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Learn GMP with the Bros

⏱️ 49:44 🎤 Chelsea Berquette, Tyler Campbell
AUDIO EPISODE
Learn GMP with the Bros
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Chapters

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  • 0:00
    Introduction & Sponsor
    The episode begins with a sponsor message for Burnprogear.com, followed by an introduction to the topic of Guaranteed Maximum Price documents.
  • 3:28
    Chelsea's Role & GMP Context
    Chelsea Berquette introduces herself as Deputy Program Director for the Austin School District bond program, explaining her role in managing architects and contractors for the $2.44 billion bond program and the use of GMPs.
  • 6:31
    Why GMP Pricing?
    Chelsea explains the rationale behind using GMP pricing, highlighting its value in managing the large-scale Austin School District projects and ensuring budget alignment.
  • 17:19
    Defining Key Terms
    Host Eddie asks Chelsea to clarify acronyms like CMR (Construction Manager at Risk) and AISD (Austin Independent School District) for the audience.
  • 19:57
    GMP and Bond Program Budgets
    Chelsea details how GMPs help manage defined total costs within the bond program, tracking expenses and identifying strategies for potential overages across many projects.
  • 25:26
    Market Challenges & Cost Estimates
    The discussion covers the difficulty of nailing down GMPs due to fluctuating material prices and market uncertainty, and how early cost estimates aid in decision-making.
  • 35:29
    Open Book Process & Risk
    Chelsea explains the "open book" nature of CMR projects, allowing owners full visibility into subcontractor bids and contingency evaluations, and the risk allocation for GCs.
  • 1:00:26
    Phased GMPs & Fast-Tracking
    The concept of phased GMPs is introduced, allowing for design completion concurrently with construction, accelerating project timelines by breaking work into multiple GMPs.
  • 1:08:39
    The Importance of Relationships
    Chelsea emphasizes that strong relationships between all project partners (owner, architect, GC) are crucial for project success, especially during challenging GMP negotiations.
  • 1:29:01
    Biggest Pain Point & Megaphone Moment
    Chelsea shares her biggest pain point – the need for early communication to avoid issues during GMP negotiations – and her 'megaphone moment' about prioritizing relationships in construction.

Speakers

C
Chelsea Berquette
Deputy program director, ACOM
T
Tyler Campbell
Host

Key Takeaways

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Engage a general contractor and architect early in the design phase for collaborative cost validation and risk reduction.

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Utilize phased GMPs to accelerate project timelines by allowing design and construction to overlap, especially for long-lead items or early site work.

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Insist on an 'open book' process with your general contractor to gain full visibility into subcontractor bids, contingency amounts, and allowances, ensuring cost transparency.

✦

Prioritize strong relationships and transparent communication with all project partners to navigate complex negotiations and unforeseen challenges effectively.

✦

Understand the different risk allocations in CMR vs. Design-Build contracts to determine who bears responsibility for design errors or unforeseen conditions.

✦

Push for early and clear communication regarding any potential issues or concerns to avoid them becoming contentious during critical GMP negotiations.

✦

Ensure your general contractor's baseline schedule includes input from the project superintendent to foster ownership and realistic timelines.

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