The Two-Stage Approach
21st January, 2026
ERADICATING THE ADVERSARIAL TENDERING CULTURE
The escalating complexity of UK building legislation and the severe volatility of the macroeconomic climate have effectively destroyed the viability of single-stage competitive tendering for major projects.
The Problem: Forcing a contractor to provide a fixed-price lump sum on an incomplete design pushes excessive financial risk onto the supply chain far too early. To win the bid, contractors strip their initial prices to the absolute minimum, fully intending to exploit loopholes and rely on future variation claims to recover their profit margins.
The Impact: This adversarial structure pits the employer against the supply chain from day one, leading to an unsustainable landscape of protracted legal disputes, negative value engineering and compromised architectural quality.
The Evolution: The industry is executing a massive pivot toward Two-Stage Tendering. This collaborative methodology recognises that the greatest opportunities for risk mitigation and cost-saving occur during the early design phases – long before physical construction begins.
THE MARIS METHODOLOGY:
EMBEDDING EXPERTISE EARLY
Derisking the project lifecycle through Pre-Construction Services Agreements.
We champion two-stage procurement because it completely aligns the commercial outcomes of the employer, the design team, and the supply chain.
During the first stage, we are engaged under a Pre-Construction Services Agreement (PCSA) to act as your strategic consultant. This Early Contractor Involvement embeds our engineers and construction managers into the project during the critical design phases. We provide immediate feedback on buildability. For example, if an architect’s ceiling detail clashes with air conditioning units, we resolve the issue instantly on a digital model – long before it becomes an expensive on-site disaster.
Crucially, this PCSA period allows us to secure vital supply chain capacity and pre-order long-lead items, actively insulating your budget from macroeconomic price shocks. The final construction price is only agreed in stage two – once the design is flawless, regulatory approvals are secured and risks are fully mitigated. By operating as a single unified entity, we remove the incentive to cut corners and guarantee a superior final outcome.
THE CFO’S CORNER:
TARGET COSTS AND TRANSPARENT VALUE
Forcing absolute risk onto contractors with razor-thin margins guarantees either inflated tender premiums or catastrophic mid-build insolvency. Financial leaders are now protecting their balance sheets by abandoning the illusion of single-stage fixed pricing in favour of collaborative target cost frameworks.
Modern contracts, such as NEC4 Option C and the JCT Target Cost Contract 2024, utilise powerful open-book risk-sharing models. By establishing a realistic target cost, both parties engage in a transparent “pain/gain” mechanism where any savings below the target are directly shared. This instantly transforms the contractor from a defensive adversary into an engaged partner, financially incentivised to secure the best value for your enterprise.
MARIS TOOLS:
THE PRE-CONSTRUCTION ARSENAL
Utilise these specific commercial frameworks to maintain strict transparency and drive value during the first stage of a two-stage tender.
- The PCSA Deliverables Matrix
Purpose: To outline the exact design coordination and supply chain procurement duties the contractor must complete.
Output: Prevents contractors from charging pre-construction fees without delivering tangible buildability advice. - The Open-Book Audit Protocol
Purpose: To verify that all sub-contractor quotes sourced by the main contractor are genuine and highly competitive.
Output: Ensures the final construction price is free from hidden margins or unquantified risk premiums. - The Pain/Gain Scenario Modeller
Purpose: To stress-test various Target Cost outcomes before agreeing the final contract sum.
Output: Allows the CFO to set the exact difference share percentages that will aggressively incentivise the contractor to find efficiencies.
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