Architectural Articles
Building Teamwork to Control Costs
How can you be sure you are getting a quality building at a fair price? To begin with, you need to look at the relationship between you, your architect and your contractor. Many CEOs and facility managers get off to an adversarial start demanding competitive bids "to keep the contractors honest."
First of all, this implies an unfounded assumption that most contracting firms are dishonest and need to be coerced into fair dealings with the owner. The contractors with whom I work do a quality job, on time, and at a reasonable cost.
It also assumes that competitive bidding among general contractors is standard practice. Not so. Most private (non-government) buildings, even large-scale projects, are not put out for bid. In fact, competitive bids can actually be detrimental to a building project. If one bid is significantly lower than the others, the contractor may have misread the drawings, omitted something by mistake, or made a mathematical error-only to show up later at the owner's expense.
By working in collaboration, you can arrive at a more desirable alternative: the "negotiated bid." This way, you and your architect select a reputable general contractor to draw up preliminary cost estimates based on quotes from subcontractors (carpenters, roofers, plumbers, electricians) for your review based on drawings and material specifications. If the estimates exceed the budget, then you, the architect and the general contractor as a team can "negotiate the bid" by discussing alternative building materials, equipment, and design details. As all parties work together, you can arrive at an agreeable price for the whole project up front, ensuring overall cost control down the line. With everything open for discussion at the outset, chances are very good that everyone will still be smiling when the building is complete.
Published in News From Home, Vol. 4, No.2, Carmel Publishing Co.
