The goals of each review is to make sure the costs are fair, accurate, within the guidelines of the contract and so the GMP document is created in a way that can be easily understood by all parties, enforceable and proactively monitored in detail during construction and closeout. It also important to make sure scope of work are clearly identified and inclusions and exclusions are noted in the GMP budget.
Our review of the proposed GMP will consist of the following components as the standard AIA contracts require:
1. Confirm that the GMP’s list of referenced drawings, specifications, addenda and conditions of the contract are correct.
2. All listed clarifications and assumptions made by the contractor / CM / DB in addition to the instructions and information provided by the owner, so the qualifications, inclusions and exclusions of the GMP are identified, complete and appropriate.
3. “Cost of the Work” definition confirmation organized by trade categories, systems, allowances, contingencies and fee or overhead and profits. These would include but are not limited to:
- General Conditions and Permitting Costs
- Bond and Insurance Rates
- Subcontractor Bonding
- Labor and Equipment Rates
- Math Calculation
- Costs allowed and not allowed as defined by Contract (s)
- The lists of potential add or deduct alternates for added value items and cost savings ideas
4. Clearly defined Scope of Work as outlined in a scope narrative submitted by the contractor / CM / DB, including the list of outstanding, pending, approved or rejected issues to be addressed and the appropriate allowances included to address them.
5. Assist in the creation of a “user friendly” (for all) schedule of values
6. The detailed schedule and date of Substantial Completion of the project upon which the GMP is based.
7. A reasonable GMP review acceptance schedule and date as required by the Owner to allow the Contractor /CM/DB to mobilize and complete the project on time and minimize/avoid delays.
Benefits & Value:
- Successful audits and accountability reporting no matter who scrutinizes the project
- Cost savings methods built into the GMP if needed due to other cost increases or change orders required later on
- Assured compliance with industry standard protocols though all levels of the owner, financial institutions, design professionals and subcontractors.
- Highly detailed cost information is available to manage the weekly cash usage and not over or under pay for the work.
- Provides the best tools and data to monitor cash flow vs actual construction operations progress
- Built in methods to add more valued items if the owner wants to later on if contingency money is evaluated to be available to fund them.
- Methods to display a one page, real time “dashboard” summary of all 7 critical GMP components listed above.
- Helps ensure costs are defined.