Tender pricing for elderly service housing


The elderly care market has been experiencing rapid changes due to staffing regulatory changes and significant cost inflation, to name a couple. A public social and healthcare provider needed to understand the impact of these key cost drivers and determine an updated cap price for the elderly residential care tender process. The client wanted to set a fair cap price while staying within their elderly care budget.


The project went through three stages. First, VALOR analyzed the current elderly residential care cost structure and identified the key cost drivers. Next, scenarios were created to forecast key driver development and cost effects. Third, the results were compared to tender prices of other peers (large cities) to calibrate a realistic level for the cap price. Based on the analysis, VALOR formed a recommendation for the updated cap price.

VALOR role and results

VALOR provided the client with expertise and understanding of both public social and healthcare organizers and private service providers. With VALOR’s recommendation, the client successfully carried out the tendering process with an updated cap price.