Leaders in Management
Construction Savings Newsletter - Issue 4

Saving Money on Construction

Leveling the Playing Field of Complexity

Construction Complexity: Construction is becoming more and more complex. In addition to the obvious technical complexity of designing and building a new or renovated facility, expertise is also needed to address: project delivery methods, sustainability, environmental issues, cost volatility, technology applications, financing options, legal issues, and more.

Equal Expertise: For a project to be a total success, all three key parties – the owner, the design team and the general contractor/construction manager – must do their part. The owner, as the project leader, must have comparable knowledge to that of the design and construction teams. If construction expertise does not exist in-house, the owner can contract with an outside construction advisor.

Clear Contracts: Beginning with the premise that equal construction knowledge exists among the parties, the focus turns to contracts for the work. Contracts with both the design team and general contractor/construction manager should include all pertinent information, and be clear on roles, responsibilities, and who holds what risk. Unknowns should be minimized, with clauses included to deal with any remaining unknowns.

Design Phase: During design, all parties provide valuable input. The owner should ensure all three parties collaborate throughout design, with the goal being a completed set of plans and specifications that will allow a fixed price within budget, and with minimal change orders to follow. If the contractors have not yet been identified during design, then separate, independent contractors can be engaged as necessary by the owner.

Construction Phase: During construction, it is inevitable that minor changes and conflicts will still occur. Armed with their own construction expertise, the owner will be in a strong position to negotiate a fair cost of any change, and to resolve conflicts between the design and construction teams.

Bottom Line: A level playing field, coached by the owner, will result in cost savings, reduced risk, and increased value of the completed project.  

To learn more about saving money on construction, visit www.constructionsavings.com.

ConstructionSavings.com

ConstructionSavings.com is a website dedicated to saving you money on construction, as well as reducing your risk and increasing your value.

Independent Construction Advisors

Sitton Consulting Group is available to assist owners with project oversight and decision making. When done correctly, an outside consultant’s value should far exceed the cost of the services. 

Headed by a 28-year veteran of the design and construction industry, Sitton Consulting Group, LLC, provides hands-on services to manage construction projects more effectively. The firm’s focus on saving money, reducing risk, and increasing value, is based on experience on hundreds of construction projects with a total value in excess of one billion dollars.

To request help on a specific issue or an entire project, go to: www.sittoncg.com/request help or call Doug Sitton at 314.412.5677.

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Email: info@sittoncg.com




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