A client is ready to negotiate a contract with a construction firm…

Question Answered step-by-step A client is ready to negotiate a contract with a construction firm… A client is ready to negotiate a contract with a construction firm for a $30 million shelled office building project. The design-development documents (DDs) are complete. The building permit has been applied for and is scheduled to be issued in two months. The architect has requested the owner now bring on a contractor to assist with the balance of preconstruction services, estimating, scheduling, constructability analysis, material selections, and value engineering (VE) during the construction document (CD) development phase. The client and the architect have received written proposals and conducted interviews, and have narrowed the short list down to two firms who have a completely different approach to contracting. Both appear to be equally qualified with respect to experience, references, availability, etc. Both firms have worked with the architect and the owner successfully on previous projects. Both firms are quoting a competitive 4% fee on top of the cost of the work. All other conditions are equal. The only difference between the two firms is that one is a pure construction manager and will subcontract 100% of the project except jobsite administration. The other is a typical general contractor. The General Contractor (GC) is only interested in building the project if they are allowed to perform the work that they customarily self-perform, such as concrete, carpentry, reinforcement steel, structural steel, and miscellaneous specialty installation, which will account for 30% of the cost of the work on this shell. a. Take the position of the CM. Why is it to the owner’s and the architect’s advantage to employ your firm during the preconstruction phase? What are the advantages of using a CM during the construction phase? Discuss all project control issues, including quality, safety, schedule, and cost. Is a CM at risk truly an owner’s representative? Why is it better for you that your firm is selected now and on board when the tenant improvement projects become available? Does the GC hide costs? Sell your position and be creative. Use the tools you have learned from this book, your classes, professional experience, and outside research to convince the owner that the CM procurement approach is more advantageous than the typical general contractor.  b. Take the position of the GC. Cover the same issues as outlined in the CM position above, except with the opposite perspective. Does the GC have more control over cost, schedule, quality, and safety? Which firm can build it better, faster, and safer? Who is best at looking out for the client’s interests? Business Management Project Management CEGR 400 Share QuestionEmailCopy link Comments (0)

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