yours. So watch out.

If you're lucky you were given a clear and accurate specification, and a programme you're expected to work to. The problem is that by the time the subcontract arrives, those documents may have been replaced, changed or updated. You may not have seen the new versions, especially programmes.

Projects are rarely a complete and defined scope when you tender, even smaller jobs are subject to change. More complex works are constantly changing, everything from moving walls to new routes of HVAC or electricals can have an impact on your scope. It's not uncommon to revise quotes time and time again, sometimes with minor changes, sometimes with significant changes that have an effect on your T&Cs.

Once you sign, the contract scope, as defined in the Works Information and drawings attached to the subcontract, becomes your obligation. Not the scope as you understood it when you priced it. The two can differ significantly. Your document control process for managing revisions is a critical aspect of keeping up with changes and being useful if or when you need to revisit your pricing methods at a later date.

Fortunately, by the time you come to signing a contract, the rates for most of the job are agreed in principle. Any scope changes just need to be addressed.

What the contracts say about your quote

The Rule isn't just industry wisdom, it's written into every standard form. Here's how each handles the relationship between your quotation and the signed contract.

Where each document sits

Before you can argue terms you need to know which documents exist on the job, where each one sits, and what each one binds you to. Tap any box to see what it does.

Why Pricing is the Big One

Pricing is where the money's won or lost, that doesn't mean the rate you apply to a specific scaffold or hour of labour. It means the considerations you make when tendering. The clauses and provisions submitted within the quote, what you've considered and what you've excluded. Every other module is in some way, damage control for what happened during the tender.

Most subcontractors price quickly, then spend the job arguing. This module discusses how to price properly using our own industry guidance from NASC.

The pricing could and should consider everything you may or may not need to provide to the MC. As an example it could be the number of designs considered, or how the design package is presented. Is it shop drawings only, or 3D modelling. Does it consider third party certifications. Have you allowed for carrying time, or is that on the MC to move it mechanically. These things are where it can become unclear at a later stage if it hasn't been considered at pricing and then rolled in to the contract.

Quick definitions, commercial terms used throughout this module

• Flow-down: where terms from the main contract are passed down to your subcontract. If the MC's main contract has 5% retention and 60-day payment, the MC will try to flow those terms down to you. If you don't read the main contract, you take them blind.
• LADs (Liquidated and Ascertained Damages): a pre-agreed sum the contractor must pay for each day or week of delay past the completion date. Set in the contract before work starts.
• Retention: a percentage of every payment held back by the client to secure your performance. Typically 3% to 5%. Half is released at practical completion, the other half at the end of the defects period.
• Pay-when-paid: a clause that says you only get paid when the MC gets paid. Now void under the Housing Grants, Construction and Regeneration Act 1996 (HGCRA) except in upstream insolvency.

Estimate, Quotation, Tender

In English law Estimate, Quote, Tender all mean the same thing, sometimes more informally referred to as price or bid. Each contains an offer capable of unconditional acceptance. The widely held belief that an estimate is non-binding is wrong. However, the quote is often replaced by the documents that follow it, specifically the contract once established and agreed. Making sure you carry over the right terms from your quote into the contract is critical to protecting yourself.

Battle of the Forms

A contract is formed when an offer is accepted. That acceptance could state it's in accordance with the MC terms and omits yours, a response that could be "We accept subject to our standard terms" this is a counter-offer, it kills the original. Then you can accept, reject or counter. This could go on for multiple revisions when considering negotiations and push back from either side. It's not uncommon for clients to take your rates and scope and copy paste them in to their own format, or send a purchase order with minimal wording and just the rates. These should be countered as soon as possible to include your T&Cs. Silence = acceptance by default.

It's easy to get lost with back and forth of documents. A track change document is useful to send back with a rejection. This will help you to keep up with comments and changes, it also provides a record of change should you need to revisit it at a later date. We've provided a template in the downloads.

In practice both sides keep firing terms back and forth until they feel their position is safe. However, once you mobilise kit and manpower, your bargaining position quickly diminishes, you're no longer a focus and the conclusion of the contract can slow down. It's not uncommon to proceed on a LOI (Letter of intent) or a small value order, while the contract is being finalised. Accepting work under this structure is common, but brings its own set of risks. Work to get as much agreed as possible while the pressure is on the MC to get the work started.

The NASC 17-Point Quote Checklist

NASC is a great resource and offers a lot of guidance in the contractual management of projects. NASC CG8:18 sets out 17 items every scaffolding quote should address. The first nine sit in the offer itself. The last eight (asterisked) can sit in your standard terms of trading and don't need repeating each time but should be referenced in the quote "standard terms and conditions apply".

Items 1 to 9, in the offer

1. Identify the site, parties and corporate status. Date and reference number on the quote.
2. State a lapse date for the offer.
3. Provide accurate, detailed descriptions of the work: type of scaffold, safe working loads, lifts, dimensions.
4. Itemise the price of each separate scope of work, including extra hire, totalled to the contract price.
5. State hourly labour rates (daywork rates) and any limits on their use.
6. State the discount position, discounts apply only if specifically agreed and tied to payment terms.
7. Identify who is responsible for surface preparation.
8. Describe the method of tying and the client's provisions.
9. State the period of notice required to commence work and anticipated erection and dismantling times.

Items 10 to 17, in standard terms

10. Payment terms compliant with the Construction Act (Part 8, LDEDC Act 2009).
11. Retention position, none unless specifically agreed.
12. Equipment responsibility on site and charging for losses or damage.
13. Allocation of responsibility for property damage and personal injury.
14. Method for measuring and valuing variations.
15. Mechanism for delays and extensions of time.
16. Method of dispute resolution: adjudication, arbitration or litigation.
17. E&OE (Errors and Omissions Excepted).

Pre-Tender Information

NASC CG13:18 lists 12 categories of information the client should give you before you price. Without it the Scaffold Plan can't be drawn up properly. It's not legally binding for the information to be provided, if you choose to go ahead with less information, that's fine, it just increases your risk. If there are unknowns within the tender, then specify those unknowns, and clearly omit them from the pricing considerations you've made.

The twelve categories CG13:18 says the client should provide

1. Site Location Details, site plans, access and parking restrictions, nature of site, working hours.
2. Anticipated Usage, what works are carried out from the scaffold, which trades use it, boarding requirements, lift configuration.
3. Programme, scaffold commencement, hire period, scaffold completion. Phasing, partial completion, adaptions and alterations.
4. Nature of Supporting Structure, supporting ground suitability, supporting structures, imposed loads, back-propping.
5. Inherent Hazards, asbestos, fragile materials, power cables, services, railway proximity, restricted access, public interface.
6. Loading Tower or Bay, strengthened sections to receive material handling loads or packaged materials.
7. Cladding or Sheeting, unclad, debris netting or solid plastic sheeting. Fire-retardant requirements.
8. Tying, method of tying, client provisions, restrictions to main structure, listed-building constraints, occupied premises.
9. Decking, lapping, plywood overlay, anti-slip strips, gap-cover protection.
10. Safety Requirements, additional guardrails, trap doors, self-closing doors, loading bay gates, signage, tagging, inspections, harness anchorage, rescue plan.
11. Access and Egress, stair towers, ladders, number of access points, internal versus external ladders.
12. Commercial Considerations, form of contract, LADs, design requirements, road closures, pavement licences, notice periods, permits, possession times, discounts, retention, payment terms, delays and EOTs, insurance minimums, welfare, hoisting and craneage, dispute resolution.

The Four Pricing Structures

There are different ways and methods to price a job. Each shifts risk between you and the client differently. Know which one you're under. You may have more than one pricing model on a project or with a main contractor.

The chosen pricing structure may be defined by you, or it may come from the MC in a form of BOQ with pricing MOM (method of measure). Depending on the project size and scope you may have one MOM, or you may have multiple. It could be a fixed rate remeasurable contract with a daywork provision for modifications. Or a simple daywork rate for direct hire with an uplift percentage for equipment hire.

Lump sums carry a lot of risk, be sure of what the volume is, the design, and the schedule. If the volume increases or is more than considered, that's your risk. However there are still variation provisions should scope change from that was agreed.

The four structures

• Lump sum, one fixed price for a defined scope. You carry quantity risk.
• Schedule of Rates, priced list of activities, quantities measured as work proceeds. Client carries quantity risk; you carry rate risk.
• Daywork, time and materials, paid by the hour. Last resort, not first choice.
• Target cost (NEC C/D), cost up to a target, with overruns and savings shared.

Schedule of Rates

A priced list of activities used to value variations to a lump sum contract. Rates agreed at award; quantities measured as work proceeds. NASC CG11:17 has a 32-item standard schedule from the NASC Scaffolding Contract 2018, plus a height-band uplift table (6m, 12m, 18m, 24m+). Treated by courts as a fair industry benchmark.

Daywork, Last Resort

Two ways to express daywork rates

• All-inclusive hourly rate, separate rates for normal time, time-and-a-half, double time
• Basic rate plus percentage addition, using RICS Definition of Prime Cost

The 7-day submission rule

Daywork sheets must be submitted to the MC for signature within 7 days of the work. Late = the claim may be invalid.

Qualification Clauses

NASC CG12:19 collects 11 sections of scaffolding-specific clauses. Bolt them onto your quote or carry them in your standard terms to close common risk gaps. This obviously doesn't cover all the risk as there maybe project specific risk to be considered. CG12:19 is general to common risk.

The clauses every quote should consider

• Tying responsibility (1.2 to 1.6)
• Foundation suitability (3.1 to 3.7)
• Pavement licence responsibility (4.1 to 4.12)
• Boards moved by others, at customer risk (5.1, 5.2)
• No sheeting design unless agreed (6.6)
• 110V power and welfare provided free (7.6, 7.7)
• Permit-to-work delays at daywork (7.16)
• 7-day contra-charge notice (9.11)
• Statutory interest reservation (9.5)

Pre-Contract Meetings

The Pre-Contract Meeting (PCM) or the Post-Tender Clarification Meeting (PTC) are your last chance to negotiate before work starts. The MC will call to review the bid. At this stage you're close to award. However it's not guaranteed, they may call you and up to two other bidders for this. The competitor rates may be similar, the terms or considered scope may not. This could be where the MC tries to squeeze and separate the pack based on payment terms, additional scope, reducing rates to get a better deal. At this stage it's important to know what terms or considerations you've included that really matter and which ones you can live with.

A lot of companies attend without preparation and agree to unfavourable terms under pressure and get rolled over by the terms agreed in this meeting.

Know what matters to your costs, your price and the successful delivery of the job and what you can manage. Don't be afraid to negotiate. You'll get more respect and give the client more confidence that this isn't your first time doing this.

Don't sign anything in the meeting. Ask for the minutes of meeting (MOM) and/or the PTC (post tender clarification) to be sent to you for review. Take a day or so and read and re-read, if you're happy, sign and return. That document will form part of the contract as record of what has been agreed.

Four pitfalls to avoid

• Clients get their issues resolved; you don't
• In the euphoria of being awarded, you agree to things you'll regret
• You're railroaded into on-the-spot decisions
• You're asked to agree to documents (H&S, quality) without reading them

Risk Pricing

Some risks can't be quoted away. They have to be priced. The big three: LADs, retention, and onerous payment terms flowing down from the main contract.

12.1 LADs in your subcontract

LADs are unusual in scaffolding subcontracts but main contractors increasingly try to flow them down. NASC CG19:18 recommends resisting LAD sums above 10% of order value. The modern test for whether a LAD is enforceable comes from Cavendish.

LADs across the three forms, and a critical absence

12.2 Retention

Standard 3%. Challenge anything above 5%. Half released at scaffolder's PC (not main works); rest at end of defects. Do not let it be released solely against the main contract PC, your scaffold finishes earlier and your retention should follow.

12.3 Payment terms

Apply it: how do you handle each risk?

Estimation and Pricing Software

There are more and more scaffolding-specific pricing/estimation software coming on the market that can help you manage and track this process, create quotes and help to automate, structure and streamline this process. Like all software there is a learning curve and adaptability, some are more flexible than others. They're great for carrying through terms, and considering the requirements. However these systems don't replace or omit your responsibility of knowledge and consideration to what is being priced and quoted. The system is only as good as the information in it, and how well it's used.

Some software to consider using could be:

• Scaffplan BOSS
• Hi-Viz
• Smartscaff

Systems like Scaffplan for SketchUp are basic easy-to-learn tools which can help you quickly and accurately draw a scaffold, provide an accurate BOQ and a drawing. These can also be exported in 3D and used in the quote so the client can see what you've actually considered.

The 2026 Cost Environment

Two pressures hitting every tender right now:

• Labour, the NJC (National Joint Council for the Building Industry, the body that sets industry-wide pay rates and conditions for hourly-paid building operatives) increases rates annually each April. Use the current April rate, not your last estimate, or you'll be pricing labour below cost by Q3.
• Materials, steel tube, fittings, boards and sheeting still subject to inflation, supply chain disruption, customs duties. Build in fluctuation for tenders with execution more than three months out, or shorten the validity period.

Late Payment Reform on the Way

The UK government's late payment reform programme will reshape how every scaffolding subcontract is priced. From 2027 onwards, B2B payment terms will be capped at 60 days (target 45 days), mandatory statutory interest at 8% plus base rate will apply to every late payment, and a full ban on retention payments under construction contracts is on the agenda. Plan for it now, you'll be pricing into the new regime within the validity period of any quote you issue today.

Seven Highest-Risk Commercial Pitfalls at Tender Stage

1. Allowing the client to change scope, programme or conditions at the PCM without re-pricing.
2. Attending the PCM alone, no second pair of eyes on the deal.
3. Signing the minutes at the meeting rather than reviewing them in your own time.
4. Being intimidated, bullied or rushed into on-the-spot decisions.
5. Accepting LAD flow-down above 10% of order value without challenge.
6. Accepting retention without challenge, especially the 5%+ rates or release tied to the main works PC.
7. Accepting payment terms beyond 60 days B2B (or 30 days for public-sector work) without an explicit, justified agreement.

Action Checklist

Case Study: The Listed Building Tender

Eight decisions, one per learning objective in this module. Walk through the case as if it were on your desk. Each wrong call costs real money. Each right call sets up the next decision. The best path takes you from tender enquiry to a signed, protected job, applying every principle from this module in order.

Downloads

Practical tools for pricing and contract handover. Save them and use them on the next quote.