Negotiated Work is when an owner doesn't want open bid and trusts the judgement of a GC who may shop the project around to two or three of his preferred subs. Negotiation enters into it in how alternates are priced and how each sub can deliver a finished product by their various means. This is a lot of work for the sub, providing total estimate and also providing everything as an alternate with unit pricing or totals for each alternate, such as, roughing in with pipe and wire as opposed to MC and also various phases, such as Phase A, Phase B. I've heard them called give backs. The owner decides they want some one else for another phase or decides they want the cheaper alternate on lighting. Sometimes, this can make the contract rather fluid. It's kind of tough receiving $50k to start and then have to give back $10k because they've deleted a few classrooms in a wing, or some such.
A sub can take a beating, though GC didn't feel a thing.
