Opening of Proposals - Four Winds Field Renovation & Expansion Proj No. 123-046 - Larson Danielson

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Proposal for Construction Manager as Constructor Services Four Winds Renovation and Expansion ― South Bend, Indiana Establishing the Guaranteed Maximum Price Larson-Danielson begins preparing the framework for the GMP upon completion of the schematic design documents. The initial development of the GMP framework is led by our Project Manager and supported by the pre-construction team. Larson-Danielson utilizes our in-house estimating and historical database information, along with current subcontractor pricing, to establish and update the project budget after each major design phase (or more frequently as requested by the owner). By beginning the GMP development early, we can provide the most accurate cost projections through the design process. This allows for the team to adjust to projected cost overruns or underruns early in the design process before there would be a cost to redesign. Through our comprehensive approach to estimating, we have developed the ability to provide a GMP at almost any point in the design process. The basis for the GMP line-item pricing is always based upon the plans, specifications, schedule, and assumptions, so as the design develops, the contingencies decrease. The final process and timing of establishing the GMP for this project will depend on how the project can be phased through bidding and construction. Typically, we would recommend that the GMP for a project like this be set once the parties agree that the scope for the major components of the project are defined to an adequate level as to limit the potential for confusion from major subcontractors or vendors. The timing and establishing of a GMP is an iterative process. As the design develops, we will continually update and add detail to our project budgets, advising of possible overruns and cost savings achieved throughout the process. Once the collective project team determines that the project is adequately defined and the project is expected to be within budget, the final GMP will be set. Budget Evaluation and Scope Determination Given the size and complexity of the project, we understand that the owner may need to prioritize certain parts of this project over others, and we are committed to providing a “menu” of budget costs for each portion for the owner’s consideration. We will also make clear the impact to scope and costs related to selection of which parts of the project to proceed with and when construction takes place. There will no doubt be challenges related to weather, given that the majority of construction is to take place from September to April, through the winter months. Premium costs relating to winter conditions will be broken out to provide the owner an understanding of the impact this may have to the overall budget relative to the revenue generated by the field’s operations. Overall, we plan to develop and maintain budgets on a per area basis so that the costs relating to each area of construction are understood both individually and as a whole, depending on owner determination of how to proceed. We will remain flexible in our approach to best accommodate the owner’s goals and expectations, and make sure that all stakeholders are aware of the priorities set in place. Page 19 of 30