Many standard construction contracts include a placeholder for incentives for a contractor that completes a new project on time and under budget. Possible rewards include early completion bonuses and/or sharing in the project savings, if any, which can be calculated in several ways. In my latest article for the Daily Journal of Commerce, I provide some general observations for owners to consider concerning preconstruction services, as well as particular ones regarding negotiations with a preconstruction services contractor over contractor contingency, allowances, schedule, and project savings. Read the full column here.
Originally published by the Daily Journal of Commerce on July 20, 2023.