General Contracting

General Contracting services using Design – Bid – Build. This is the project delivery method generally used in the public sector when state and/or federal dollars are to be used to fund a portion or all of the construction. With this method, the Architect is usually hired on a qualifications based procedure which usually includes the Owner (and/or Governmental Agency) advertising for services, designers responding by submitting their qualifications, likely an interview process run by the owner of a “short list” of qualified firms, then a final selection by the Owner.

The Architect provides design documents for the conceptual, schematic, design development, and construction documents phases of the project development. The Architect and his design consultants, which normally include civil, structural, mechanical, and electrical engineers, are expected to design within a construction budget set by the Owner at the onset; will be responsible for estimating his design and advising the Owner of the expected construction costs based on his experience for each phase of the design process; and is responsible for communicating the entire design intent through accurate, complete, and well coordinated construction documents (plans, project manual, and specifications) such that the project can be put out for competitive bidding.

Once the design is complete and the expected costs are estimated by the Architect and the entire package is acceptable to the Owner, the project is advertised for bidding; a bidding procedure and time frame is set up; contractors, including generals, subcontractors, suppliers, and venders, assemble their prices based on the content of the documents and submit “bids” to accomplish the work per the parameters set forth by the Architect and his consultants in the bidding documents. Subcontractors, suppliers, and venders “bid” for their respective scopes of work to the general contractors and the GC’s submit their bid for the entire project using a combination of their own estimates, the bids they receive, and their proposed method of executing the work. Unless there is some irregularity discovered just after the bids are received, usually the low bidder is offered the project, assuming that it is within the project budget as set by the Owner.

During the construction period, the Architect is usually hired by the Owner to administer the terms and conditions of the construction contract between the Owner and the General Contractor and to provide field oversight to assure that the design intent, the construction schedule, and the expected quality are met.

The Owner has a contract with the Architect for his services and the services of his consultants. The Owner has a contract with the low bidder/General Contractor for the construction.

Pros to this method of project delivery:

• It is perceived to be the method that is most “fair” to the construction industry (This is now changing even in the public sector, however.).

• It has been perceived to provide the lowest cost for the construction phase based on competition for the work.

Cons to this method of project delivery:

• The process takes the most time during the design phases due to the need to document EVERYTHING, added responsibilities of the design team, and the bidding period needed to obtain the construction costs and select a General Contractor.

• The Architect’s (including consultants) portion of the project budget is more costly because of the level of services and responsibilities required.

• This method of project delivery is potentially adversarial – not a “team” approach.

• The design intent is communicated solely through the documents – they are the basis of the bid, the relationships during construction, and the construction contract.

• Generally, the Owner gets what/who he gets, as the invitation for bids is usually open to all with little to no control of who is qualified to do the work.

• GC’s must take “low” sub bids to be competitive – there may be relationship issues with this approach especially if the parties have not worked together before or, of even more concern, if there has been a past strained relationship.

• The GC’s general conditions and markups will be set at the bare minimum in an effort to win the bid for the project. Because of this, the GC will make every effort to manage and conduct the work as bid, sometimes to the detriment of other project goals, to maximize his profit margin.

• Change Orders result if the documents are incomplete, not coordinated, or the intent is not clear. From the GC’s point of view, it is black or white with little room for negotiation. This oftentimes puts the Architect (and his consultants), Owner, and GC in difficult and adversarial positions.

General Contractor - Construction Manager - Design Builder

3025 North Belfast Avenue, PO Box 27, Augusta, Maine 04332-0027

(207) 621-8505        Fax: (207) 621-8508