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Pricing
It is amazing how often people employ builders to undertake expensive work on the flimsiest of agreements or contracts (if any,) with very little comprehension of what is included.
Likewise it is surprising how few builders work out their pricing thoroughly. Builders approach their estimating and quoting duties in different ways. Some guess at a price per square meter, others use supplier estimating services such as those supplied by Travis Perkins. Unknowingly frequently builders quote against each other using identical estimates sourced from the same trade supplier! Some do make the effort to work it out themselves properly and others employ outside specialists. Generally they adjust their quotes as necessary before submitting their tenders.
The most plausible reason why few builders do a complete costing is because it takes a lot of time, effort and money to do it properly. As there is no guarantee that they will be awarded the job, they are understandably reluctant to commit their energies, time and resources in what could be an abortive exercise. It is quite normal for a client to source at least 3 quotes for a given job. In this instance only one contractor will get the job and two are unsuccessful.
Perhaps this explains why it is sometimes so difficult to get a builder to quote.
Moreover unless you have in-depth knowledge of the builder's cost structure and up to date prices of materials and labour how do you possibly judge whether the price quoted is fair? It is not inconceivable that you may have attracted three overpriced contractors. This is why we do our own in-house costing so we can compare with contractors estimates.
A level playing field…
Comparing estimates that have different specifications and allowances is very difficult, if not impossible.
The basic rules…
It is essential that all the contractors have access to the same information and prepare their estimates within the same parameters. The tender documentation needs to be the same.
At the very least they will need the working drawings, engineer's details, material specifications and a Draft Contract. Where appropriate, they will need the Tender Documents, a Schedule of Works and /or a Bill of Quantities.
The period of time allowed needs to be the same for all to prepare their estimates and a formal closing time should be set.
Once all the tenders have been received they will need to be compared and assessed and after final negotiations, the contract awarded.
We usually prepare all the documents, shortlist the potential contractors, assess the tenders, prepare and negotiate the contract - or you can do it yourself.
Game on…
So the builder begins and the work starts. If we are retained in a Project Management capacity by the client we administer the major pieces of the project, such as monitoring quality, progress and authorising payments, snagging etc. Although we interface with the client and the builder, the main contract is between the builder and the client and should there be any disagreement between the two, we are somewhat limited in our capacity to take remedial action. It needs to be remembered that it is not only the contractor that can fail in their duties and obligations, but also the client.
More often than not there is a main contractor. However in some instances it is more appropriate to use a number of specialist contractors. Some projects lend themselves to being broken up into their various elements and are more cost effective done in this way. Our specific knowledge of local contractors is invaluable in assessing the most suitable course of action. Minor contractors are subject to the same rules as we apply to a principal contractor.
Fees
Our fees are set and fixed at the outset and are usually a set figure. They can however vary if the scope of the work significantly changes.
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