Start with a complete scope—not just a headline price
A low tender is not automatically good value. Before negotiating price, confirm that each bidder has priced the same work. Review the drawings, specification, pricing document, clarifications, exclusions, provisional items, programme and contractor assumptions together.
A detailed tender comparison can identify missing work, unusually low rates and qualifications that transfer cost risk back to the client. Resolve these points in writing before selecting the preferred contractor.
Choose the appropriate form of contract
The contract must suit the project, its design responsibility and its procurement route. For private building work, the client’s architect or legal adviser should advise on the appropriate current form and insurance requirements. The RIAI introduced new construction contract editions in 2025, replacing its 2017 editions.
Public-sector projects are different: Irish contracting authorities use the Capital Works Management Framework and select from its public-works contract suite. A private homeowner should not assume that public-works provisions apply to a domestic project.
Negotiate scope and risk together
Price and risk cannot be separated. A contractor may offer a lower price because the tender excludes ground risk, design development, utility connections, price movement or particular finishes. The negotiation should record what is included, what remains provisional, who owns each design obligation and how uncertain work will be valued.
Push risk toward the party able to understand and manage it—but avoid transferring unknown risks merely to make the contract look fixed. Unpriceable risk often returns as a qualification, claim or inflated allowance.
Agree a realistic programme
Record the start date, completion date, sequencing constraints, information release dates and any client-supplied items. Discuss how extensions of time will be assessed and what notices are required.
A credible programme should reflect planning or building-control requirements, lead times, access restrictions and design decisions. An aggressive date has little value if the supporting information and procurement plan cannot deliver it.
Make payment terms measurable
Payments should follow the contract and relate to demonstrable progress. Agree the valuation date, supporting information, certification process, retention arrangements and final-account procedure. Avoid informal payment practices that make it difficult to reconcile what has been paid against what has been completed.
For commercial construction contracts, payment and dispute provisions may also engage the Construction Contracts Act 2013. Obtain project-specific professional advice rather than relying on a generic clause.
Control variations before they control the budget
Define what constitutes a variation, who may instruct it, how quotations will be assessed and when the programme effect must be notified. Wherever practical, obtain the cost and time impact before work proceeds.
Maintain a live change register showing instructed, priced, agreed and forecast changes. Small decisions accumulate quickly; visibility is the best defence against a surprise final account.
Use objective tender analysis
Compare adjusted tender totals rather than uncorrected bottom-line figures. Check arithmetic, exclusions, provisional sums, daywork rates, programme, resources, references, insurance and financial standing. The preferred tender should represent the strongest overall offer, not simply the lowest initial number.
Document the agreement
Conclude negotiations with a clear schedule of agreed clarifications and ensure it is incorporated into the executed contract. Meeting notes and email exchanges are useful records, but they should not leave the final agreement scattered across conflicting documents.
Frequently asked questions
Should I choose the lowest building tender?
Not automatically. Compare scope, exclusions, programme, risk, capability and the adjusted tender value. A materially low tender may contain an error or omission that needs clarification.
Who should negotiate the building contract?
The client should be supported by the relevant project professionals. The architect or contract adviser addresses form and administration; the quantity surveyor analyses price, scope, risk and payment.
Can the contract price change after signing?
That depends on the contract and what occurs. Instructed variations, defined risk events, provisional work and other contractual entitlements may change the amount payable.
Talk to us if you have any further questions.
