Great explanation of the GMP format and what to look out for. Annonymous Participant Rick is very knowledgeable and provided valuable information and guidance about the GMP contracts. Burnham explained the GMP process extremely well. As owners have searched for project delivery systems that reduce the time it takes to get from project conception to project completion, one of the most common approaches has been the use of guaranteed maximum price, or GMP, contracts.
The way to really fly [AIA course] Experts explain the benefits of DA, a process where the subcontractors are retained to assist other Building Team members in the development of a design.
Photos courtesy Ohio CTC.
Click here to enlarge. When it comes to complex building projects, Building Team member firms that deliver design, engineering, and construction services bring very different perspectives to the job. Design is all about possibilities.
Engineering is about rooting those ideas in reality. Construction is about getting the work done. As a result, when a building moves from design to engineering to construction, inherent hurdles and inefficiencies must be overcome.
Change orders create delays and add cost. Accountability and ownership can be ambiguous.
Key details can be lost in translation. Yet all the players share the same goal: Design-assist DA is a procurement method by which one or more subcontractors are retained, prior to the completion of design, to assist the architect, engineer, or construction manager in the development of the design and construction documents.
This is not always an obvious solution. The project owner may engage a CM for preconstruction services to provide insight into the overall cost, sequencing, and constructability. When the design is completed, the construction documents are published and turned over to subcontractors for bidding.
Subcontracts are awarded, and the process of coordination, shop drawings, and procurement begins. As discrepancies arise, the design team is called upon to answer requests for information or modify the construction documents, often resulting in delays, change orders, and added cost.
Too often, design-bid-build fails to fully capitalize on the strengths of all parties and often creates adversarial relationships among the various entities. The DA process changes this dynamic. With DA, the Building Team determines how each party can best contribute at each stage and when transitions should occur to maximize efficiency.
DA subcontractors typically do not assume design liability; they assist the architect and engineers of record with input as the design develops. They do, however, understand and embrace the project goals and priorities and assume some degree of ownership of the design.
In most cases, this results in a reduction in coordination-based RFIs and change orders. Its benefits include improvements in design efficiency, cost management, speed to market, and constructability.
DA is best leveraged when early engagement of certain subcontractors is most beneficial for the project. Involvement of DA subcontractors earlier in the design process reduces redundancy inherent in the traditional design-bid-build process and helps subcontractors detect and resolve constructability issues before construction starts.
The result is a reduction in design-related RFIs during construction, when the potential for budget and schedule implications is the greatest. The structure was steel frame with composite concrete slabs. The skin was architectural precast concrete with some curtain wall and glass.
Four design-assist contractors were needed: A request for qualifications was issued; then, the owner, the architect, and the CM narrowed each trade down to the three most qualified firms. The responses to the RFP were reviewed, interviews were held, and the final selection was made.
The four firms were brought on board at the end of design development. At that point the Building Team decided to convert the steel and precast work to a lump-sum contract.
The mechanical and electrical contracts continued as GMPs throughout construction. In retrospect, the decision to incorporate DA subcontractors at the end of Design Development may not have been the best. Due to the complexity of the project especially the MEP systemsdoing so still proved beneficial, but it might have been better to have had the subcontractors on board at the beginning of Design Development.
All four contractors were able to stay within the original project budget.
Care should be taken during the subcontractor selection process to understand how familiar a subcontractor is with the process of managing a cost-plus contract.
Design-assist also creates a collaborative environment for the design and construction team to work toward a common goal of producing the best building for the owner.
Communication is improved throughout the project by ensuring that all members of the Building Team fully understand the goals and priorities of the project.
When goals and priorities are established early in the design phase of the project, the frequency and severity of disputes is often reduced, or disputes are resolved more easily because of the relationships formed through the design-assist process.
Greater accuracy in pricing.
Early collaboration with DA subcontractors provides the Building Team with more accurate market pricing earlier in the design process, when the cost of making changes is usually less than during construction.Whitepaper Watch: Solving the MEP Coordination Puzzle.
Have you ever tried to solve a sliding tile puzzle? There’s a square grid of tiles, with one missing, and your goal is to align all the tiles so they form a picture. The trouble is, every time you get two or three tiles into place, four more are leslutinsduphoenix.comd: May 31, “Self-Performed Work by Construction Managers” (updated 5/) Page 4 In the above example, the Owner would have been better served by allowing the CM/GC to perform the work under a mini-GMP subcontract arrangement for the self-performed concrete work.
If the mini-GMP subcontract for self-performed concrete.
In this Facility Focus survey report, you’ll learn about the trends, technologies, and tactics manufacturers are using to modernize their legacy facilities in order to enhance manufacturing reliability, efficiency, and flexibility—as well as the benefits, challenges.
Manufacturing Extension Program (NIST-MEP), is a not-for-profit organization chartered to help from DOD contracts or subcontracts but that have recently experienced a loss, or are under The purpose of this white paper is less to recapitulate or summarize those case .
Response Paper II: Response to Guest Lecturer Cimminnee Holt On Thursday, 7th February, guest lecturer Cimminnee Holt came to present the Church of Satan, founded in in San Francisco, California by Anton Szandor LaVey. “10 Things to Consider When Contracting with MEP’s on a GMP Basis” Page 2 Owners and their Construction Managers should consider the following ten point list of potential “hidden profit” problem areas before agreeing to the billable “costs” proposed by any GMP subcontractor: 1.