Every project is uniquely shaped and comes with its own implications and circumstances such as delays, legal commitments, succeeding in shaping the layout of the property, budget limitations, financing goals, the owner’s resources and many more.Whether you are experienced or not, it is imperative to review and analyse all the possible options available to you before launching your project. With every option available, excluding the lump sum option, lays additional resources which can help fast track a project. Using the fast tracking option means that the actual construction begins before the final design is laid out. As a result, many subcontracting agreements granted must be finalized before the project’s total final cost is fixed. This fast tracking method is generally used in cases where the owner wishes to jump start an existing project in a specific timeframe. It also helps the owner benefit from savings for the project’s incidental expenses and with cost savings associated with construction financing.
The pre-construction stage is crucial in order to complete feasibility studies to acquire the proper expertise for every aspect of your project’s planning, establishment of the exact construction costs and the decision of the project’s schedule.
It is not unusual for consultants involved in the pre-construction stage to not be able to provide accurate data to the client. The data is often based on outdated costs information that fails to reflect the geographical realities of the project’s designated area.
However, since our construction teams actively work in different areas around the country and all over the world, our pre-construction unit is able to gather the latest and most relevant information based on specific markets.
Thanks to the solid relationships we built with our subcontractors and providers, we are able to offer competitive prices and unbeatable project schedules.
In order to achieve effective cost management, simply combine the previously mentioned services with our dedication to establish a solid project schedule and planning in conjunction with a more precise total cost assessment.
Not only does all of our knowledge shown in our construction projects, we also take pride in taking the time to better understand the specific needs of your business. We believe it is important to always consider your point of view in order to find the best possible way to carry out the construction of your building. In many cases, we are also able to offer you a less expensive construction solution without ever compromising its execution.
In the end, project owners not only benefit from more detailed information regarding the project and its planning at an earlier stage in the process, they also receive the guarantee that we will deliver a strong building completed respecting the initial total cost estimate.
- Fixed price at tender
- Detailed control of design
- Less conducive to teamwork
- Extended project schedule due to sequential design and construction
- Owner takes the risk of design coordination issues
Instead of offering fixed cost prices, general contractors outline a cost plus or fixed fee proposal with the owner.
By choosing the construction management method, the owner takes charge of the entire project by making all the decisions and leading all crews involved. This also means that the owner is the one who assumes the majority of the risk.
The owner’s first task is to select his team members. The team’s most influential members are usually architects or engineers, design consultants and a construction general manager.
While the design plans are put together, every aspect of those plans must be approved and outlined in the contract so that its associated costs are guaranteed.
In the early stages of the project, crewmembers are hired through various contractual agreements. The collaboration between all crews is crucial and the owner must ask them to work together from the beginning of the pre-construction stage up until the end. By initiating the collaboration at the very beginning, it is possible to fully benefit of the knowledge and savoir-faire of each and every crewmember.
The final results obtained in our projects where collaborations were created in the early stages of construction always ended positively. An upfront collaboration certainly helps carry out the entire project faster and stay within budget.
The main challenge when using this method is to select the right construction general manager for your team.
This team member plays a very important role and must bring experience along with useful resources in order to successfully complete the project.
It is also important that the construction general manager selected has a good grasp of the requirements and needs of the owner to provide the right recommendations. The construction general manager must be able to guide you in making the effective choices regarding planning, selecting basic materials at a fair price, establishing the action plan, understanding the market realities and completing the feasibilities studies accurately. Also, the budget must be identified and all the quality issues that may arise during the design must be overseen. Never forget, a general construction manager needs to master these fundamental skills perfectly!
- The design and construction team collaborates from the beginning of a project
- Owner shares the risk of design development and subcontractor’s performance
CONSTRUCTION AT A GUARANTEED MAXIMUM PRICE-GMP
In the types of construction management concepts previously outlined, the construction general manager is unable to secure the total final cost of a project. By using this concept (GMP), it is possible. Once the pre-construction teams have provided planning schemes that have progressed enough to offer sufficient details for a contractor to complete a business appraisal, the construction general manager will propose his guaranteed maximum price (GMP).
This price will be subject to change only if the original scope of the project changes. With this contract format, it is also possible to add other price adjustments options.
This method gives the owner certain advantages. First, the risk of a final total cost increase is considerably reduced. Second, the possibility of having the owner benefit from a price reduction is more than plausible.
Finally, this construction method offers the owner more flexibility throughout the entire project.
In this construction concept and in the previous ones outlined so far, the owner, the construction general manager and the contractor must work in close collaboration.
The factor that will ensure the successful delivery of a project is the selection of a strong team of professionals who will bring a much-needed sense of trust and mutual respect to the table.
With a design-construction agreement, the owner has to hire a sole entity that will be in charge of managing all aspects of the project. A construction general manager is often the type of professional owners turn to. In this type of situation, the construction general manager has the responsibility of hiring the main designer and the subcontractors. Therefore, the owner’s only contact is with the construction general manager who was given the project’s objectives in its earliest stage. The owner is also able to benefit from the contractors and designers’ inputs as well as the subcontractors and suppliers’ recommendations, and this, throughout the entire project. By receiving this type of valuable information from professionals who understand the current market’s realities, the owner has a much better chance of making the right choices. Once the design plans somewhat completed, sufficient information is then available for the project’s total final cost to be submitted.
This is when the owner’s most important decision is to be made. The owner must choose between launching the construction project before the final total cost is submitted or wait until the appraisal process has begun.
This approach offers the possibility for the owner to remain involved in every stage of the construction process.
The design-construction method is often referred to as a “turnkey” approach. The design-construction concept can even be used to complete the most complex projects in a quick and efficient manner.
The main advantage of using this method is that it offers the owner the possibility of selecting the most qualified partner (the construction general manager) and giving the construction team the leadership it needs. The partner selected holds responsibility for all aspects of the project from its early stages until the final product is delivered.
Since the fixed total project cost is submitted to the owner, the contractor selected by the general construction manager plays an important role. The project’s contractor must assume all its risk, from beginning to end. These risks include logistical errors, technical mistakes or oversights that could occur. Therefore, it is important to ensure that the contractor gets access to all the appropriate resources. To do so, the contributors and subcontractors will have to be informed of every aspect of this construction method. This collaboration will guarantee that the project will run smoothly and will maximize the benefits this approach has to offer. All things considered, the choice of the right construction general manager is the owner’s most important decision. The owner must be certain that his construction general manager’s company undertakes the project with integrity and has the skills needed to complete the project without surpassing its total budget’s limit.
Our strength at Axxys Construction is to provide trustworthy contractors as well as the most qualified architects and subcontractors in the industry. These professionals understand what’s at stake and that your projects have the utmost importance for us. With their help, we have no doubt that we will surpass your expectations.
Rest assured, financing is available for your projects. We can provide assistance with production equipment installations, commercial leasing or with long-term service management.
- Project speed
- Single source responsibility
- Owner does not maintain direct control over design detail
- Requires comprehensive project functional program
With the project management method, the owner carefully selects a project manager who works as a representative, paid with a pre-determined fee for the services provided.
The project manager’s main task is to analyze the needs and realities of the project in order to deliver the final product the owner is expecting.
His main responsibilities are to choose designers and contractors and to have them sign contracts on the owner’s behalf.
The project manager’s next task is then to hire a construction manager and a general contractor. It is the general contractor’s job to put in place a team of contractor with the skills to complete every phase of the project.
A good project manager must be able to analyze the project’s financial situation, conduct feasibility studies while also taking charge of the design and building aspects of the project.
This approach gives more decision making power to the project manager and the owner must assumes the risk of a possible increase of the project’s final cost. It is not in the project manager’s mandate to offer the fixed total cost.
In some cases, owners wish to have an administrator help them supervise their project. To do so, they hire a project manager who will be asked to provide complex and detailed reports simply to justify his role in the project.
If that is what you are looking for, we apologize, but we do not offer or believe in this type of service. Our team of project managers takes a more hands on approach. We are fully invested in all of our projects and therefore take part in helping you choose the right approach and management options. We assist you every step of the way!
This is the best way for us to make sure your project will be executed according to your needs. This way we also can tend to your personal interests.
We are always fully invested in a project; we foresee upcoming issues and have the experience and expertise to resolve them quickly and efficiently.
We also believe in helping owners keep track of every aspect of their project and ensure its completion. From providing assistance with the design plans, choosing the right advisers, carefully planning the project, or reviewing appraisals, we are present every step of the way until the final project is delivered.
Even though we do not physically take part in the construction aspects of your project, we are always available to provide support. We constantly supervise the work in progress, we ensure that the people involved in the projects are communicating well; we oversee the work done by consultants and inform the owner on the project’s progress.
If you choose us to build your project, we can guarantee its cost.
Our extensive experience and our access to the best resources in the construction industry greatly contributed in making this method a truly successful one.
Working on projects of different size, with different complexity levels and all around the world gave our team diversified experience and expertise. We are proud of the strong business partnerships we built throughout the years with renowned architects, engineers and subcontractors and the access to priceless resources.
- Sound overall advice through all phases of a construction project
- Finding a knowledgeable Project Manager who has the expertise required to deliver continual advice
FIXED COST CONSTRUCTION
Once the design plans are completed and finalized, the contractors can present their construction offers.
The owner seeks out the services of an architect who will have the responsibility of designing and developing the sketches and the guidelines necessary to complete the project.
The owner will then pay the architect’s fees in accordance with the design contract. The architect has the mandate to hire subcontractors and pay their fees. However, if the owner prefers, he can hire the subcontractors and pay them directly. Once the design plans and execution plans have been completed and the guidelines have been established, the bid offer for the contract is sent.
The contractor who wins the bid is the one who offers his services at the lowest fixed cost. Once the owner reviews the contract and has received his consultant’s recommendations, they can sign a contract of adhesion with a fixed cost. The construction can then begin. With this concept, the owner knows the project’s total final cost before the construction begins.
In the construction business, having to state a project’s final cost before the actual construction begins is viewed as part of a more traditional approach that is sometimes called a fixed cost contract. This approach is simple, yet structured. Every design and construction stage is completed independently and in the right order. The client actually hires the architects and consultants himself.
The owner begins the process with the planning stage, then continues with developing the building schedule and follows with hiring the project’s leading consultant who will work on the final designs. The leading consultant will then elaborate the project’s plans and design features of every component of the building. This includes meeting the architectural, structural, mechanical and electrical requirements.
Once the designing team has finalized the design plans, only then can the owner begin his search for the right building contractor.
Following a bid offer to win the contract, the general contractor who does so must then accept to begin the construction project by following the guidelines and the price limit defined before hand.
What differentiates this approach with the ones previously outlined is the fact that the general contractor does not take part in the project’s designing stage. He simply bids to obtain the contract and then follows the design plans completed in an earlier stage of the project.
In fact, using this approach makes any type of collaboration a difficult task to accomplish. Since the design and construction teams rarely work together, they sometimes find themselves in situations where they clash because of their very different interests.
Designers mostly care about making sure the building looks perfect while the construction team remains more concerned about maintaining control of the project’s costs and having authority over the construction methods used or about following the construction schedule agreement.
The owner makes decisions regarding building guidelines, cost management and schedule agreements solely based on the consultants, engineers and architects point of view. It is not always beneficial to do so since these professionals may not have the proper knowledge of the construction business to offer such advice.
As a result, owners sometimes have to make costly changes to their projects during the construction stage or may end up having certain aspects of the final product be faulty or unfinished. In some of these cases, the scope of the project changes even after the appraisal was completed, making it difficult to respect the budget and the construction schedule.
These types of changes tend to affect the project’s total budget and even sometimes the owners expectations.
We believe that the method has to be open to adversity or to start with a combination of the fixed cost concept with other more elaborate construction concepts in an effort to present owners with contracts that offer the best of both worlds.
When this type of contract does not meet an owner’s needs and a fixed-priced contract agreement is reached instead, what is most important for us is to protect our client’s interests. In an effort to build long-term relationships with our clients, we set and maintain high quality standards and always try to work in close collaboration with them.
Axxys Construction has adopted the Lean Construction methodology. Our highly motivated, well trained, fully engaged team provides a product that customers really want by understanding the process, identifying the waste within it, and eliminating it step by step. Lean Construction is a production management-based approach to project delivery, a new way to design and build capital facilities. Lean production management has revolutionized the manufacturing design, supply and assembly. Lean Construction extends from the objectives of a lean production system (maximize value and minimize waste) to specific techniques and applies them in a new project delivery process. As a result:
• The facility and its delivery process are designed together to better reveal and support customer purposes. Positive iteration within the process is supported and negative iteration reduced.
• Work is structured throughout the process to maximize value and to reduce waste at the project delivery level.
• Efforts to manage and improve performance are aimed at improving total project performance because it is more important than reducing the cost or increasing the speed of any activity.
• “Control” is redefined from “monitoring results” to “making things happen.” The performances of the planning and control systems are measured and improved.
The reliable release of work between specialists in design, supply and assembly assures value is delivered to the customer and waste is reduced. Applied to construction, Lean changes the way work is done and is particularly useful on complex, uncertain and quick projects. It challenges the belief that there must always be a trade between time, cost, and quality.
Lean Construction thinking has allowed us to improve in productivity, customer satisfaction, and reduce in costs and lead time. Work is completed with minimum cost and maximum value by considering customer needs leading to a flawless delivery every time.