General Contracting
General Contracting (Stipulated Sum Contract)
This is the traditional construction structure. In this process, the design team is chosen first to complete the working drawings and specifications. Then there is a calling of tenders. Contractors who are bidding will complete a detailed take – off and invite sub – trades to quote on their portion of the project. This process results in the Contractor submitting a tender price. This amount is a lump sum that will include all aspects of construction from site preparation to the final landscaping details (as per the design scope of work), excluding the fees charged by the design team and other consultants. Generally speaking, the lowest bidder will get the job. If all tenders are over budget, the entire procedure must be repeated. Once the general contractor has been chosen, the sub – trades will start to be awarded and the project can start.

The benefits of this type of contract include:

• Firm knowledge of project end value
• Low risk for owner
• Easy project financing