MCM, Inc. Frequently Asked Questions and Owners Check-list

The following are answers to frequently asked questions and an owner's check-list to assist you with your future construction plans. It outlines items that are typically asked by the owner or developer. MCM, Inc. has the ability to offer different levels of service including Construction Manager, General Contractor and Design-Build. The following is designed to be an informative tool as you review your construction project and determine what items need to be included in the overall scope of work and budgeting process. All of the conditions listed below may not apply to your particular project. Through our team of experienced professionals, we work with owners, both independent and corporate, drawing on years of experience to suggest possible design and cost saving alternatives. MCM, Inc. is unique in many ways, having the ability, through different divisions, to handle projects ranging from new multi-million dollar facilities to the simpler re-imaging/re-modeling projects and maintenance programs you may require.

1. Why use a Design-Build Contractor?

"Design-Build" agreement simply creates a single contract with the Owner and the Design-Builder, instead of separate agreements with an Architect and a Contractor. This gives the owner one focused point of contact for his project. Services provided may include programming, design, construction and associated administrative services. In many cases the services of the Design-Builder begin at the inception of the project and continue through the construction. The responsibilities are shared between the Architect and the Contractor during both the design and construction phases. It has been continually shown that the Design-Build model provides better results through lower costs, quicker schedules and a more satisfied Client. Final cost for the project is guaranteed and/or controlled. Owner works with a single entity. Financing may be easier to acquire for the owner with early prices in place, which determines the over-all credit rating for the project. The owner has greater input in the initial design and decisions are made earlier. Rather than waiting for the entire design to be completed, construction begins earlier and a project has potential of finishing earlier. Solutions for designs are faster and cost less. The Architect and Contractor engage in a Team approach, which results in fewer change orders.

2. How does Construction Management work?

CM-at-Risk is a licensed General Contractor who proposes to build a turnkey project for a guaranteed price. The contractor will provide services to the owner from the pre-construction phase to completion. These services would include preparation and coordination of the bid packages, scheduling work, value engineering, general contractor services and the associated administration services. For the owner, there is a distinct advantage to having the CM involved with in the project in the very early stages. By doing so the CM gains a better understanding of the owner's goals and concerns and is able to offer a higher level of service. With one single contractor guaranteeing the maximum cost of the project the owner has a single contact/builder who will be held responsible for ensuring that the project is on time, on budget and ran smoothly. This eliminates the concern for the owner of which multi-prime contractor to hold responsible in the event of project delays or cost overruns.

3. As an owner, can I start out with a Construction Management agreement and move into full General Contracting services on the project?

Yes. With the CM portion of the project underway, the transition to the scope of work as a GC should flow smoothly because now the information is already in place and can be utilized to begin the construction phase of the project with no delays.

4. At what point should I talk to an architect or engineer?

Once a budget is in place, along with financing and land initial approvals, then the design portion can begin. MCM, Inc. can assist in selection and qualification of the design team and materials being selected.

5. Can a CM assist with my project financing?

Yes. Along with helping to develop an initial budget, a CM can: Assist in locating financial institution. Review various loan packages; SBA, Conventional, Leases, 1033 Exchange, etc. Provide Budget analysis for financial institutions in helping secure the loan.

6. How should I get my project permitted?

Along with the selection of the design team, the initial application to the Planning & Zoning Department and other various departments can be achieved concurrently with the CM. The CM can coordinate all of the necessary submittals to shorten the approval process.

7. As an owner what information do I need to provide to the CM or GC to start the process?

Site Selection Type of project Financial Concerns Schedule Jurisdictional concerns Development fee info Special needs

8. What are the typical Owner expenses?

Insurance: Builders risk for the contractor's work, owner's work and owners property Owner’s loss of use, earthquake and or flood insurance Letters of credit or bonds for public improvements Fees: Architectural fees (including soil, civil, mechanical, electrical, structural, landscape) General contractor fees Electrical and gas service e.g. Excel Energy Water tap fees, sanitary sewer, waste water sewer development fees Setting of property pins Topographic survey Health department Zoning or assessment fees Traffic bonds General Building permit fees (GC to submit permit and obtain when approved, owner to reimburse GC) Testing Soil compaction, asphalt, concrete, masonry Hazardous material survey if existing building present Structural steel Taxes Use taxes tied to the building permit (Except in certain areas) Sales tax on construction

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