When you elect to negotiate your project, you get to choose who you work with based on qualifications and reputation, instead of relying strictly on price alone as you would under the traditional tender approach. This is very important because while the strength of the organization is of value, in this business, it’s the people and their knowledge, experience, skill and commitment to serve you that makes the difference. Our directly employed and sub-contracted companies have been working with us for up to 20 years and our company founders have been in Construction for over 45 years.
In a negotiated delivery, the Contractor is part of your team and will always look for ways to add value to the project. The objectives of the Owner, Architect and Contractor are aligned early in the process. In contrast, the traditional tender format can produce adversarial relationships, as the Contractor must look primarily at their own bottom line since their service has been purchased as though it’s a commodity.
Managing your project budget begins when those critical design decisions are being made. Bringing the construction team on board early in the process allows them to maximize value by providing cost input into specification decisions. Additionally, under a negotiated delivery format, any savings with alternative specs on site are returned to you based on contract negotiations.
Involving your construction team early during the process can prevent variations before construction even begins. Under a negotiated delivery system, your Contractor can provide invaluable preconstruction services, such as reviewing drawings for potential challenges ahead of time, thereby reducing the number of variations. Fewer changes means significant savings on any project. With negotiated delivery, we offer full transparency & agreed margins on any variations. (0% up to € 1,000)
Negotiated delivery is built on the premise of a trust-based relationship between the contractor, client and the project team. You get to see exactly how your money is being spent with detailed cost transactions showing where your money is going. Possibly more important than tracking expenses during construction is transparency in the preconstruction phase, which enables you to see and decide where you are going to spend your money before construction begins. We provide a very detailed breakdown of costs* for review and negotiation.
So, in summary, we believe the advantages of a negotiated delivery are:
- You get to choose who you want to work with
- Team effort from Day 1
- Cost savings returned to Client
- Fewer Variations
- Agreed margin on any variations
- very detailed breakdown of costs*
*Our “very detailed breakdown of costs” basically itemises all materials used in the project from the amount of concrete priced in the foundation to the handles on the doors.