FAQS

 

How long does it take to prepare an estimate?
What exactly is “value engineering”?
How long does it take to get a building permit?
What are the advantages of having different divisions within the company?
How can AMC help with the preconstruction process and what is involved with that process?
What is “design-build”?
What is a negotiated bid?
What is a competitive bid?
What is the difference between a negotiated bid and a competitive bid?
What are conceptual drawings?
What are working drawings?
What are general conditions?
What is included in the contractor’s fee?
What is a payment and performance bond?
What do I need to do to become a subcontractor for Anderson-Moore Construction Corp.?
What is LEED?
What is Lean Construction?

 


How long does it take to prepare an estimate?

 
Anderson-Moore Construction Corp. has the capability of turning around an in-house, historical budget number within 2 days. However, the typical approach is to analyze the bid documents, determine the most appropriate (and qualified) subcontractors for the project, send the drawings to them with a 2 week deadline for bid submission, review the subcontractor's pricing and scope of work, and lastly put together the final estimate for the client. This process takes approximately 3 weeks.
 

 


What exactly is “value engineering”?

 
In basic terminology, value engineering (VE) is a contractor's effort to provide cost savings, and possibly time savings, to a project by suggesting alternate (BUT equal) methods, building materials, and / or schedule procedures, while maintaining the original design intent.
 
More formally, value engineering, by definition, is a systematic and organized procedural decision-making process. The concept originated at General Electric in the 1940’s. VE helps people creatively generate alternatives to secure essential functions at the greatest worth as opposed to costs. The concept of value engineering has been successfully applied to the general construction process for decades.
 
AMC's value engineering team, with diverse backgrounds, is assembled, and the five phases of value engineering  – investigation, speculation, evaluation, development, and presentation – are used to guide the team through the process. VE formulates the solutions into recommendations, and those valid recommendations are then implemented into the construction design.  
 
The VE purpose is to ensure that only concepts that have the highest potential for values are ultimately presented and used. AMC utilizes this process to guarantee that the clients receive the most cost-effective, functional, and quality-controlled construction project.  
 
Every step of the process is geared toward obtaining a result that increase the return on investment (ROI) and value for the client.
 

 


How long does it take to get a building permit?

 
This process can take anywhere from 5 weeks to multiple months. It depends on the governmental jurisdiction (location) of the project, the detail of information submitted by the consultants (Engineer, Architect, etc.), and any revisions required.
 

 


What are the advantages of having different divisions within the company?

 

The personnel dedicated to each project are experts within their respective divisions. AMC’s Estimating, Project Management, Interior Services Division (tenant improvement / build-outs), Medical Division, Ground-up Commercial Division, and Special Services Division, all focus on the specific needs of the project. Furthermore, AMC provides thorough client-development and preconstruction services that guide the owner through each step necessary to deliver the uniquely required construction services.

 

 


How can AMC help with the preconstruction process and what is involved with that process?

 
Anderson-Moore Construction Corp. offers a Preconstruction Agreement to provide for the following services: 
 

A. Plan Evaluation – AMC will work with the architect to coordinate the systems and methods being proposed by the architect. AMC will use its own expertise and experience, as well as the expertise of its subcontractors, to recommend the systems and methods used to meet the overall requirements of the owner for initial cost and life expectancy. This plan evaluation includes analyses of structural, mechanical, electrical, and architectural components. 

 

B. Site Evaluation - AMC will work with the engineer to coordinate the site development plans to ensure the most economical methods, materials, and systems are used for the site preparation, utilities, and landscaping for the project. This evaluation includes an analysis to determine if the project can be started sooner by the proper coordination of site development and vertical buildings. 

 

C. Preliminary Budgets - AMC will supply the Owner with budget numbers based upon conceptual estimates using square footage and / or unit costs. These prices are determined by previous experience and AMC’s working relationship with reputable subcontractors. Preliminary estimates are usually accurate to + / - 10% after conceptual plans are complete and allow the owner to make intelligent decisions on how to proceed. The preliminary budgets also emphasize to the owner the level of quality he / she can expect for the budgeted price with the design drawings. 

 

D. Preliminary Schedules - AMC will work with the architects, engineers, proposed subcontractors, and also use its own experience to create preliminary schedules for the entire project. These schedules include the time involved in preparing working drawings, necessary approvals, and the actual construction process. The purpose of the preliminary schedule is for the owner to be aware of the time it takes from the inception of the project to final completion and occupancy. 

 

E. General Conditions - AMC will submit a cost breakdown of on-site general conditions. The general conditions are billed as a direct job expense. These costs include: on-site supervision, temporary facilities, communications, equipment rentals, and miscellaneous costs associated with on-site management. 

 

F. Final Budgets - AMC shall submit to the owner a final budget in which they are willing to contract for a fixed amount. These budgets will include prices on individual line items and will include prices from three to five qualified subcontractors when available.

 
G. Final Schedules - AMC will furnish the owner with a set of construction schedules. These schedules will define all of the activities necessary for building the project, and the sequences in which they will occur. This schedule will typically be a bar chart for ease of readability. However, should the owner or lender request it, the bar chart can be converted into a critical path schedule. This is the schedule which details all of the activities from the start of the project through the final punch list.
 

H. Subcontractor Evaluation and Recommendations – AMC will submit to the owner’s recommendations on the three lowest bids and qualified subcontractors on each budget line item. Although it is the intention of AMC to use the lowest priced subcontractor, the estimating team will research and identify whether subcontractors have financial, manpower, or quality issues, which would prevent them from completing the project in a timely manner. If that is ever the case, AMC would recommend the next highest bidder. This is a synopsis of the Preconstruction Services provided by AMC. Upon successful completion of the Preconstruction Phase, the project is formidably on its way to a successful Construction Phase.

 

 


What is “design-build”?

 

A design-build procurement method provides single-source responsibility to a client with all the benefits of proven design, engineering, and construction experience. It ensures a cost-effective structure to meet the design and quality requirements of any construction project, and also facilitates budget control by shortening the project schedule. Design-build project delivery requires careful planning, as well as professional execution to be useful. AMC is an experienced, successful, design-build contractor.

 
 

 


What is a negotiated bid?

 

A negotiated construction project occurs when an owner selects a contractor prior to completion of the working drawings. The contractor, architect, and owner, work together as a team to create a set of permit-able drawings. The contractor’s fee is typically established in advance of the contractor and owner finalizing the contract. The general contractor then solicits competitive subcontractor bids and provides a complete estimate with back-up; including the subcontractor bids combined with cost-of-work (general conditions) provided directly by the general contractor. The contractor then adds the agreed-upon fee, and the total of all the costs becomes the contract amount.

 

 


What is a competitive bid?

 

Competitive bidding occurs when an owner contracts with an architect to produce a full-set of working (permit-able) drawings. Upon completion of the drawings, two or more general contractors are then solicited to provide bids. Once the general contractors review the plans, they will construct a proposal with their cost, and submit the proposal in accordance to the plans and specifications provided by the architect.

 

 


What is the difference between a negotiated bid and a competitive bid?

 

Within the negotiated bid process, the relationship between the owner, architect, and contractor, is one of cooperation and trust. The contractor is part of the team and works with the architect to identify any errors or omissions which may occur in the development of the working drawings. This includes items such as making sure the structural plans match the architectural plans, assisting the architect in making the most economical decisions for product selections / specifications based on the owner’s intended use and life-cycle costs, and providing accurate conceptual estimates before the entire set of working drawings is complete. Within a competitive bid process, the contractor is under no obligation to provide any information other than a “price” on the plans and specifications as drawn by the architect. The experience and knowledge of the contractor are not utilized for any advantage to the owner.

 

 


What are conceptual drawings?

 

Conceptual drawings are preliminary in nature and generally provide the basic floor plan, site plan, and elevations for the proposed project. These drawings are used to determine the look of the project, how it fits on the proposed building site, and finally, the drawings are used to create a preliminary construction budget.

 

 


What are working drawings?

 
Working drawings are complete enough to permit and build the project. These documents generally consist of architectural, structural, mechanical, electrical, and civil engineering (site development) plans.
 

 


What are general conditions?

 

General conditions are hard-cost expenses common to most construction projects. They occur at the jobsite and are typically the expenses of the general contractor. These costs include such items as project management, site supervision, trailer rentals (temporary office), temporary utilities, waste receptacles, site IT requirements, communications, etc. General conditions are considered a cost-of-the-job and are not part of the contractor’s fee.

 

 


What is included in the contractor’s fee?

 
The contractor’s fee consists of “overhead” type items such as contractor’s main office, telephones, utility expenses, computers, staff employed at the main office, project accounting, salary of company officers / owners, etc., and contractor’s profit.
 

 


What is a payment and performance bond?

 
A payment and performance bond is a guarantee from a third-party, usually an insurance company, that the contractor will complete the project and pay all the bills pertaining to, and procured during (and under) the contractor’s contract. If an owner requires or desires a payment and performance bond, they will pay the premium for the guarantee.
 

 


What do I need to do to become a subcontractor for Anderson-Moore Construction Corp.?

 
Registration can be found by referring to the “Subcontractor Info” tab on AMC’s website. There are two options for registering: fill out the online form and submit it via the instructions, or download the form, fill it out, and return the completed form, along with any required documentation, to AMC’s office. Once AMC has determined their requirements have been met, the newly added subcontractor will begin receiving bid invitations. Subcontractor performances are rated by AMC’s project managers after a project is completed. The performance reviews are continually shared with the estimating and project management departments.  
 

 


What is LEED?

 
LEED, or Leadership in Energy and Environmental Design, provides building owners and operators a framework for identifying and implementing practical and measurable green building design, construction, operations and maintenance solutions. LEED certification provides independent, third-party verification that a building, home, or community, was designed and built using strategies aimed at achieving high performance in key areas of human and environmental health, sustainable site development, water savings, energy efficiency, material selection, and indoor environmental quality. Developed by the U.S. Green Building Council (USGBC) in 2000, the LEED rating systems are developed through an open, consensus-based process led by LEED Committees.
 

 


What is Lean Construction?

 
“Lean Construction is a production management-based approach to project delivery – a new way to design and build capital facilities. Lean Production Management has caused a revolution in manufacturing design, supply and assembly. Applied to construction, Lean changes the way work is done throughout the delivery process. Lean Construction extends from the objectives of a lean production system – maximize value and minimize waste – to specific techniques and applies them in a new project delivery process” (Lean Construction Institute, 2015).