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If your contractors are working on a time and material basis, as is often the case, it is crucial that you have a good understanding of the complexity of the proposed solutions and reliability of proposed effort estimates. As the contractor is not directly affected by providing incorrect estimates, there can be a tendency for estimates of effort and cost to be over-optimistic.
With fixed price projects, the most critical point is when the contract is negotiated, as it is at this point that you need to have a good understanding of what is proposed by the contractor. As there is more than one way to do almost everything, it is entirely possible that the lowest bid will not offer the best quality solution — and this may not be apparent until you are at a late stage in the project. Our experience can help you to identify the bid that offers the best overall value.
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