Three Ways of Starting and Completing...

Lump Sum Tender

The Owner directly retains the services of an Architect who is paid a fee to act as the Owner's agent, design the building and produce working drawings and specifications.

When the Architect has completed the design phase, the project is offered for general or invited lump sum tender to General contractors on a competitive basis.

After review of the tenders by the owner and Architect, a firm lump sum price contract is entered into between the successful General Contractor and the Owner. Construction can then commence.


Construction Management

The Construction Management concept joins the Owner, Architect nd/or Engineers, as well as the Construction Manager, in a team approach to the construction process.

The Owner directly retains the Construction Manager, and Architect or Engineers for a fee based on services required. The Construction Manager prepares a budget and schedule from the Architect's preliminary drawings and specifications.

Trade contract packages are released by the Construction Manager for tender on a competitive basis to specialty contractors during the period that the design is being finalized. When the competitive bidding process is completed, a total project cost can then be established.

Construction Contractor Wichita Chart

Site work commences almost immediately upon selection of the Construction Manager. The early start translates into an earlier finish, which if the building is being leased, represents considerable revenue. The Construction Manager will initiate a system of Value Analysis, the objective of which is to make the design more effective by utilizing his accurate knowledge of current material prices, delivery schedules and hands-on construction technology. The overlapping of design and construction time is known as 'Fast Tracking'.

Design/Build

With design-build, the public agency contracts with a general contractor to both design and build the project. The agency does not separately contract with an architect/engineer for design; it becomes the responsibility of the general contractor. The general contractor in turn subcontracts (through competitive bidding or established relationship), for an architect/engineer and as-needed construction trade work. Design-build delivery methods have a number of variations, but most can be placed in one of two categories—stipulated price and construction management.

Stipulated Price.

With stipulated price design-build the entity specifies how much it will pay for construction of a particular building. For example, the client might provide only a programmatic description of the building it wants by specifying the size of the building, types of spaces, and preferred construction materials. The client then asks competing firms to present proposals to illustrate a conceptual design and provide specifications for materials and building systems that it is willing to construct for the price set by the client.

Construction Management.

With construction management design-build, the client awards a contract to a construction manager on the basis of a fee. The construction manager designs the project and solicits bids from subcontractors and suppliers. The total of these bids plus the construction manager's fee determine the total price the client pays for the building.