Services
For construction projects to be successful, the Owner, Contractor, Architects, Engineers and Regulatory Agencies must work together with a common set of goals and objectives. Every attempt should be made to avoid conflicts and resolve disputes, mutually acceptable to all parties involved in the project, in a timely manner. There are several ways to approach your construction project:
COST PLUS
With this traditional approach the owner hires a contractor to provide all labor and materials to carry out all tasks provided in the contract document. An architect, under the sole direction of the owner, prepares contract documents. The fees are based on final costs. Benefits include:
* Competitive bid project
* Open book cost analysis The major disadvantage to this approach is the elimination of incentives to reduce costs.
DESIGN/BUILD
With this approach the owner contracts directly with one entity to provide both design and construction services. The owner, as part of the design team, provides the scope and guidelines of the project. Benefits include:
* Single contract; pre-aligned responsibilities
* Guaranteed price
* Fast track schedule
Design (Documents can be completed while construction proceeds)
Construction (Phased - excavation, foundations, shell and finish out) Ownership loses some flexibility with the overall design components with this approach.
CONSTRUCTION MANAGER/OWNERS AGENT
With this approach the owner hires an agent for the benefit of their experience and knowledge. The construction manager furnishes pre-construction data, budgets, business administration and management services in cooperation with, and reliance upon, the services of an architect. Benefits include:
* Open communication with Architect / Engineers / Contractors / Construction Manager and owner, which balances cost, quality and time.
* Scope of work pre-determined
* Coordination of design throughout
* Accelerates schedule - complete project does not have to be designed prior to awarding portions of the project.
* Ongoing cost analysis
* Value engineering to maintain budgets
* Contracts budgeted through cost of design
* Owners finalize budget prior to completed drawings
* Limited change orders
* Architect /Engineer fees limited
* Long lead-time items may be identified The major disadvantage to this approach is that ownership is now required to enter into individual primary contracts with each and every supplier and sub-contractor, as well as architect/engineers and contractors.