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Shedding Light On Hidden Costs |
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Challenge: I have received bids on my project from several General Contractors. How do I know that their “General Conditions” section of their bid is not exorbitant or less than adequate?
Solution: This is an area that Boyken has been successful in assisting owners by reviewing and analyzing a General Contractor’s bid breakdown or schedule of values.
This has been especially beneficial in explaining the true contents of the “General Conditions”. Sometimes there is confusion over what has been included in the General Conditions. To help reduce or eliminate this confusion between general contractors and owners, Boyken analyzed and noted issues ranging from inflated rates and up charge percentages for general overhead on top, plus additional fees for services.
We have completed reviews for owners and found that what the general contractor was adding as a “direct general conditions cost” totaled in the high six figures! When challenged and asked to justify these costs, the general contractor responded by eliminating most of these extra and in some cases duplicated charges. Boyken saved the owner a considerable amount of money by eliminating the extra costs before they were established in the contract amount.
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