Do I have to use Gilbert Cost Control to provide construction consulting services and how much can I expect to save? While every project is unique, one thing is certain: the sooner you implement a construction cost control and construction risk management strategy, the more time, money and effort you’ll save. Organizations that wait until their project is complete before they engage a construction audit firm often achieve just a 1-2% savings while those who implement construction consulting and cost controls from the project outset often realize a savings of 7-10% or more and succeed in building higher quality buildings. That said, we have joined projects at the bid stage or later and still saved our clients far more than our fees–savings in excess of $1,000,000. And while it’s great to save money on your projects, often the best outcome of a comprehensive construction cost control process with on-going construction audit services is the increased sustainability, improved quality and reduced maintenance costs that you achieve.
Aren’t my in-house facility management team and architect already providing construction cost control and quality control services for my project? In many cases, in-house facility management personnel simply don’t have the time and resources needed to provide comprehensive construction cost control. They are busy with the day to day operations of their existing facilities and they often have limited experience with construction project management. Additionally, while your in-house team may know what past construction costs are for your projects, they many not be aware of what other firms are paying for design and construction services and they may not have the leverage to negotiate the rates that knowledgeable construction costs control consultants are able to achieve. Even if your team has the time and resources to effectively manage your construction projects, many organizations have Gilbert provide in-house or web-based training sessions to help them learn new strategies to save even more time and money and better manage your construction project risk.
As far as you architect is concerned, architectural firms typically do not include comprehensive construction cost control and quality control services in their fee. Their contracts provide for general oversight and review, but they do not have the resources for providing detailed analysis of construction means and methods to identify construction project productivity improvements that will save both time and money. They also do not have the time to provide analysis of all invoices provided by the subcontractors and suppliers for each pay request and change order. Most architects tell us that it is becoming increasingly difficult for them to negotiate assertively on behalf of their owner clients. As more and more projects are being delivered through design-build and negotiated construction contracts instead of the classic hard-bid (or design-bid-build) model, contractors and architects find themselves working more cooperatively on projects and often form strategic alliances to help one another find projects. While this cooperation enhances communication and often results in a better design and construction process overall, it makes it difficult for architects to provide the intense construction cost control and quality control scrutiny that most owners expect. For this reason, many architects prefer to have a firm like Gilbert Cost Control Consultants manage the contractor selection phase, draw request and change order analysis & negotiation, and quality control oversight. As an architect on one recent project told us, “it’s hard to hold the contractor accountable when his firm brings me so much work every year.”
Can’t I just use the standard AIA contracts with my architect and contractor? Most attorneys who specialize in construction law will tell you that the standard AIA contracts are a good place to start. However, there are a number of modifications that will reduce your risk even further and help you increase your ability to control construction costs. At Gilbert Cost Control, we work with your attorneys to include these clauses to increase your design and construction controls and mitigate your risk.
How will my architect and contractor react to my hiring an owners rep or construction cost control consultant? Your architect and contractors response to having a construction cost control consultant on the team has a lot to do with several key factors. First of all, if the owners rep or cost control consultant helps select the design and building team, they are usually very receptive. However if the architect and contractor are on board before the cost control consultant is hired, their reaction will be based in large part on how committed they think you are to hiring an outside owners rep as well as any past experiences , be they good or bad, they have had when working with this type of company before. It is important to note that construction auditing is not new–the standard AIA contract actually addresses the role of construction cost control and However, if the architect and contractor are on board before the cost control consultant is hired, their reaction will be based in large part on how committed they think you are to hiring an outside owners rep and any past experiences, be they good or bad, they have had when working with this type of company before. It is important to note that construction auditing is not new– the standard AIA contract actually addresses the important role of construction cost control and construction audits on building projects.
At Gilbert Cost Control Consultants Corp., we are committed to working cooperatively with all team members. We spent almost 50 years actually constructing buildings so we understand first hand the challenges that the design and building team face. We know what it takes to build high quality structures with low maintenance costs at a fair price. And our construction experience gives us credibility with the other team members and makes us an invaluable resource for our clients. We go out of our way to ensure that the process is fair for all and that negotiations are focused on achieving win-win outcomes whenever possible. On most projects, we enjoy a good working relationship with the architect and contractor right away. On some past projects we have been greeted with skepticism and concern, only to have that hesitation turn into appreciation and respect as the design and building team sees how Gilbert helps keep the project moving ahead smoothly.
On a recent job, the contractor went out of his way to send us a letter upon the completion of the project. He said that while we didn’t always give him the outcome he was hoping for, we were always fair and he would be happy to work with us again. On another large project, the owner had decided to pursue legal action against the architect and contractor after construction costs began to escalate and quality began to slip. As a last ditch effort to try to get the project back on track, the owner hired Gilbert Cost Control. We immediately initiated discussions with all parties to resolve outstanding issues and to move the project forward. The project was ultimately brought back on schedule and while the architect and contractor had to leave more than $500,000 on the table as a result of Gilbert’s construction cost control and quality control efforts, the contractor thanked Gilbert for helping them resolve their differences with the owner and avoid litigation.
What’s the difference between an owners rep and construction cost control consulting company like Gilbert Cost Control Consultants Corp. and a firm that just provides construction audits? Most cost control consultant companies and construction auditing firms provide post construction auditing services. While post construction audits can identify some savings, these savings are based primarily on accounting errors and typically idnetify savings of 1-2%. Once the savings are identified, then the difficult process begins of trying to collect this money from the contractor–after the money has already been paid. Most importantly, post construction audits only address money that has already been spent; they do not provide alternatives for building higher quality buildings with lower operating costs, risk management strategies during contract negotiations, savings that can be achieved when change orders are first proposed, or productivity improvements that can reduce the overall design and construction schedules. A comprehensive construction cost control approach addresses all these issues and can result in much higher savings (typically 3-12%) as well as lower risk to the owner during the design and construction phases. Unlike many other construction auditing firms, we spent almost 5o years building a wide variety of commercial, industrial and public projects. For this reason we are experts in helping design a better process from the outset including: architect and contractor selection, construction contract negotiation,value engineering and estimating during design, pre construction audits, pay request audits during construction, quality control inspections, change order analysis and negotiation as well as post construction audits.
