Construction Management
CONSTRUCTION MANAGEMENT
In reality, all of White Construction’s procedures have the residual effect of cost control, based upon the fundamental premise that doing the job right the first time always produces project savings. Below are some of the more direct actions that we will take to control costs.
Design Development Estimate – As the schematic design phase has been completed and design development is nearly completed, White Construction can best begin to control costs by immediately confirming project costs as currently designed. This will be accomplished through preparation of a design development estimate, as stated earlier in the proposal response.
Value Engineering Analysis – White Construction will perform an evaluation of various options involving material substitutions, constructability alternatives, and other new technologies for budget impact. We will also cultivate, research and suggest cost economies and phasing techniques to shorten the overall project duration.
Bid Package Analysis – Our pre-construction effort will include a detailed analysis and coordination of bid packages to provide the most cost-effective distribution of the work and complete scope definition, thus minimizing the potential for change orders and associated problems during construction.
Construction Planning/Material and Equipment Expediting – White Construction will schedule and plan project activities to ensure the shortest construction duration by expediting procurement of long lead items. Examples of long lead items include structural, electrical switch gear, HVAC equipment, detention equipment and fuel island equipment.
Change Order Controls – Our project administrator is our cost control team leader and will assume responsibility for all trade contractor change order controls. Those efforts will be supported by both the superintendent and project engineer.
As changes occur, and upon receipt of trade contractor and vendor quotations, White Construction will initiate the following change order examination process:
– Each request for change order will be properly identified and incorporated into our Change Order Log. The quotation will then be analyzed and estimated by our staff, taking into account all related issues, which might impact the price.
– Major change orders via bulletins and/or field generated estimates that vary greatly from trade contractor quotations, will be forwarded to our estimating department for detailed analysis and pricing. Our estimators will work closely with the project administrator, superintendent and project engineer to fully understand the nature of the change and any unusual field conditions or project characteristics that may impact the cost.
The White Team’s quality system is documented using a tiered system including a Quality Policy Manual, a Procedures Manual, Operations Manual describing specific steps and unique work items of the procedures and Forms/Records to document and demonstrate the Quality System.
The quality system functions, responsibilities and intentions are understood at all levels of the organization. Effective implementation of the quality system is supported and monitored by management.
Contract Review – The White Team will ensure that all requirements received from the customer are fully understood and that capability exists to meet all aspects of the customer requirements prior to execution of the contract. The scope of this policy includes all contracts received for the purchase of product and/or services from all customers. This policy also includes Proposals generated for the customer and the review of those proposals. Contracts are reviewed prior to execution through a documented process.
Design Control – When contracted for design build services, the White Team ensures products are designed to meet customer requirements and applicable codes and then reviews and validates those designed products to assure customer specifications and budgets are met.
Document and Data Control – The White Team controls all quality-related documents and data. Control extends from the initial concept through review, approval, issuance, changes and obsolescence.
Purchasing – The White Team ensures that products and services obtained from sub-contractors meet the specified requirements.
Control of Customer Supplied Product – The White Team ensures that products furnished by customers are controlled in accordance with the contract documents and established White Construction procedures.
Product Identification and Traceability – The White Team ensures that products maintain identification and traceability as required by customer contract and best business practices within White Construction.
Document and Data Control – The White Team controls all quality-related documents and data. Control extends from the initial concept through review, approval, issuance, changes and obsolescence.
Process Control – The White Team identifies, plans, and implements construction processes, which directly affect quality.
Inspection and Testing – The White Team maintains documented procedures for inspection and testing to verify that specified requirements for products are met, as required by contract.
Corrective and Preventive Action – The White Team utilizes documented procedures for corrective and preventive action to eliminate the causes of actual or potential non-conformities.
Control of Nonconforming Product – The White Team ensures that products are controlled through handling, storage, packaging, preservation and delivery in such a manner that product integrity is maintained.
Control of Quality Records – The White Team maintains quality records to provide evidence that the quality system elements have been effectively implemented.
Internal Quality Audits – The White Team plans and implements internal quality audits to verify and assess the operation and effectiveness of the quality system.
Statistical Techniques – The White Team identifies and uses statistical techniques for establishing, controlling and verifying process capability and product characteristics, if required by contract or specification, and as an element of continuous improvement efforts.
ADVANTAGES OF CONSTRUCTION MANAGEMENT:
1. The Customer can select the best Contractor for the Project.
2. Provides a strong checks & balances system between the Architect & Contractor during design.
3. Provides for timely preconstruction & budget input by the Contractor.
4. Provides accurate budget input, system evaluation & value engineering.
5. Breaks down bid packages to develop maximum competition & quality.
6. Costs savings revert back to the Customer.
7. The Contractor has the Customer’s interest foremost when dealing with subcontractors.
8. The Customer’s budget is established during preconstruction.
9. The Customer exercises “total control” of the project & can make changes in a non-adversarial format.
10. The Contractor monitors the schedule & cash flow to the advantage of the Customer.
11. The Contractor works for a “fixed” fee.
12. Allows the project cost to be verified & guaranteed prior to the Architect completing design documents.
13. Allows the Customer an opportunity to make changes once the project cost is fixed.
14. Allows for an early start of construction (fast tracking) & subsequent savings in escalation & time.
DISADVANTAGES OF LUMP SUM GENERAL CONTRACTING:
1. Does not guarantee the lowest cost. General Contractor’s interests are the opposite of the Customer’s.
2. Should the initial cost estimate be over or below the Customer’s budget, it allows for “Value Analysis” to reduce costs & affords the Customer the opportunity to make upgrades & purchase at bid prices.
3. Provides a “CHECK & BALANCE” system between the contractor & architect. (The contractor can advise the Customer &/or Architect when a more economical design could be utilized & when construction documents may be lacking certain required information. Conversely, the Architect can review the progress & quality of the work that the contractor performs).
4. Increase the “QUALITY” of the project, as it allows the Customer, Architect & Manager team to solicit bids from pre-qualified subcontractors.
5. Provides for a “LESS LITIGIOUS & ADVERSARIAL” relationship, as the Contractor acts as an extension & agent of the Customer.
6. The Customer has more “CONTROL” as a Construction Management Contract allows more flexibility for modifications & revisions to the design.
7. The Customer can select the “BEST CONTRACTOR” for the project as it can solicit Request for Proposals (RFP’s) & select the successful Contractor based on the criteria it establishes.
