Board members who come from other industries are often surprised that a restoration tender doesn't give them one fixed number. Here is why restoration is usually unit priced, what that means for the amount the board approves, and how to keep the final value predictable.
- Lump-sum pricing suits work whose quantities are known. Most restoration quantities aren't known until the concrete is opened.
- Unit pricing pays for what is actually installed — no more, no less.
- Approve a budget that includes a contingency sized by your engineer, not just the tender value.
- Predictability comes from daily quantity tracking and regular reporting, not from the pricing model alone.
Two ways to price a job
Lump sum
The contractor commits to one price for a defined scope. It works well when the quantities are known — a new coating over a measured area, line painting, a defined number of fixtures. If quantities are uncertain, the contractor has to price that risk in, and the corporation pays for it whether or not the risk materialises.
Unit pricing
The contractor prices each type of work per unit — per square foot of partial-depth repair, per square foot of full-depth repair, per linear foot of crack or joint. The tender multiplies those rates by estimated quantities to produce a tender value. The contract is then paid on the quantities actually installed.
Unit pricing means paying for the repairs the building needs — not the ones a bidder guessed at.
Why restoration is usually unit priced
In a parking garage, much of the deterioration sits below the surface. Sounding gives a good estimate of where the hollow areas are, but the true extent only shows once the damaged concrete is removed. A lump sum for unknown quantities would leave someone carrying a gamble — and in practice that gamble ends up in the price.
Most tenders mix the two: unit rates for the repair items, and lump sums for well-defined items such as mobilisation, coatings or line painting.
What the board should approve
The tender value is the rates multiplied by the estimated quantities. The amount the board approves should be the tender value plus a contingency for quantity overruns. Ask the restoration engineer to size that contingency based on what the condition survey found — a structure in poorer condition warrants a larger allowance.
Keeping the final value predictable
- Start from a good survey. Measured quantities make the tender value realistic.
- Compare bids on rates. Require rates in the consultant's format so you are comparing like with like.
- Ask how quantities are tracked. On our projects, installed quantities are logged daily and reviewed with the consultant.
- Get regular updates. A running total against the budget lets the board see trends early — never at the end.
- File the close-out. Final quantities, as-builts and photos make the next estimate better.
