ch1_intro_1

Price is not contractor evaluation

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Unformatted text preview: position – Bonding capacity – Current amount of work under way – Past history of claims, and defaults 19 Negotiated Selection Process • Contract price, payment method, and contract details can be negotiated. • Price is not ____________________________. • Contractor evaluation: experience, reputation, facilities, staff availability, charge rates, fee structure • Intended for complex contracts • Bidders may provide several solutions. Basis for overall bidding price may not be specified. • Discussion with bidders are needed after bids are received. Detailed negotiations with all bidders on the basis on the original bid are implied. 20 1.2.7 Contract Type • Lump sum contract • Fixed unit price contract • Cost plus contract • Guaranteed maximum price (GMP) contract 21 Lump-Sum Contracts • A lump-sum contract quotes one price for all work and services (direct costs, indirect costs, profit) Contract Amount Actual Cost Contractor Impact $20,000,000 $20,290,000 Suffers a $290,000 loss Owner Impact No impact $20,000,000 $19,900,000 • Pros: – Guaranteed price for the work specified – Reduced work of field measurement for contractor • Cons: – L...
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