Risk management
The integrated design-build team collaborates on design and construction solutions from the beginning, yielding better information about cost and constructability and preventing the development of a design that does not fit the project budget. This early information also leads to the establishment of a guaranteed maximum price (GMP) sooner than in the design-bid-build process, reducing the owner’s financial exposure in the planning phase. Cutler Associates uses a two-part agreement in which the owner first contracts for design and preconstruction services leading up to the establishment of the GMP. Cutler’s part-one fees are usually considerably less than the owner would spend on full architectural and engineering services in a traditional process.

Once the guaranteed maximum price is established and accepted, the risk of cost overrun is transferred to the design-builder. The owner retains the majority of the savings if the actual cost is lower than the contracted amount. The flexibility of this delivery system allows the project team to identify a potential savings and parlay that money into scope enhancements, if the owner so chooses. Competitive bidding of trades ensures optimum pricing on all aspects of the work.

Cutler Associates believes that risk should rest with the party that is in the best position to control it. As experienced design-builders, we are adept at managing the factors that create risk. This skill enables us to deliver high-quality projects on shortened schedules at highly competitive prices.