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.
Featured articles and news
Sadiq Khan publishes a new development strategy for the capital.
In the week of the momentous Heathrow decision, we look back at the development and design of T5.
BSRIA’s flagship event will address performance and wellbeing beyond compliance.
Young Architects and Developers Alliance launched to build the relationship between the two disciplines.
BS 8536-2:2016 Design and construction: Code of practice for asset management (Linear and geographical infrastructure).
Paying for off-site goods or materials can be useful, but it puts the client at risk.
People power can be transformative if properly informed and inspired.
ZHA win competition to build an Urban Heritage Administration Centre in Saudi Arabia.
Leaps, not steps, are needed to avoid a ticking time bomb, say BRE in response to Farmer Review.
A multi-purpose hall in France covered in a translucent orange membrane.
Winning designs revealed for a rock formation-influenced residential complex in Rennes.
An article explaining the techniques, regulations and environmental impacts of carbon capture and storage.
Watch one of the first documentaries by the acclaimed Adam Curtis, examining the substandard system building of the 1960s.