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How We Partner

Best Val­ue
A best val­ue award con­tract usu­al­ly requires the con­trac­tor to pro­vide a detailed tech­ni­cal plan that sup­ports the over­all project objec­tives in which the client assigns a val­ue oth­er than just low price. Oth­er val­ues may include past per­for­mance on sim­i­lar work, knowl­edge of the spec­i­fi­ca­tions, expe­dit­ed sched­ul­ing, and knowl­edge of agency com­pli­ance, inno­v­a­tive con­struc­tion meth­ods, safe­ty expe­ri­ence, and com­mit­ment to oth­er client objec­tives such as minor­i­ty busi­ness enter­prise goals. There is a delib­er­ate focus on how the con­trac­tor will per­form the work not just his price. Best val­ue is more like­ly to assure the client that the con­trac­tor ful­ly under­stands the scope of work, envi­ron­men­tal con­straints, time­lines, and oth­er crit­i­cal project suc­cess ele­ments. Syblon Reid has received sev­er­al Best Val­ue” awards in the past few years.

Engi­neer, Pro­cure, and Con­struct

Engi­neer, Pro­cure, and Con­struct (EPC) method lends itself more to lump sum turn key projects where the con­trac­tor is ful­ly respon­si­ble for the con­struc­tion of the project This means that the design engi­neer has direct con­tracts with the con­trac­tor. Syblon Reid is well posi­tioned to sup­port this type of deliv­ery method.

Ear­ly Con­trac­tor Involvement/​Construction Man­ag­er at Risk

Ear­ly Con­trac­tor Involve­ment (ECI)/Construction Man­ag­er at Risk (CMAR) is an inno­v­a­tive con­tract­ing method sim­i­lar to EPC that is used now by some own­ers. In this method, the con­trac­tor is brought on board dur­ing the design phase to pro­vide con­structabil­i­ty input, real­is­tic con­struc­tion sched­ules and more accu­rate cost infor­ma­tion for fund­ing needs.

The advan­tages to this deliv­ery method are when:

  • Risks are unknown and can­not be ade­quate­ly allo­cat­ed to any one par­ty thus requir­ing the shar­ing of risks on a project.
  • Bud­gets and sched­ules are lim­it­ed and an extra­or­di­nary effort is required to achieve the out­comes expected.
  • Project scope is unclear or uncer­tain, and is very dif­fi­cult to prop­er­ly define in the time avail­able with significant/​many unknown fac­tors involved.
  • There are var­i­ous diverse key stake­hold­er inter­ests to be brought togeth­er ear­ly and these key stake­hold­er inter­faces and rela­tion­ships are com­plex; and where com­mu­ni­ty inter­ests are com­plex and require a spe­cial approach.
  • The knowl­edge and cre­ativ­i­ty of the con­trac­tors (inno­va­tion) can improve the over­all project outcome.

This option most often becomes a con­tract with the own­er on either design build, EPC, or oth­er type of con­tract such as a Nego­ti­at­ed Fixed.

Syblon Reid part­ners with sev­er­al engi­neer­ing firms on this type of pro­cure­ment method by pro­vid­ing input to con­structabil­i­ty of designs, real­is­tic sched­ul­ing, bet­ter cost esti­mat­ing accu­ra­cy, time­ly per­mit acqui­si­tion, inno­v­a­tive con­struc­tion meth­ods, etc.

Design-Build

Syblon Reid has used the Design Build” deliv­ery method on mul­ti­ple projects in the past decade. The design build project deliv­ery method pro­vides a high­er qual­i­ty ser­vice to the own­er than any oth­er deliv­ery method. With the builder being iden­ti­fied pri­or to project start date, years of con­struc­tion expe­ri­ence is inte­grat­ed into the design at the onset of the project. By per­form­ing phase analy­sis, val­ue engi­neer­ing and cost esti­mat­ing ear­ly in the plan­ning stages, pro­vides bet­ter sched­ul­ing and bud­get­ing for the project. Over­all project sched­ules are short­ened by ear­ly iden­ti­fi­ca­tion and pro­cure­ment of long lead time mate­ri­als and ser­vices. Reg­u­lar planned inter­face meet­ings with the client’s per­son­nel and the design/​construction team dur­ing the design phase of the project, insures that own­er con­cerns are ful­ly addressed up front rather than after the con­struc­tion begins.

Nego­ti­at­ed Fixed Price

Sim­i­lar to the Bid Build deliv­ery method, a firm-fixed-price con­tract pro­vides for a price that is not sub­ject to any adjust­ment on the basis of the contractor’s cost expe­ri­ence in per­form­ing the con­tract. The main dif­fer­ence is that the cost is nego­ti­at­ed rather than just low bid. This con­tract type places upon the con­trac­tor max­i­mum risk and full respon­si­bil­i­ty for all costs and result­ing prof­it or loss. It pro­vides max­i­mum incen­tive for the con­trac­tor to con­trol costs and per­form effec­tive­ly and impos­es a min­i­mum admin­is­tra­tive bur­den upon the con­tract­ing par­ties. The con­tract­ing offi­cer may use a firm-fixed-price con­tract in con­junc­tion with an award-fee incen­tive and per­for­mance or deliv­ery incen­tives when the award fee or incen­tive is based sole­ly on fac­tors oth­er than cost. The con­tract type remains firm-fixed-price when used with these incen­tives.

Unit Pric­ing

Although not often used, Syblon Reid has expe­ri­ence with this deliv­ery method. The client or own­er pays a fixed sum for each com­plet­ed unit of work. The work to be per­formed is bro­ken into var­i­ous parts, usu­al­ly by con­struc­tion trade, and a fixed price is estab­lished for each unit of work. In a unit price con­tract, like a lump sum con­tract, the con­trac­tor is paid the agreed upon price, regard­less of the actu­al cost to do the work. Time and Cost Risk are shared. The own­er is at risk for total quan­ti­ties and the con­trac­tor is at risk for his fixed unit price. Large quan­ti­ty changes (>15 – 25%) can lead to increase or decrease in unit prices.

This deliv­ery method requires:

  • Ade­quate break­down and def­i­n­i­tion of work units
  • Good quan­ti­ty sur­vey­ing and report­ing system
  • Suf­fi­cient design def­i­n­i­tion to esti­mate quan­ti­ties of units
  • Expe­ri­ence in devel­op­ing bills of quantities
  • Pay­ment terms prop­er­ly tied to mea­sured work completion
  • Own­er-fur­nished draw­ings and mate­ri­als must arrive on time
  • Quan­ti­ty sen­si­tive analy­sis of unit prices to eval­u­ate total bid price for poten­tial quan­ti­ty variations


Bid-Build

For more than 55 years, the major­i­ty of our work has been award­ed on a hard-bid. Syblon Reid read­i­ly accepts this type of work were the con­trac­tor assumes all the known risks. We have high­ly trained esti­mat­ing staff that are skilled at eval­u­at­ing bid spec­i­fi­ca­tions and draw­ings and plan­ning the work as well as esti­mat­ing costs.

Time and Mate­r­i­al

In this arrange­ment the con­trac­tor is paid on the basis of the actu­al cost of direct labor at spec­i­fied hourly rates plus the actu­al costs of mate­ri­als and equip­ment usage. The con­trac­tor and client agree upon a fixed add-on to cov­er the contractor’s over­head and prof­it. Syblon Reid has used this con­tract deliv­ery method most effec­tive­ly on emer­gency response projects, where the full scope of the work is undefined.