Cost and Risk Control in Senior Living Construction

The latest project started for Capital Health Group in January is exemplary in how The Douglas Company can control costs and risks of projects.  The previous three projects they did in Florida were bid competitively after drawings were completed, and came in 20% over budget, a significant overrun.  On two projects we were called in to solve the problem, providing them value engineering to reduce costs making the situation manageable.

On the one that recently started in Dayton, we were hired as a design-build contractor.  The Douglas Company’s preconstruction processes were followed, and a guaranteed price was given off schematic drawings.  With our guaranteed price, the owner was able to close his loan prior to completion of construction documents and move the project forward at his budget.

Since then, the drawings have been completed; The Douglas Company rebid the project and returned savings to the owner.  This is the way it’s meant to work.  Sticking to budgets, controlling design, taking risks away from clients is what makes us so valuable to them.  Ken Assiran, from Capital Health Group, recently said “All of our projects with you will be design-build.  That worked really well.”  From our perspective, it doesn’t matter if it is design-build or design-assist if our process is followed, our client’s objectives will be met.

Peter Douglas, P.E.
The Douglas Company

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