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.

Raymond Braswell Profile Picture
Share
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 - 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.  https://dbmgt.co/2RD1dAT  

This is just as critical as protecting the overall budget (https://dbmgt.co/2WnXu95) and cash flow (https://dbmgt.co/2UkFvhU) of the project.  

Preconstruction Weekly Design Meetings.

 

Learn more about building Advanced Preconstruction Services and Business Development capabilities along with other General Contractor Solutions for profitable growth in all economic conditions.   


Preconstruction Services as a Growth Strategy
Dominate your competition by contracting for preconstruction services while projects are still concepts on scratch paper. This series of videos will look at the preconstruction process from the perspective of the Project Owner, Architect, and Contractor. ...

Preconstruction Services as a Growth Strategy
Dominate your competition by contracting for preconstruction services while projects are still concepts on scratch paper. This series of videos will look at the preconstruction process from the perspective of the Project Owner, Architect, and Contractor. ...

Lean Principle - 8 Categories of Waste
The first step in improving labor productivity in construction is improving everyone’s ability to see the waste. Waste can then be broken down into 8 major categories. Like colors these are often interrelated.
Issue 9 of 9: Low Barriers to Entry
Construction Ownership Transition Issue 9 of 9: There are Few Barriers to Entry for New Contractors. About 500 construction contractors start up each day. In most cases, a new contractor starting up will cause a serious talent drain and add competition.
Situational Awareness - Learning to See
It is critical for project teams to develop a model of the project in their minds so that they can quickly make the thousands of decisions required to keep the project on-track. This is called Situational Awareness and includes three basic layers.