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Construction Management At Risk Provides the Best Value

While the design-build construction delivery model is superior to the design-bid-build model, the process that yields the best value for the owner is construction management at risk.

In this model, a company like Albion Scaccia is selected based solely on qualifications and brought in to manage the project during pre-construction, when drawings are about 70 percent complete. This is the stage of a building project at which we can identify the most cost savings and construction efficiencies by collaborating with the architect and subcontractors.

Bringing us in during this critical phase allows our clients to take advantage of our abilities to recommend value engineering opportunities, provide a conceptual budget, review construction documents for potential problems, manage the competitive bid process and create a critical path schedule to identify milestones and make sure the project stays on track and within budget.

And, because the same team who works with the owner in pre-construction follows the project through to completion, the likelihood of problems or cost overruns arising during the construction phase is greatly diminished.

A construction management firm should be selected based on qualifications, according to the Construction Management Association of America. Once a construction management firm is chosen, the firm and the owner negotiate a scope of services agreement that includes deliverables.

One of the most unique aspects of the construction management delivery model is the way costs are structured. When we’re selected, we negotiate consulting fees with the owner and become the owner’s representative. Once the building plans are complete, we solicit bids from subcontractors and review them with the owner, selecting the subcontractors who will best fit the project, not necessarily those who are the lowest cost, and define the construction budget. Once that is established, we provide the owner with a guaranteed maximum price. If the actual costs go over budget, we’re responsible for paying them. If we identify cost savings as we proceed on the project, the owner realizes those savings.

The construction management at risk model is completely open book and fosters a better relationship between the owner and the construction manager, while also offering the best value to the owner.

Albion Scaccia is a woman-owned commercial construction company in Atlanta providing full service design, build and construction management solutions. In just over 13 years, our focus on client satisfaction has helped us grow into one of Georgia’s premier design build companies. We offer turnkey construction management services to ensure your project progresses smoothly, efficiently and within budget.

Brian Newsome, LEED® AP

Executive VP

Design-Build: A Better Delivery Model

In my last blog, I talked about some of the problems inherent in the design-bid-build construction delivery model. One way to avoid some of those problems is to use the design-build method instead.

In this delivery model, a company, like Albion Scaccia, is hired to oversee the entire project, from design through completion. We work with the architect from the beginning, which helps avoid any potential design problems early in the process. Also, this model allows us to begin some elements of construction concurrently with the design process, which can result in a shorter delivery period than design-bid-build.

For owners, this method provides a single point of contact, enhancing communication. This also means one company is responsible for the project. In the design-bid-build model, the architect and the contractor share responsibility, which can lead to the entities blaming each other for construction delays or cost overruns.

When selecting a design-builder, qualifications should be the dominant factor, according to the Design-Build Institute of America. The institute asserts that the lowest cost doesn’t always provide the greatest value to the owner, and that a well-qualified design-build firm can provide more value through better communication, collaboration, cost-savings through innovation and a more durable finished project.

Albion Scaccia is a woman-owned commercial construction company in Atlanta providing full service design, build and construction management solutions. In just over 13 years, our focus on client satisfaction has helped us grow into one of Georgia’s premier design build companies. We offer turnkey construction management services to ensure your project progresses smoothly, efficiently and within budget.

Brian Newsome, LEED® AP

Executive VP

Design-Bid-Build: Economical or Costly?

The design-bid-build delivery model seems like the most cost efficient way to build your project. An architect designs your project, you send the specifications out for bid to builders and choose the least expensive option. The builder has all the designs for the building, so what could go wrong?

Unfortunately, a lot could go wrong. If you are simply going by the lowest bid and not vetting the builders for their qualifications, you could be hiring an inexperienced builder for your project who may not anticipate coding or permit issues, design problems, material cost changes or other problems associated with commercial projects. Not only that, but the pressure to deliver the lowest bid may lead to using low quality subcontractors or materials.

I’ve recently talked to a few people who have had disastrous results with this delivery model. One told me his project, originally bid at $750,000, was now going to cost over $1 million with cost overruns AND be two months late.

So how can you protect yourself if you’re obliged to use this method to identify builders? I would strongly suggest checking qualifications first, then selectively sending your bid request to those who meet your qualification standards. That way, you can weed out any builders without the appropriate experience.

Also, if you’re not obligated to automatically accept the lowest bid, take a close look at the bids. If the price difference is significant, find out what the differences in costs are so you know what to expect from the builder you choose.

Albion Scaccia is a woman-owned commercial construction company in Atlanta providing full service design, build and construction management solutions. In just over 13 years, our focus on client satisfaction has helped us grow into one of Georgia’s premier design build companies. We offer turnkey construction management services to ensure your project progresses smoothly, efficiently and within budget.

Brian Newsome, LEED® AP

Executive VP

Charitable Work Bears Fruit … and Dinner

Many times when we give to charities we don’t get a first hand opportunity to see how our support impacts lives. But last week, I had the chance to see how my support has positively changed the lives of abused, neglected and abandoned children in our community.

The young people who are supported by the Center for Children and Young Adults hosted “The Best Is Yet To Come” banquet for donors, volunteers, staff and board members. They planned it, dressed in their finest clothes and provided entertainment. Several kids shared poetry and some performed in a choir. And, they generously shared their stories about how the Center had affected them. One of the kids had recently obtained not only a diploma, but also a HOPE scholarship, and another is heading to Chattahoochee Tech. I don’t think there was a dry eye in the house after we heard how the Center had helped these kids get their lives on track.

Best of all, the children have learned a spirit of giving as a result of their time at the center. They wanted to do something for others with this banquet. I hope as these children grow up and become successful adults that this spirit of giving will remain with them and they’ll find opportunities to help others.

Albion Scaccia is a woman-owned commercial construction company in Atlanta providing full service design, build and construction management solutions. In just over 13 years, our focus on client satisfaction has helped us grow into one of Georgia’s premier design build companies. We offer turnkey construction management services to ensure your project progresses smoothly, efficiently and within budget.

Brian Newsome, LEED® AP

Executive VP