I'm a student at Ryerson University, fourth year in the Architectural Science Program - Project Management option. In my fourth year I'm required to complete a Thesis related to project management.
My topic is how to resolve reasonable and realistic contractor pricing to cover the impact of productivity loss as a result of various changes, especially the effect of many changes. Variables include, size, frequency, the number of trades involved in each change, the relation between the issue of the change, its approval, the lead time required to mobilize for the change, how close in time the change instruction is to related work, hence the amount of collateral impact, and so on. Because there is a erious lack of understanding of these variables, arguments over the dollar amounts frequently give rise to distrust between owner, architect and contractor. I want to give suggestions, or better yet, conclude how mistrust can be overcome using samples from successful projects, as well make use of any other resource in order to accomplish this.
Your help would be greatly appreciated. Saving Changes...
What a great topic! This really is a business area in need of a model.
In the list of variables, you might want to consider volume and geographic location. Many clients expect a discounted rate due to volume (ie. even if it is a new engagement or project, the client has used the consultant for a number of other projects, and expects a discounted rate). Also, many large corporations have narrowed the list of available consulting firms through national contracts that guarantee a price per resource regardless of location. This eliminates regional variables and capitalizes on the consultant's need for recurring business.
I realize that may extend your scope a little, but I think it reflects two additional variables that are very much a part of the negotiation process, as it stands today.
Hope you find the input helpful! Saving Changes...
