I sound really old but there is a basic bidding knowledge that is missing in today’s construction industry! IT USED TO BE: Contractors relied upon estimators and their bid managers that would not blindly accept the goofy low subcontractor’s bid. They knew there was a problem. Contractors had estimators and bid managers on staff that [...]
For some reason, some managers believe that always telling the craft labor the project is losing money is a good way to increase the productivity but I don’t see the logic behind this strategy. I believe being honest to the workers in the field is the one and only way to go. Lying does nothing [...]
Protecting the Owner’s GMP Interests In some respects auditing a GMP contract for the owner should not be necessary. The owner has placed their trust in a firm that has promised to look out for their interests on the project. So why bother to audit? Well, there are many reasons. A simple reason would be [...]
Recently we have been asked by contractors and subcontractors to help them budget projects. This is nothing new. What is new is that these budgets were being prepared about one month prior to bids being taken by each of the projects construction managers. I do not know if this is promoted by the Owners/Developers or [...]
This is not a blanket indictment of construction managers or construction management firms. Sadly it is an indication of the problems that will be found in our industry when less than reputable companies engage in providing construction services of any type. A while ago we encountered a construction management firm that, politely put, was taking [...]
On a fast track, guaranteed maximum price (GMP) project, the owner was looking for savings in the project. The first bid packages came in substantially over the estimated amounts. We are talking 50% plus on this. The costs were spiraling higher than they had targeted (what else is new?). In the meantime, the construction management [...]
On a recent project being performed on a fast track, GMP basis we came across some specifications that would increase the cost to the client. I will give the nationally renowned engineer the benefit of the doubt since they were clearly marked as draft. However, they were also being issued for GMP pricing. We brought [...]
On the subject of construction management firms, I would like to share the results of a recent proposal evaluation. It seems three nationally rated CM firms submitted their qualifications on a large value, high profile project. These were proposals based on qualifications, not entirely on price. Two of the firms were “out of town” companies [...]
Project Staffing Project staffing is an indirect cost to manage and administer the work. The project staffing will need to consider site management and engineering, craft and field supervision and project administration operations. The staffing levels for these areas are determined by the contract requirements and by the size and complexity of the project. The [...]
A commonly used or encountered document in construction is the AIA B801/CMa-1992 Standard Form of Agreement Between Owner and Construction Manager. This document identifies the basic duties of the Construction Manager (CM). These services are called out for the preconstruction period in Article 2.2 while Article 2.3 covers the construction period services. Article 5 of [...]
