WHY CONSTRUCTION MANAGEMENT?

With our current economic volatility and supply chain shortages its no wonder why General Contractors are having to raise their prices across the board.¬† Time and time again we’ve seen these increases put many projects out of feasibility and thus, out of reach for homeowners. While in many cases we will offer a fixed-rate proposal, as your GC, it’s increasingly difficult to mitigate risk and control costs with the unstable fluctuations of material prices and labor shortages these days. Throw in the constant supply chain issues and rising inflation and all of a sudden it becomes nearly impossible to guarantee your project’s total cost upfront. So how much “padding” do you think a GC must add to his bid in order to guarantee a fixed-cost in times like these?

Sometimes thinking outside of the box isn't good enough and so, we've simply threw the box away and started over from scratch. Enter our alternative way of project delivery........ Construction Management (as Constructor). We have successfully adapted this method from what is used primarily on large commercial projects to a constructible agreement for your large, complex, whole-house renovation. There are pros and cons for choosing this method over a traditional fixed-cost model. Of course each project is different and we custom tailor our terms to specifically match your project requirements. Often times, we can marry the the benefits of fixed-cost terms and construction management into one cohesive project delivery method.

Pros:
  • It’s like having a GC, but with YOUR best interests in mind.
  • We’ll actually work alongside you and your architect during the design phase and have invaluable (constructability) input along the way. Unlike a GC – who will require a full set of plans before they can provide any insight.
  • Our¬†construction mgmt fees are open, not hidden within the bid. you know upfront what we are making as our profit.
  • This will save you a substantial amount of money, compared to a traditional fixed-cost model.
  • Labor, subcontractors and material bids are all open-book. There is no profit, or overhead or any other markup applied for which you would pay for.
  • We still hold all the contract agreements with each subcontractor, pull the permits and are responsible for the project’s timely performance, just like a GC.
Cons:
  • We are not liable for any cost overruns on your project. If the cost of materials or labor goes up – you are responsible for covering these costs. We do put in-place budgetary allowances to help ease any sudden spike in materials and/or labor costs due to market volatility factors however.¬†
  • Generally, you are responsible for funding your own project so that we can purchase materials and pay subcontractors. This arrangement is often custom-tailored to fit your exact project needs however.