Before we get into the 5 reasons, let's make sure we've got a clear understanding as to what a Guaranteed Savings Contract (GSC) is. A GSC provides a method for selecting a contractor for water, wastewater and energy projects utilizing qualifications. GSCs preserve the strengths of design-bid-build (DBB), while incorporating the value and performance benefits of design-build (DB). They are primarily intended for the replacement of something that is failing. One example would be a failing water main, with the curb and pavement above the main also included in the GSC. With that said, here are 5 reasons why a GSC might just be the right thing for you.
1. Pick Your Own Contractor
Choose from qualified contractors who will work with you to give you what YOU want and need. Contractors must hold both designer and contractor certificates and are held to a higher standard. These contractors must perform at least 20% of the project work themselves and can work with you to hire local subcontractors that may already be familiar with you and your facility. A GSC skips the bidding process, allowing the contractor of your choice to coordinate on the project during design to better prevent common construction setbacks.
2. Choose Your Price
Don’t stress about change orders or unforeseen challenges that could add to the project cost later. A GSC allows you to work with the contractor on a budget that won’t cost you extra in the end and benefits both sides. GSCs also include Open Book Pricing so that you can see where and when your money is spent, and a Max Price with no change orders so that you can sleep easy knowing that you will not be spending more than the agreed amount. Also, any money you don’t spend on the project comes back to your pocket or allows you the ability to include more infrastructure improvements through the existing contract.
3. Vintage to Modern
Whether it is retrofitting to increase capacity and efficiency, or installing something brand spanking new, GSCs can be considered for several capital improvement projects. Capital improvement projects with a total cost that is less than 15% of the GSC contract value can be included in the project. This allows you to utilize the already working GSC contractors for your capital improvement project, rather than bidding a separate project in the future, saving you money on design, bid, and construction costs in the future.
4. It’s My Project and I Want It Now!
Because a GSCs layout is facility-friendly, the projects will have accelerated schedules, giving you what you want and need, ASAP! Early contractor coordination and no change orders are a part of what creates the ability for a quicker project completion. Choosing a qualified contractor before the design portion is done allows the project to start and move forward as individual elements are completed.
5. Big Spender No More!
GSC’s guarantee you will save money in at least one of the following areas:
- Energy Costs
- Operating Costs
- Rising Future Construction Prices
- Maintenance Costs
Saving you money throughout the years to come!
So you are probably curious and have some questions, right? Send us an email or give us a call. Our team of engineers are ready and willing to help you decide if a Guarenteed Savings Contract is right for your project.