FAQs - BUDGET AND CONTRACTS

What is included in the scope of your services?  
Hewlett Spencer is a full service “owner’s advocate” development firm.  We handle everything associated with the building program so that you don’t have to. Our firm manages all items from selecting and evaluating land sites to the warranty period after the completion of a project.  

Services include:
    •    Complete pre-construction program resulting in a 100%   
    •    Guaranteed Maximum Price and delivery date.
    •    Phasing and scheduling program to minimize disruption and construction time.
    •    Legal document review
    •    Contract negotiation
    •    Complete project administration
    •    Project close out
    •    Warranty Administration

What do you include in construction costs?
All of our jobs are lock and key.  Everything is included to complete the scope of work.

Does you company offer a guaranteed maximum price?
Yes.  A true Guaranteed Maximum Price that allows the BOE to know the maximum amount they will spend on a project before ever breaking ground.  Our Guaranteed Maximum Price ensures no change orders ever go back to the Board.   The Guaranteed Maximum Price places all the costs and risks associated with the building program with Hewlett Spencer and not the BOE.  The Hewlett Spencer method places full liability on our team, and we provide 100% payment and performance bonding to assure completion within the Guaranteed Maximum Price.

Is your fee based on bid price or completion cost?
Our fee and the terms of our savings incentive are negotiated with you on the front end of the project and is included in the Guaranteed Maximum Price.

Do you add profit and overhead to the cost of change orders?
We don’t have change orders in our process.  The Legal and Financial structure we provide to you prohibits us, our contractor and sub-contractors, suppliers, architect and engineers from submitting any requests for change orders that would increase the cost of the project.  Only the School Board/County can ask to add items that would cost more than the agreed to guaranteed maximum price.
What pre-construction services do you offer to help a project stay within budget?
This question goes to the very heart of what we do and separates us from the competition.  Even during conception of a project, we assist with the planning by utilizing a key member of our team, Dr. Jack Owenby, former head of the TSBA, in school planning.  We assist in land purchase and site evaluation to ensure the most economical placement of a facility.  Our team will spend substantial time with key architectural, engineering and construction disciplines on the front end of the project to ensure the least amount of risk for the project.  Our team analyzes every aspect of the plans and specs as they are being developed to come up with the most cost effective and most efficient form of constructability.  Other processes do not carry the risk we have, so they are not incentivized to ensure this type of detailed work on the front end.

How do you handle a project that comes in over budget?
We have never had a project come in over budget because of our rigorous pre-construction services program and financial administration during bidding and construction.  Utilizing the Guaranteed Price process, if a project does come in over budget, then Hewlett Spencer is contractually responsible for those costs and not the County.

What are your typical reimbursables?
Reimbursables are a profit center for the construction management process, not ours.  We only bill for direct job costs.  These job costs are covered under our Guaranteed Maximum Price.  With certain types of contracts ie: Cost plus contracts, reimbursables can be a profit center for the contractor, our process does not allow for this.