Sophisticated owners and general contractors realize that the true cost of a project is not what is bid but what is finally paid after all change orders and claims have been settled and the last attorney’s bill paid. With the IPD Team we can offer the lowest possible cost for the project. Here are some of the ways the IPD Team will save you money.
No Mark Up On Team Members
The IPD Team will negotiate a low simple mark up percentage to be applied to all job costs. The Owner is only billed for incurred costs and does not pay double mark ups. Each discipline marks its costs up once in accordance with the agreed upon percentage and, unlike the traditional construction management process, there is no additional mark up applied by the IPD Team.
The early collaboration in the development of the project encourages many other small savings in ways and means that, because of the collaborative process, are easy to interject into the design. By creating “buddies” on the team i.e. the mechanical contractor and the mechanical engineer, the electrical contractor and the electrical engineer, the general contractor and the architect, etc., and through the collaborative process between these team members, the project will be built “as designed”. The “value engineering” ideas that typically come up after the completion of the design process are built right in and budgeted from the beginning.
The design professionals are an integral part of the IPD Team and will perform fast track design for your project for a total fee that is lower than prevailing industry rates. This reduced rate is validation of the efficiency of this approach and the competency of the IPD Team member companies.
All segments of the work including subcontracts, equipment purchases, rentals and other major segments of the work are competitively bid throughout the project. The IPD Team defines the mechanical sub bid packages, solicits the bids from qualified bidders and evaluates the bids making appropriate recommendations. The IPD Team process will accommodate any degree of Owner involvement.
The IPD team members are licensed by the State of Florida to purchase and resell equipment and materials and can accept an Owner’s tax exemption number in lieu of collecting state sales tax. This can save a “tax exempt” Owner up to 6% on all equipment and much of the material without the Owner incurring liability for purchasing direct from suppliers.
Efficient Field Procedures
All of the IPD Team disciplines share cost on the project. It behooves everyone to cooperate fully with each other to minimize project costs. No one is protecting his turf or margins. The only incentive is to cooperate to complete the project as quickly as possible without disruptions or disputes. This concept of “shared costs” is what makes the IPD Team operate as a single company on your project. We can’t over emphasize the importance of this element of the IPD concept.
The development of the budget itself is a collaborative process which begins from day one with each team member completing the sections of the budget that fall under his particular discipline. As the collaborative process unfolds and the integrative project design continues, these budgets are continually updated until they reach a point at which they become very solid numbers. At this point in the process, a GMP is typically established. All planning and budgeting is open and available to the Owner at all times. The Owner is encouraged to take as active a role in the development stage of the project as he wishes to take.