Level 1 – Strategic and Bid Planning: A Practical Guide for Contractors and Project Teams

Level 1 planning is the highest level in the construction planning hierarchy.
It is the strategic view of the project – the overall construction approach, the major phases,
the key constraints and the critical path drivers. It is produced at bid stage, refined at
contract award and maintained throughout the project as the reference point for all detailed
planning below it.

Level 1 planning is not about detail. It is about strategy. The questions it
answers are not “how long will this concrete pour take?” but “what is our overall approach to
this project, what are the major risks, and what must go right for us to deliver on time and
within budget?”

Done well, Level 1 planning sets the foundation for everything that follows. Done poorly –
or skipped entirely – it leaves the project without a strategic framework, and every decision
made below it will be made in a vacuum.

What Level 1 Planning Is

Level 1 planning covers two related but distinct activities:

Strategic Planning

The process of defining the overall construction strategy for the project. This includes:

The major phases of the project and how they sequence
The overall construction methodology for the key work packages
The major constraints and how they will be managed
The critical path drivers – the activities and sequences that will determine the
project completion date
The major risks and how they will be mitigated
The overall resource strategy – self-perform vs subcontract, key plant requirements,
workforce strategy

Bid Planning

The application of strategic planning to a specific tender or bid. Bid planning produces
the Level 1 programme that is submitted with the tender, the methodology statements that
support it, and the strategic assumptions that underpin the estimate.

Bid planning must answer the question: “Can we build this project, on this programme,
for this price – and how?” The answer to that question is the bid strategy.

When Level 1 Planning Is Done

Level 1 planning is carried out at three key points in the project lifecycle:

1. During Tender / Bid

The most important application of Level 1 planning. The bid team must develop a credible
construction strategy before the estimate can be built. The Level 1 programme produced
at bid stage is the strategic framework within which all detailed estimating and planning
is carried out.

A bid that is estimated without a Level 1 plan is a bid where the costs have been calculated
without knowing how the work will be done. This is one of the most common causes of
under-pricing and subsequent project loss.

2. At Contract Award

The Level 1 plan produced at bid stage is reviewed and refined at contract award. The
construction strategy is confirmed, the major constraints are re-examined in light of
any contract negotiations, and the Level 1 programme is updated to reflect the agreed
contract dates and milestones.

3. During Construction

The Level 1 programme is maintained throughout construction as the strategic reference
point. It is updated monthly to reflect actual progress and revised forecasts. When
significant changes occur – major variations, unforeseen conditions, significant delays –
the Level 1 plan is the first document to be reviewed and updated.

What a Level 1 Plan Contains

A Level 1 plan is not a detailed programme. It is a strategic document that contains:

1. The Construction Strategy Statement

A written description of the overall approach to the project. Typically 1–5 pages. Covers:

The overall construction sequence and phasing
The key construction methodologies for major work packages
The approach to major constraints (access, weather, interfaces, live operations)
The resource strategy (self-perform vs subcontract, key plant, workforce)
The approach to major risks

2. The Level 1 Programme

A high-level Gantt chart showing:

5–20 summary bars or activity groups
Major project phases
Key milestones (contract milestones, handover dates, interface events)
Overall project duration
Key constraints shown as milestones or notes

The Level 1 programme fits on one or two pages. It can be read and understood by a senior
manager or client representative in two minutes. It does not show individual activities,
logic links or resource assignments – those belong at Level 2 and below.

3. The Critical Path Summary

A brief description of the critical path – the sequence of activities that determines the
project completion date. This does not need to be a formal network diagram at Level 1.
It can be a written description or a simple diagram showing the key dependencies.

The critical path summary answers the question: “What must go right for this project
to finish on time?”

4. The Major Risk Summary

A brief summary of the major risks to the construction strategy and how they will be
managed. This is not a full risk register – that belongs at Level 2 and below. It is a
strategic view of the risks that could derail the overall programme.

5. The Key Assumptions

A list of the key assumptions on which the Level 1 plan is based. These are the conditions
that must be true for the strategy to work. Examples:

Access to the site will be available from [date]
The design will be issued for construction by [date]
Ground conditions will be consistent with the geotechnical report
The weather window for [activity] will be available in [month]

Documenting assumptions is important because it makes the basis of the plan explicit.
When an assumption proves incorrect, the impact on the plan can be assessed and a claim
for additional time or cost can be supported.

The Bid Planning Process

Bid planning is a structured process that runs in parallel with estimating during the
tender period. The two activities must be integrated – the estimate cannot be built
without the plan, and the plan cannot be validated without the estimate.

Step 1 – Read and Understand the Scope

Before any planning can begin, the bid team must understand what is being built. This
means reading the drawings, specifications, geotechnical reports, environmental conditions
and contract documents. A bid plan built without reading the specification is built on
assumptions that may be completely wrong.

Step 2 – Identify the Major Work Packages

Break the project into major work packages that can be planned and priced independently.
The work breakdown structure at Level 1 should reflect the major phases and disciplines
of the project – not the contract bill of quantities, which may be structured very
differently from how the work will actually be executed.

Step 3 – Define the Construction Strategy for Each Major Work Package

For each major work package, define:

The construction method (what technique will be used)
The major plant and equipment required
The approximate crew size
The approximate production rate
The major constraints and risks

This does not need to be detailed at Level 1. The purpose is to establish the strategic
approach, not to produce a detailed methodology statement. The detail comes at Level 2
and below.

Step 4 – Identify the Major Constraints

Identify the constraints that will shape the overall programme:

Access constraints (when can the site be accessed, are there staging restrictions)
Weather constraints (are there seasonal windows for key activities)
Interface constraints (what must be done by others before work can start)
Approval and permit constraints (what approvals are needed and when)
Long-lead procurement items (what must be ordered early to avoid delays)
Live operations constraints (is the project in or adjacent to an operating facility)

Step 5 – Establish the Overall Sequence

Define the overall sequence of major work packages. Which must come first? Which can run
in parallel? Which are dependent on others? This sequence is the backbone of the Level 1
programme.

Step 6 – Identify the Critical Path

From the sequence and constraints, identify the critical path – the sequence of activities
that will determine the project completion date. At Level 1, this is a strategic judgement,
not a calculated network analysis. The question is: “What is the longest chain of
dependent activities, and what are the constraints that could extend it?”

Step 7 – Build the Level 1 Programme

Translate the sequence, constraints and critical path into a high-level Gantt chart.
Assign approximate durations to each major work package based on the construction strategy
and production rate estimates. Check that the overall programme fits within the contract
period.

Step 8 – Validate Against the Estimate

Check that the Level 1 programme is consistent with the estimate. The durations in the
programme should be consistent with the production rates in the estimate. The resource
requirements in the programme should be consistent with the plant and crew costs in the
estimate. If they are not consistent, one or both must be revised.

Step 9 – Identify and Quantify the Major Risks

For each major work package and constraint, identify the risks that could affect the
programme. Quantify the potential impact on the completion date and the cost. Decide
how each risk will be managed – mitigation, contingency, or transfer to the client.

Step 10 – Document the Strategy and Assumptions

Write the construction strategy statement and document the key assumptions. This is the
record of the thinking behind the bid. It will be used at contract award to brief the
delivery team, and it will be the reference point if a dispute arises about the basis
of the programme or the estimate.

The Level 1 Programme in Practice

The Level 1 programme is a communication tool as much as a planning tool. It must be
readable by people who are not construction planners – senior managers, clients, financiers
and government stakeholders. This means:

Keep it simple. 5–20 bars. No more. If it needs more than 20 bars
to tell the story, the story is not being told at the right level.
Show the key milestones clearly. Contract milestones, handover dates
and major interface events should be clearly marked and labelled.
Highlight the critical path. The critical path should be visually
distinct – a different colour, a bold line, or a clear annotation.
Show the major constraints. Key constraints – weather windows,
access restrictions, interface events – should be shown as milestones or annotations.
Make it fit on one page. A Level 1 programme that requires multiple
pages to read is not a Level 1 programme.

Common Failures in Level 1 Planning

1. Level 1 Planning Is Skipped

The bid team goes straight to detailed estimating without developing a construction
strategy. The estimate is built on implicit assumptions about methodology that are never
made explicit, never validated and never communicated to the delivery team.

2. The Level 1 Programme Is Built to Fit the Contract Period

The programme is reverse-engineered from the contract completion date rather than built
from the construction strategy. The durations are adjusted to make the programme fit,
not calculated from production rates. The result is a programme that looks achievable
but is not.

3. The Level 1 Plan Is Not Connected to the Estimate

The programme and the estimate are built by different people using different assumptions.
The programme shows an 18-month construction period but the estimate is based on a
12-month period. Neither is right, and the project is set up for loss before it starts.

4. The Level 1 Plan Is Not Handed Over to the Delivery Team

The bid team produces a Level 1 plan, wins the contract, and then the delivery team
starts from scratch without reference to the bid strategy. The assumptions and decisions
made at bid stage are lost. The delivery team makes different assumptions and produces
a different plan – often a more expensive one.

5. The Level 1 Plan Is Not Maintained During Construction

The Level 1 programme is submitted at contract award and never updated. By the time
the project is halfway through construction, the Level 1 programme bears no relationship
to what is actually happening. It cannot be used for strategic decision-making or for
assessing the impact of major changes.

Level 1 Planning and the Efficient Construction Cost (ECC)

The Efficient Construction Cost (ECC) is the cost of executing a scope of
work using the most efficient methodology, plant mix and crew size that is realistic for
the specific project conditions. Level 1 planning is where the ECC methodology is first
defined.

The construction strategy developed at Level 1 determines:

Which methodology will be used for each major work package
What plant and equipment will be required
What the overall project duration will be
What the major cost drivers are
Where the major risks lie

A Level 1 plan that is built on an efficient, realistic construction strategy will produce
an ECC that is achievable. A Level 1 plan that is built on optimistic assumptions or
reverse-engineered from a target price will produce an ECC that is not achievable –
and a project that will lose money.

Summary

Level 1 planning is the strategic foundation of the construction planning hierarchy.
It is produced at bid stage, refined at contract award and maintained throughout
construction. It answers the question: “How are we going to build this project,
what are the major risks, and what must go right for us to deliver on time and within
budget?”

The key principles are:

Develop the construction strategy before building the estimate
Build the Level 1 programme from the strategy, not from the contract period
Identify the critical path and the major constraints
Document the key assumptions
Validate the programme against the estimate
Hand the Level 1 plan over to the delivery team at contract award
Maintain the Level 1 programme throughout construction

A Level 1 plan that meets these standards is the strategic foundation on which a
successful project is built. One that does not is a document that will be ignored
the moment the project starts – and a project that will be managed without a strategy.

Need Help with Strategic or Bid Planning?

We work with contractors, owners and project teams on methodology-led bid planning,
construction strategy development and Efficient Construction Cost (ECC) modelling.
Our approach starts with how the work will actually be built – and builds the programme
and estimate from there.

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