GMP Construction Management
True Open Book GMP Construction Management: Providing total transparency and maximum flexibility.
This innovative contract structure and 3 phase approach to project delivery gives the Owner and Design Team the greatest flexibility and decision making input along with total transparency throughout.
Unlike traditional “Lump Sum” construction contracts common in construction (where the contractor submits a bid and has the potential to create additional profit through reduced trade costs) Delphi’s True Open Book construction management approach is based on a “Guaranteed Maximum Price” that includes fixed General Conditions (management labor), overhead, and fee as the only cost the Owner pays to Delphi.
This approach works very well as a “next step” to Delphi’s Pre-Construction services. Similar to the pre-con process the Owner and Design team will get the benefit of reviewing subcontractor pricing, after sub bids are leveled the team then selects the subcontractor that is the best fit for the project’s specific needs.
Any savings realized in the subcontractor buy-out phase of the project is added to the project contingency to help offset unforeseen costs should they arise. At the completion of the project 100% of any unused buy savings or contingency funds are retained by the Owner.
Design Review, Cost Estimating
This first phase of the process usually begins in the Pre-Construction stage of the project. Our approach is described in detail in the previous “Preconstruction Services” section. When needed, the Delphi team will work with the Owner and Design team to go through a condensed version of our pre-construction process, in order to ensure that we are on the same page with the Owner and Design Team in terms of budget, schedule, and desired finished product.
Procurement of Pre-Qualified Subcontractors and Vendors
Delphi has built strong partner relationships with the best in the field to whom we bid the work. We have the highest standards and expectations in terms of quality of work, safety, and professionalism. All potential new subcontractors undergo a rigorous pre-qualification process so that our clients can be confident that everyone on the project site deserves to be there.
Prior to setting the final value of the GMP, Delphi solicits pricing from several prequalified subcontracts and vendors in each of the trades required for construction. We then “level” the bids to ensure that the subs have the correct scope in their estimates. After bids are leveled, we will present a bid analysis to the project team, usually making a recommendation for Owner selection. This entire process is transparent with the full involvement of the Owner and Design Team. We find that the best choices for the project are made collectively by everyone involved.
Project Delivery
During the construction phase of the project the Delphi Team works closely together to ensure the project is built as designed, is delivered on time, and maintains its budget. Delphi’s Executive Team is involved in every project under construction and is primarily responsible for oversight of project team execution and client interface to assure overall team success and satisfaction.
The project team consists of Project Management and Site Superintendent members that provide daily oversight and delivery of the work. The Project Management staff’s involvement begins in the cost estimating phase by working closely with the Project Development Team to ensure that the appropriate subcontractors are invited to bid on the project. Once the project begins construction these two groups continue to work together to ensure that the best subs for the project are hired for the correct scopes of work.
From there the PM staff manages the budget, document control, and closeout to ensure successful delivery of the project. This work is done in partnership with the Site Superintendent staff whose responsibility is the direct oversight of daily activities on the construction site. Management of the sequence of work, schedule, safety, and quality control is the focus of the site team. This team meets regularly with Ownership, the Design Team, and subcontractors to provide the most updated information as well allow efficient flow in the many moving parts of a successful project.
Behind the scenes Delphi’s Director of Finance and Contracts Manager work with their team to manage the requisition process, insurance, and contracts to ensure that the subcontractors are in full compliance on the project.
Delphi uses the best management and reporting tools available to perform the many tasks needed for a professionally run project. Procore, MS Project, Matterport, HH2, and Sage are among the many systems and technologies we use to increase accuracy, efficiency, quality, and overall effectiveness.