Client
Boat Dealer
Role
Construction Manager
Under Budget
12%
Below Competing Proposal
37%
A great lakes boat dealer was expanding operations and wanted to construct a 70,000sf sales and storage facility along Lake Michigan. The property was owned by the Port Authority and under the city building department’s jurisdiction. Additionally, the site was within a Superfund (EPA) contamination site. Another challenge was meeting the client’s budget.
The Challenge
Direct Steel and Construction (“Direct”) was introduced to the Client by a trusted advisor of the Client after another general contractor provided a proposal roughly 40% over the budget.
During the due diligence phase, many challenges were identified, including:
- Construction on the site would require a lot of navigating because the project was on property owned by the Port Authority and within a Superfund site (environmental issues) for which the adjacent property holder was responsible but impacted the Client’s site.
- The budget was capped in order for the Client to obtain financing, however the design/build proposal received from another general contractor came in around 40% over that cap.
- Design review approvals had already been obtained utilizing the above referenced general contractor’s preliminary elevation which restricted the choice of materials and value engineering options.
- The project needed to be completed in time for winter boat storage, but finance approval would delay project commencement.
- The Fire District initially sought maximum fire suppression requirements, which added significantly to related costs
- The Port Authority had an agreement with the Client which included additional construction related items not covered in the previous general contractor’s proposal.
Steel frame going up beside the marina
What Direct Steel Did
As Construction Manager, Direct added value in many ways including by:
- Identifying property was within an Enterprise Zone which allowed sales tax exemption on construction material.
- Creatively working with the Port Authority and EPA to minimize site related contamination generating savings of about 20% of the project budget.
- Working with the architect and engineers to clarify building usage to the Fire District. This ultimately allowed the District to approve an alternative fire suppression system which yielded further savings of about 5% of the project budget
- Completing the project about 12% under budget, and around 37% below the initial design/build proposal despite accommodating additional Client scope requests and Port Authority requirements
- Finishing construction in time for winter storage despite many delays beyond Direct’s control.
The Result
The facility was completed in time for winter boat storage, about 12% under budget and around 37% below the design/build proposal that preceded it.
Finished storage facility with boats inside