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– 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
• 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)
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
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- Fall '14