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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. |
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| Hard Bid - |
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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 - |
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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 - |
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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. |
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Advantages: |
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Before the Owner signs the agreement with the Contractor
the exact price for the work as defined in the Bidding documents is
known. |
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The Owner receives the lowest possible price for the
work as defined in the Bidding documents. |
Disadvantages: |
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Creates adversarial relationship between the Contractor,
Architect, Engineer and Owner. |
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The Plans and Specifications need to be more complex,
complete and expensive. |
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The experience of the Contractor is not utilized in the
planning and budgeting stages of the project. |
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Emphasizes low cost and not quality. |
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Chooses the Contractor and Subcontractors based upon
price and not on track record. |
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