Module 01 · Pursuit Costing and Bid Investment · Worked Exemplar
See the module applied
A complete bid investment assessment for an integrated facilities management contract.
Heron Facilities Solutions
Meridian Property Group
£11.4m over 3 years
18 staff transferring
Market share build
30–50%
See it in use
Bid investment analysis in practice
Bid Investment Posture
PROCEED WITH CONDITIONS
The cost position is proportionate for a moderately complex bid at this contract value. The strategic lens alignment is strong; the regional rationale is coherent and the success threshold is specific. Two conditions must be met before the estimate is used as the basis for final pricing.
Condition 01
TUPE pension obligations must be confirmed before final pricing is submitted. The unquantified exposure is estimated at £40–80k and sits entirely outside the current cost model. If defined benefit obligations are confirmed, the delivery margin assumption of 8–10% is materially at risk.
Condition 02
Legal review of the performance bond requirement must be completed and any cost implication priced into the submission before it is submitted.
Session output
Confidence Assessment
Six areas rated by the estimator, reviewed by the AI analysis for internal consistency.
Area
Rating
Comment
Effort and hours estimate
Medium
Bid management hours may be understated; coordination time for three sites was estimated quickly
Rate card accuracy
High
Rates confirmed by Finance Director; overhead treatment agreed
Probability of win
Low
Competitive shortlist; no prior relationship with Meridian
Strategic rationale
High
Regional expansion thesis is well evidenced; BD team aligned
Opportunity cost recording
Medium
Pipeline displacement risk acknowledged but not fully costed
Challenge flag completeness
Medium
TUPE and legal flags are open; review may surface additional items
This excerpt covers the bid investment posture and confidence assessment. The full exemplar includes the complete rate card setup, sunk cost breakdown by activity and tier, opportunity cost analysis with assumptions, strategic lens assessment, all seven challenge flags, and the Module 2 handover summary.