P ROJECT M ANAGEMENT

1. The FORE SIGHT Partners PROJECT MANAGEMENT

2. The FORE SIGHT Partners Owner Support Professional Services 2

3. The FORE SIGHT Partners Owner Support Professional Services Development • All Risk Placed Upon 3rd Party • Build – To – Suite • Sale / Lease Back • Financing provided • Greatest Risk = Greatest Reward Program Management • Simply Stated: Manage a Program of Projects • Involved Start to Finish – Broad Services • Anchor in A “Project Management Plan” • Not to be Confused with “Programming” or Defining Needs/Spaces 3

4. The FORE SIGHT Partners Owner Support Professional Services Project Management • Most Applied (used) Services • Also Called “Owner Representation” • Architect Usually is already On Board • Owner Faced With Many Issues / Decisions (Time / Knowledge Factors) Construction Management • Can involve one or many contracting entities • Two Types: At Risk (General Contractor) Agency (Owner’s Agent at Jobsite) • Narrower Set of Services • Is also known as a “Negotiated” Approach 4

5. The FORE SIGHT Partners Project Delivery Systems 5

6. The FORE SIGHT Partners Project Delivery Options Design / Bid / Build • Traditional Approach most used by Public Agencies • Architect designs; Contractors bid; Contractor builds Construction Management at Risk • The CM is selected on qualifications, but is still a General Contractor • Owner participates in sub-contractor bid openings and qualifications 6

7. The FORE SIGHT Partners Project Delivery Options Negotiated Contract • Select contractor on qualifications, fee amount (profit), and jobsite costs (General Conditions) • GMP (Guaranteed Maximum Price) based on cost Design / Build • Design-Builder is single agent/vendor • Architect is sub-contractor to builder 7

8. The FORE SIGHT Partners Design/Bid/Build Approach Approach • A/E is selected by qualifications or qualifications/price • A/E prepares design to 100% construction documents • Open bidding to general contractors • Award of contract to lowest responsible bidder • Construction start after award of contract Variations • Through PM/OR client can bid out “packages” or phases of the work to multiple general contractors • Drawings can be bid at less than 100% completion to get project priced and site-work started 8

9. The FORE SIGHT Partners Design/Bid/Build Approach ADVANTAGES • Draws upon core skill sets of all parties involved • Works well with repetitive similar projects • Works well in public work • “Best price” potential • Owner has control over risk issues • DISADVANTAGES • Very limited control over subcontractors & suppliers • Limited or no contractor price/schedule input during design • Prone to change orders • Owner has responsibility for most external risk issues • Construction difficult to start before completion of 100% design 9

10. The FORE SIGHT Partners Construction Management at Risk Approach • Construction Manager (“CM-at-Risk”) selected based upon Qualifications and Fee • A/E prepares design in multiple “packages” of 100% CD’s for “Fast Tracking” of construction • Owner, with the advice of the CM, conducts pre-qualified bidding to prime contractors or sub-contractors • CM manages site general conditions and coordination • Contracts may be held by the Owner, with CM receiving a fee for work 10

11. The FORE SIGHT Partners Construction Management at Risk • DISADVANTAGES • A/E costs may be higher • Coordination between trades and packages are more complicated • Potential loss of General Contractor “buying power” • Cost not final until all bids received • Some responsibility over work scheduling & subcontractors rests with owner ADVANTAGES • Teamwork enhanced • Fast tracking allows fully developed design with a short schedule • Transparency of cost thru open bidding • Owner control over entire process • Construction input during design • Maximum flexibility to adjust project costs 11

12. The FORE SIGHT Partners Negotiated Contract Approach • A/E selected by qualifications or qualifications/price • General Contractor selected on qualifications, fee and job general conditions • Contractor pricing evolves into a Cost of the Work with a Guaranteed Maximum Price (GMP) Contract • Construction can start prior to design completion with early packages Variations • General contractor may be selected based upon performing an early project pricing (50% Design Development) as well as above criteria • GMP can be followed with CM (“At Risk”) open bidding to subcontractors • Final price can “float” up to GMP… • Or “shared savings” up to GMP with owner…Or a firm fixed price can be negotiated 12

13. The FORE SIGHT Partners Negotiated Contract • DISADVANTAGES • Relationship of Owner and GC after GMP can conflict • GC responsible for obtaining sub-contractor pricing • Lots of GC “substitutions” • Difficult to do in a pubic arena • Changes after GMP are essentially change orders ADVANTAGES • Teamwork enhanced • Construction Input during design • Cost “guarantee” prior to design completion • Construction can start before design is complete 13

14. The FORE SIGHT Partners Design-Build Approach • One Design/Build contract with owner • Planning/programming prepared by owner or consultant • Owner issues RFP with scope and performance specifications • Design/Builder selected by qualifications and price, and schedule • Design/Builder completes the design and builds the project Variations • Design may be advanced to approximately design development for bidding to Design/Builders (“Bridging”) • Design/Builder may include financing and complete up front services (“Turnkey”) but limits available firms • Design/Build package may be complete “build-to-suit” with a lease-back or lease-to-own • May include full operations including staffing (“Design-Build-Operate”) 14

15. The FORE SIGHT Partners Design-Build • DISADVANTAGES • Designer is contracted to builder • Quality can be difficult to verify prior to completion • Owner gives away control for single point of accountability • Changes after pricing must be treated as change orders • Difficult to handle complicated projects • Quality tends toward minimum to meet requirements • Fair price competition difficult to verify ADVANTAGES • Single point of contact • Works well with specific, uncomplicated projects • Can move a project forward very quickly • Early cost guarantee • Can obtain best price for performance • Changes tend to be easy but costly • Construction can start after very preliminary design 15

16. The FORE SIGHT Partners Which Approach is Right for You? • Is any approach superior - No! • Some Owners use one approach exclusively • All approaches can be completed successfully • The drawbacks of each of the approaches must be analyzed against the projects goals. • There is a ‘best choice’ for the particular needs of your project. 16

17. The FORE SIGHT Partners Why Hire A Project Manager? 17

18. The FORE SIGHT Partners Why Hire a Project Manager? • A PM brings focus, order and organization to a project • Our initial budgeting and scheduling gives parameters and direction • A PM gives momentum through Leadership, Discipline and Daily Management • Allows the Client to manage their core work, allowing staff to be successful with their jobs, not “on the job” learning of building a project. • We become your staff extension…accountable to you. • A PM knows what questions to ask, and the foresee the risks ahead....and alert the Owner to issues. • A PM assists in project accounting and billing approval. We are an accountable entity of your finances. 18

19. The FORE SIGHT Partners Why Hire a Project Manager? • A PM leads and manages the team of Architect, Contractor, and Owner. You, as the Owner, are represented strongly, and equally at the team table. • A PM fosters communication and provides clear, consistent direction as the Owner’s Advocate to move the project forward. • A PM manages and coordinates all of the other project components that are outside of basic building construction: • Move-In/Move-Out • Vending/Kitchen Equipment • Environmental Testing • Geo-technical survey • Materials Testing • FF & E • Project Insurance and Bonding • Security • Voice/Data • Graphics & Signage • Utilities • Roads and Access ways • Landscape & Hardscape • Exterior Lighting • Fixed Equipment, Casegoods or Speciality Equipment 19

20. The FORE SIGHT Partners Why Hire a Project Manager? • We can provide you with state of the art PM tools to keep your project on budget and on schedule, or to implement a system to match the needs of your accounting system. • Having experience with the various delivery systems available, we will assist you in selecting the approach that is best suited for your budget and schedule. • We assist you in the selection of other speciality consultants and monitor their work. We develop RFQ’s to solicit general contractor interest and provide the selection criteria and framework to select the most capable contractor. 20

21. The FORE SIGHT Partners Why an Owner Needs Professional Services • Distinct requirement for professional advice & professional services • Lack of knowledge and familiarity with current delivery systems • Lack of knowledge with current contracts • Full time staff is expensive & difficult to retain • Sophisticated expertise may not be available on staff • Many public & private owners face similar problems 21

22. The FORE SIGHT Partners Our Project Management Process Responsive & Adaptive 1. PROJECT MANAGEMENT PLAN Owner's Objectives Delivery Strategy Resources Risk Assessment 2. PROJECT ORGANIZATION Project Team Roles & Responsibilities Diversity and Opportunity Communication 3. PROJECT SCOPE Market Feasibility Analysis Project Program 4. TIME MANAGEMENT Master Schedule Phases Milestones • 5. BUDGET • Development Budgets • Uniformat Estimates • Construction Cost Estimating • 6. PROCUREMENT • Professional Services • Minority Goals • Building Contracting • Bond Financing • Payment Systems • 7. REPORTING • Weekly • Monthly • Project Closeout • 8. QUALITY CONTROL • Do it right the first time • Jobsite safety • Clean Jobsite 22

23. The FORE SIGHT Partners Our Project Management Process Responsive & Adaptive • Overall Goals: • Exceed owner requirements • Lead the team - Initiate..don’t react • Pre-planning and unit mockups • A “claims prevention” attitude • Develop a “win-win” team atmosphere • Take a proactive approach to head off problems 23

24. The FORE SIGHT Partners Our Project Management Process Responsive & Adaptive Communication: • Weekly progress meetings • Daily contact with the Owner / Architect / Contractor • Kick off meetings with sub-contractors • Frequent coordination meetings with vendors • Listen / Speak / Review Project Documentation: • Review all cost and schedule issues weekly • Daily jobsite reports to the client • 24-hour turnaround on minutes and correspondence • Written documentation of all pertinent matters • Organized filing of all project documentation • Electronic drawing, RFI, and submittal logs • “Maintain” electronic drawings 24

25. The FORE SIGHT Partners Why Chose Us? • We are Professional Program Managers, not architects, general contractors, or developers • 100% of our current workload is Program Management • Offices in California, Nevada, Texas, Illinois, New York & Florida • We understand and have experience in risk taking • State-of the-art Scheduling services • In-depth Value Engineering experience • Seasoned professional staff committed to your project • Personal service our hallmark • Desire – We want your business! 25

26. The FORE SIGHT Partners PROJECT MANAGEMENT