ARE_410_L08_Types_of_Construction_Contacts_II

ARE_410_L08_Types_of_Construction_Contacts_II - ARE 410...

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10/24/2016 1 ARE 410: Contracts and Liability Jorge A.J. Caeiro, Ph.D. Department of Civil and Architectural Engineering Lecture 8 Engineering Contracts Types - Cont’d - Negotiated contracts are most commonly used in the private sector , where the owner wants to exercise a selection criterion other than low price alone. Negotiated Contracts The negotiated contract is used only in special situations in the public sector since it is open to abuse in cases in which favoritism is a factor.
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10/24/2016 2 Favoritism in the public sector: A widespread problem in some countries The owner invites selected contractors to review the project documentation available at the time of negotiation. This documentation may be complete design documentation or only concept-level documentation (…Unlike competitive bid contracts) . Mechanics of Negotiated Contracts The contractor is invited to present his qualifications to perform the work and to indicate his projected costs and fee for completing the work.
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  • Fall '15
  • Fee, Cost overrun, contractor

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