Part A - Estimating Phase
At the completion of the project design or at the final stage of preconstruction services, the WG Pitts team will create a detailed cost estimate set up in Construction Specifications Institute (CSI) format. This would involve gathering quotes and estimates for all phases of the project from general conditions, site & utilities, concrete, masonry, wood framing, plumbing, electrical, etc. This process would be very similar to a typical bid scenario. All quotes from subcontractors, however, would be submitted to you in a presentable format with a summary for each section of work. In addition, we would offer opinions of anticipated subcontractor performance, workmanship, and responsiveness during our process. A summary of all detailed costs would then be utilized to firmly establish the project’s Direct Cost.
Part B - Contract Amount
Once the direct cost is established, our fee for the construction or management of the project would be a percentage of the total direct cost that was established in the Pricing Phase. The commercial terms and project delivery method is based upon your desired project approach.
If a lump sum or Guaranteed Maximum Price is desired, the typical method is to take the Direct Cost number along with our flat fee or percentage fee plus any agreed upon contingency allowance; simply total these components and establish a lump sum contract amount.
Benefits to this unique approach include more accurate budgeting, owner participation in quality selection of components and subcontractors, accurate knowledge of actual project cost, streamlined design, bid package preparation, Team-Built approach with the builder and architect working together, and competitive vendor and subcontractor bidding.