Self-build home: Confirm appointment of the design and build contractor to construct the home
NB Where a single-stage procurement route has been followed, and the contractor’s initial appointment was for both design and construction, the contract sum for the construction of the home will already have been agreed.
Ideally, when the the design and build contractor's appointment to construct the home is confirmed, negotiation is a mathematical exercise following the pricing criteria agreed in the first-stage when the contractor was appointed to design the home.
The first-stage appointment might have been made on the basis of a bespoke agreement, a consultancy agreement or a pre-construction services agreement (PCSA), with an appendix setting out the tender items to be applied to the construction contract, with a clause that made it clear there is no obligation to proceed to the construction contract, and in such circumstances the pre-construction fee would be full and final settlement of the contractor's costs.
However, there are likely to be items not anticipated in the first stage, for which negotiations will be necessary.
Negotiating at this point is difficult because the contractor is ‘embedded’ in the project and there is little threat from competition. This can mean that tender prices for the second stage of two-stage contracts are higher than traditional contracts, which are subject to full competition. However, there tend to be fewer variations and fewer claims; as the contractor has a longer period of familiarity with the project and a better-developed relationship with the self builder.
Ideally there will be some means of securing an alternative bid if negotiations with the contractor fail, albeit this is likely to result in delays and difficulties in attributing design liability.
Featured articles and news
Art of Building CIOB photographic competition public vote
The last week to vote for a winner until 10 January 2025.
The future of the Grenfell Tower site
Principles, promises, recommendations and a decision expected in February 2025.
20 years of the Chartered Environmentalist
If not now, when?
Journeys in Industrious England
Thomas Baskerville’s expeditions in the 1600s.
Top 25 Building Safety Wiki articles of 2024
Take a look what most people have been reading about.
Life and death at Highgate Cemetery
Balancing burials and tourism.
The 25 most read articles on DB for 2024
Design portion to procurement route and all between.
The act of preservation may sometimes be futile.
Twas the site before Christmas...
A rhyme for the industry and a thankyou to our supporters.
Plumbing and heating systems in schools
New apprentice pay rates coming into effect in the new year
Addressing the impact of recent national minimum wage changes.
EBSSA support for the new industry competence structure
The Engineering and Building Services Skills Authority, in working group 2.
Notes from BSRIA Sustainable Futures briefing
From carbon down to the all important customer: Redefining Retrofit for Net Zero Living.
Principal Designer: A New Opportunity for Architects
ACA launches a Principal Designer Register for architects.