Beware of Budget Breakers: The Hidden Costs of Hiring the Wrong Contractor

There are more than 4,000 commercial contractors in the United States. They range from global companies to small, local businesses. When constructing a new building, a significant investment for any organization, who you hire can make or break your budget. This becomes especially important for specialized projects or projects publicly funded.

A myriad of variables impact the price of construction projects and the delivery method you select ranks as the most important when it comes to budget stewardship and overall project success, even beyond expertise in a certain market. Collaborative delivery methods offer the best experience for owners because they leverage early engagement with the design and construction firm, foster enhanced communication, and use preplanning to prevent surprises. The ultimate result is owners:

• Reduce their risk

• Minimize change orders and schedule delays

• Maximize their investment

Several types of collaborative delivery exist. McCownGordon has found, that compared to hard-bid in particular, Construction Manager At Risk (CMAR) and Design-Build offer owners the best opportunity to take advantage of cost-saving solutions.

Delivery Methods Comparison and Analysis →

At McCownGordon, we work closely with you and the design team to deliver projects on time and on budget. It’s one of our main goals with any project. When you bring us on board early, you can take advantage of our in-house expertise.

Change orders usually mean added costs for owners, and they can especially pile up on buildings with specialized requirements. With CMAR, McCownGordon’s expert pre-planning practices give owners confidence that change orders will be minimized. This includes:

• In-house engineers who can help you select the best systems based on first cost, as well as life-cycle costs. Our in-house building performance solutions team consists of MEP engineers, structural and soil engineers. These team members play a pivotal role in preconstruction by evaluating early design options and verifying estimates and managing trade contractor selection process. These steps help clients by ensuring they get the best value for your budget. Clients regularly tell us this is an advantage they don’t often receive from their contractor.
• Dedicated preconstruction experts who work with you and the design team to recommend more cost-effective means, methods and materials for your project, including specialized components unique to your project. You gain the opportunity to select those options that best meets your project goals and needs, while also saving money.
• A guaranteed maximum price (GMP) once the design is determined. This gives you the security of knowing any cost overruns will become our obligation, not yours. In a hard-bid scenario, the bid cost only includes exactly what was drawn in the original design. Any variation from that is a costly change order, immediately pushing your project over budget. With CMAR, you’re protected. There is no risk of paying more than the guaranteed maximum price, and you don’t have to compromise on quality or features. We work together to ensure you maximize every penny from the start.

Schedule delays also increase costs. With McCownGordon you can be assured we understand late is not an option. With CMAR delivery, we offer:

• Early bid packages, so work can start on site while design details are finalized.
• Expert schedulers who create schedules that meet your goals, and execute using tools allowing us to proactively manage weather, supply chain disruption and other potential delays.
• Pre-qualified trade partners, so we know exactly the skills, capacity and quality of each trade expert on your project and can manage them effectively to minimize challenges, mistakes and risk.

Ultimately, CMAR also allows you to transfer risk to McCownGordon, as we’ll hold all the trade partner contracts and the resulting responsibility of putting work in place. Our transparent, open-book approach to partnering with you means you’ll also gain access to all the financial, schedule, sourcing and other details related to your build.

Opt for the CMAR delivery method to maximize the value of your investment and minimize potential risks. At McCownGordon, we are committed to exceeding expectations, providing comprehensive services that empower you to make informed decisions and navigate potential challenges seamlessly. By leveraging our expertise through preconstruction, we deliver robust analyses and evaluations, equipping you with the precise information needed for intelligent decision-making.

Explore the detailed offerings outlined in our CMAR Services checklist to ensure you receive the top-tier services your project deserves. Trust McCownGordon for unparalleled construction management excellence.

CMAR Services Checklist →

Don’t risk selecting the wrong contractor or delivery method. Consider the costs of inadequate MEP systems, design rework because of constructability issues, constant change orders, unqualified trade partners and a moving target on building cost. Choose a construction manager like McCownGordon, who keeps your interests front and center, and brings the expertise to deliver a building that achieves your goals and meets your budget.