Press release -
Lorich Construction Management LLC
Developing a commercial building is no easy task. There are many details to address, and many areas of expertise are required to get the job done right. Lorich Construction Management has the resources to bring everything together… experienced people, the right contacts, and a comprehensive range of support services.
CM at-Risk is a delivery method which entails a commitment by the construction manager to deliver the project within a Guaranteed Maximum Price (GMP), in most cases. The construction manager acts as consultant to the owner in the development and design phases, (often referred to as "Preconstruction Services"), but as the equivalent of a general contractor during the construction phase. When a construction manager is bound to a GMP, the most fundamental character of the relationship is changed. In addition to acting in the owner's interest, the construction manager must manage and control construction costs to not exceed the GMP, which would be a financial hit to the CM company.
CM "At Risk" is a global term referring to a business relationship of Construction contractor, Owner and Architect / Designer. Typically, a CM At Risk arrangement eliminates a "Low Bid" construction project. A GMP agreement is a typical part of the CM and Owner agreement somewhat comparable to a "Low Bid" contract, but with a number of adjustments in responsibilities required by the CM. Aspects of GMP agreements will be elaborated below. The following are some primary aspects of the most potential benefits of a CM At Risk arrangement.
Lorich Construction Management LLC Organization :We welcome you to view our Client List and List of Services to gain a sense of our workmanship. Please feel free to contact us with any comments or questions. We hope that your next construction project can begin on the solid foundation of professionalism and integrity that Lorich Construction Management provides.
Recently a different business model has become more popular. Many owners - particularly government agencies have let out contracts which are known as Design-Build contracts. In this type of contract, the construction team is known as the design-builder. They are responsible for taking a concept developed by the owner, completing the detailed design, and then pending the owner's approval on the design, they can proceed with construction. Virtual Design and Construction technology has enabled much of the ability of contractors to maintain tight construction time
Potential problems of Design-Build:
Cost estimating for a design-build project is sometimes difficult because design documents are often preliminary and may change over the course of the project. As a result, design-build contracts are often written to allow for unexpected situations without penalizing either the Design-Builder or the owner. Several organizations (such as the Design/Build Institute of America) provide standardized form contracts for design-builders to use, but it is not unusual for the design-builder to provide its own contractual documents.
This uncertainty requires the owner to rely a great deal on the integrity, accumen, and competence of the design-builder. As the certainty of estimates decreases, the opinion of the construction professionals of the Design-Build firm must be trustworthy, accurate, and reasonably verifiable in order to minimize risk.
Lorich Construction Management LLC Contact : Benefits of Design-Build:
It is important to note that the design-build method, while not focused on saving the owner construction costs, nonetheless often saves the owner money on the overall project. The combined effects of carrying a construction loan (which typically carries a higher interest rate than permanent financing) and an earlier useful on-line date usually yields considerable overall profitability to the project and may make seemingly unfeasible projects into genuine opportunities.
The compression of time is only one important aspect of the implementation of this system.
Lorich Construction Management LLC Value Engineering About Us
The management team at Lorich Construction Management has nearly 100 years of combined commercial development experience. We use that experience to assure that your project proceeds smoothly.
Lorich Construction Management LLC Engineering Recently a different business model has become more popular. Many owners - particularly government agencies have let out contracts which are known as Design-Build contracts. In this type of contract, the construction team is known as the design-builder. They are responsible for taking a concept developed by the owner, completing the detailed design, and then pending the owner's approval on the design, they can proceed with construction. Virtual Design and Construction technology has enabled much of the ability of contractors to maintain tight construction time
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