Preconstruction - Adding Value from the Perspective of the Project Owner

Finishes and other key design elements are important for both the project owner and architect.

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Contributors David Brown

Finishes and other key design elements are important for both the project owner and architect. A contractor providing preconstruction services must focus on protecting these throughout the design-development process.  

 

If a contractor is only providing basic estimating services throughout design-development, this is what happens:


30% - Budget looks good across the board and everyone is happy.

60% - Budget increases in critical systems including structural and MEP force value-engineering into the finishes because the design is too far along to cost-effectively make changes elsewhere.  

90% - Budget for finishes is often cut further than the project owner or architect would like but there are few choices left.  


Preconstruction: Design at 30% Estimate.
Preconstruction: Design at 60% Estimate.
Preconstruction: Design at 90% Estimate.
Preconstruction Estimate Summary. Design Development.

The solution is rigorously managed weekly design meetings facilitated by the contractor and focusing on value-engineering each system throughout the whole design-development process. Compare the Construction Manager at Risk (CMAR) to the Design-Bid-Build (DBB) process: CMAR vs DBB Process.  

This is just as critical as protecting the overall budget and cash flow of the project.  

Preconstruction Weekly Design Meetings.

 

 


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