Competitive bidding often does not serve the owner’s best interests. The negotiated approach brings the contractor into the project team during the design process to assist with design and cost control, and yet provides for competitive bidding of the sub-trades. A typical Negotiated Contract establishes a budget for the work, a percentage or fixed fee for the Contractor’s services and a clear set of deliverables.
In order to reduce or eliminate change orders, the owner should bring the contractor in during the design process to review the design as it progresses and to thoroughly investigate the existing area where the construction is to be done.
Projects that have constructability issues, tight construction schedules or urgent and proximate start dates are ideal for the Negotiated Contract approach, in order to minimize (or completely eliminate) change orders and to guarantee the tightest possible schedule. In choosing to approach your project on a “negotiated” basis, you will not lose the advantages of competitive bid process, because together we will establish the terms that best meet your needs from the beginning.