This had the net effect of holding back the Contractor’s entire fee as a guarantee that they would complete the work.
Be sure that when you move into contracting, you have a firm understanding of how your contract is structured.
Low-ball contractor’s win bids with the intention of making up losses through change orders.
You should bear that in mind and recognize that your payment is always a form of reimbursement.
Whenever you solicit pricing for construction services, you should always address these distinct cost categories.
Allowing a vendor to add mark-up on top of the costs of his own resources leads to a double dip by the vendor.
In a recent posting on the AIA’s project delivery forum, an architect in Nebraska wanted help understanding how to solicit a quote for a construction manager at risk. His question was, “How do I put together an RFP for construction manager at risk?”. In the posting, he mentions that his client specifically asked for the…