Professional Process

Construction Management/General Contractor 

We provide a professional service that uses specialized, project management techniques to oversee the planning, design, and construction of a project, from its beginning to its end. The purpose of Construction Management/General Contractor is to control a project's time, cost and quality. We have worked with all project delivery systems including design-bid-build, design-build, CM At-Risk and Public Private Partnerships. We may be reserved for lengthy, large-scale, high budget undertakings (commercial real estatetransportation infrastructure, industrial facilities, and military infrastructure).

 

 

Our role in Construction Management

Typically we are hired by the project owner during the design phase or once the design has been completed by a licensed architect. We will also engage various other subcontractors and consultants to provide valuable information that is shared across the broad spectrum of the projects scope. The purpose of this is to insure compatibility between all trades. We have found it invaluable in planning mechanical routes, mechanical connections, locations and finalizing structural elements that may be effected by all of the EPM trades. This is done by going through a bidding process with different contractors. We select the contractor by using one of three common selection methods: low-bid selection, best-value selection, or qualifications-based selection. We have the ability to handle public safety, time management, cost management, quality management, decision making, complex calculations, working drawings and human resources.

 

 

 

Our function(s) of Construction Management typically include the following:

  1. Specifying project objectives and plans including delineation of scope, budgeting, scheduling, setting performance requirements, and selecting project participants.

  2. Maximizing the resource efficiency through procurement of labor, materials and equipment.

  3. Implementing various operations through proper coordination and control of planning, design, estimating, contracting and construction in the entire process.

  4. Developing effective communications and mechanisms for resolving conflicts.

Our most common responsibilities fall into the following 7 categories: Project Management Planning, Cost Management, Time Management, Quality Management, Contract Administration, Safety Management, and CM Professional Practice. Our professional practice includes specific activities, such as defining the responsibilities and management structure of the project management team, organizing and leading by implementing project controls, defining roles and responsibilities, developing communication protocols, and identifying elements of project design and construction likely to give rise to disputes and claims.

 

 

Construction Experience

  • Agricultural: Typically economical buildings, and other improvements, for agricultural purposes.   Barns, equipment and animal sheds, specialized fencing, storage silos and elevators, and water supply and drains such as wells, tanks, and ditches.

  • Residential: Residential construction including houses, apartments, townhouses, and other smaller, low-rise housing and small office types.

  • Commercial/Institutional: Office buildings, casinos, jails, courthouses, surgical centers, rehabilitation centers, pharmacy, dental, schools, fire and police stations, library, museums, dormitories, research buildings, hospitals and governmental buildings.

  • Industrial: Power plants, manufacturing plants and pipelines, roads and bridges

  • Environmental: Dealing with projects that improve the environment. Water and wastewater treatment plants, sanitary and storm sewers and solid waste management.

Project Proposal to Owner/Architect

We provide a project proposal to the owner/architect outlining the monthly fixed fee cost to manage their construction project.  Our bid will provide the owner with how much money they should expect to pay us in order for them to complete the project. Typically the rates are based on square footage unless there is major complexity to the project monthly. Fees are 3 parts based on Pre-Construction Phase, Construction Phase & what our role will be during the project: Construction Management, General Contractor or a Hybrid of Both. Most client chose the Hybrid as all costs are directly paid by the owner and no markup is incurred and allows us to be transparent with all costs related to the project. Since our Fee is a fixed all of the projects are known and my incentive is to keep costs down not find ways to create change orders.

 

Process for Selecting Subcontractors

  • Closed bid: A selection of subcontractors are sent an invitation for bid so only they can submit a bid for the specified project.

  • Low-bid: This selection focuses on the price of a project. Multiple subcontractors submit a bid to us for the lowest amount they are willing to do the job for. Then we/Owner usually choose the company with the lowest bid to complete the job.

  • Best-value: This selection focuses on both the price and qualifications of the subcontractors submitting bids. This means that we/Owner chooses the subcontractor with the best price and the best qualifications. We/Owner decides by using a request for proposal (RFP), which provides us/Owner with the contractor's exact form of scheduling and budgeting that the contractor expects to use for the project.

  • Qualifications-based: This selection is used when we/Owner decide to choose the contractor only on the basis of their qualifications. We/Owner then uses a request for qualifications (RFQ), which provides  us/Owner with the contractor's experience, management plans, project organization, budget and schedule performance. We/Owner may also ask for safety records and individual credentials of their members. We use this method most often when the contractor is hired early during the design process so that the subcontractor can provide input and cost estimates as the design develops.

 

 

Payment Contracts

 

Lump sum: This is the most common type of contract. We/Owner agree on the overall cost of the construction project and the owner is responsible for paying that amount whether the construction project exceeds or falls below the agreed price of payment. This is the preferred method.

  • Cost plus fee: This contract provides payment for the subcontractor including the total cost of the project as well as a fixed fee or percentage of the total cost. This contract is beneficial to the contractor since any additional costs will be paid for, even though they were unexpected for the owner. Not recommended

  • Guaranteed maximum price: This contract is the same as the cost-plus-fee contract although there is a set price that the overall cost and fee do not go above.

  • Unit price: This contract is used when the cost cannot be determined ahead of time. The owner provides materials with a specific unit price to limit spending.

Project Stages

Design

 

The design stage/team is usually led by the licensed architect and involves four steps: programming and feasibility, schematic design, design development, and contract documents. It is the responsibility of the design team to ensure that the design meets all building codes and regulations. It is during the designs final stage that the bidding process takes place.

  • Conceptual/Programming and feasibility: The needs, goals, and objectives must be determined for the building. Decisions must be made on the building size, number of rooms, how the space will be used, and who will be using the space. This must all be considered to begin the actual designing of the building. This phase is normally a written list of each room or space, the critical information about those spaces, and the approximate square footage of each area.

  • Schematic design: Schematic designs are sketches used to identify spaces, shapes, and patterns. Materials, sizes, colors, and textures must be considered in the sketches. This phase usually involves developing the floor plan, elevations, a site plan, and possibly a few details.

  • Design development (DD): This step requires research and investigation into what materials and equipment will be used as well as their cost. During this phase, the drawings are refined with information from structural, plumbing, mechanical, and electrical engineers. It also involves a more rigorous evaluation how the applicable building codes will impact the project.

  • Contract documents (CDs): Contract documents are the final drawings and specifications of the construction project. We will use them for the construction process. Contract documents can also be called working drawings.

 

Pre-Construction

The pre-construction stage begins when the architect/owner gives a notice to proceed to our company. A notice to proceed is when the architect/owner gives permission to our company begin their work on the project. The first step is to create a cost management tool that provides a cost of every facet of the project.  During the pre-construction stage, a site investigation must take place. A site investigation takes place to discover if any steps need to be implemented on the job site. This is in order to get the site ready before the actual construction begins. This also includes any unforeseen conditions such as historical artifacts or environmental problems. A soil test must be done to determine if the soil is in good condition to be built upon.

 

Procurement

The procurement stage is when labor, materials and equipment needed to complete the project are contracted/purchased. This can be done by us with the Owner/Architect, if we act as GC/CM and hire and manage all of own construction subcontractors. Subcontractors are contractors who specialize in one particular aspect of the construction work such as concrete, welding, glass, or carpentry. Subcontractors are hired through the bidding process. Purchase orders are also part of the procurement stage. S A purchase order is an agreement between the buyer and seller that the product(s) or service(s) purchased meet the required specifications for the agreed price.

 

Construction Stage

The construction stage begins with a pre-construction meeting brought together by our company. The pre-construction meeting is meant to make decisions dealing with work hours, material storage, quality control, site access and security. The next step is to move everything onto the construction site and set it all up.  We will generate and manage a Subcontractor progress payment schedule. This is a schedule of when (according to project milestones or specified dates) subcontractors and suppliers will be paid for the current progress of installed work or products delivered on site.

Progress payments are partial payments for work completed during a portion, usually a month, during a construction period. Progress payments are made to subcontractors, and suppliers as construction projects progress. Payments are typically made on a monthly basis but could be modified to meet certain milestones or terms such as Cash on Delivery. Progress payments are an important part of contract administration for the contractor. Proper preparation of the information necessary for payment processing can help us financially complete the project. A very important element is securing a signed lien waiver for every payment issued to every subcontractor.

 

Owner Occupancy

 

Once the building is issued a Certificate of Occupancy, a warranty period begins. This is to ensure that all materials, equipment, and quality meet the expectations of the owner that are included within the contract.

We will prepare & mail or process online all warranty cards and create a binder will all warranty and contact information.

 

Issues Resulting from Construction

Dust, Mud and Waste Management

When construction vehicles are driving around a site or moving earth, a lot of dust is created, especially during the dryer months. This may cause disruption for surrounding businesses or homes. A popular method of dust control is to have a water truck driving through the site spraying water on the dry dirt to minimize the movement of dust within and out of the construction site. When water is introduced mud is created. This mud sticks to the tires of the construction vehicles and is often lead out to the surrounding roads. We will mandate regular watering & rumble strips to remove most or all of the rocks, mud and dirt to avoid a street sweeper fee from the city.

 

Environmental Protection

  • Storm water pollution: As a result of construction, the soil is displaced from its original location which can possibly cause environmental problems in the future. Runoff can occur during storms which can possibly transfer harmful pollutants through the soil to rivers, lakes, wetlands, and coastal waters. We will mitigate all water run off & pollution.

  • Endangered species: If endangered species are found on the construction site, the site will usually be shut down for some time. Typically the construction site must be shut down for as long as it takes for authorities to make a decision on the situation. Once the situation has been assessed, we make the appropriate accommodations to not disturb the species. If an endangered species is found, we will discuss with the owner prior to any action.

  • Vegetation: There may often be particular trees or other vegetation that must be protected on the job site. This may require fences or security tape to warn contractors that they must not be harmed. We will make sure all of the vegetation is protected per the governing requirements.

  • Wetlands: We must make accommodations so that erosion and water flow are not affected by construction. Any liquid spills must be maintained due to contaminants that may enter the wetland.

  • Historical or cultural artifacts: Artifacts may include arrowheads, pottery shards, and bones. Usually all work comes to a halt if any artifacts are found and will not resume until they can be properly examined and removed from the area. We will contact owner and discuss prior to any action.

 

Construction Activity Documentation

We will conduct regular project meetings that will take place at scheduled intervals to discuss the progress on the construction site and any concerns or issues. The discussion and any decisions made at the meeting must be documented and will be given to owner and owner’s representatives on a weekly basis. We will make sure logs and daily field reports keep track of the daily activities on the job site each day.

  • Logs: Each subcontractor/site manager and member of the project team is expected to keep a project log. The log contains detail(s)/summaries of the day's events in their own words. They are used to keep track of any daily work activity, conversations, observations, or any other relevant information regarding the construction activities. Logs can be referred to when disputes arise and a log happens to contain information connected with the disagreement. Logs that are handwritten can be used as evidence in court.  Logs keep track of the regular activities on the job site such as phone logs, transmittal logs, delivery logs, Inspection Logs and RFI (Request for Information) logs.

  • Daily field reports: Daily field reports are a more formal way of recording information on the job site. They contain information that includes the day's activities, temperature and weather conditions, delivered equipment or materials, visitors on the site, and equipment used that day.

 

Resolving Disputes

  • Mediation: Mediation uses a third party mediator to resolve any disputes. The mediator helps both disputing parties to come to a mutual agreement. This process ensures that no attorneys become involved in the dispute and is less time-consuming. We will keep accurate records, logs along with copies of all contracts and payments including signed lien waivers. This will usually eliminate the need for a long legal dispute. We will resolve the dispute for the owner.

  • Mini-trial: A mini-trial takes more time and money than a mediation. The mini-trial takes place in an informal setting and involves some type of adviser or attorney that must be paid. The disputing parties may come to an agreement or the third party advisor may offer their advice. The agreement is nonbinding and can be broken. We will manage and engage as needed to help resolve the dispute for the owner.

  • Arbitration: Arbitration is the most costly and time-consuming way to resolve a dispute. Each party is represented by an attorney while witnesses and evidence are presented. Once all information is provided on the issue, the arbitrator makes a ruling which provides the final decision. The arbitrator provides the final decision on what must be done and it is a binding agreement between each of the disputing parties. We will provide its services in the event of any legal issues regarding any contractors.

 

 

 

 

Planning and Scheduling

Project-management methodology is as follows:

  • Work breakdown structure

  • Project network of activities

Architecture–Engineering – All Types

  • Work inspection

  • Change orders

  • Review payments

  • Materials and samples

  • Shop drawings

  • Three-dimensional image

Cost Management

Construction cost management is a flat fee-based service in which we are responsible exclusively to the owner and its representatives, acting in the owner's interests at every stage of the project. We offer impartial advice on matters such as:

  • Optimum use of available funds

  • Control of the scope of the work

  • Project scheduling

  • Optimum use of design and construction firms' skills and talents

  • Avoidance of delays, changes and disputes

  • Enhancing project design and construction quality

  • Optimum flexibility in contracting and procurement

  • Cash-flow management, disbursements and security of lien waivers

Comprehensive management of every stage of the project, beginning with the original concept and project definition, yields the greatest benefit to owners. As time progresses beyond the pre-design phase, our ability to effect cost savings diminishes. We can represent the owner by helping select the design and construction teams and managing the design (preventing scope creep), helping the owner stay within a predetermined budget with value engineering, cost-benefit analysis and best-value comparisons.

 

 

 

 

 

Our at-risk Method is a delivery method which entails a commitment by us to deliver the project within a Guaranteed Maximum Price (GMP). We act as a consultant to the owner in the development and design phases (preconstruction services), and as both the general contractor/Construction Manager during construction. When we are bound to a GMP, the fundamental character of the relationship is changed. In addition to acting in the owner's interest, we must control construction costs to stay within the GMP.

CM at-risk is a global term referring to the business relationship of a construction contractor, owner and architect (or designer). Typically, a CM at-risk arrangement eliminates a "low-bid" construction project. A GMP agreement is a typical part of the CM-and-owner agreement (comparable to a "low-bid" contract), but with adjustments in responsibility for us. The advantage of our at-risk arrangement is budget & time management. Before a project's design is completed (six to eighteen months of coordination between us, architect and owner), we are involved with estimating the cost of constructing a project based on the goals of the designer and owner (design concept) and the project's scope. In balancing the costs, schedule, quality and scope of the project, the design may be modified instead of redesigned; if the owner decides to expand the project, adjustments can be made before pricing. To manage the budget before design is complete and construction crews mobilized, we conduct site management and purchases major items to efficiently manage time and cost. We charge a different monthly rate as we assume both roles.

Advantages of at Risk Method

  • We are working "at risk", therefore have incentive to act in the owner's interest, as well as to efficiently manage construction costs, considering they would be liable for any amount in excess of the GMP

  • Ability to handle changes in design or scope

Drawbacks

  • If a cost overrun occurred, it could cost us a great deal of money

  • We are allowed some mistake-related contingency, therefore there is a possibility that they will compensate by reducing the scope of the work to fit the GMP

  • Since the GMP is settled before design begins, it is difficult for owners to know whether they received the best possible bid

Bottom Line

An at-risk delivery method is best for large projects, both complete construction and renovation that are not easy to define, have a possibility of changing in scope, or have strict schedule deadlines. Additionally, it is an efficient method in projects containing technical complexity, multi-trade coordination, or multiple phases

Accelerated Construction Techniques

We began employing accelerated construction techniques, in which it signs contracts with incentives for early completion and penalties for late completion, this technique was adopted to shorten the overall project duration and reduce capital carrying costs.

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TOUCH

Tel: 310.972.0879

3605 Noranda Lane, Malibu, Ca 90265

Email: Malibu123ASAP@gmail.com

CSLB Contractors Lic. #1022834

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