Guides / Bid economics / Response time budget

Response time budget

How long will this tender response take? Build a work-package time budget.


Estimate this response as work packages, roles, dependencies, rework and reviewer availability. Person-hours are the cost basis; elapsed days are the calendar you must fit. The RFx label is context, not a predictor of effort. Part of our guide on the economics of bidding.

Published: 16 September 2026 · By Andre · Reviewed by Bill · selrob

Takeaways

  • Budget packages and names, not a single “bid hours” cell. Rework and reviewer leave belong in the estimate.
  • Person-hours feed cost of pursuit. Elapsed days are a separate capacity test against close.
  • RFT, RFP and RFQ describe the request. They do not tell you the hours. See RFT vs RFP for the label, then estimate this pack.

How much effort will this particular response consume?

List the work packages this pack actually requires. Assign a role to each. Mark what cannot start until something else finishes: the compliance matrix before drafting, pricing after scope is stable, partner review after the draft exists. Add a rework line. Add the reviewer’s diary, not an assumption that they are free the day before close.

Sum person-hours. Separately, walk the critical path in elapsed working days. A 40-hour response that needs three sequential reviews over ten days will miss a seven-day close even though the hours look small. The RFx letters tell you what decision the buyer is asking for. They are not an hours table. There is no industry-average hour figure on this page.

Pass the person-hour total, split by bid lead, specialist and partner, into the pursuit-cost calculator. Replace that page’s default 40 hours with the budget you just wrote. Cost if lost equals cost.

Three scenarios

Hypothetical effort, not a survey

Hypothetical. The packs and hours are invented to show the method; they are not a client result and not an average. Scenario A is a panel RFQ. Scenario B is an open Commonwealth RFT. Scenario C is a multi-party RFP with partner leave on the critical path. The RFx type is labelled only as context.

Hypothetical work-package hours for three tender responses
Package Role A hours B hours C hours
Pack read Bid lead 3 8 10
Gate Partner 1 2 3
Compliance matrix Bid lead 2 10 12
Technical / method Specialist 4 28 40
Pricing Specialist 2 16 24
CVs / past work Bid lead 2 8 12
Review / QA Partner 1 10 13
Production / lodge Bid lead 1 4 6
Rework Mixed 1 8 13
Clarifications Bid lead 1 2 7
Person-hours – 18 96 140
Elapsed working days – 8 22 19
Calendar to close – 10 25 20
Bottleneck – Reviewer free day 6 Pricing after addenda Partner leave days 17–20

Into the cost basis

Hours split for the pursuit calculator

Same three hypothetical scenarios. Rates are the published defaults on cost of pursuit (bid lead AUD 180, specialist AUD 220, partner AUD 350). External AUD 0. Cost is hours × those rates, not a quoted fee and not a client result.

Hypothetical bid-lead, specialist and partner hours for three scenarios, costed at published defaults
Input A B C
Bid lead hours 10 40 56
Specialist hours 6 44 64
Partner hours 2 12 20
Person-hours 18 96 140
Cost at default rates AUD 3,820 AUD 21,080 AUD 31,160

A: 10 × 180 + 6 × 220 + 2 × 350 = 3,820. B: 40 × 180 + 44 × 220 + 12 × 350 = 21,080. C: 56 × 180 + 64 × 220 + 20 × 350 = 31,160. Enter the split on cost of pursuit. Do not keep the default 40 hours if this pack is B or C.

What does this mean for the bid/no-bid call?

If elapsed days exceed working days to close, capacity has failed even when the dollar cost looks small. Scenario C is 19 elapsed days against 20 on the calendar, with the partner away on days 17 to 20. That is a no-bid unless the reviewer is replaced before the gate, not on the afternoon of close. Cost the hours. Then make the call on fit, not on a hope that the diary will clear.

Keep reading

Elsewhere in this guide.

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