Negotiate vs. Hard Bid

Negotiate vs. Hard Bid

November 15, 2019 0 By Luis Garrison


Traditionally, construction projects are awarded to the lowest bidder through the method of a competitive bid, also known as a “hard bid”. This is when a few general contractors are invited to submit bids for the project and the one with the lowest price wins the contract. This process does not necessarily guarantee the best price as change orders are made to adjust the cost and completion date later during construction. Typically, the project is granted to the contractor who has made the biggest mistake, missed something, or is being dishonest with his number just to be awarded the job. At Tandem, we work on a negotiated contract basis to provide the best quality work. The client chooses us based on our qualifications and experience, and we are on board from the early stages of the project. We compile bids from various subcontractors to create a price package and schedule that best fits the client’s budget, quality, and timing requirements. This collaborative approach cuts out hostility from competing against other contractors, minimizes changes in estimates, and gives us the opportunity to keep in close communication. This way, our partnership is built on trust and a common goal of a successful end product.