Negotiations with a Building Contractor

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BoringJoe

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Currently at an advanced stage to build a 4000 sq ft house...Planning complete, tenders received and just waiting on final go ahead from the bank!....

Next stage is to meet with the Building contractors that returned the tenders...There is one we are particular keen to talk to..Was not the cheapest but comes with a very good reputation and is very keen for the job.

Has anyone any experience in negotiating the price we have received...What kind of a discount should be look for - or should we look for more items to be completed for the price (garden, driveway etc. which we have excluded)

The electrical / plumbing and windows quotes are separate companies that the contractor has got quotes from...Should we negotiate with these three trades also or is this up to the contractor
 
When we were negotiating the price with the architect for tender docs we got a cheaper price but it meant he would not be negotiating with the main contractor...
 
BoringJoe said:
What kind of a discount should be look for....
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Just be very careful!

In these times, contractors are pricing jobs as keen as they possibly can to get the job. There is usually no 'fat' on the builders price to give a discount.

Tell the builder you might or would prefer to do the job the situation, i.e. that he is not the lowest but you would like to work with him and ask him is there anything he can do on the price - leave the ball in his court to propose any discount he feels comfortable with.

If you 'force' a discount on the builder - a dscount you might like - and he (relucatantly) accepts to do the job (in the interest of having the work), you will often find this approach can bite back in extras and variations during the projcet.
 
BoringJoe said:
When we were negotiating the price with the architect for tender docs we got a cheaper price but it meant he would not be negotiating with the main contractor...
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If you don't value the work, its your call.

Can I suggest you now do this, just for the heck of it.

Keep a record of all the time you put into this and multiply by a reasonable charge-out rate, say €50, and see what it amounts to.

Compare this amount with what you saved on the tender negotiations.

I'd be interested to know in the saving if any.

ONQ.
 
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