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In a negotiated contract, the owner selects an architect/engineer separately to accurately and clearly describe the project and all requirements in plans, specifications and bid documents. Once the documents are completed, the owner negotiates with one or more contractors, and chooses the contractor that he feels is the best for this project. The selection decision is usually based on CONFIDENCE, TRUST and RELATIONSHIP.
In a select bid contract, the owner selects an architect/engineer separately to accurately and clearly describe the project and all requirements in plans, specifications and bid documents. Then the owner, often based on the architect/engineer’s recommendation, selects a small group of contractors to bid on the project. The lowest qualified bid is usually accepted.
In a hard bid contract, the owner selects an architect/engineer separately to accurately and clearly describe the project and all requirements in plans, specifications and bid documents. Then the owner advertises for bidders (typically 6 or 7) and accepts the bid of the lowest qualified bidder.