Phase 5: Construction Procurement
Goal: to assist the the owner in the selection of a contractor to build the project. Fee Breakdown: 2-10% of total fee
When it comes to hiring the contractor the owner typically has
two choices:
1. Bidding – Involves making the set of documents available to two or more contractors who then submit a bid to the owner with how much it will cost to build the project including the contractor’s fee. The owner can then select whichever bidder they want, even if they are not the lowest.
2. Negotiation – Involves selecting a contractor based on qualifications, capabilities and/or referrals. Once a particular contractor is selected the owner then negotiates the terms of the contract with the contractor including the contractor’s fee.
It is important to note that the documents prepared by the designer and consultants in the construction documents phase are actually considered to be contract documents. They are a contract that the owner will hire a contractor to perform. In addition to the documents, there is an actual contract that must be signed between the owner and the contractor. The designer can help the owner to determine the type of contract to be used.