#365 - The Best Way To Hire A Contractor: Pre-Construction and Other Methods
Oct 24, 2023
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Discover different methods for hiring a contractor including negotiated agreement, competitive bidding, design build, and pre-construction. Learn about the pros and cons of each approach, the importance of transparency in pricing and thoroughness in planning, and the significance of having the right team. Also, explore the drawbacks of competitive bidding and the concept of design build in contractor hiring.
Clients can hire a contractor through negotiated agreement, competitive bidding, design-build, or preconstruction, and should consider their specific needs and preferences before making a decision.
In a negotiated agreement, clients should ensure transparency in the negotiation process by establishing trust and understanding through detailed breakdowns of costs and clear communication with the contractor.
When selecting bids through competitive bidding, clients should rely on their architects and contractors' transparency and expertise to choose the most suitable bid, considering factors like price, experience, expertise, and compatibility.
To ensure proper design and construction quality in the design-build method, clients should carefully select a design-build company with experienced architects and licensed contractors, as not all design-build companies offer the same level of transparency and expertise.
Engaging a contractor for preconstruction services allows for early collaboration between the client, architect, and contractor, providing insight into cost estimates, constructability feedback, and suggestions to align design and budget, reducing the likelihood of budget overruns and design conflicts.
Deep dives
Different Ways to Engage a Contractor
There are four main ways to engage and hire a contractor for a construction project. The first is a negotiated agreement, where the client negotiates the price with one specific contractor. The second is competitive bidding, where the client invites multiple contractors to bid on the project and selects the one with the best price and fit. The third is design-build, where the same entity handles both the design and construction aspects of the project. And finally, there is preconstruction, which involves hiring a contractor specifically for preconstruction services to provide estimates, insights, and guidance throughout the design process. Each method has its pros and cons, and clients should consider their specific needs and preferences before making a decision.
Negotiated Agreement
In a negotiated agreement, the client negotiates the price with one specific contractor. This method is often chosen based on recommendations from architects, neighbors, or friends who have worked with the contractor before. While it simplifies the process by dealing with only one contractor, clients should consider if the contractor is the best fit for their project and ensure transparency in the negotiation process. Detailed breakdowns of costs and clear communication are important for establishing trust and understanding.
Competitive Bidding
Competitive bidding involves inviting multiple contractors to bid on the project. Contractors receive detailed drawing sets and specifications to provide accurate estimates. The bids are then compared, considering price, experience, expertise, and compatibility. However, it's important to note that bids may vary significantly based on the contractors' thoroughness and understanding of the project. Clients should rely on their architects and contractors' transparency and expertise to select the most suitable bid.
Design-Build
Design-build is a method where the same entity handles both the design and construction aspects of a project. This approach aims to improve efficiency and cost-effectiveness by leveraging simultaneous design and construction knowledge. However, it's crucial to carefully select a design-build company with experienced architects and licensed contractors to ensure proper design and construction quality. Not all design-build companies offer the same level of transparency and expertise, so clients should exercise caution when considering this approach.
Preconstruction
Preconstruction involves hiring a contractor specifically for preconstruction services. This allows for early collaboration between the client, architect, and contractor, providing insight into cost estimates, constructability feedback, and suggestions to align design and budget. Preconstruction services help clients make informed decisions before committing to construction, reducing the likelihood of budget overruns and design conflicts. Engaging a contractor for preconstruction ensures detailed cost breakdowns, transparency, and a tested relationship before moving forward.
This week David and Marina of FAME Architecture & Design discuss four different ways and times clients can hire a contractor: Negotiated Agreement, Competitive Bidding, Design Build, and Pre-Construction. The two cover the benefits and negatives of each, their preferred method, the processes involved, the role of the architect throughout, controlling project costs, and more.
EPISODE CATEGORIES • Interviews: Interviews with industry leaders. • Project Companion: Informative talks for clients. • Fellow Designer: Tips for designers. • After Hours: Casual conversations about everyday life. • Design Reviews: Reviews of creative projects and buildings.
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