Architecture / June 7, 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.
When considering building a new home, completely redesigning or doing a major addition on an existing home, the reality is there is a certain amount of money budgeted for the project. With a finite amount of money, if you were to only focus on the size of the house, the quality would suffer. The same is true of the inverse–using all of the best finishes and choosing high-end materials to enhance the quality of the home will necessitate a smaller-sized home. You must have a balance between size and quality. This relationship is not always obvious at first, but I have found that by talking with my clients about making smart choices and decisions, they can achieve a balance between size and quality and achieve their dream home.