Omaha Negotiated Contracting | Lueder Construction
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Negotiated

Negotiated

One contract method of choice for private owners is negotiating with an individual contractor after selection through an interview process with other generals.  Project pricing or fee may or may not be a major factor in this selection process. Factors such as safety, shared values, quality, and work history all come together in the owner’s final decision.  Parties generally achieve a comfort level with one another and choices are based upon a mutual trust that is gained through the interview process.

Pros:

  • Depending upon the point in time the contractor is brought on board, cost and time saving can be achieved based on their input during the design phase
  • A positive relationship is generally fostered between the owner, architect and contractor due to the selection process
  • Many of the same benefits in the Design Assist method of contracting are realized with the Negotiated method.

Cons:

  • Care must be taken to ensure a complete understanding of the scope of work
  • The interview process can turn into a “theatric” presentation
  • The contractor’s pricing structure may not be thoroughly defined during the interview process
  • Depending on the parties involved, the interview can become a subjective process
Thank you for visiting Lueder Construction. It is our sincere hope that you will consider us for your next project.