Despite alignment on quoting these costs separately, there still seems to be little to no consistency.
Tag: Profit
Best Practices – Contractor Overhead and Profit – Why Lowest Bids Does Not Mean Best Value.
Low-ball contractor’s win bids with the intention of making up losses through change orders.
What are the phases of work of a typical project?
No matter how big or small, all construction projects follow the same basic phases of work. Spending an appropriate amount of time (relative to project complexity) at each phase can mean the difference between the success or failure of your project. If you try to skip a phase or fail to perform the proper due…
10 questions to ask a Contractor Reference.
Most people know that one of the best ways to qualify a contractor is to request references, but most never actually call. It might be that some think call a reference is a waste of time or possibly that you are imposing on the reference, but it is surprising how willing some folks are to…
How do I put together an RFP for construction manager at risk?
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…
How Owner’s influence Scope
One of the most important factors in the success of a construction project is having a quality Scope of Work. Scope of Work is the definition of what you expect your service providers to do for you. A service provider could be an Architect or a Contractor. You should have a Scope of Work for…
What you need to solicit a quote
Whether you are hiring an architect or a general contractor, in order to ensure you receive good comparable quotes, there are certain key pieces of information you must include with your solicitation. If you are missing any of these items you could find that your quotes have a wide pricing spread. This could lead you to make bad…
Where do contractors hide profit?
Contractors like any other business are entitled to make profit. Unfortunately, there are instances where contractors “double dip” (charges profit on top of profit) or deliberately hide profit.