Involving the CM in the early phases of the project allows the firm’s expertise to be utilized from concept development through design, and finally to completed construction. Constructability issues can be addressed from a knowledge perspective. As a working contractor, the CM will be a credible authority on building methods and materials, equipment availability and subcontractor capabilities. The CM will also have current pricing of work in the local market. The CM will work proactively with the project’s design professionals to ensure that the owner’s goals are met and within the budget. This will be accomplished by continuous review (Value Engineering Studies) of the design, making construction-related suggestions and completed frequent cost estimates. This approach assures the owner that the project is within budget at every phase.
The CM manages all the activities on the work site to ensure that the project is progressing on schedule and within budget. Sub-contractors are selected during this stage by a conventional bidding process and then managed by the CM. This arrangement requires the CM Field staff (Project Manager and Superintendent), be thoroughly experienced and qualified for the responsibilities of the project. It also requires the CM to have a knowledgeable and efficient support staff.
Setting The Guaranteed Maximum Price
The Guaranteed Maximum Price (GMP) is the maximum price that the owner will pay for the construction work. The total project should include the GMP, plus the CM fee (plus the designer’s fee at the owner’s option). These fees are negotiated directly with the owner. The CM fee includes profit, overhead, and pre-construction services. In establishing the GMP, the project team considers totality of the construction documents and whether sub-contractor bidding has been completed. The GMP is then set at the lowest amount. If the project is still undergoing design revisions, the GMP is set higher, and the contingency is larger. In either case, the GMP is exactly what the name implies; the owner will have the project delivered for no more than that price and scope. It is the CM’s responsibility to manage the project within that cost. If the cost is less, then that will be the amount that the owner will pay. If the cost is more, the additional amount will be the responsibility of the CM. The owner usually makes expenditures against the contingent amount, only after approval. Clearly, this is a relationship which requires integrity and mutual respect among all team members and at the same time, it determines a fair price for the work.
- Real estate or building analysis
- Building or site usage study
- Financial studies
- Zoning analysis
- Site planning
- Site utilization studies
- Develop project proform
- Engage or work with design professionals
- Preliminary cost models
- Initial construction schedule
- Sub-contracting budgeting
- Coordinate design professionals
- Long lead materials procurement
- Value engineering studies
- Develop Guaranteed Maximum Price (GMP), estimates
- Construction schedule
- Project procurement
- Field supervision
- Financial controls and projections
- Project status reporting
- Assistance in the facilitating of a funding source
- Collaboration as an investor or equity partner
As an emerging company in the construction industry, The Bailey Group, LLC is called upon to provide a vast range of delivery systems to meet our clients’ needs. After careful review of the project scope, we will design a comprehensive approach to meet those needs throughout the entire planning, design, development and construction process. Since precise coordination and scheduling are vital to the efficient management of any construction project, The Bailey Group applies the system approach to planning and scheduling to maintain close control of costs and building process. In addition to our basic services, we offer our clients and their design teams advice with facilities audits, budget and estimating, design and value engineering.
In this common approach, the planning, design and construction phases are treated as integral tasks within the delivery system: a Project Team is assembled, consisting of the owners’ representative, the CM and the Architect/Engineer. Members of the Team work together, from project inception to completion, with a common goal of serving the owners’ interest. While costs, quality and scheduling are regularly discussed, we also offer value engineering and Constructability analyses to provide even greater accountability and cost savings.
For single-source accountability and a full-service approach, The Bailey Group, LLC will provide a design-build package. As design-builder, we work with the owner to develop the project program and design, select the appropriate architectural firm, create the bid packages for selection of qualified sub-contractors, and manage all aspects of the project from pre-construction through actual construction. This approach, though relatively new to the industry, is gaining recognition as the most responsible and cost-effective delivery system.
On selected projects, we work with the project team to dramatically reduce the length of the design and building process. Utilizing advanced scheduling techniques and constructability reviews, key materials are ordered and certain schedules are completed before final plans and specifications are completed.
In this traditional approach, we serve as the prime contractor with responsibility for the entire project. Our duties include managing subcontractors, coordinating, reviewing and facilitating architectural and engineering data, providing a safe work environment, and providing trade labor from our own resources.