Hybrid Construction Model
Allied Facility Partners has developed a Hybrid Construction Solution that addresses new construction/additions, as well as projects with large amounts of non-energy related work to be performed. This solution utilizes both Guaranteed Energy Savings Contracts (GESC) and the more common Plan and Spec procurement method, but with Allied, the customer will receive guaranteed pricing for both, with no change orders. For work that falls within the purview of GESC, Allied utilizes Article 105 ILCS 5/19b, typically this includes any work that involves mechanical, electrical, plumbing, and building envelop scope. For work that falls outside of GESC criteria, Allied uses the conventional approach of creating plans and specifications and publicly bidding those portions of work, accepting the lowest responsible bidder. However, the approach Allied uses for the conventional approach is unique.
The average markup above and beyond the actual subcontracted costs of a project, based on typical Architectural fees, Construction Management Fees, and associated expenses charged by those two groups, as well as a normal contingency, is approximately 45%. Smaller projects can be as high as 60%. Allied works with the school district to negotiate a total markup that is usually 15-20% below the average. Allied will manage the design, development, and bidding process and when the final bids are received, Allied will apply the agreed upon total markup to the bids and takes full responsibility for items missed in the design and specifications. This means the school district will have a guaranteed price for both portions of work, will have an immediate savings of at least 10% of the total cost of the project, in addition to savings our development team will help achieve, and the district will have NO CHANGE ORDERS on the project.