An Owner’s Guide to Controlling Construction Costs on Capital Projects

Whether renovating existing facilities or developing new capital projects, the ultimate cost of the project is always forefront in the owner’s (and its lender’s) mind. The paramount question, then, is: How can we determine an accurate budget and meet or beat that budget? This program, presented by experienced construction attorneys and owner’s representatives, will provide practical advice for owners and their advisors in preparing and maintaining the budget and obligating their contractors to meet the budget through different types of contractual delivery methods and cost control strategies. 

Included in the program will be the following topics:

• Allocating the cost risks between the owner and contractor by utilizing delivery methods consisting of “cost plus,” stipulated sum and guaranteed maximum price arrangements; controlling costs through guarantees of general conditions costs; limiting markups on change orders; and reducing allowances (20 minutes)
• Providing detailed preconstruction services, including advanced scheduling and budgeting; existing conditions surveys, probes and materials documentation; logistics analysis; identification of early procurement requirements and long lead time items; issuance of owner project requirements documentation; ensuring complete fully biddable plans and specifications and scopes of work; early and detailed vetting of subcontractors; providing detailed requests for proposals; conducting thorough subcontractor bidding and award process (20 minutes)
• Limiting the potential for increased costs due defaults of the contractor and subcontractors by careful monitoring of the progress and quality of the work, utilizing effective project management techniques, including quality assurance and quality controls and owner, architect contractor meetings (20 minutes)

Who Should Attend: Construction developers and owners; construction attorneys and accountants; construction design professionals; and construction managers and contractors

Program Level: Update

Prerequisites: None

Advanced Preparation: None

Moderator:

Kenneth M. Block

Tannenbaum Helpern Syracuse & Hirschtritt LLP

Faculty:

Alan S. Clark

Zubatkin Owner Representation, LLC

Mark A. Minkley

Zubatkin Owner Representation, LLC

Brandon Reiner

Tannenbaum Helpern Syracuse & Hirschtritt LLP