When Should I Start Talking to a Contractor About My Project?

In the traditional design-bid-build project delivery method, contractors only get involved in a project after the design has already been completed. Their ability to drive cost savings, provide constructability reviews and accelerate the schedule is severely limited under this model. By getting a contractor involved early addresses these concerns and will lead to real benefits to the client. It also makes the transition to the construction phase seamless.

At Invision Development, we offer our clients preconstruction and construction services under a cost-plus fee with a guaranteed maximum price contract where our fee and general conditions are negotiated up front prior to the design even beginning. Preliminary pricing feedback is provided at the completion of schematic design and then again at the completion of engineering drawings. The pricing becomes more accurate as the drawings progress from one stage to another.

After all drawings and specifications are complete, we solicit and obtain multiple subcontractor proposals for each major bid package. During this stage we also apply for the building permit and order any long lead items which usually includes doors and specialty equipment. Upon receipt of the subcontractor bids, we sit down with the client and together select the lowest qualified bid.

This provides a way for clients to know what the true costs are on a project and sets the stage for a transparent and collaborative relationship. Once all costs have been determined we add a small contingency to cover any errors and omissions and then establish the guaranteed maximum price. Any costs above the guaranteed maximum price are paid for entirely by the contractor. Any unused contingency is shared with the client at the end of the project therefore providing an incentive to the contractor to keep a tight handle on costs and schedule.

So to answer the question “When should I start talking to a contractor about my project?”, the answer is as soon as possible, ideally before you purchase that building or parcel of land.