      |
As a prospective building owner, are you feeling that the competitive-bid approach to construction leaves a lot to be desired? The competitive-bid approach may in fact increase your costs, drive longer construction schedules, and result in lower overall building quality as lower-cost subcontractors are generally favored. In addition, the building owner has little chance to participate in up-front value engineering until after the bids are received. Competitive-bids assume that the overall quality level should be the same regardless of who is selected to build the project. In addition, costs can be subject to the interpretation of the contractor as change orders for interpreting the design intent may differ from what was intended by the designer. This often represents significant cost increases that the owner will not realize until construction is well underway. In addition, it is difficult to realize any construction savings from procurement efficiencies as the schedule is generally linear and compression is difficult to achieve.
The way to avoid these typical problems is to negotiate with the contractor. Negotiated bids enable the client, architect, general contractor, and subcontractors to work together as a team to achieve a common goal and vision - to complete the project on time, within budget, and within specifications. The negotiated bid approach offers you the ability to select a contractor, not on price alone, but on reputation, track record, and experience - the desired qualities that will produce a winning project. The most important aspect of the negotiated bid approach is the contractor's ability to interface between design work and the construction activity.
As subcontractor bids are submitted, they are reviewed by the project team and a selection is made on the most cost-efficient price that meets the scope specified. This scenario takes place again and again until the design is completed. Once the design is completed, the general subcontractor and all the subcontractors all know the architect's design intent and scope without question. The owner is aware of all the costs involved and knows where the budget stands. This process allows for tremendous flexibility in design as various systems and materials can be examined and priced enabling the owner to select the most cost-effective aesthetic solutions. There are no surprises.
The benefits of the negotiated approach exceed any benefits received via the hard-bid process. The most professional team is selected to provide design input and manage the construction, which provides the benefits of competition at the selected subcontractor level. This approach puts a true team in place to optimize the quality, control the costs, reduce the schedule and give the best value for the dollar spent.
Please call us to discuss further how a negotiated bid approach can help you save time, money, and get your project built the way you want it to be built.
 |
Project quality begins with quality materials, quality construction methods, and use of quality personnel throughout the process |
|
Learn how a negotiated bid can save you time and money on your next project. |
|
Thinking of expanding or relocating your existing business? |
