GENERAL CONTRACTING

The General Contracting method of construction is a traditional approach where the project Owner selects an Architect / Engineer to accurately describe the project, including all requirements in plans, specifications, and bid documents. The Contractor is then chosen by hard bid, select bid or a negotiated percentage fee basis.

Hard Bid

The project Owner advertises for bidders and accepts the bid from the lowest qualified bidder.

Select Bid

The project Owner, often based on the Architect / Engineers’ recommendations, selects a group of contractors to bid on the project. The lowest qualified bid is usually accepted.

Negotiated

The owner negotiates with one or more contractors, and chooses the contractor that he feels is best for this project. The selection decision is usually based on CONFIDENCE, TRUST and RELATIONSHIP.

Competitive Bid

Potentially more risk for Owner
More risk for Contractor
Sets up an ADVERSARIAL relationship among Contractor, Architect / Engineer, and Owner
Contractor must select lowest cost bids to receive contract and protect its self-interest
Changes in the work are made for any inconsistency or omission to the plans
No contractor involvement during planning stage
Price and schedule are the deciding factors
Makes the assumption that the quality will be the same no matter who works on the project. Contractor has no choice but to select the low bid subcontractor or risk not getting the job.

Negotiated Contract

Potentially less risk for Owner
Less risk for Contractor
Sets up a TEAM relationship among Contractor, Architect / Engineer, and Owner
Contractor can work with Owner to emphasize quality, service, and the best interests of the project
Changes in the work are generally made in plan development
Heavy involvement of contractor during planning stage
Decision based on experience, quality, reliability, on-time completion schedule, creativity, customer service, and price are factor
Choose subcontractors on the basis of work and track record

GENERAL CONTRACTING

Hard Bid

Select Bid

Negotiated

Competitive Bid

Negotiated Contract

BUILDING PROJECTS IN COLORADO FOR OVER 30+ YEARS

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