Preconstruction services shall include the construction project manager being an active member of the design team to assist in determining cost-effective solutions to accommodate the client’s needs. Throughout Preconstruction Services, the construction project manager will be the primary contact and lead all aspects of both design and construction services.
Overview of Preconstruction Services
- Attend Design Meetings: The construction project manager shall jointly attend regular design meetings with the client and the design team. During the design meetings, the construction project manager shall consult with the client and the design team regarding site use, improvements, and selection of materials, building systems, and equipment.
- Constructability Reviews: The construction group will provide constructability reviews of the design documents prior to the start of the bidding phase.
- Construction Recommendations: The construction project manager shall provide recommendations on construction feasibility intended to reduce adverse effects of labor and material procurement, schedule issues and overall construction costs.
- Preliminary Cost Estimates: When program and project requirements have been sufficiently identified, the construction group shall provide a preliminary construction cost estimate.
- Preliminary Project Schedule: After the project requirements have been sufficiently identified, the construction project manager shall prepare (and update at the end of each design phase) a detailed project construction schedule showing required milestones.
- Phased Construction: The construction project manager shall make recommendations to the client and the design team regarding phasing of the project. Recommendations will be based upon such factors as economies, time of performance, weather, availability of labor and material, and provisions of temporary facilities.
- Subcontractors and Suppliers: The construction project manager shall seek out subcontractors and suppliers interested in the project. A list of same shall be provided for each principal portion of the work; from there, a mutually agreed upon approved short list of subcontractors and supplies shall be created.
- Long-Lead Items: To help meet the overall project budgets and construction schedule, the construction project manager shall recommend a schedule of procurement for long-lead/pre-purchased items.
- Guaranteed Maximum Price: We do not shy away from GMP contracts, and for this reason this item has remained in our proposal. However, we understand the client’s Master Agreement and our fee structure for this proposal is not based on a GMP approach.
Guaranteed Maximum Price (GMP) Contracts
Although a Guaranteed Maximum Price (GMP) contract may not requested by the client, approximately 90-95% of Etzel Engineer and Build’s design-build work is under contract with a GMP. With proper preliminary planning, this approach can be a very effective solution with minimal change orders. For one particular client, for example, we have completed over $35,000,000 in design-build construction with only a minor change order to date.
With that said, when the drawings and specifications are sufficiently complete, (approximately 60% complete) the construction group could propose a GMP which shall be the sum of the estimated cost of work plus any related construction group fees. The GMP would include a written statement of the basis of the GMP, including the following:
- A list of drawings and specifications
- A list of all allowances and a statement of their basis
- A list of clarifications and assumptions
- A detailed breakdown of the Guaranteed Maximum Price
- A date of substantial completion upon which the GMP is based
- A general contingency allowance – a sum established by the construction group for additional cost of work and not for change orders