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- Preconstruction Budget Risks for Local Government Projects (2 of 3)
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Tuesday, August 19, 2014
Part Two: Single Source Specifications
The second way Shireman Construction sometimes serves as the
“bad guy” in the preconstruction design meetings on local government projects to
save your project budget is fighting single-source specifications. Your
architect will put together (with our help and advice) a list of every product
in the building, usually the size of two to three large phone books. This is
called the “Spec Book” and is part of the bidding documents.
ART: Single Source Specifications
– Pictures of Shireman spec books
Usually the architect will specify materials with multiple
manufacturers and suppliers. But occasionally the design team or the local
government staff in love with a certain product will list a product with only
one supplier.
Unfortunately, the supplier can also read that they are the
only source allowed for that product and will sometimes take advantage and double
or triple their price. On large components, like detention equipment for jails,
major heating and cooling system components, generators, controls, etc., this
could blow up your entire budget.
So we read every word in those books with our team of
specialty subcontractors before they go out to public bid. We work to find ways
to list multiple suppliers and alternative products to keep everyone honest.
Also, if there is a product later that the Owner’s team or
architect must have, we can use alternates to keep all the pricing honest. By
fighting single-source specifications with alternates we can get it substituted
at a lot lower price level later than just listing it alone.
Let us help you avoid
scope creep and other budget pitfalls. For more tips and tricks on local
government construction and real life examples – see our website at ShiremanConstruction.com
Check back next week (August 26) for part three of this series.