How is a Single Responsibility Contractor Selected?
Single Responsibility contracting replaces the process of having to select a design professional as well as a construction contractor. Numerous proposals can be obtained from a variety of different selection approaches.
- Direct Selection
You select a Design-Build contractor directly, using such factors as reputation, past performances, qualifications, prior association and/or referral.
- Competitive Negotiation
You interview multiple Design-Build contractors and make your selection based on recent comparable cost, fees, scheduling obligations and personnel assigned to your project.
- Cost Competition
You provide criteria for your project and request the bidders to prepare both preliminary designs and cost quotations. Each proposal will be different in design and cost. This approach allows you to evaluate each proposal and determine the best design and value for you and your money.
What Types of Contracts are Used?
Single Responsibility offers you quite a bit of flexibility. A variety of contract formats have been developed to tailor a design-construct contract that meet the needs of both you and your contractor. Generally, both you and your selected contractor enter into a "multi-phase" agreement with an initial design cost at a nominal fee. When construction costs are determined and both you and your contractor are in agreement, detail and construction phases are then added using one of the contract formats below:
- Fixed Fee-Guaranteed Maximum
You and your contractor agree upon a fee for your contractor's profit and overhead and your contractor produces the absolute maximum cost for your project. This type of contract provides for sharing of any savings between you and your contractor and protects you from costs in excess of the maximum cost you originally agreed upon.
- Lump Sum
Your contractor provides a stipulated "lump sum" amount for both the design and the construction of your entire project. You pay only the contracted "lump sum" whether there are any increases or decreases in the actual cost of your project.
- Cost Plus
The cost-plus contract is used when accurate cost estimates are difficult to determine. With this type of contract, you and your selected contractor agree upon a "lump sum" for the design portion of your project as well as a profit and overhead fee for you contractor. In some circumstances, the cost-plus agreement can be converted to a "guaranteed maximum" agreement when the cost and scope can be accurately determined.
How is a Single Responsibility Contractor Selected?
Single Responsibility contracting replaces the process of having to select a design professional as well as a construction contractor. Numerous proposals can be obtained from a variety of different selection approaches.
- Direct Selection
You select a Design-Build contractor directly, using such factors as reputation, past performances, qualifications, prior association and/or referral.
- Competitive Negotiation
You interview multiple Design-Build contractors and make your selection based on recent comparable cost, fees, scheduling obligations and personnel assigned to your project.
- Cost Competition
You provide criteria for your project and request the bidders to prepare both preliminary designs and cost quotations. Each proposal will be different in design and cost. This approach allows you to evaluate each proposal and determine the best design and value for you and your money.
What Types of Contracts are Used?
Single Responsibility offers you quite a bit of flexibility. A variety of contract formats have been developed to tailor a design-construct contract that meet the needs of both you and your contractor. Generally, both you and your selected contractor enter into a "multi-phase" agreement with an initial design cost at a nominal fee. When construction costs are determined and both you and your contractor are in agreement, detail and construction phases are then added using one of the contract formats below:
- Fixed Fee-Guaranteed Maximum
You and your contractor agree upon a fee for your contractor's profit and overhead and your contractor produces the absolute maximum cost for your project. This type of contract provides for sharing of any savings between you and your contractor and protects you from costs in excess of the maximum cost you originally agreed upon.
- Lump Sum
Your contractor provides a stipulated "lump sum" amount for both the design and the construction of your entire project. You pay only the contracted "lump sum" whether there are any increases or decreases in the actual cost of your project.
- Cost Plus
The cost-plus contract is used when accurate cost estimates are difficult to determine. With this type of contract, you and your selected contractor agree upon a "lump sum" for the design portion of your project as well as a profit and overhead fee for you contractor. In some circumstances, the cost-plus agreement can be converted to a "guaranteed maximum" agreement when the cost and scope can be accurately determined.