How do you negotiate with contractors who ask for more money or time? (2024)

Determine the scope of the issue, seek to discover what changed, find answers on what will be required to remediate the issue. Collect all the data on the scale, scope, and timing of remedating the issue so all parties can engage in determining the solution and cost implecations.

One thing I have found helpful is that documentation is key. My first hand experiences have been mostly from renovations where things are not the way they should be or are not clarified on contractual drawings. While on the other hand some of my trade partners don't want to pick up the work because the scope may be challenging to them.

This stands true. One thing I run into is mostly the contractors that install low voltage cables assume that we put sleeves wherever they feel needed. Unless they are shown on the drawings we do not install for an as needed or better pathway.

Há controles fundamentais antes dessa fase. A boa gestão de Contratos demanda passos importantes como gestão do escopo, gestão das mudanças, indicadores de performance, dentre outros. Com essas ferramentas é possível analisar de forma assertiva e eficiente o pleito demandado e ser efetivo no julgamento do pleito.

Translated

It’s interesting the way that construction contract law has caused an evolution in commercial construction practices. Double indemnity clauses that continuously shift the risk burden to the lowest subcontractor tier (where the likelihood of recovered claims is least likely) has inflamed the subcontracting community to the point that construction managers rarely actual manage the site sequencing anymore. It used to be general contractors both managed the work and self-performed some of it. No more. Now we have “Construction Managers at Risk” which is a fancy way of saying they take a cut of the overall budget and pretend they are actually managing the work. There is no self-performing any of the work anymore. Just “management”.

A short answer is that you don’t. Contracts set out the procedure for changes ( variations) and how to value them. Both parties are obliged to comply with them. It isn’t a choice .

Start with the only true way to ensure this will not happen! Make sure the SOW (scope of work) is detailed and complete. This will require meetings with the executation team and the administrative team to cover the details, if not items may fall thru the cracks and lead to thorny discussions about change orders later on.

There are not much to add communication is very important problem reporting so you know you have a problem what are your options and how it affect budget & time A simple VO variation order can be extremely affect cost & time until handing over

I beleive that the best method to have clear and open discussions is using the techology afforded to eveyone. Either TEAMS or ZOOM allows all parties to see and speak regardless of the present location of individuals responsible for finding solutions to any issues that arise in our daily endeavors. Having the ability to "SEE" the attending memebers will encourage everyone to mantain professional demeanor.

As part of the contract strategy / bid slate selection / RFP / Bid Reviews / Contract negotiation-award / Baselining of the plan, the management team should be identifying soft spots and risks associated with the contractor. These risks should be located on the (management) schedule and pulled up in 3-month look a heads to assure they are mitigated to the extent possible. Where they materialize, this strategy should provide a yard stick for measuring the impact and understanding if any of it is contractually excusable.

I have fallen victim to where the good old handshake was no longer valid. So when it came time to produce the change order it was critiqued to a level that shook my team. Knowing the level of skill needed and timeline to meet the project because another contractor excluded it was baffling.

Ultimately, during the framing of the project and through-out the execution, the management team should be recognizing areas of risk and planning appropriate levels of schedule and cost contingency to cover these areas. As the risks approach the points of execution this should be when the management team applies resources to mitigate these items where possible. And where they materialize have some yardstick to measure the real impact so that you are only allowing the actual impact to be included in the change.