Architecture / January 13, 2018 / .
Many people will choose a new home because they want to be as maintenance-free as they can. They do not want the headache or hassle of failing systems. But when you choose lesser-quality finishes in appliances, tile, flooring, roofing and windows to achieve size, these items, too, will fail sooner than a higher quality item.
The clients attitude towards initial versus the whole life cost of the building can significantly influence the specification. Buildings incur costs over their life time; these include initial capital costs, operating costs, maintenance, disposal and finance costs. The key decision is whether to spend more money initially on better alternatives in order to save money in maintaining and operating the facility
The contractor is selected on the basis of competitive tendering on most building contracts. The price which the contractor quotes for the job is heavily influenced by both the amount and intensity of the competition expected. In an open tendering arrangement the level of the competition is at its most intense and contractors must submit highly competitive bids to have any chance of winning the contract. This usually secures a rock bottom price. With selective tendering a limited number of competent contractors are invited to tender for the job, this limited competition arrangement results in a keen price being obtained. In the case of a negotiated tender there is no explicit competition and the parties seek to agree a fair price for the work, implicit competition exists, however, as the employer can break off negotiations. If there is no competition the contractor can, in fact, name his price. The tendering arrangement is, therefore, one of the most cost significant decisions a client will make in the course of a building contract.
Once a decision to build has been reached the client will be anxious to have the building completed as quickly as possible. For many clients early completion may be the overriding priority, for example where staging a major sporting event is scheduled, or where a client is attempting to establish a market presence ahead of competitors, or to avail of tax incentives. Time is also of the essence in emergency situations such as fire or flood damage or where stabilisation works are required to dangerous structures.