The private facility owner holds two contracts including; with the designer (based on qualifications), and with the general contractor (based on qualifications). This delivery method is sometimes referred to as Construction Management at Risk.
The owner hires the designer and General Contractor (with preconstruction services) at nearly the same time. As the designer completes the schematic drawings, the General Contractor reviews the drawings for unnecessary costs and errors, and performs schematic budgets to verify the project is on-track with the owner’s goals. Next, value engineering ideas are offered to either improve the project, cut costs or both. Finally, the General Contractor and Owner will negotiate the contract amount for construction and begin construction.