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(CSC-1494) Proposal Review and Negotiation

Primary Author: Mr. Dean G. Stracuzza

Audience Focus: Basic
Application Type: Application
Venue: 2014 AACE International Annual Meeting, New Orleans, LA, USA

Abstract: When a proposal for change order work is received, a review must be conducted to assess the submitted costs. This paper will discuss the methods for an effective review. The review of the proposal is a crucial step to the negotiation process. However, various steps occur during the development of the change order that significantly aid the process. The basic step by step process will result in the development of a cost record that will serve as the basis for negotiations. The cost record will confirm quantities and the scope of work. This procedure will support a detailed negotiated cost. This systematic approach should eliminate randomly applied contingency costs and provide an organized work breakdown with associated costs.

This paper will provide an overall process and plan for the review and negotiation of proposals.