A tender estimate needs a reviewer who can challenge the win

The team wants this job badly

Imagine the salesperson believes a tender is strategically important and the estimator has spent days trying to make the price competitive. By the final review, everyone involved wants the number to work.

A fresh reviewer can test the assumptions without being asked to justify the target price. The purpose is a better decision, not an automatic veto on ambitious work.

Define what the reviewer should challenge

Choose the assumptions most likely to change the result: quantities, labour productivity, scope exclusions, supplier validity or programme constraints. Give the reviewer the estimate basis and relevant documents.

Avoid asking for a general sign-off with no time or information. A signature does little if the reviewer cannot identify what they were expected to assess.

Use evidence rather than confidence

Ask which assumptions come from current quotes, measured quantities or comparable completed work. Identify those based mainly on judgement and explain why the judgement is reasonable.

business.gov.au's pricing guidance recommends considering costs and the broader basis for pricing decisions. A challenge review helps test whether the estimate's cost assumptions support the proposed commercial choice.

Source: business.gov.au: Choose a pricing strategy

Record disagreements clearly

If the reviewer thinks a productivity allowance is too optimistic, record the difference and its effect rather than averaging two numbers without explanation. Ask the relevant person to resolve missing evidence where possible.

Keep an unresolved assumption visible to the decision-maker. The review should not create a false impression that everyone agreed when a material concern remains.

Keep approval separate from checking

The person authorised to accept commercial risk may choose to proceed despite a concern. Record that decision and the reason, along with any condition that must be addressed before submission or acceptance.

Do not make the checker responsible for a commercial decision outside their authority. Equally, a decision to proceed should not erase the factual concern from the job handover.

Try a focused review on the next bid

Select one upcoming tender and give a suitable colleague time to challenge its three most important assumptions. Track the questions, responses and any resulting change to price or scope.

After the job, compare those assumptions with the outcome. That feedback makes the review more useful over time and helps a business that wins frequently determine whether its confidence is supported by actual performance.