Traditional Tendering. The client has progressed, (generally through a lead architect) their building design to building consent approved by the local council. Traditional tendering allows the client to secure a main contractor from the open market based on pricing of the approved design.
Negotiated Contracting. Generally in the form of GMP (guaranteed maximum price), P&G Margin (preliminary and general and margin costs), D&B (Design and Build) or ECI (early contractor involvement) procurement. All give the opportunity for the main contractors to be involved in the project early providing their expertise and construction knowledge and promotes “open book/transparency” of pricing information/supply chain costs. Working collaboratively (client, main contractor and consultants) the team develop the clients’ scope (wants, needs, requirements, expectations) to a design ready for building consent and trade pricing.
The scope and design detail (material selection, the method in which the building is built) and programme are challenged and tested by the team to identify any advantages or alternatives to bring the project in under budget or in on a reduced time frame, while fully considering health and safety compliance and quality/aesthetic outcomes. The main contractor is well positioned to provide “real time” update of project budget, trade prices can be sought early to provide certainty of budget to the client and securing of construction resources.