22 Sep TYPES OF CONTRACTS IN INTEGRATED PROJECT MANAGEMENT
Our Integrated Project Management services are designed to protect the interests of our clients, eliminating the usual conflicts between the parties involved in a construction project. We do this by reducing costs and deadlines with the highest quality, ensuring the achievement of the results established with the client in the execution of real estate projects.
To get a construction project completed on TIME and within the ESTIMATED BUDGET, with no final surprises and with the QUALITY standard initially established by the client, is our FUNDAMENTAL MISSION, regardless of our level of involvement in a construction project.
Types of Integrated Project Management Contracts G2 – Project Management Marbella
We will now describe the different types of Integrated Project Management Contracts that we offer to our clients in the Marbella and Costa del Sol area:
Integrated Project Management – Project Management
The Integrated Management of Construction Projects or Integrated Project Management extends throughout all phases of the project. G2 becomes the main consultant of its Client, assuming a consulting, coordination and supervision role aimed at ensuring the final success of the construction project, understood from the perspective of the objectives set by our Client.
The Project Manager organizes, activates and supervises all activities, coordinating the technical teams and the different contractors involved in the Construction Project. Our work system through Optimized Processes avoids indefinitions, eliminates risks and optimizes the Real Estate Investment, the deadline and the quality of the real estate project.
Ideally, the Project Manager should be the first consultant to join the project, to assist in the definition of project objectives and concept, and in the selection and contracting of the design teams.
The Project Manager coordinates the drafting of technical projects, supervising until completion. In parallel, he/she establishes and manages the Target Budget and the Master Schedule of the Construction project, on behalf of and with the Client’s guidelines.
The Integrated Project Management Office will organize and supervise the process of tendering and awarding of the works to the contractor, advising its Client in all relevant aspects, always looking after its interest.
During the execution of the construction works, the Construction Project Manager will supervise the work of the construction contractor and advise his Client on all relevant aspects and especially on economic management, real estate risk management and progress in the execution of the project.
Integrated Construction Management – Construction Management
Integrated Construction Management is based on the principles and activities described for Integrated Project Management, developing in more depth and detail the activities related to the contracting and execution of the projects.
In particular, the Construction Manager assumes the organization, coordination and supervision of the contracting and execution of the works, in an executive manner, assuming the representation of his Client before the contractors and suppliers that actually execute the work. These contractors and suppliers are directly hired by the Property / Developer, under the management and coordination of the
The control that the Property has over the works through G2 is maximum, achieving the greatest certainty on scope, quality, deadlines and costs from the beginning, eliminating contractual risks, and supposing an important saving by suppressing the step coefficients that the general contractors apply on the subcontractors and suppliers that really execute the work, and having a direct control over the administration of the general expenses of the construction work.
It also allows working with the so-called “Fast Track” system, i.e., overlapping the drafting of the project with the execution of the work, by doing it by “contracting packages”, allowing to optimize the global term of the construction project, maintaining a great flexibility in the decision making, in favor of the Property.
Management Contracting – Management Contracting
With Contracting Management, the project development and contracting management process is identical to the Construction Management option. The main difference is that the work execution contracts are signed between the different contractors and G2, which in turn signs a work execution contract with the Client Developer, assuming all the legal responsibilities that this entails. G2’s management with respect to the planning and cost control of the work is the same as in the case of Construction Management, the objective being the minimization of the construction cost and totally transparent management for the Client, with a system of “open books” that guarantees total transparency in the management carried out.
The G2 fees are the base fees corresponding to the Construction Management to which is added an amount corresponding to the cost of supplementary insurance and the commercial risk assumed by G2. At the time of monthly invoicing to the Client (G2 sends the supported invoices coming directly from the various package contractors) to which it adds the proportional part corresponding to the fees described above, without applying any other pass-through coefficient or commercial margin.
Design and Construction
The Design-Build approach provides G2 with the opportunity to become involved in the project before design begins. Either a single-price or two-stage contract option is negotiated, accepting responsibility for both design and construction. A single point of contact is provided for the client, improving collaboration and service efficiency throughout the entire real estate investment process. With this Design-Build system, the real estate risks of the traditional construction system with antagonistic interests among all parties involved in a construction project are reduced.
Guaranteed Maximum Price
The Guaranteed Maximum Price modality adds to the Contracting Management the fact that G2 Construction assumes the risk on the final cost of the work, guaranteeing the Client a maximum price that can never be exceeded.
The difference with the Contracting Management originates at the moment when, during the bidding process for the execution packages, firm bids are obtained for construction packages that together amount to approximately 80% of the total cost of the real estate project. At that point, G2 is in a position to guarantee a guaranteed maximum price of the construction project to the Client / Developer.
When the work is completed and the final cost of the construction work is known, G2 Construction will assume the additional cost over the GMP, if any. In the event of a final construction cost lower than the Guaranteed Maximum Price, the savings would be shared between the Client and G2, at a percentage established in advance in the contract.
If you are thinking about Integrated Project Management in Marbella and Costa del Sol and you have doubts, CALL US and WE WILL ADVISE YOU.
