The project owner gets the initial plan across to an architect. Once the owner has the materials for the project, he picks a contract through bidding. The contractor then provides payment statements and an estimated cost.
Bidding also occurs in Construction inspection services and Expert witness building construction, Alaska.
There are two types of bids frequently issued by owners:
1. Open bid
Normally open to the public by advertisement. Any contractor is free to make his offer. This kind of bid is mainly for public projects.
2. Closed bid
A group of contractors is selected by the project owner and the bid is received from them for the construction project. Private projects use this method.
After receiving bids from various contractors the project owner goes ahead to make his pick using one of these procedures:
1. Low bid
The team provides the lowest bid they can use in conducting the project. The owner chose the one that suits him most.
2. Value selection
The bid that provides quality and a moderate price is selected. Quality is a non-negotiable aspect of construction.
3. Qualification based selection
If the construction company specifically lays emphasis on quality this method of bidding is selected. Qualified contractors are selected. Afterward, a contract is signed and agreed on.
Different contract types are available.
Types Of construction management contracts
A document (Legal statement) is provided to sign the contract between the project owner and the contractor.
1. Lump sum A fixed price is used in funding the project and paying site workers.
2. Cost-plus contract An estimated price is agreed upon, and an additional sum is applied as work continues.
3. Guaranteed maximum price Spending is within a price limit as a maximum price is agreed on.
4. Time and material contract The contractor gets paid per hour as there is no certain time coverage for the completion of the project.
Construction project delivery methods
This is specifically created to serve as a channel of communication all through.
1. Design bid build: The selection of contractors occurs after the designing process.
2. Design-build: In the Designing and building stage, the contractor is equally involved with the activities.
3. Construction manager at risk: A construction manager is consulted. The construction manager is involved in the designing and monitoring of site activities.
Once all these methods are looked into the Project can start properly.