CREJ

April 2018 — Health Care Properties Quarterly — Page 3 www.crej.com Today's construction manager/general contractor (CM/GC) selection process is often weighted heavily toward the team's overall fit -- which commonly comes down to values align- ment. Competing construction companies bring their core values to projects and client interactions. When contractor and owner val- ues align, we often enjoy a great project out- come and a natural foundation for a long-term relationship. At Howell Construction, healthcare projects are a major portion of our work, including multi- phased, occupied renovations in operating facilities. We are proud to contribute to the positive impacts healthcare facilities make on their patients and their communities. Like many owners, our healthcare clients who choose the CM/GC delivery model appreciate its advantages in collaboration, schedule, and cost. Both CM/GC and healthcare projects align perfectly with our core values, which include: loving what we do, delivering reliably great performance, acting with honesty and integrity, and collaborating at all levels. Our project teams live these values on every job, which has helped build trust with clients including Denver Health and Hospital Authority, Centura Health Avista Adventist Hospital, Centura Health St. Anthony North Health Campus (SANHC) and UCHealth. The rigorous standards required for healthcare construction, not to mention highly detailed scheduling and phasing, require a team that works seamlessly together. This, in turn, means a team, including all subcontractors, with shared values. Mechanical, electrical, and plumbing (MEP) trades are major players in Shared Values & Strong Team Dynamics Essential in Healthcare Construction healthcare projects and their performance affects quality, cost, scheduling, and material procurement. One very effective way to minimize risk in the execution of MEP trades has been through our early selection process. We request each interested company's manpower rates, fees, and best-value proposals and perform a weighted evaluation of their team, capabilities, and similar project successes. This allows us to understand the overall competitive market and select the team that fits best, minimizing the related risks and giving our owners outstanding project outcomes. In addition to cost savings, early awards allow the critical trades to work directly with the engineers and architects to fully develop material and equipment requirements at the onset of design, a tremendous advantage in expediting submittals and procurement. In the current climate, speed to market is critical; having materials and equipment on site at the start of construction plays a significant role in project success. Additionally, having subcontractors engaged early can help us ascertain the phasing and schedule needs for MEPportions of the project. In operational healthcare facilities, minimizing the impacts of construction involves multiple aspects, including noise, dust, and other environmental concerns, uninterrupted critical patient care, and interim life safety measures. Typically, constructing these types of projects requires some sort of “hopscotching” through the building, creating the need for accurate scheduling and phasing, not to mention v igi lance about pat ient safety and construction quality. With the early involvement of MEP trades, these plans are more fully developed and reviewed by the complete team, creating buy-in that drives a successful, efficient project with minimal impacts. Full cost transparency is another tool we use at Howell to solidify the trust created between the owner, the CM/GC and the design team. On several projects for SANHC, we selected our MEP subcontractors early and entered into a Guaranteed Maximum Price (GMP) agreement with them instead of a standard lump sum subcontract. This opens the subcontractor's books and gives the owner the full benefit of the direct award process. Taking this approach on our most recent project for SANHC, we shared the subcontractor risk and saved the owner nearly 20 percent on the cost of the MEP trades. All subcontractor pay applications were backed up with vendor invoices, labor tracking with agreed-upon rates, and fee breakouts to align with the cost-plus fee agreement. In a market where costs are higher than ever and subcontractors are naming their price, our shared values-driven approach and process has built solid, successful partnerships with both our clients and a roster of qualified subcontractors. Everyone is winning, with the subcontractors making their fees, projects being delivered to market on time and owners maximizing their budgets through the CM/GC delivery method. HEALTHCARE ADVANCED INDUSTRIES GENERAL COMMERCIAL CORPORATE INTERIORS Years of Always 83 Great Performance www.howelldenver.com Howell Construction’s Healthcare Management Team Top: Todd Berry, Marcus Pickworth Bottom: Andy Stewart, Mike Christensen Howell Construction Healthcare Team at Denver Health & Hospital Authority Please contact us at Howell Construction if we can help you with your next project, 303-696-5800, www.howelldenver.com