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Contracting And Construction

Contracting and construction are two areas that go hand-in-hand. A construction project that is awarded to a general contractor, who is providing construction services, through a bid method is the basis of the contracting and construction process. In some cases, the lowest bid--or the lowest price offered by a contractor--is the only thing the client is interested in; all other details are not relevant. But, depending on the construction process used or the desires of the client, contracting and construction can be more complicated.

The traditional method to contracting and construction is to use the design/bid/build approach, where an architect or engineer oversees the project. They handle the design, produce construction drawings, oversee bids and contracts and the building process itself. The links between the architect, the client and the main contractor are direct. The contractor can win a project through the lowest blind bid or through the construction manager at-risk method, where the contractor guarantees to deliver the project within a guaranteed maximum price. Instead of simply serving as construction manager, the contractor also serves as a consultant to the owner during the design and development processes.

The design-build method has been increasing in popularity over the past decade. In design-build, the owner doesn't hire an architect to design the project, then seeks bids from a contractor. In this case, the owner solicits bids from a architect/contractor teams, who develop their own designs and include complete design and construction costs in their bids. This is different from the traditional process, where the architect completes the design before the contractors put in their bids. Some supporters say design-build makes for a simplified contracting and construction approach, while opponents claim the method will likely lead to cost overruns since there is reduced oversight.

In the management procurement method, the owner holds the greatest amount of control. Instead of hiring an architect to handle the project in construction, or hiring a consortium, the owner oversees every part of the process. They hire the architect, the construction manager and, in many cases, the subcontractors. Proponents of this method believe it speeds up new construction and increases flexibility throughout the contracting and construction process.

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