Bidding and Contracts
Who works for whom?
It's a bit like a three ring circus, with the client (owner) at the center. In a typical arrangement, the client has one contract with the architect and a separate one with the contractor. The contractor then hires the subcontractors. The client may also hire other professionals directly, including an interior decorator, landscape architect, security consultants, etc.
Who should I hire first?
It makes sense to hire the architect first for two reasons. You can't build the project, or even be certain of the scope of work, until you have a design. Contractors need (at minimum) a schematic design to know the size of the project, and your time frame, to determine their interest and whether it fits their schedule. In addition, the architect can help you find and hire a suitable contractor.
The difference between a bid and an estimate
The terms "estimate", "bid", and "contract" are sometimes confused, but have important differences. An estimate is an educated guess based on a general description of a project. A bid is an estimate based on a more specific description of work to be done. A contract is a binding agreement to do specified work for specified compensation. Therefore, neither estimates nor bids are binding, until they are turned into contracts.
Contract types
Construction contracts generally fall into two types: fixed price or cost-plus. There are significant differences between the two, and it's worth understanding them both to decide which is more suitable for your project.
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