LANDAU BUILDING COMPANY
RELATIONSHIPS | REPUTATION | RESULTS
Construction Management can be delivered in many different forms, and Landau’s exceptionally qualified staff can apply whichever method best suits a client’s needs. Our recommended method, and the one most commonly chosen by experienced owners who build with us regularly, is the CM at Risk contract.
With a CM at Rick contract, the Construction Manager (CM) agrees to deliver a project at a Guaranteed Maximum Price (GMP). As the CM, Landau provides two distinct services to the owner; we act as a consultant to the design team during the Design Development phase, and we manage the project once construction begins. At the outset of the project we develop an initial estimate of the GMP. We produce further budgets as the design is refined until we have a final GMP that coincides with the finalization of the plans. Through numerous meetings with the owner and design team during the development phase, we increase our understanding of the owner’s intent and can offer design suggestions to improve constructability and budgetary efficiency.
One of the greatest advantages of the CM at Risk approach is the ability to move seamlessly from the design phase into construction. Hard-bid jobs often start slowly. Before ground can be broken the owner must check the low-bidding general contractor’s scope, the GC must transfer the project from estimating to the project manager who must then learn the job from scratch, and the manager must educate the superintendent on the job . Before any materials can be ordered, the GC must submit product data to the architect to be sure that what was bid matches what is actually required for the job. As the CM, we involve the project manager and often the superintendent in the final stages of design, so when the project starts they hit the ground running. We know exactly what materials will be needed because we were part of the design team; to save time, items with long lead times will often be ordered before the rest of the design is finalized. Similarly, the need for change orders can be minimized; since we coordinate the design with the owner beforehand, there is no misinterpretation of design intent and what the drawings actually show once construction begins. Furthermore, construction can often begin before the design is complete, saving the owner time and money. For example, if the HVAC plans are not complete, we can still begin the earthwork or foundations. We use all of these advantages to provide the owner with their desired project in a cost-effective manner.
We recommend the CM at Risk contract for both new and experienced owners. The cost savings realized through a builder-advised design and a compressed construction schedule are easy to appreciate, and the collaborative effort between the CM and owner guarantees a smooth, successful project.