Cost plus fixed fee contracts can suit projects that are difficult to price upfront. Agree a fixed dollar fee, define reimbursable costs, and use open book reporting and spending limits to keep the arrangement fair for both the client and contractor.
An agreed hourly rate does not establish how much a contractor is authorised to spend. Set a clear spending limit, monitor the forecast cost and approve increases in writing to reduce budget surprises and payment disputes.
Calling time “float” can make it an easy target for removal. Describe necessary work accurately, explain contingency and monitor the float that remains. A clear schedule helps your client understand both the time required and the risks to completion.
You should not do every project you are offered. You need to carefully consider each opportunity and assess whether or not it is the right fit for you and your team. Doing every project eventually leads to project failure. Learn to say no! If you don’t, project failure awaits.
Be wary of low bids by contractors. Get a number of bids. Compare and check why a low bid is so low. If a low bid is accepted, be especially …
Do safety in design properly. Ensure your project and company have well developed systems to ensure it is done properly. Document your safety in design checks properly.
You must allow time and budget to do safety in design. This will reduce the structure’s safety risk and your, your designer and your companies legal risk.
Wet weather can cause delays to your project. Allow for wet weather in your project schedule. This will make getting extensions of time and cost easier.
Check and double check geotechnical information supplied by the client. If the client supplies the information, it would be ideal for the contract to specify that your design/construction relies on …
Make sure to limit your liability. Make this in writing in the contract A small project can still have a high risk of being liable to damages, especially if the …