Why does the notice value look so high?

Notices usually state the maximum value including all extensions and sometimes an allowance for volume variation.

Do framework values mean guaranteed work?

No. A framework value is a ceiling across all suppliers on it, not an allocation to you.

Should extension value go in my profit model?

Model the initial term, then run the extension separately as a second scenario.

Free tender toolkit

Contract Value Calculator

Tender notices quote value in different ways: per month, per year, or as a whole life figure including extensions. This calculator converts between them so you are comparing like with like.

Recurring value

Basis

Initial term

mths

Extension option

mths

Initial term value: £144,000
Extension value: £96,000
Whole life value: £240,000

Annualised value: £48,000 a year. Only the initial term is committed spend.

Estimate only, not financial or regulatory advice. This is an estimate only, provided for general guidance. It is not tax, accounting, financial or legal advice. Check any figures with a qualified professional before relying on them.

How it works

Enter the recurring value and say whether it is monthly or annual.
Enter the initial term in months, and any extension option in months.
The initial term value, the extension value and the total whole life value are shown separately.
An annualised figure is shown so you can compare contracts of different lengths.

Worked UK example

A contract worth 4,000 a month for an initial 36 months with an optional 24 month extension.

Initial term: 4,000 x 36 = 144,000.
Extension: 4,000 x 24 = 96,000.
Whole life value: 240,000.

The notice may advertise 240,000, but only 144,000 is committed. Plan your capacity on the committed figure.

Understanding your result

Buyers often advertise the maximum whole life value because that is what procurement rules require them to disclose. Extensions are options, not promises. Judge affordability and mobilisation cost against the initial term, and treat the extension as upside.

Frequently asked questions

Why does the notice value look so high?: Notices usually state the maximum value including all extensions and sometimes an allowance for volume variation.
Do framework values mean guaranteed work?: No. A framework value is a ceiling across all suppliers on it, not an allocation to you.
Should extension value go in my profit model?: Model the initial term, then run the extension separately as a second scenario.

Related calculators

Public contract profit calculatorContract value less delivery costs and overhead gives profit and net margin.Open UK tender calculatorEstimate contract value, delivery cost and the margin left on a public sector tender.Open Tender pricing calculatorTurn total costs and a target margin into the price to put on the pricing schedule.Open

Compare real contract values

See live and awarded notices with their published values, terms and buyers in one searchable place.

Browse live contracts