By Richard Fria
The negotiated contract method for RFPs is a rapidly growing trend in
construction.
Traditionally, RFPs
have gone through a competitive bid method – meaning that 100% of the
design work is done without the input of contractors and with very
little real cost information. With the negotiated contract method,
only about 10% of the design work is done before a contractor is
brought to the table, which means less paperwork and lower up-front
costs.
There are several
advantages to the negotiated contract method:
- Because only a
small part of the design work is done up-front (before a contractor
is brought on board), no extensive re-design work has to be done
when budget/schedule issues with the design become a factor.
- A complete team –
architect/designer and contractor – is assembled earlier, making for
a much more efficient process and outcome.
- The RFP process
becomes a collaborative effort, rather than a competitive one.
There is no other book on the
shelf that either focuses specifically on RFPs in the construction
industry, or features a step-by-step method for implementing the
negotiated contract method.
This is a
step-by-step guide for managing the RFP process in a way that saves
time, money, enhances team collaboration, and assures quality in
construction. Focusing on the negotiated contract method (as opposed
to the competitive bid method), the book takes readers from
articulating the needs/wish list for a construction project, to the
analysis of responses and interviews, through negotiations and
finalization of the deal. This is a roadmap for:
- Preparing,
understanding, and assessing the quality of information in an RFP.
- Gathering
critical, project-specific information from free and up-to-date
local databases.
- Adding value to
the process by assisting consultants in marketing and project
management capabilities.
- Selecting and
working with a team early in the process to stay on-schedule and
on-budget.
- Improving the
materials selection process and the end-result overall quality of
construction.
- Example and
template forms make it easy to create a successful RFP process.
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