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In this format, Teamway acts an agent of the Owner and works with you to develop the pre-construction aspects of the project, including the hiring of the design partner(s). Our primary role is to manage the construction process through the utilization of multiple prime contractors (also known as Trade Contractors), each with their own direct contract with the Owner. The selection of the Trade Contractors is accomplished utilizing a very rigorous bidding and qualification process, so the Owner is actually involved in the bidding and selection of ALL of the subcontractors. Why settle with only bidding the general contractor (who may never be transparent about the bids of their subcontractors), when you can actually bid all of the aspects of the project.
Our version of this “fixes” our fee and General Conditions (things like field project managers, job trailers, port-a-jon, etc.). This eliminates the misnomer and the potential fear that we will continue to run up costs, overhead and fee if the job goes over schedule or over budget. This locks these aspects of the project into a fixed amount, so we have skin in the game and incentive to get the job done as expeditiously and professionally as possible. In this relationship, the Owner benefits significantly from the construction cost savings, which is a huge motivator to you, and frankly to us, as the majority our new projects are generated through relationships and past experiences.
management at risk
The clear and obvious advantage to the Owner is that there is a top end to the project. This is similar to obtaining a lump sum contract with regards to the risk factor.
Like Construction Management Agency, there is a competitive bidding process of the trade contractors and vendors. Given the governance of some entities (those whose bylaws require a multiple bidding process), this approach meets that criteria by implementing a rigorous bidding process. Unlike the Design/Bid/Build methodology, you have direct significant impact on the selection of the trade contractors, as opposed to a general contractor imposing a plan and agenda for the project.
There are still shared savings for the Owner. In this approach, the risk and reward equation has been adjusted slightly. The risk has been greatly reduced for the Owner, but greatly increased by our team. In light of that, the reward portion of the equation is also shifted. There is a shared savings provision that allows the Owner and Teamway to share in any aggregate savings in the project. This serves to compensate both parties for their proportional amount of risk and also provides a significant motivator to the parties to look for savings opportunities.
This form of Construction Management has been used extensively in construction for decades, particularly on large, complex projects where a corporation is the owner and needs/desires the assistance of an unbiased party to represent their interests. We have found that this structure can be very effective when all four parties have a common goal of project success. You may have seen situations where construction managers act as a knuckle-buster and tries to justify their fees by reducing costs and getting a piece of “hide” from the general contractor or design professionals. We do not believe that approach works well, but it works best if we can be part of the team to bring unity and to develop the best outcome for the project. We approach this from an Integrated Project Delivery (IPD) mindset, which best serves the Owner and the entire team.