Transparency In Construction Management: An Open Book Methodology

Accurate or not, the construction industry has historically been faced with unfavorable perceptions. In Southern California, Clune Construction has been combating these perceptions for its entire 24-year history through its award-winning company ethics and open book methodology.
 
When assembling a Guaranteed Maximum Price, Clune’s strong industry relationships translate to subcontractors wanting to be on the company’s bid list and to work on their jobsites. Clune’s project managers and superintendents work tirelessly to provide the highest quality spaces and utmost client satisfaction. Making their client’s lives easier has always been Clune’s end goal.
 
Subcontractor Selection
To provide the highest quality finished product for its clients, Clune works with Southern California’s top tier subcontractors. The company’s pre-qualification process thoroughly evaluates each subcontractor to confirm they have the required financial security, safety record and manpower before they are allowed to bid on a project.
 
Clune’s market leverage helps them get the most competitive pricing. Subcontractors also know that Clune always runs a safe and clean jobsite, allowing them to put together pricing without having to factor in potential issues, down-time or mis-coordination of work.
 
Awarding a Job
Clune has adopted a purposeful bidding and scope review process to buy the job correctly upfront. From the beginning, they put together a detailed bid package allowing each trade to provide accurate pricing and clarify which trade is handling each specific scope item. Clune sources competitive pricing from three-to-five qualified bidders, levels the bids, and invites the two lowest bidders to a scope review meeting. Architects and clients are also invited to this meeting.
 
“This further promotes transparency and assists the team in ensuring every box is checked,” said Randy Starbird, president of Clune West Region.
 
Schedule, logistics, safety, material purchasing and lead times are all discussed in a scope review. They also determine potential value engineering opportunities to lower the overall project’s costs, while maintaining design intent. This level of detail helps determine anything that could impact cost down the road, allowing Clune to cover and buy from the subcontractors in a competitive environment.

For example, on a build-out of 12-floors, the design intent of the drawings was to reuse existing perimeter soffit. However, when meeting with subcontractors during scope reviews, the team realized that reusing the soffit was not feasible and would have been more costly to retain. They were replaced.  

“Had that conversation not happened, there would have been a major cost and schedule implication to the job when the team was already on-site and ready to build,” said Starbird. “Scope reviews are a significant tool for mitigating this risk.”

After a scope review, Clune can confidently recommend the most competitively priced subcontractor knowing t they have the full scope bought, and the project can be completed as intended.
 
Tracking Every Dollar
Clune’s clients benefit from the same transparency throughout the duration of their project. Weekly updates are provided, showing the schedule overview and upcoming tasks, safety record, architectural progress and overall financial health of the job. Project stakeholders are able to see where every dollar is allocated and where the project stands at any given moment.
 
To Clune however, full transparency means more than just financial reports. Their teams want clients to know everything about their project.
 
“Even if there is a change that doesn’t impact the project’s budget, clients still receive a detailed explanation of the change,” Starbird explained.
 
The Value 
Clune’s clients in Southern California have the secure knowledge that any construction intangible will be bought up front, rather than dealing with change orders down the road. Clune goes beyond what is shown on the drawings to account for every potential cost.
 
“Transparency is just one of the behaviors that contribute to the Clune Way Values of Service, Teamwork, Respect, Excellence, Leadership and Innovation,” said Starbird. “These values are the foundation of who Clune is as a company, and among the reasons that a large percentage of our clients are repeat clients.”
 
Learn more at clunegc.com.

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