CH.5 precon services

Question 1

What is the difference between preconstruction cost and fee?

Answer 1

Precon cost is the cost to perform precon services. Fee refers to the contractor’s overhead cost and profit.

Question 2

Why is it advantageous to the owner to employ a contractor to perform precon services?

Answer 2

Hiring a contractor for precon services develops early relationship team building, and allows the contractor to understand the scope of the project early on, overall minimizing hick-ups with constructibility process and scheduling.

Question 3

Why should a contract be executed for preconstruction services?

Answer 3

The precon service contract will define the scope of work and the roles of the parties. It also doesn’t hold the contractor responsible for new commitments made.

Question 4

In addition to fee, name 3 other items an owner may request in precon services RFP.

Answer 4

Construction budget estimate, preliminary schedule, hourly rates, GMP or lump sum price, min fee w/o profit, project team resume, documents of similar projects,