Advantages Of Construction MANAGEMENT
While we certainly will, if requested, perform your work as a fairly priced, high quality traditional General Contractor, we realize that today’s homeowner often wants more control over the budget and scope of work. This allows them to get the maximum value out of the craftsmen that they hire without paying for work, management and contingencies that they do not realize. That is the advantage of construction management.
Simply put, as Construction Managers, we act as your representative to the tradesmen. General Contractors act as the tradesmen’s representative to you. The advantages of this model are many.
1. Flexibility- As Construction Managers, working in your best interests, we can take a project from its initial conception right through to its final completion or, at your request; we can manage only the portions that you are not comfortable with. For example, you may work with an interior designer that wants to take control of the finishes in the house. We understand that and will, without question, leave the finishing of the home to them. Many people do not understand the building approvals and permitting process. We can take you through that process and help you get started on your project. You may have connections with certain material vendors. While we use very good cost effective suppliers and vendors, we never insist on using them. The bottom line is; you are the builder, we just help make it happen.
2. Quality- RCA, LLC has an extensive team of quality craftsmen to help you with your project. We are not driven by production profits, as a General Contractor would be. We are driven by the satisfaction that your project was completed to your exacting standards. Again, the craftsmen work for you and we make sure the job is done right.
3. Transparency- As Construction Managers we set up contracts between you and the subcontractors. Although your involvement in the process need only be minimal, you will be able to see where every dollar is spent. On larger projects we will even open up a separate bank account so you can have online access so that you can track your expenses.
4. Contingency Management- Because they are locked into a bid, General Contractors understandably have to add a contingency budget to every project. This keeps them from getting in trouble if an unforeseen condition should arise. If no unforeseen conditions arise however, that money is retained by the contractor as a profit. Because you are the contractor, we will get you the best prices possible and warn you of possible unforeseen conditions, but you only pay for them if they arise.
5. Price- Traditional General Contractors gather bids from subcontractors and vendors, add a certain amount for unforeseen conditions, coupled with overhead and profit. Then they add the cost of assigning one or more managers to the project. The cost of a manager is usually a percentage based on the manager’s annual salary. That could mean however that you are paying a fee to keep him employed, not necessarily a fee for the actual hours he spends on your project. Some projects do not need a full time site manager and a full time project manager. Why should you pay for that? Our fee structure is simple and factors in the actual onsite supervision. Our management fee is based on the size and scope of your project. With the projects books being open, you only pay a construction management fee based off a percentage of the actual construction costs. The projects overall savings averages 10% less then traditional general contracting.
That’s the Advantage of Construction Management. General Contractors simply cannot compete.