_____________________________________________________________________________________________ Richter
+ Ratner also need to question compensation for home office overheads .
“ We have essentially stuck to our guns ,” he emphasizes , “ in terms of not lump sum bidding on many projects ; in fact , almost all of our jobs are negotiated as construction managers . The bidding market , for the most part , is a cut-throat one and for various reasons , I ’ m not willing to take on work at a loss , as others may be .”
To amplify matters , the ‘ bidding frenzy ’ encourages general contractors to manipulate numbers and go in with
Preconstruction is not something that R + R as a company invented , we ’ re just spreading our awareness of the benefits that it holds for modern practices ridiculously low compensation . The hope is to earn that back by negotiating unfairly with subcontractors and seeking owner change orders . The impact this has had , and continues to have , on subcontractors is devastating , evidenced by those who cannot sustain their businesses . Or worse , contractors resort to other unconventional methods to put more money in their pockets , leading the industry to have a ‘ black eye .’
“ R + R continues to fight for higher fees . We don ’ t charge a fee on change
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