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21 Stating your price - Pg. 187

187 Stating your price C 21 lients normally specify the price information to be included in the bid and the way they want it set out. This may range from tables of fees and expenses to cost schedules and standardized forms and templates. You may be asked to provide bankers' references, balance sheet summaries and other financial data in addition to contract-related price information. As with other categories of information, it is essential to follow meticulously the instructions in the tender documents. By and large, the information requirements of clients are determined more by their need to be able to identify best value for money and obtain a consistent basis on which to assess the financial merits of individual bids than by the type of contract they intend to apply to the work. Value for money has been emphasized throughout this book as the prime consider- ation influencing decisions in services and consultancy procurement. Demonstrating the right quality of service is the function of the technical or `non-financial' parts of the bid: the role of price information is to show that you can offer the right quality at the right price. Components of price information Whether the bid is for a fixed price contract, for work remunerated on a time charge plus expenses basis, or for some other type of contract combin- ing fixed and variable cost elements, clients are likely to require a detailed breakdown of costs and an indication of how they were calculated. It is in the bidder's interest to provide a cost breakdown even when this requirement is not specified and particularly when bidding for a public sector contract, if only to demonstrate transparency and to show the factors that condition the price of the work. For some types of contract, bids may need to set out separately the costs of human resources ­ staff, management, administration and so forth ­ and physical resources such as IT systems, equipment and materials. In addition to a statement of the total bid price, bidders may be required to provide information on the following items: