- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 27 Dec 2020
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
Gaining green support from the carbon giants.
Medieval passageways with spiritual, transport and economic purposes.
Organisation receives accreditation from Investors in People.
Click the button to subscribe.
Communicating the right information at the right time.
Materials can take on different properties to control heat and glare.
Challenges in the construction sector and beyond.
Exploring brick and timber construction techniques.
On wheels or on platforms, micro dwellings are popping up everywhere.
Landlords must now comply with new repair regulations.
You can add articles and help improve knowledge in the construction industry.
Ayo Sokale explains the struggles of being neurodiverse.
Communities, heritage and architecture. Book review.
The voluntary sector continues to shape the debate.