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Page <br /> Mr. Bob Bierscheid <br /> 3!4/98 <br /> We pre-award interview the two apparent low bidders to determine that their company is <br /> complete in their bid, qualified to do the expected work and has sufficient personnel. <br /> A specific contract is drafted confirming our understanding. Problem contractors are <br /> weeded out without financial impact to the city. <br /> During construction, change orders that occur are without General Contractor mark-up, <br /> and they are for a fair price. <br /> Since each contractor knows their work scope best, the insurance dollars added to a bid <br /> by a General Contractor are not required. Construction !Managers return unused genera <br /> condition dollars and work to preserve an owners contingency fund. <br /> 6. Finally, the process results in less cost to our clients; using our fee and our actual history <br /> of savings, as follows: <br /> Fixed contract fee $1671000 <br /> Less: Field supervision (also required <br /> by a General Contractor) <$70i <br /> Subtotal $97,000 <br /> Estimated savings: <br /> !mused general conditions and contingency fund < 11 t50> <br /> Bond cost savings on material purchases (.75%) <$72500> <br /> Value engineering (3.3%) <$49,500> <br /> Line stern bid competition (5-7%) <$75,000> <br /> Net benefit vs. normal General Contractor mark-up <br /> which is unknown to us $46,;2 50 <br /> Bob, I could go into much greater detail, but I do not wish to bore you. <br /> We have been working for communities as their Construction !Manager for at least (10) years. <br /> We started by fixing an over-budget project which was bid Using the a General Contractor <br /> approach. It is much easier and less painful to work together from project inception to control <br /> cost. <br /> Call me if have any further questions. <br /> Sincerely, <br /> Ronald A. !Dorton <br /> President <br /> RAMIrk <br /> Enclosure: 4 GC's <br /> : Bob Ru ssek o nestroo Rose ne Ande rlik &Associates <br />