Search:

Home | Family


The Negotiated Bid Process - the key to a quality home remodel

By: Gary Belk

The general advice people receive when they are considering a construction project is to solicit bids from at least three contractors. This is called competitive bidding. This is a way to "comparison shop" just as you would when buying a television or appliance, the only factor you're using in making your purchase decision is price. It's a good way to shop for a product, but might not work well when buying a service, which is what general contractors provide.

I'd like to introduce you to an alternative to competitive bidding which you may not be aware of, a negotiated bid. This is not a situation where you haggle the price with the contractor. Rather, you and the contractor become allies in making your project a reality.

The procedure for negotiating a bid goes usually goes something like this: First, you pick a contractor you like and trust before the design process has begun or is in its early stages (there are many ways to find a good contractor; referrals from friends, NARI.org or NKBA.com). You and the contractor work together as a team to develop a project which fits your needs as well as your budget. This is a simple explanation of the negotiated bid process. You'll probably require a bit more information before being sold on the concept but before we move on let me draw your attention to a few key words which need to be understood in context: trust and team.

This is a different relationship than most people have with a contractor. The contractor is a valued member of the team. He gives his input during the design process and based on his knowledge of construction and what really happens on construction sites he contributes valuable information to tweak the design in order to maintain the budget. It is a powerful collaborative effort.

During this process you will become more educated about the impact of each decision you make and how they affect the overall cost of the project. You will be pushed to think through details and make decisions early in the process. This is one of the best ways to control the dreaded "budget creep"!

Additionally the contractor will be able to let you know what alternatives are available and how they can affect both cost and design. For example, suppose you want to add French doors and add a deck outside your kitchen. The initial design idea shows a door which will have to be custom made, with transom windows above. The contractor's preliminary estimate on the deck and door work is more than your budget. However, by collaborating with the contractor it is determined that a simpler stock French door unit will significantly lower costs. As you can see, the contractor is working with you to create a project that call be built within your budget but still satisfy your desires.

Another significant point to consider is that you and the contractor will have developed a good working relationship. All too often in a competitive bid environment the potential exists for a design professional to be aligned with the owner against the contractor in an adversarial relationship. When all parties involved work together on the project from the start this is much less likely to happen.

It must be made clear that the contractor is most likely not going to give you his time and advice for free. Remember that he is bringing you a wealth of knowledge that may save you a substantial amount of money and aggravation. You should understand that during this pre-construction planning you will be charged for the time that your contractor spends. Some contractors request that they be paid an hourly rate for the planning work they do; others might request payment only if, for some reason, they don't end up doing the job. In any case, this usually runs between 4 percent to 8 percent of the overall cost of the job, depending on the size of the project. This is well worth the investment as the contractor's input before construction might save you thousands of dollars.

Should you put your project out to bid? Or should you find a contractor whom you can work with to negotiate the project? If you are concerned with overall value, the quality of the construction process, as well as the quality of the work itself, and you want few I surprises, I strongly suggest you negotiate the bid.

Article Source: http://www.newagelivingarticles.com

Gary Belk is owner of Winans Construction, a design/build firm located in Oakland, California, founded in 1978 www.winconinc.com . He also renovates and designs properties in Central America, Caribbean, Texas and Hawaii.

Please Rate this Article

 

Not yet Rated

Click the XML Icon Above to Receive Family Articles Via RSS!
Additional Articles From - Home | Family

 Free Traffic


banner











Sign Up for a free account or learn more.
Article Directory Software
Click here to download the exact software that powers this directory for FREE. Start your own article directory today!
Google
Top Authors
Submit Articles
Member Login
Most Popular Articles
Submission Guidelines
Ezine Notifications
Article RSS Feeds
Little Book Of Becoming
Masters of the Secret
The Singularity Is Near
Distribute Your Articles to 1000's!
Wildwind Enterprises
Bookstore
About Us
Link to Us
Contact Us
Privacy Policy
Terms of Service
Links
All Links Directory All Links Directory is 100% SEO friendly Directory and Human Edited.

Accurate Online Psychic Readings Lilly provides a unique personal empowerment, spiritual approach to intuitive readings, as well as a vast array of other resources for the spiritual seeker. Access your Spiritual Guidance and turn negative karma into spiritual gold!

Psychic Sights An extensive portal of Psychic links, Metaphysical and New Age links and resources focused on quality.

Earth Spirits.org

Gaiam.com, Inc
Spiritual Cinema Circle
Visit the metaphysical directory for a complete list of metaphysics related websites.
Royalty Free Images
NewAgeLivingArticles.com » Copyright © 2007 WildWind Enterprises
Terms of Service | Submission Guidelines | Contact Us | Link to Us| Privacy Policy | About Us | Article Submissions With A Click 100's of Sites!

Powered by Article Dashboard