Architecture / June 12, 2018 /
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.
The materials specified and the proposed construction details will have an important bearing on the cost of the project. The relationship of quality to cost has been commented on above, and buildings which incorporate high quality and innovative features are invariably more expensive than those which are purely functional. The choice depends on what the client is willing to pay. The materials, nevertheless, should be appropriate for their use; over-specification is wasteful.