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Welcome to CONTRACTS WEB SITE.
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Winning the project is no fun when you lose money.
As the common saying goes "he who wins the bid is he who has made the most mistakes". It has happened to all of us at one stage. How to reduce this from happening?
What has happened to the concept of partnership between client and builder, where the construction contract was but a formality, and the "real deal" was the handshake between the client and the builder? It is obvious to those of us in the industry that the handshake has been replaced by the contract. Progression? We don't think so. How to deal with it? We hope to be able to provide a solution. For our idea of how, please read on...
Where the contract should create clarity, sometimes it is written with the sole purpose of creating confusion, and thereby placing more risk on the bidder. The common situation occurs where a bidder will miss an important clause in the contract while bidding (and therefore not allow for this in his price), and will win the project with an unrealistically low price. Management consultants refer to this as "Winner's Curse". Other bidders that had allowed for this condition and therefore submitted a realistic price, lose the project. Whatever it is called, the loser is the construction industry, and the winner is the client and their lawyers.
This free website is unique in that it is created and maintained by builders. That is, by you and your competitors. Is that not collusion? No, it is transparency. Why tell your competitors where the tricky clauses are? Because it increases your chances of winning the project, at the *right* price. Think of this as a co-operative legal service.
C2E
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