General Contracting
Description:
In this method of project delivery, the client typically hires an architect/engineer to design the project. Once the design has been completed, lump sum bids are solicited from general contractors who submit prices on the project exactly as specified, with the project typically awarded to the lowest bidder.
Pros:
- Familiar project delivery method
- Linear process with no overlap
- Simpler initial contractor selection process
- Easier process to manage; single-point accountability with general contractor holding all trade contracts
- Lump sum closed contract that can be bonded
- Good for public projects or large but simple projects that are cost-sensitive but neither schedule sensitive nor subject to change
- Built-in adversarial relationships
- No constructor input during design
- Changes are difficult and costly
- Greater risk that budget will be exceeded at bid time, as design must be completed and bids recieved before client knows cost
- Contractor selection not qualification-based; client has minimal control over selection
