As Construction Manager at Risk, Epic typically works under a Guaranteed Maximum Price (GMP) negotiated agreement. This structure allows for a transparent relationship with our client as all sub trade costs, general conditions, fees and related overhead items (soft costs) are shared. The “open book” relationship is utilized most prominently with private sector Owners / Clients, although thanks to recognition of the benefits of public private partnerships, the concept is increasingly embraced where appropriate / enabled by public sector agencies. This collaborative approach to the construction process works best when the CM/Risk and design team begin to work together as early in the preconstruction process as possible, thereby maximizing the interplay of design, budget and schedule goals.
We employ our background and experience to insure well-defined, job specific scopes of work for all trade contractors / vendors to protect our mutual financial interest. This includes review of the details of the Owner/ Client’s “typical” requirements, and being careful to look for gaps or redundancies in responsibilities and coverage between primes and/ or trade packages. Our review goes deep into the drawings and specifications, making sure specific details tie together in an effort to avoid surprises on bid day and in the field.
Details related to how contingencies within the GMP will be utilized in the event of changes to scope, along with the potential shared savings allocation, are beneficial tools for an effective employment of this delivery model. Our experience ensures these items are fully vetted as part of the negotiation process.