Services

At Oconee Construction Services, we perform general contracting on both select bid and negotiated contracts. However, we have long recognized that we can render maximum service to an Owner through the medium of a negotiated contract in which the Owner, Architect, and Contractor operate as a Team during all phases of planning, development, and construction.

Through a combination of the team’s individual knowledge and skills, project completion is accelerated, unforeseen details are more efficiently overcome, and changes and revisions to the plans are accomplished in the design phase rather than during the construction phase saving time and money. Adjustments and/or substitutions of materials are decided upon through the Team effort, allowing subcontracts to be quickly and easily awarded or amended. The result is the construction of an economical and efficient structure with the best interest of the Owner being achieved.

We do not, in any manner, interfere with the architects design concepts or his relationship with the Owner. Our area of concern and responsibility is in providing accurate cost estimates, value engineering, and advice on problems regarding material and construction. Such a concept is of prime importance to the successful handling of any contract and is of particular value in a negotiated contract.

Erroneously, there exists a belief that the benefits of competition are lost to the Owner through a negotiated contract. On the contrary, the competition is greater. Experience has proven that the majority of projects contain approximately 80 percent subcontract work and 5 percent material purchases for use by our own work force. Therefore, nearly 85 percent of the total job cost is purchased on a competitive basis. Under a negotiated contract, competition for the 85 percent is directed through one General Contractor. Individual subcontractors and material suppliers must quote their lowest figures to one contractor and they provide more accurate and competitive quotes when they know they are quoting to the Contractor who will be building the project.

Conversely, when a building contract is awarded through hard bid competition, individual subcontractors and material suppliers often submit their lowest figures to a contractor whom they favor. Consequently, these lower figures are scattered among all competing bidders with no one General Contractor receiving all of the lowest quotations. This favoritism is automatically eliminated when a subcontractor and material suppliers are forced to quote their best figures to one General Contractor. As a result, the best prices on all phases of the work are available to the General Contractor responsible for the construction.

Formulas for negotiated contracts vary, but we find the following procedure operates most efficiently for the satisfaction of all principals:

1. A contract is negotiated for a fee based on the estimated cost of the development. This is normally accomplished in the very early stages of the planning and brings into the project a team consisting of the Owner, Architect, and General Contractor.
2. As phase drawings are in progress, we will prepare estimates of costs for the Owner’s guidance and approval.
3. As phase drawings are completed by the Architect and approved, we will submit to the Owner a guaranteed maximum price (GMP) for construction covered by those drawings.
4. In addition, at a later date when the majority of the buy-out has been completed, the GMP may be converted to a Lump Sum Contract to simplify bookkeeping and auditing on behalf of all parties.

During the stages, budget controls maintained by us will keep the Owner advised at all times of developing costs. If individual costs are out of balance with the Owner’s budget, deletion or improvements, which are economically timely, are possible.

Close association with the project development from its inception permits our personnel the opportunity to utilize their experience and knowledge in time and money savings efforts. This also affords us the opportunity to advise the Owner and Architect of the various methods, equipment, or procedures inherent to our operations which have proven to be the most cost effective. Decisions made early in the development of a project have the greatest impact on time, cost, and design.

The lowest price at the beginning of a project does not always equate to the lowest price and best value at the end of the project. We strive to be the best value for our client when the project is completed.