Services - Estimating and Cost Control

Callahan, Inc. will maintain an open book approach on this CM project. This approach allows the owner to review all project information and provides assurance that the project team is always working in the best interest of the owner.

Callahan, Inc. cost control process is set up and based on the owner and the architect's acceptance and approval of the project budget. The project budget will be submitted in complete detail and all items of the budget, will be reviewed by the owner and the project team. Once the budget has been approved, it will be transferred into a control estimate or GMP.

As design progresses we review proposed design elements and changes and confirm that the design intent reflects what was included in the project control budget. If the design is impacting the control budget, Callahan, Inc. immediately informs the owner and project team of potential problems. We update the project budget on an as needed or monthly basis unless costs and design remain constant or unchanged. Callahan, Inc. always maintains the control budget and records past budgets so a history is established. These reports are detailed to include design status, the release of bid packages, actual subcontractor buyouts, changes, and design changes. This history allows the project team to review project budgets and costs as the project progresses.

Subcontracting

Callahan, Inc. would review with the owner a proposed subcontractor list prepared by our staff for review and discussion. Our intent is to finalize a list of all qualified/approved subcontractors with input from the Project Team in order to prepare to fast track the bidding award process.

In pre-qualifying subcontractors and vendors, we will ensure that all prospective bidders:

• Have a previous working relationship or track record with either Callahan, Inc. or the owner, or have been highly recommended and have met all of our prequalification requirements.
• Have the financial capability to perform the work.
• Have references and experience in projects of a similar size or larger.
• Have proper insurance coverage.
• Have adequate administrative and trade workforce to provide a quality product within the schedule time frame.

Purchasing

After Callahan, Inc. has established a priority list based on the status of the contract drawings, project schedule and anticipated lead times of specific equipment and materials, we will develop a purchasing strategy for competitive bidding of the major material purchases and all subcontracts.

Callahan, Inc. will prepare the appropriate bid packages / RFPs to include bidding requirements, work scope, bid breakdown requirements, labor rates and any other items that may be beneficial to controlling the cost of all work as the project progresses.

Once a bid package / RFP has been assembled, reviewed and approved by all the team members, Callahan, Inc. will schedule a subcontractor pre-bid meeting to make sure all bidders are totally informed of the requirements of the project. Work scope will be addressed, along with quality standards, safety requirements, insurance requirements, schedule, billing and requisitioning requirements, and all other issues on which a successful project depends.

Once bids are received, they will be reviewed, descoped and tabulated. We will prepare a bid analysis spreadsheet for review by the owner and the architect/engineer team for final selection and award.

Subcontractor agreements will include all the provisions of the contract documents. Subcontract awards or material purchases will not occur without the approval of the owner. Each subcontractor must have a fully executed subcontract agreement and approved insurance certificate in our files prior to access to the jobsite and the start of their work.