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We recommend that the process of construction cost control start as soon as the preliminary drawings have been developed. At this point, the drawings are quite conceptual and lacking in detail, but our estimating department can provide pricing that can be expected to be very close to the final cost. The key is developing educated assumptions that are based upon general architectural direction and our firm’s years of experience. Later, as drawings proceed to 33% and 66% completion, these assumptions are replaced by concrete details and specifications that have been produced in concert with our cost control recommendations. Revised estimates are generally provided at these points in order to refine, update, and further control the projected construction costs.
It needs to be emphasized that even at the earliest stages in the estimating process, R. L. Price’s estimating is not simply “general square footage pricing.” At all phases of design development, including the most initial pricing, R. L. Price Construction protects the owner against unexpected costs by providing a complete, detailed cost breakdown in each of the specific disciplines necessary to complete construction. In other words, as long as the project parameters are not changed, the building can be constructed per our estimates.
During the various phases of design development, R. L. Price Construction, as an experienced team-build general contractor, can enhance construction cost control by recommending alternate materials and construction techniques to the architect and engineer. This type of practical construction insight is an important feature that accrues to the owner’s advantage because we can help turn good details and specifications into improved ones that save the owner both time and money.
When architectural plans reach the 90% mark, R. L. Price Construction generally recommends that the project be priced competitively by a selected list of subcontractors. At this point, the final Guaranteed Maximum Price is established and the subcontractors are selected to begin actual construction. All of the efforts of the team-build partners culminate here: design has been established in the construction documents; costs have been refined through the previous phases of pricing; subcontractor quality is assured by dealing only with pre-selected firms; and the owner receives the benefit of competitive pricing. Furthermore, it is R. L. Price Construction’s policy in team-build projects to invite owner participation in reviewing all pricing and subcontractor selection in order to assure complete customer satisfaction.