Negotiating with a Contractor
We have entered into a contract with a design-build (architect-contractor duo) team to renovate our brownstone. While this brings with it some advantages (they seem to have a good relationship and good communication), it does leave us at a disadvantage in terms of not really being able to bid out our job for the contractor…
We have entered into a contract with a design-build (architect-contractor duo) team to renovate our brownstone. While this brings with it some advantages (they seem to have a good relationship and good communication), it does leave us at a disadvantage in terms of not really being able to bid out our job for the contractor portion. Any suggestions on how to negotiate down the price that the contractor presents us for his work? Is there any place to get a general sense of comparable prices for the work (or portions of it) without bidding out the job to other contractors? And does anyone have a sense of what an appropriate amount a contractor should charge for overhead? Thanks.
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As the subject matters pertains to sensitivity, I would suggest that any input be legitimate and without prejudice. As we discuss matters, such as contractors we have to remember that any experience with them can be biased, nevertheless, If a contractor has done wrong we must disclose there names.
In the interest of fairness I think we shouldn’t try to out a company, especially if the original poster (that’s me btw) didn’t want to name the company’s name for fear of slandering them. As author’s on a public board we really do owe people and company’s something other than risking their reputations unnecessarily. Sorry if this sounds shrill, but it’s a really important topic to me because we shouldn’t just hide behind bad behavior just because we can post anonymously here.
Contractors are licensed through NYC Department of Consumer Affairs (I don’t know about architects). You can contact the DCA to find out about complaints, as well as the Better Business Bureau.
does the company initials B-C mean anything to you?
I have also heard the horror stories about the same (I beleive) local design/build firm that I was considering using and was wondering which side of the story was true. Without naming said firm, do mind sharing your experiences, what you’ve heard, or what you can recommend to look out for? Thanks.
I have heard many horror stories about one particular design-build firm. For fear of slander I do not want to give out any info. about the one I am referring to. But regardless whether it’s the same one in question or not, it would be wise to ask if the firm you are interested in using has been sued by any customers or has been asked to leave any jobs prior to completion.
One company doing both tasks can help you know who is in charge of what. If you are not happy with the result, it is the problem of the design builder. Just be careful to clearly spell out your expectations and who is in charge of what. I don’t know what the right overhead charge is, but based on my experience with a couple of big projects, make sure you hold back enough to make sure you can finish the job. Also, consider making sure there is time is of the essence language in your contract. You may have to give generous deadlines, but having some deadline is better than none if you need to get the project finished.
You could enter into a cost + fee arrangement (there is an AIA document for this) rather than a stipulated sum. You pay the contractor his cost for labor, materials, subcontractor bills, plus an agreed upon fee, overhead & general conditions. You can request that the subcontractor bids come directly to you. Most importantly, check the references of the contractor – on time, good work, trustworthy? Have you seen his work? If not, do so before proceeding. If you feel confident about this contractor, go for it but don’t try to lowball him. A good contractor is worth a premium, as is any exceptional professional. Keep in mind that during the renovation stage, the architect usually serves as a project manager and directs the contractor on the client’s behalf. Understand that there is a conflict of interest in this respect when dealing with one company for both tasks. Best of luck.