What are tender allowables?

Tender allowables refer to the specific costs and expenses that a contractor can include in their bid when submitting a proposal for a project. These allowables typically cover direct costs, such as labor and materials, as well as indirect costs, like overhead and profit margins. Understanding these allowables is crucial for both contractors and clients, as they help ensure that bids are competitive and align with project budgets. Properly defining tender allowables can also facilitate negotiations and minimize disputes during the contract execution phase.