What is an Add Alternate in Real Estate Development?
Add Alternate in Real Estate Development?
An Add Alternate in real estate development refers to an optional scope of work or project component that is included in a construction bid but is not part of the base contract. Developers and contractors use Add Alternates to provide flexibility in budgeting and project execution. If the project budget allows, the developer can choose to include these additional features without having to go through a separate procurement process.
Key Aspects of Add Alternates:
- Cost Control & Flexibility – Add Alternates allow developers to prioritize essential construction elements while keeping optional enhancements available if funding permits.
- Competitive Bidding – Contractors submit pricing for both the base scope and the Add Alternates, giving the developer a clear idea of cost implications.
- Examples in Development:
- Upgraded building materials (e.g., high-end flooring instead of standard)
- Additional amenities (e.g., rooftop terrace, additional parking)
- Enhanced landscaping or exterior finishes
- Smart home or energy-efficient features
How It Works in the Bidding Process:
- The project owner specifies Add Alternates in the bid package.
- Contractors submit separate pricing for each Add Alternate.
- The owner decides which Add Alternates to include based on budget, financing, or project needs.
Using Add Alternates helps developers maintain project feasibility while allowing for future upgrades if additional funds become available.
