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How to negotiate with a potential GC


We are in the due diligence period for a vacant property, in which we plan on building a new facility for our existing business. The due diligence is going well, and we have a good relationship with a GC who has previously assisted us when we looked at other properties- and subsequently did not buy. We're 2 weeks into our due diligence out of our 60 days when money goes hard. We've never built anything from the ground up- and from our perspective, it's a pretty big job- we're estimating build cost to be between 1.75 and 2 million, give or take (more than likely give). Our credit is good- so the financing isn't an issue. This is build cost alone- not including the real estate. My question is- how does the GC get paid on a project of this size? We are fair and reasonable people- and want everyone who is involved to make a reasonable profit. But we want to make sure we're being fair, but also protecting ourselves from being taken advantage of- and that we're getting the best value possible. For a project of this size and cost- I'd like to know the best way to negotiate with potential GC's. Your time and input is appreciated in advance.

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