How to choose the most economically advantageous construction tenders?
Everything you need to know about construction tenders
Are you tendering in construction and receiving several offers? Chances are your eye will soon fall on the one with the lowest price tag. Yet in some cases, it may still be more advantageous to go for the more expensive price tag. This has to do with the overall EMVI score, about which more in a moment. We explain why it can be more optimal to opt for the more expensive offer rather than the one with the ‘lowest price’.
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A client has a construction project planned, time for a tender. What exactly is a tender? It simply means that a client defines a task precisely and in detail and then puts it out as an application to several contractors. They can submit their tenders. This allows the client to compare and contrast the tenders very easily. The actual awarding of the contract to a company is called awarding.
Choosing the most advantageous construction company: EMVO versus EMVI
By nature, we tend to choose the offer with the lowest price. This selection factor is also known as the EMVO, or most economically advantageous tender. Yet progressive clients are increasingly looking at other selection criteria as well. For instance, a construction company with a higher cost price may still win the tender.
This is because in the construction world, attention is paid not only to costs, but also to sustainability, nuisance for neighbours, nuisance for (road) users and raw materials in general. When these factors are taken into consideration, a completely different picture can emerge.
This is also known as EMVI, or the most economically advantageous tender. Below, we explain how the EMVI score is calculated.
Factors EMVI: calculating points
EMVI works on the basis of a points system, where various factors are given a point from 1 to 10 to calculate which construction company is the best choice. We would like to outline a fictitious example using the table below.
Construction company A
Construction company B
€150.000 for total work. Score: 8
€200.000 for total work. Score: 6
Operates with a conventional diesel generator. Score: 5
Works from an environmentally friendly solar generator. Score: 9
Uses conventional concrete and asphalt. Score: 5
Uses recycled asphalt and wooden constructions. Score: 8
Nuisance to local residents
Takes five weeks to complete the work. Score: 7
Takes eight weeks to complete the work, but ensures that the road is always clear between 8:00 am – 10:00 am and 4:00 pm – 6:00 pm. Score: 9
As you can see, with construction company A, you will spend €50,000 less for the work. So construction company A is the clear winner when it comes to the EMVO, or most economically advantageous tender. However, construction company B scores a better total, scoring better on all points except cost. They therefore score the highest in terms of EMVI, or most economically advantageous tender.
EMVI plan often requested by clients
As a construction company, scoring well on EMVI can be extremely important in winning over a client. Nowadays, clients are increasingly asking for an EMVI plan during construction tenders. Here, the client itself indicates which scores can be achieved on which criteria.
In short, try to excel in as many areas as possible to win the contract. Read the tender instructions carefully and fill in the plan as concretely as possible. Do not necessarily aim for the lowest price, but rather show that you aim for a good balance and that you also take the environment and the surroundings into account. This is how you show the client that you offer excellent value for money!
Increase sustainability EMVI without higher costs?
There are plenty of tips for a higher EMVI score. Depending on the exact contract, you could, for example, organise a creative brainstorm internally to see where points can be gained. Revisiting the price can also be an option.
Another option, which is attractive both for the sustainability score and financially, is to replace an emitting conventional diesel generator with an environmentally friendly solar one. And that is exactly what we at Volta Energy can help you with.
Afraid that this sustainable alternative will cost a lot? No need to be! In fact, we have already demonstrated several times that a sustainable Solar Generator can save a lot compared to a conventional diesel generator. So, replace it and score points!
Environmentally-friendly solar power generator tailored to the job!
So if you, as a construction company, are not yet using a Solar Aggregate, it is high time to take action because:
Solar Aggregate is better for the environment than a conventional diesel aggregate, which is a plus anyway and gives your company a more sustainable image.
It also boosts the EMVI score.
It also allows you to save money, allowing you to make more profit yourself or to reduce the price and thus also increase the EMVI score.
So it’s a win-win-win situation, both for client, contractor and our planet. Moreover, at Volta Energy we have solar generators in various sizes, from 6 kVA to 120 kVA. We provide tailor-made advice on which model best suits the job. This way, you go for the most effective solution!
Questions about the advantages and possibilities of our sustainable solar aggregates? Customised advice or a quotation? Then contact us now.
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