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<!--StartFragment--></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><strong></strong></span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><strong>by Doug Sitton</strong></span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><!--[if !supportEmptyParas]-->&nbsp;<!--[endif]--></span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\">Remember the exchange from the movie &ldquo;City Slickers,&rdquo; in
which characters Curly and Mitch muse over the secret to life&hellip;the <em>one thing</em></span><span style=\"font-size: 10pt; font-family: Arial;\">? The secret to an owner&rsquo;s ability
to get the most out of their construction investment is the same. It all comes
down to one thing &ndash; having strong leadership and management from the start of
preplanning through the completion of construction. </span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><!--[if !supportEmptyParas]-->&nbsp;<!--[endif]--></span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\">First, a &ldquo;three-legged stool&rdquo; of construction must be
established and should consist of the owner&rsquo;s team, the design team and the
construction team. To maximize success, it is important that each team &ndash; or leg
&ndash; focus on performing their roles the best they can. Any team playing a double
role by taking on tasks of another team creates an imbalance in the stool,
resulting in conflicts of interest and inadequate control by each team over
their natural responsibilities. The owner is the overall leader and manager,
managing and measuring the dichotomy of continuous integration and separation
of roles for checks and balances. </span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><!--[if !supportEmptyParas]-->&nbsp;<!--[endif]--></span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\">Next up is choosing a project delivery method and
appropriately customizing it. This is a process that has become increasingly
complex. It seems each method is hailed by some construction experts as being
&ldquo;the best,&rdquo; and by others as being &ldquo;flawed.&rdquo; The truth is no delivery method is
the best, and all have flaws. It is the implementation of the delivery that
counts, not the type. </span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><!--[if !supportEmptyParas]-->&nbsp;<!--[endif]--></span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\">Aren&rsquo;t some methods better than others? The short answer is no.
All delivery methods have pros and cons, and each can be improved with customization<strong><em>.</em></strong></span><span style=\"font-size: 10pt; font-family: Arial;\"> And, because the owner is the
project leader and has the most to gain by customizing the method, the owner
needs to lead the customizing effort. <strong><em></em></strong></span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><!--[if !supportEmptyParas]-->&nbsp;<!--[endif]--></span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\">Here are a few brief examples of some of the perceived
flaws, as pointed out by contractors, and how the owner can overcome these
challenges through customization. </span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><!--[if !supportEmptyParas]-->&nbsp;<!--[endif]--></span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><strong>Method:</strong><span> </span><span></span>Design/Bid/Build </span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><strong>Critics&rsquo; Thoughts:</strong><span> </span>You
might get an unqualified general contractor, and there is no construction <span></span>input
during design</span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><strong>Customization: </strong>Establish
the qualification requirements of your general contractor, and&nbsp;<span></span>pre-qualify
them prior to bidding. Make sure to involve the pre-qualified&nbsp;<span></span><span></span>contractors
during design, as they can provide valuable input relative to&nbsp;<span></span><span></span>engineering. </span></p>
<p class=\"MsoNormal\"><span style=\"font-size: 10pt; font-family: Arial;\"><s><!--[if !supportEmptyParas]-->&nbsp;<!--[endif]--></s></span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><strong>Method</strong>:<span>&nbsp;</span><span></span>Multiple
Prime </span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><strong>Critics&rsquo; Thoughts:</strong> <span></span>Breaking
the project into multiple individual prime contracts increases the owner&rsquo;s
time, cost and risk as he or she works to bid, contract and manage 20-<span></span>plus
contracts. And, there often isn&rsquo;t a single point for construction responsibility. </span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><strong>Customization:</strong> <span></span><span></span>Only
break the project into separate packages when needed to fast-track&nbsp;<span></span>the
project to meet a critical deadline. Once the general contractor is chosen,&nbsp;<span></span><span></span>assign
any unfinished contracts to the single prime general contractor. </span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><!--[if !supportEmptyParas]-->&nbsp;<!--[endif]--></span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><strong>Method:</strong> Design/Build</span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><strong>Critics&rsquo; Thoughts:&nbsp;</strong><span></span>An
early negotiated guaranteed maximum price builds in excess contingency, raising
the price.</span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\">Customization: <span></span>Negotiate
the design builder&rsquo;s costs upfront. Set the overall contract price after&nbsp;<span></span><span></span>the
completion of all competitive bidding. By that point there are far fewer&nbsp;<span></span><span></span>contingencies.<span>&nbsp; </span><span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span><span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span><span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span><span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span><span>&nbsp;</span></span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><!--[if !supportEmptyParas]-->&nbsp;<!--[endif]--></span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><strong>Method:&nbsp;</strong><span> </span>Construction
Manager At-Risk or Design/Build</span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><strong>Critics&rsquo; Thoughts:</strong>&nbsp;<span></span>Bidding
of early packages is typically done before all plans and specifications are complete,
increasing the potential for change orders.</span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><strong>Customization:&nbsp;</strong><span></span><span></span>Scrutinize
the need for early packages, and only bid early if the value gained&nbsp;<span></span><span></span><span></span>outweighs
the additional risk. Share risk equitably among the design, construction
and owner teams, and increase quality reviews as necessary.</span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\">&nbsp;</p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\">Customization should serve to reduce cost and risk, and
increase value and speed in ways that benefit not only the owner, but all
parties equitably. Here are some key elements that ideally would be included in
any delivery method:</span></p>
<p>&nbsp;</p>
<ul>
<li><!--[if !supportLists]--><span style=\"font-size: 10pt; font-family: Symbol;\"><span style=\"font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal; font-family: &quot;Times New Roman&quot;;\"></span></span><span style=\"font-size: 10pt; font-family: Arial;\">Match
each party&rsquo;s potential reward to their risk.</span></li>
<li><!--[if !supportLists]--><span style=\"font-size: 10pt; font-family: Symbol;\"><span style=\"font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal; font-family: &quot;Times New Roman&quot;;\"></span></span><!--[endif]--><span style=\"font-size: 10pt; font-family: Arial;\">Integrate
construction expertise into design.</span></li>
<li><!--[if !supportLists]--><span style=\"font-size: 10pt; font-family: Symbol;\"></span><span style=\"font-size: 10pt; font-family: Arial;\">Maintain
the three-legged stool for checks and balances.</span></li>
<li><!--[if !supportLists]--><span style=\"font-size: 10pt; font-family: Symbol;\">&middot;<span style=\"font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal; font-family: &quot;Times New Roman&quot;;\"></span></span><!--[endif]--><span style=\"font-size: 10pt; font-family: Arial;\">Bid
from documents that are 100 percent complete or as close to it as possible.</span></li>
<li><!--[if !supportLists]--><span style=\"font-size: 10pt; font-family: Symbol;\"></span><span style=\"font-size: 10pt; font-family: Arial;\">Competitively
bid all construction-related work to qualified contractors.</span></li>
<li><!--[if !supportLists]--><span style=\"font-size: 10pt; font-family: Symbol;\"><span style=\"font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal; font-family: &quot;Times New Roman&quot;;\"></span></span><!--[endif]--><span style=\"font-size: 10pt; font-family: Arial;\">Place
all construction responsibility under a single prime contractor.</span></li>
</ul>
<p></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><!--[if !supportEmptyParas]-->&nbsp;<!--[endif]--></span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\">There are other ways construction project owners can master
the <em>one thing</em></span><span style=\"font-size: 10pt; font-family: Arial;\">,
while saving money, reducing risk and increasing value. They can negotiate
clear and effective contracts and make sure to place the right people in the
right roles. Planning early and always is also important, as is establishing
effective processes, setting performance metrics and applying cost-effective
technology. </span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><!--[if !supportEmptyParas]-->&nbsp;<!--[endif]--></span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\">And remember, it all starts with leadership. The <em>one thing</em></span><span style=\"font-size: 10pt; font-family: Arial;\"> will happen only if the owner
decides to make it happen and leads the way.</span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><!--[if !supportEmptyParas]-->&nbsp;<!--[endif]--></span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><em><span style=\"font-size: 10pt; font-family: Arial; color: black;\">Doug Sitton is president of Sitton
Construction Group and regularly addresses industry association groups
regarding ways to simplify the complexity of construction projects, while
saving money, reducing risk and increasing value. He has 29 years of
diversified experience in the design and construction industry, overseeing</span><span style=\"font-size: 10pt; font-family: Arial;\"> 500+ new construction and
renovation projects with a total project cost of over one billion dollars. </span></em><span style=\"font-size: 10pt; font-family: Arial;\"><strong></strong></span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><!--[if !supportEmptyParas]-->&nbsp;<!--[endif]--></span></p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><!--[if !supportEmptyParas]-->&nbsp;<!--[endif]--></span></p>
<p><!--EndFragment--></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"></span></p>
<p><!--EndFragment--></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p class=\"MsoNormal\" style=\"margin-left: 0in;\"><span style=\"font-size: 10pt; font-family: Arial;\"><!--[endif]--></span></p>
<p><!--EndFragment--></p>
<p>&nbsp;</p>";s:10:"category_0";s:2:"21";s:10:"category_1";s:2:"65";}