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General Contracting
This is the method that has been utilized for years. Sophisticated and educated Owners are moving away from this method whenever possible. Unfortunately, it may create an adversarial working relationship between the Design Team, the Contractor and the Owner.

Typically, the Owner selects an Architect/Engineer to accurately and clearly describe the project and all of the requirements with Plans, Specifications and other Bid Documents. Then the Contractor is chosen by one of three methods.
General Contracting
Hard Bid -   The Owner advertises his Project out for bid to any and all interested Contractors and then accepts the bid of the lowest qualified bidder.
Select Bid -   The Owner and the Design Team develop a select list of Contractors to bid on the Project and then accept the bid of the lowest qualified bidder.
Negotiated -   The Owner enters into negotiations with one or more Contractors and then chooses the Contractor that he feels best suited for the Project. The selection of the Contractor is usually based upon trust, confidence in the Contractor and the working relationship.

Advantages:
arrow Before the Owner signs the agreement with the Contractor the exact price for the work as defined in the Bidding documents is known.
arrow The Owner receives the lowest possible price for the work as defined in the Bidding documents.

Disadvantages:
arrow Creates adversarial relationship between the Contractor, Architect, Engineer and Owner.
arrow The Plans and Specifications need to be more complex, complete and expensive.
arrow The experience of the Contractor is not utilized in the planning and budgeting stages of the project.
arrow Emphasizes low cost and not quality.
arrow Chooses the Contractor and Subcontractors based upon price and not on track record.

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