The Challenge
St. Lawrence County New York was faced with was aging infrastructure and rising utility costs. The county needed to complete construction of a variety of improvements to address their needs. Much of this work had to be completed in a short timeframe to address urgent deficiencies and rising maintenance costs. However, the county had limited capital available, and limited internal resources to develop and manage the project. The county was looking for a streamlined project delivery model to help meet their needs. This delivery model had to ensure value so the county could maximize the amount of construction they completed.
Project Objectives
The Solution
Wendel presented the county with our Master Builder approach. As part of this approach, the county would contract with Wendel to perform the design and construction services. Wendel would act as the single point of contact throughout the project. Under this arrangement, Wendel produced all design documents and contracted directly with subcontractors for the implementation of the project. During implementation, Wendel provided on-site construction management and acted on the county’s behalf to control costs.
Using the Master Builder approach, Wendel was able to reduce the schedule necessary to complete such a project, when compared to a design-bid-build project delivery model. Wendel engaged contractors early on to help with cost-estimating and provide input on design. During the design, Wendel’s engineers worked directly with subcontractors while directing work, addressing issues and commissioning systems.
To ensure St. Lawrence County was receiving the best value for their money, Wendel’s Master Builder approach included a stepped delivery, which assured the county had the opportunity to provide input and guidance through the project development. Wendel’s fully transparent pricing ensured the county received the best pricing from qualified installers. Wendel invited local as well as national contractors to provide competitive pricing on the project. All prices were reviewed with the county and the successful subcontractor was selected with input from the owner. Wendel’s open-book policy provided the owner with complete control and understanding regarding where their money was being spent. During construction, as modifications to the scope of work were identified, the county was notified of the change and cost impact. The owner provided comments on any proposed modifications to the scope of work.
The Result
“More work for less money.” This sounds like a tag line you would hear from any salesman. On the St. Lawrence County project, this was not a sales pitch but rather the outcome. The phrase “more work for less money” was how the county describes the results of the project.
The total project, which included mechanical, electrical and architectural improvements, was completed (design to substantial completion) in just over one year. The impact to the owner’s staff was limited during this time due to Wendel acting as the single point of contact with on-site construction management. The true differentiator for our Master Builder approach compared to a conventional Design-Build approach was on the balance sheet.
Prior to starting the design of the project it was estimated that the requested improvements would cost $3.2 Million. Since Wendel’s stepped delivery approach was utilized, the client was not required to enter into a construction contract at that time. Wendel contracted with the owner only for the design and development phase of the project. At the end of the design phase, Wendel solicited competitive pricing from multiple subcontractors. Following this competitive solicitation the project cost, which included a 10% reserve fund, was $2.9 Million.
Following the selection of subcontractors, Wendel and the county entered into a construction contract with the owner. During construction, minor issues arose that required a change in the scope of work. As the project was nearing completion the project still had a significant reserve fund. The client asked Wendel to expand the scope of the project to address a boiler replacement and lighting system improvements that were not included in the original contract. When the project concluded, Wendel turned over any remaining reserve fund to the owner. The final project cost, including all additional scope of work items, engineering and management, was $2.66 Million. The owner was assured they received the best value since all invoices, including certified payrolls, and Wendel mark-ups was turned over to the owner at the completion of the project.
Acting as the owner’s trusted advisor, Wendel secured over $280,000 in state and utility incentives. This reduced the project cost to $2.42 Million.
Conclusion
Wendel's Master Builder approach combines the best features of Design-Build (single point of contact and streamlined delivery) with the best aspects of Design Bid Build (fully transparent pricing, trusted advisor, control over scope of work). Using the Master Builder approach, this owner saved $520,000 from the typical Design-Build approach.
