How to Identify Exclusions in Subcontractor Tenders
Why exclusions matter more than rates
Two tenders for the same package can differ by a few per cent on rates and by far more on scope. An excluded switchboard, crane, set of penetrations or authority fee can be worth more than the entire price gap between tenderers. Comparing totals without reading exclusions compares different jobs.
Where to look
- The exclusions list. The obvious place, but rarely the only one.
- Qualifications and assumptions. “Assumes clear access for a 20 t crane”, “Based on one mobilisation”, “Normal working hours only”. Each assumption is an exclusion of everything outside it.
- Notes under the price. “Price excludes GST” is an exclusion too, and a common source of 10% errors.
- “By others” and “by builder”. Often scattered through line descriptions.
- Provisional sums and allowances. Not exclusions, but the final cost can move.
- Covering letters and standard terms. Validity, escalation, payment terms, and sometimes scope limits.
Exclusions that commonly appear by trade
- Electrical: main switchboard, consumer mains, authority and network fees, data cabling, light fittings supplied by others.
- Plumbing and hydraulics: sanitary fixtures, authority fees, connection to mains, fire services, penetrations and fire sealing.
- Concrete: pump hire, testing, reinforcement supply, after-hours pours, curing.
- Earthworks and excavation: rock, dewatering, tipping fees, contaminated material, traffic control.
- Structural steel: cranage, painting or galvanising, site welding, shop drawings.
Treat this as a reading prompt, not a complete list. The only reliable list is the one in the tender in front of you.
Turning an exclusion into a number
In the worked example below, two electrical subcontractors price rough-in and fit-off. Subcontractor B excludes the main switchboard “by builder”.
Subcontractor A = $18,400 + $9,600 + $4,200 (switchboard) = $32,200.00 ex GST Subcontractor B = $17,900 + $9,100 = $27,000.00 ex GST (switchboard excluded) Like-for-like (rough-in + fit-off): A $28,000.00 vs B $27,000.00 → B lower by $1,000.00 Break-even for B = $32,200.00 − $27,000.00 = $5,200.00
That threshold is the useful output. If you know a switchboard for this job will cost about $4,500 from another supplier, B wins by roughly $700. If it will cost $6,000, A wins by $800. Either way, the decision now rests on a number instead of a guess.
Write the exclusion schedule
For each tender, record every exclusion and qualification, the scope component it affects, the price you have carried for it (or “unknown”), and the source of that price. Then send each tenderer a specific question for every item you could not resolve, and keep the replies with the tender.
How QuantDoc helps
QuantDoc extracts inclusions and exclusions from each quote with a source reference, marks scope components as priced, included, excluded, to be advised or not mentioned, keeps unknown costs out of the total, shows the break-even, and drafts clarification questions for you to send. Whether an exclusion shifts contractual risk is left to you and your advisers as an issue for professional review.
Example data · calculated by the QuantDoc engine
Two electrical subcontract quotes, one excluding the switchboard
What was quoted
- Subcontractor A: Rough-in $18,400, fit-off $9,600, main switchboard supply and install $4,200 (ex GST).
- Subcontractor B: Rough-in $17,900, fit-off $9,100 (ex GST). Exclusion: "Main switchboard excluded (by builder)".
INCOMPLETE — Subcontractor A is the lowest fully-priced quote, but Subcontractor B has unknown costs. No overall winner can be declared yet.
Line-by-line matching (3 items)
| Item | Supplier | Match | Normalised rate (ex GST) | Amount (ex GST) |
|---|---|---|---|---|
| Electrical rough-in | Subcontractor A | Exact equivalent | $18,400.00 / lump sum | $18,400.00 |
| Subcontractor B | Exact equivalent | $17,900.00 / lump sum | $17,900.00 | |
| Electrical fit-off | Subcontractor A | Exact equivalent | $9,600.00 / lump sum | $9,600.00 |
| Subcontractor B | Exact equivalent | $9,100.00 / lump sum | $9,100.00 | |
| Main switchboard supply and install | Subcontractor A | Exact equivalent | $4,200.00 / each | $4,200.00 |
| Subcontractor B | Missing item | — | Unknown |
| Supplier | As quoted (ex GST) | Like-for-like | Complete scope |
|---|---|---|---|
| Subcontractor A | $32,200.00 | $28,000.00 | $32,200.00 |
| Subcontractor B | $27,000.00 | $27,000.00 | Incomplete (supply unknown) |
2 flags raised · 6 clarification questions drafted
- Subcontractor B: supply not mentioned
- Subcontractor B: no matching item for "Main switchboard supply and install"
Frequently asked questions
Where are exclusions usually found in a subcontractor tender?
In a dedicated exclusions list, but also in qualifications, assumptions, notes under the price, “by others” remarks, the covering letter and the attached terms and conditions. Read all of them, not just the section labelled exclusions.
Is something excluded if the tender doesn’t mention it?
Silence is not an exclusion and not an inclusion. It is unknown. Ask the tenderer to confirm in writing whether the item is included and carry it as a risk until they answer.
How do I compare a tender with exclusions against one without?
Price the excluded scope separately (from another quote, your own estimate or a rate) and add it to the tender that excludes it. If you can’t price it yet, calculate the break-even: the most the excluded item can cost before that tender stops being cheaper.
Do exclusions change who carries the risk under the contract?
They can. How a qualification interacts with your head contract and subcontract terms is an issue for professional review. A comparison tool can list the exclusions and their cost effect, but not decide contractual entitlement.
Related
- Scope gap analysisFind scope gaps between competing quotes: excluded, not mentioned and to-be-advised items, and the break-even cost where the cheapest-looking quote stops being cheapest.
- Identify missing scope in tendersFind scope that tenders leave out: explicit exclusions, silence, TBA prices and quantity shortfalls, and how to price each gap before comparing totals.
- How to compare subcontractor quotesA step-by-step method for comparing subcontractor quotes fairly: define the scope, match line items, read exclusions and price the gaps before choosing.
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