ᐅ What is the value of a fixed price that is not guaranteed?

Created on: 17 Sep 2021 10:27
L
Lois L.
Hello,

how should it be assessed if a fixed price applies under the condition that "no direct or indirect delays to the start of construction occur due to Corona" – and the start of construction is stated in the contract as merely "planned"?

Thank you in advance for any experiences and expert opinions on this.
D
driver55
19 Sep 2021 11:21
Sorry, this isn’t completely on topic, but by the time some get started, prices will have already gone up another 10%.. 😀
N
netuser
20 Sep 2021 15:48
ypg schrieb:

They focus on volume. Therefore, there are many subcontractor crews with different nationalities, where vaccination or compliance with safety measures like distancing and hygiene are not necessarily discussed, and the latter is less strictly followed. As a result, the general contractor might have to hire more expensive crews from the surrounding area on short notice or pay an additional fee because they need the crew urgently. He doesn’t want to bear that extra cost.
The higher-priced contractors may have their own crews or a small number of regular tradespeople, don’t focus on volume, and can better assess their workers.

It’s fortunate that our main contractor mostly had their own crews, where vaccination or similar topics were never really addressed, and he also wasn’t among the high-priced ones.
Exceptions certainly prove the rule, but in my personal experience, the points mentioned have nothing to do with each other....
11ant20 Sep 2021 17:03
netuser schrieb:

It's a good thing that our general contractor (GC) mostly used their own crews,

I struggled a lot with whether to quote Albert Borland in post #12 ("I don't think so, Tim") and finally decided not to respond to it at all.

Moreover, large GCs with many in-house crews don’t necessarily use fewer subcontractors depending on the distance between their headquarters and the construction site. Overall, it's very difficult to make reliable general statements about the subcontracting practices of GCs, even “just” based on company size versus share of in-house crews.

Even mailbox GCs are not generally inadvisable—for architect-led GCs, this structure is actually quite typical and not necessarily a model to be avoided. So, even mailbox GCs do not automatically only build "cookie-cutter houses" ;-)
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
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netuser
21 Sep 2021 09:19
11ant schrieb:

By the way, large general contractors (GCs) with many in-house crews do not necessarily use fewer subcontractors depending on the distance between their headquarters and the construction site. Overall, it is very difficult to make reliable, general statements about subcontracting practices of GCs, even when considering only company size versus the proportion of in-house crews.

I did not mean to imply that our GC builds without subs. They have plenty of those as well. I was just surprised to see the topic of vaccinations, social distancing rules, etc., brought up in this context, which in my view is out of place and does not match my experience over the past few months. At least in our case, I was very relieved that despite 90% of the crews being in-house and composed of "not different nationalities," and the few subcontractor crews, absolutely no one made the points mentioned an issue.
11ant21 Sep 2021 11:04
netuser schrieb:

I certainly didn’t mean to suggest that our general contractor (GC) builds without subcontractors.

And I didn’t mean to imply that you said that ;-)
My post was a mix of my own opinion on the matter and a response to your words and your quote of Yvonne’s statements.
The main point should be not to infer causal relationships between planning reliability in personnel scheduling and the question of having one’s own crews—especially not as generalizations about GCs of different company sizes.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/