Partnering with a CM|GC during the design process helps all involved produce the best value facility and protect the contingency when starting construction.
The Owner-Architect-Contractor (OAC) Triangle
Within the OAC triangle, the contractor’s role depends on the project’s delivery method. If the contractor delivers a building under the low bid method, they must build the facility, with very little latitude on subcontractor quality, on time and within budget. However, the role expands when the general contractor functions as a CM|GC. As a construction manager and general contractor, the primary role encompasses working with the architect to maximize the owner’s budget by providing ideas and cost input for material and assembly alternates, along with constructability reviews. The CM|GC process also allows flexibility in determining who the best value subcontractors might be.
With the pandemic’s onset, material procurement has become more challenging. Getting a CM|GC on board early for the project development and pre-construction phase can help mitigate this challenge through open team collaboration and early material procurement. Additionally, because product pricing constantly changes, final prices can drastically differ from the initial project budgeting. Many regional suppliers and manufacturers don’t know what a product will ultimately cost because they’re not dealing with the labor shortage, installing the item, or seeing the final price.
Partnering with a CM|GC during the design process helps all involved produce the best value facility and protect the contingency when starting construction. The CM|GC delivery method, Hogan’s preferred method, allows the contractor, owner, and design team to work in a cooperative environment to produce the best value for the cost.
Why the CM|GC Delivery Method
In my experience, the CM|GC process leads to the best result for a project. However, one thing that could strengthen it is bringing the contractor and architect on board simultaneously under separate contracts.
In 2019, Hogan & Associates Construction and MHTN Architects were selected to design and build Utah State University Moab’s new Academic Building. From the project’s outset, Hogan worked with MHTN and Utah State, sharing visions and goals to create a sustainable, cost-effective, and community-focused facility. We stepped through each design phase together and provided continual cost input and detailed estimates, producing a final estimate within $7,916 of the final GMP.
Current Construction Challenges & Solutions
The two most significant challenges general contractors and subcontractors face today are procurement and performance. Procurement of building materials and products is a direct challenge to the project schedule. Electrical gear and soil issues are just a few items that need to be addressed early in the process, often earlier than a hard bid job allows. In addition, complete site investigations must be conducted early on, or the structure and plumbing systems may suffer. With the CM|GC delivery method, the team can work to address these and other challenges before the building construction is underway.
Labor shortages are equally severe because they affect both timeliness and quality. Many trades’ core groups are aging, and fewer high school graduates are entering construction. Often, many individuals don’t know about the AEC industry and are unsure how to get into it.
This lack of familiarity is why Hogan & Associates Construction actively supports ACE, a mentorship program for high school students to learn about careers in design and construction, and encourages other firms to get involved. Hogan also offers company-wide internships, apprenticeships and mentoring opportunities to welcome the upcoming generation into the construction industry.
Overcoming these challenges starts with trusting, listening and understanding each other within the OAC triangle. When it comes to procurement, we prioritize submittals. This focus means we aim to complete them quickly, have colors chosen early and identify and procure, with the A|E team, scopes of work that may take longer to procure.
Hogan’s goal as a “construction advocate” is to create a collaborative space throughout the design, pre-construction, and construction processes to meet the owner’s budget and vision through the architect’s design while delivering a top-notch building.
Ross Cox is Hogan & Associates Construction Estimating Manager. He coordinates the estimators’ schedules and workloads and ensures Hogan produces accurate and timely estimates on each project. In addition, he works as the lead estimator on a range of projects.
