contractor Risk and Negotiation
Please answer the following questions, worth 2 points apiece. If you’re submitting an attachment, please don’t forget to put your name on the paper…
1. What risks does a contractor face when bidding a lump sum job for the construction of an office building in an urban setting for a private developer with who you have never done business with before?
2. What risks does a contractor face when bidding on a construction project located in a city in which you have never had a previous project?
3. What criteria should a contractor use in deciding which projects to submit bids on?
4. Assume you have submitted a lump sum bid on a commercial project to an owner with whom you have had previous project success and you have a good relationship. The owner tells you the bid is too high, asks you to call
him/her and submit your “best and final” offer. What negotiation strategies would you employ, and how would you prepare and go about about this conversation?