Fixed Price tendering is the traditional method of construction delivery. The owner engages the services of Architectural and Engineering Consultants to prepare a set of working drawings and specifications. When the drawings are completed, competitive bids are called. The successful contractor will typically be the one with the lowest lump sum or fixed price bid. The bid is then reviewed by the owner and the consultants who in turn recommend the contact award.
The owner and Timcon Construction enter into a stipulated price contract then construction begins.
- Price known prior to start of construction
- Contractor retains risk of cost escalation during construction
- Longer time frame from conception to completion
- Cost savings and ability to make changes are considerably reduced with completed drawings.