Contract Negotiation

Completing the Team

Once the preferred contractor has been identified, contract negotiation will focus on line item pricing and fee percentages that may be out of line with competing bids or what has been anticipated in the control budget. It is important to understand the range of a contractors’     in-house operations as opposed to work that will be sub-contracted and identifying the sub-contractors they intend to use. This can present important insights and negotiating opportunities. Does the contractor have prior experience with critical elements of the project? Are mark-ups on self-performed work duplicated? Are the proposed sub-contractors qualified to provide required quality and delivery timelines? The preferred contractor will be asked to re-evaluate their bid and present their best offer.