A report by the American Institute of Architects and the Associated General Contractors of America takes a look at the supposed conflict between good design and effective cost management, and why it causes friction between architects and contractors.
“The ‘hard bid’ relationship is structured to be confrontational,” according to an architect quoted in the report. “The architect does not have the time or [get paid a] fee to show scope completely or to fully coordinate the project. The GC is required to bid low to get the project, then exploit information gaps in bid documents to improve profitability.”
Construction attorneys say that contract provisions can help bridge this collaboration gap, according to an article at Construction Dive. Ideally, architects would specify every material and component for a project, but with limited budgets and time, architects can’t do that. As a result, contractors have to fill in the gaps, and often have to go back to the architect with RFIs.
One contract solution would be to pay architects through an additional services provision for time spent responding to RFIs. This could be accompanied by a contract clause requiring architects to respond in a set time frame or face a financial penalty.
Related Stories
Contractors | Mar 24, 2016
ABC: Construction Backlog expands at the close of 2015
Uptick suggests high demand for construction workers will continue.
Market Data | Mar 1, 2016
ABC: Nonresidential spending regains momentum in January
Nonresidential construction spending expanded 2.5% on a monthly basis and 12.3% on a yearly basis, totaling $701.9 billion. Spending increased in January in 10 of 16 nonresidential construction sectors.
Market Data | Mar 1, 2016
Leopardo releases 2016 Construction Economics Report
This year’s report shows that spending in 2015 reached the highest level since the Great Recession. Total spending on U.S. construction grew 10.5% to $1.1 trillion, the largest year-over-year gain since 2007.
Market Data | Feb 26, 2016
JLL upbeat about construction through 2016
Its latest report cautions about ongoing cost increases related to finding skilled laborers.
Contractors | Feb 25, 2016
Huntsville’s Botanical Garden starts work on new Guest Welcome Center
The 30,000-sf facility will feature three rental spaces of varying sizes.
Architects | Feb 24, 2016
Is the booming freelance economy a threat to AEC firms?
By shifting the work (and revenue) to freelancers, “platform capitalism” startups have taken considerable market share from traditional businesses.
Religious Facilities | Feb 22, 2016
For the first time in Bulgaria, a temple’s construction raises a metal dome
The church is 2½ times larger than the basilica in Ukraine it references.
Market Data | Feb 10, 2016
Nonresidential building starts and spending should see solid gains in 2016: Gilbane report
But finding skilled workers continues to be a problem and could inflate a project's costs.
Contractors | Feb 2, 2016
ABC: Nonresidential spending falls again in December
For a second consecutive month, 12 of 16 nonresidential subsectors experienced spending decreases on a monthly basis.
Contractors | Feb 1, 2016
ABC: Tepid GDP growth a sign construction spending may sputter
Though the economy did not have a strong ending to 2015, the data does not suggest that nonresidential construction spending is set to decline.