Commercial Construction Services
One Size Does Not Fit All
When it comes to our commercial clients’ building needs, we know one size does not fit all! Every structure, schedule, contract and delivery method is analyzed to make sure we are giving each customer the best option for their need, all to achieve the same end goal, a client for life! Hallmark Mitigation & Construction provides the highest-quality and value commercial construction services in Houston TX and surrounding areas. We bring a strong working experience, training, and committment to your project. Contact us today to schedule an inspection of your commercial construction needs.
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Commercial Construction Management Services
PROS
- The construction team can be hired very early in the design process and the design and construction process can be overlapped, often saving months on the delivery time saving money.
- Teamwork between an Owner, Contractor, Architect and Engineering team when selecting subcontractors can minimize stress and increase the overall quality of the project drastically.
- Generally, less adversarial than traditional Design-Bid-Build.
- Budgets can be scaled up or down from beginning to end.
- The Owner, Contractor, Engineer and Architect can participate in the selection of subcontractors.
- The Architect and Engineer can typically spend less time documenting the design and contract documents, saving time and money.
CONS
- There is little incentive for the Contractor to look for potential cost savings.
- Costs may change negatively or positively, due to economic influence, during the completion time.
TIPS
- In our opinion, a Construction Management agreement is best suited to projects where a firm contract price is not required upfront and an ultra-fast delivery is not required.
Unit Cost Contract
This contracting method pre-defines the cost of various types of work by square foot, linear foot, cubic foot, or some other method. Unit cost contracts should be considered when there is an indefinite scope of work required and when scheduling is a priority. Often these contracts are based on a published unit cost database such as R.S. Means®, Xactimate® or other resource.
PROS
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It is very easy to adjust and measure what has been completed and money due.
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It is quick.
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When the project only includes the pre-defined items it can be the best method of delivery for all involved.
CONS
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In commercial construction, there are too many products and variables to pre-define them all.
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When a project requires a scope of work that is not pre-defined it often morphs into a combination of unit cost and a cost-plus contract with ambiguity between what cost are eligible for added compensation and what is included in the unit costs.
TIPS
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Unit Cost Contracts are best suited for projects where there is a reasonable amount of certainty that the scope of work required will be defined in the associated cost database, when time is of the essence, and quantities of work are unknown.
Design, Bid & Build
This option is when the building owner or future building owner hires Architects and Engineers to fully design and specify the details of the project. The Architect then acts as the owner’s agent and publishes the project for Competitive Bids from General Contractors to build to specifications.
PROS
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Lowest possible cost of construction for design
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Quality is generally well defined
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Budgets are firm if the contract documents are accurate and complete
CONS
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Time required to complete could result in a loss in potential revenue.
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Cost of design is relatively high.
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What looks good on paper does not always work in the real world.
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Contractors may have an opportunity to exploit errors that allow for charging additional fees for changes that are needed, altering the final projected cost.
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Does not allow for much flexibility or owner control over the Subcontractors.
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More time to get from concept to completion, resulting in loss of profit.
TIPS
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Spend time in advance making sure plans are complete and correct pre-bid, this will save headaches and unexpected costs later.
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If the spread among General Contractor bidders is a small percentage, it is a good indication of the contract document’s quality.
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A private owner can also help eliminate some the Cons by pre-qualifying the General Contractors.
Tim & Material Based Contract
In this scenario the Owner hires the Contractor and the Contractor self performs, subcontracts, and manages the entire process based on pre-determined pricing and mark-up. In many ways it is similar to design build, with the added factor of self-performance or supplementing subcontracted tasks.
PROS
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The time from concept to delivery can be cut drastically.
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Long lead components can be ordered before demolition starts or before the scope is finalized.
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Subcontractors can start immediately on a T&M basis in lieu of losing time obtaining quotes.
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On-site Labor can float between trades to assist where it is most beneficial to the schedule.
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The building Owner can be as involved in the subcontractor selection process as they wish.
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Changes in scope or newly discovered concerns can be investigated and handled immediately.
CONS
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Cost of construction is potentially higher due to potential labor inefficiencies
TIPS
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Cost Plus contracts are best suited to buildings or business owners with high business interruption costs, when a building has been damaged, or any time a building project needs to be completed under a tight deadline.
Client Satisfaction
Over the years, we learned that many industries can appreciate the skill it takes to foresee issues in advance and bring projects in on time and on budget.
Most contractors offer one delivery method, for one industry. Our business model is different. We want to build a relationship with our clients, learn their needs, including New Construction, Renovations, Damage Mitigation and Maintenance while achieving the highest possible Client satisfaction. Client satisfaction starts by picking the right delivery method for the circumstance.
There are other delivery methods, and even hybrids of the above, all of which are designed to do the same thing, achieve the proper balance of Speed, Quality and Cost for the end user. In order to achieve true customer satisfaction, it is imperative to pick the correct delivery method for your circumstance.
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