10 Rules Of Negotiating Construction Contract
Negotiating construction contracts can be a tricky process, especially if you’re new to the industry. To help make the process smoother and easier, here are 15 rules that everyone looking to negotiate should keep in mind:
1. Know your limits – When it comes to negotiating construction contracts, it’s important to know what you can ask for and what is outside of the realm of possibility. You don’t want to get your hopes up about something only to be let down when it doesn’t happen.
2. Don’t jump into negotiations without doing your research first – Before you start talking numbers with the other party, take some time to do your homework and find out what similar projects have cost in the past. This will give you a much better idea of how to position yourself during negotiations.
3. Get multiple estimates – If possible, get estimates from several different construction companies so that you can easily compare apples to apples when negotiating prices. In addition, try to negotiate separately with each company and see if you can get some favorable terms worked into their contracts as well.
4. Be willing to compromise – When it comes to negotiating, both parties need to be willing to give a little for the sake of making things work out satisfactorily for everyone involved. If you’re too rigid or don’t want to budge on any point at all, you might find that your negotiations fall through.
5. Don’t be too eager – Construction contracts are complicated, and there may be a lot of twists and turns along the way before you get to an agreement with the other party. If you seem too anxious or desperate, this could put them on their guard and make them less willing to negotiate in good faith with you.
6. Have realistic expectations – No matter how great your project may sound on paper, it’s important that both parties have reasonable expectations going into negotiations so they can find common ground between what they each want. If one party is asking for something completely outlandish just to see if the other side will go for it, things won’t end well!
7. Don’t be afraid to walk away – Sometimes, no matter how hard you try, you just can’t get a deal that satisfies both parties. If negotiations are dragging on without any progress being made and it starts looking like they might break down completely, it may be best to cut your losses and move on to another project.
8. Always keep your end goal in mind – When negotiating construction contracts, it’s easy to get caught up in the details and lose sight of what really matters at the end of the day. If you have a clear idea of why you’re going through this process to begin with, it will help keep everything or falling into place so that everyone can benefit from the project.
9. Get it in writing – Whatever you decide during negotiations, always make sure that everything is clearly written down on paper so there are no misunderstandings or disagreements further down the road. This will help to protect both parties and ensure that everyone sticks to their commitments.
10. Don’t be afraid to ask for help – There’s a lot involved in negotiating construction contracts, and if this is your first time going through the process it may be a good idea to get some expert advice from someone who has experience with doing deals like this before. Whether you consult with an attorney beforehand or hire one of your own after setting up the contract, just make sure that you have all of your bases covered!