Question: The Kemp Construction Company ( the client ) is ready to negotiate a contract with a construction firm for a $ 3 2 million office

The Kemp Construction Company (the client) is ready to negotiate a contract with a
construction firm for a $32 million office building project. The design-development
documents (DDs) are complete. The building permit has been applied for and is scheduled to
be issued in three months. The architect has requested the owner now bring on a contractor to
assist with the balance of preconstruction services, estimating, scheduling, constructability
analysis, material selections, and value engineering (VE) during the construction document
(CD) development phase. Kemp Construction Company (the client) and the architect have
received written proposals and conducted interviews and have narrowed the short list down to
two firms who have a completely different approach to contracting. Both appear to be equally
qualified with respect to experience, references, availability, etc. Both firms have worked with
the architect and the owner successfully on previous projects. Both firms are quoting a
competitive 4% fee on top of the cost of the work. All other conditions are equal. The only
difference between the two firms is that one is a pure construction manager and will
subcontract 100% of the project except jobsite administration. The other is a typical general
contractor. The General Contractor (GC) is only interested in building the project if they are
allowed to perform the work that they customarily self-perform, such as concrete, carpentry,
reinforcement steel, structural steel, and miscellaneous specialty installation, which will
account for 40% of the cost of the work on this shell.
Questions:
(NOTE: Explain Your Answers in Detail.
Think Outside the box i.e. subsequent damages, countersuits)
Sell your position and be creative. Use the tools you have learned from this course
textbooks, construction and/or engineering classes, professional experience, and outside
research to convince the owner that the Construction Manager (CM) procurement
approach is more advantageous than the typical general contractor. REMEMBER
APPROACH THIS QUESTION FROM A LEGAL PERSPECTIVE BASED ON LAW.
Take the position of the Construction Manager (CM).
Why is it to the owners and the architects advantage to employ your/the firm
during the preconstruction phase?
What are the advantages of using a CM during the construction phase? Does that
help or put an owner at risk legally? Explain why of why not?
Discuss project control issues, including quality, safety, schedule, and cost. How do
those issues effect the project legally?
Is a CM at risk truly an owners representative legally? Why or why not.
Why is it better for you that your firm is selected now and on board when the tenant
improvement projects become available? Does the GC hide costs? Is this legal?

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