MARKET VOLATILITY UPDATE
According to the National Highway Index, we have seen an increase of 45% in overall construction costs over the past 5 years. As a result, Owners can expect change orders and price uncertainty on low bid DBB projects for the foreseeable future. Some of the factors contributing to this escalation in costs include an unprecedented shortage of truck drivers, labor, and managers. As a result, project budgets and schedules are suffering.
Low bid Contractors are currently accepting and pricing these market risks in their bids. Compounded by a reduction in competition, holding project budgets will be a challenge. One solution to addressing these market challenges is using an alternative delivery method such as CMGC or Progressive Design-Build. Using these delivery methods, the team can manage the risks associated with market conditions and price the project fairly and accurately. Alternative delivery processes authenticate fair-market costs and reduce risk. Transparent cost models REDUCE PROJECT COSTS. For help with selecting the right delivery method for your project, get in touch with ICETEAMS!
Restore the Corridor
A recent article in Constructioneer Magazine featured the I-95 Wilmington Viaduct rehabilitation project. The project spans 5 miles of this 50-year-old highway, which is a critical east coast transportation corridor. The scope of the project includes the repair of 19 bridge structures, 5 miles of pavement rehabilitation and resurfacing, new lighting, guardrail, barrier rail, retaining walls, widening ramps, fixing drainage issues, and providing some much-needed safety improvements. To achieve all this work, Delaware was limited to only 2 years of impact to the travel lanes in this corridor. The short timeframe requirement added stress to the overall project delivery. Accordingly, the Delaware Department of Transportation (DelDOT) chose the CM/GC delivery method to execute this project. They needed a team that had the resources and capabilities to finish the project design and complete construction quickly. DelDOT selected a strong team to help achieve its goals for this corridor and meet the demanding time constraint. The design team is led by Whitman, Requardt, and Associates, LLP. The Contractor is Kiewit Construction Company, and Innovative Contracting and Engineering provided the independent cost estimating services. At this present time, the project is halfway through the construction phase, it is on budget, and slightly ahead of schedule.
Donny Avant, Kiewit’s Project Manager was quoted in the article, “CM/GC drives a true partnership and fosters collaboration.” As the ICE services provider on the project, we couldn’t agree more. The entire team came together quickly to collaborate on finding solutions, vetting, and implementing innovations, mitigating project risks, and optimizing the project scope of work within the allotted budget.
Once the project is completed, commuters will have a new roadway, and DelDOT will have extended the life of this critical highway infrastructure and made it safer.
To read the entire article in Constructioneer, click here. To see additional project details, click here.
Tom Gott, Senior Construction Scheduler
Tom Gott has played a key role as Senior Construction Scheduler in our company since its inception. Tom started his construction career in 1969 while getting his BA at Pacific Union College in Angwin, CA. While in school, Tom earned his pilot’s license. Over his lifetime Tom has owned 4 aircraft. Flying facilitated the advancement of his first construction company which designed and built over 400 churches, nursing homes, office buildings, and medical facilities all over the nation. Flying his planes between job sites allowed him to visit multiple projects in a single day, meeting face-to-face with his clients across the country.
Early on in his career Tom helped accelerate the development of construction scheduling and cost estimating software. He began in 1984 using the first commercially available Critical Path (CPM) DOS-based software. The implementation of critical path software made Tom’s projects more efficient and often completed his projects 25-30% ahead of schedule. Tom continues to be actively involved in the development of CPM scheduling, and he currently has every certification offered for Primavera P6.
In 1986 Tom was approached by a healthcare provider to design and build immediate care facilities for Navy bases around the US. These facilities had to be completed and serve patients in as few as 60 calendar days. His company completed the first 7 of these facilities in California on time using a technique he developed called the “compressed overlapped critical path” method of scheduling. He went on to design and build over 40 of these facilities before selling his company to leave the construction industry and begin a second career as a construction scheduling consultant.
Over the next 10 years, Tom provided construction scheduling on over 200 projects around the world. A highlight of that period was providing construction scheduling and overseeing construction progress on over 20 projects as part of the Hurricane Protection Program in New Orleans following Hurricane Katrina. In 2012 the U.S. Army Corps of Engineers recognized Tom’s work as a scheduler with a USACE Project of the Year award for his work on the Lake Pontchartrain & Vicinity and West Bank & Vicinity Projects.
Since 2016, we have had the pleasure of working with Tom. We are proud of everything Tom has accomplished in his lifetime. His scheduling expertise and leadership have helped shape the culture of our company. He has been a HUGE part of the success of Innovative Contracting & Engineering!
Alternative Delivery Consulting Services (PDB, CMGC, CMAR, DB, P3)
Independent Cost Estimating (Production-Based Cost Estimating)
Critical Path Scheduling Using Primavera P6
Constructability Reviews
Risk Management/Mitigation
Innovation in Construction Techniques
Negotiation
Change Order Reviews
Training
We love what we do! We have a passion for finding creative approaches to construction. We are constantly looking for innovative construction techniques to add value to the projects we are working on. Our team has found ways to reduce schedule and/or construction costs on every project we have worked on to date!
Innovative Contracting & Engineering (ICE) is a team comprised of former contractors and professional engineers who have a thorough understanding of market fluctuations, pricing trends, construction strategies, and innovations. Our experience working on alternative delivery projects across the United States has provided our team with a tool bag full of industry best practices. Construction cost estimating and scheduling is our primary focus. This focus is how we stay current on construction trends and price changes, and that helps us produce more accurate estimates than our competition. We have a passion for finding creative approaches to construction. We are constantly looking for innovative construction techniques to add value to the projects we are working on. Our team has found a way to reduce schedule and/or construction costs on every project we have worked on to date! ICE works closely with our clients to improve the quality of their most challenging projects.
Past Newsletters:
Early completion milestone bonuses in CMGC contracts
Risk Management Best Practices
Vision 2020?? Nobody saw this coming!·
How can we help you? Send us your questions, comments, and request.
Email, Call, or Text: Dan Bender, 702-523-2354, danbender@iceteams.com