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Serious disputes are estimated to arise in 10 to 30 percent of all construction projects, and one in four projects has a claim.
Reasons for claims:
1) contractor requests for compensation not anticipated in the in the terms of the original contract
2) owner requests for compensation for the contractor’s failure to meet contractual terms
Research has shown projects that transfer more risk to the contractor through lowest bid process, are significantly more likely to have a claim from customer dissatisfaction.
Market forces inherent to the low-bid process can drive the contract price to or below market. This means too often contractors enter the process driven to find ways to make a profit. DDS Hospitality’s consistently submits a comprehensive bid based on the scope of the work to avoid making change orders for additional work to increase profits later on.
At DDS Hospitality, we’re taking steps to make the experience better for everyone. We approach our work with five tactics designed to spotlight and meet our client’s best interests. This process enhances communication and avoids confusion once a project is underway.
Define Project. Establish a clear understanding of the scope of work, the labor environment, material availability, and other factors affecting the project prior to the bidding phase.
Reduce Risk. Understand site conditions early in the process or, if the conditions are uncertain, to put into place contract provisions that acknowledge and equitably allocate the risk associated with the issues.
Best Value. Use a best value approach in bid selection, as apposed to a low bid process.
Total Integration. Establish a collaborative team approach where both owner and architect have a shared responsibility and no adversarial relationships develop.
Shared Vision. Develop concise specifications and drawings that are reviewed by the owner and contractor to ensure both have a true and realistic understanding of project.
Solid communication and team integration benefit everyone and increase project efficiency. By ensuring that all parties recognize their individual responsibilities in the project everyone can and will work toward the same objective and budget.
By committing to architect and design reviews, as well as on-site reviews we ensure a quality design for our client’s projects.
Our clients recognize the value of doing business with us. In return and with gratitude, we provide quality workmanship, consistent communication, and set safety standards that ensure success for you.
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