When notified by the Construction Manager that the budget for steel construction would have to be increased from $52,000,000.00 to $56,000,000.00 after an earlier
increase from the original budget of $45,000,000.00, the Owner decided to bring in The Steel Construction Group (SCG) to help develop a procurement plan which would rely heavily
on the use of off-shore procurement to control costs.
Total Steel Savings - $15,000,000 |
After their initial analysis revealed that the structural steel framing system did not have sufficient complexity to allow full savings from the reduced labor cost of using off-shore fabricators, SCG recommended that a new approach to steel procurement using U.S. domestic fabricators but a more "hands-on" pre-approval and bidding procedure would lead to enough savings to warrant reducing the budget for structural steel to $44,000,000.00.
With some reservations being expressed by the Construction Manager, the Owner accepted the recommendations made by SCG with the stipulation that off-shore pricing should still be developed and compared with domestic pricing. The final Procurement Plan developed and implemented by SCG called for a steel budget of $44,000,000.00 and the award of steel contract to domestic contractors if the domestic pricing at bid time was within budget and no more than $3,000,000.00 higher than pricing received from off-shore sources.
Upon receipt of steel bids an award was made to the lowest, qualified domestic bidder at approximately $41,000,000.00 which refl ected a savings to the project of approximately $15,000,000.00. The lowest off-shore pricing received totaled $39,000,000.00 making the domestic pricing within the $3,000,000.00 window previously established.
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Principals in The Steel Construction Group, llc. have spent their entire careers in steel construction and, by doing so, have acquired "hands on" experience that can only be gained by working in the steel industry. They are widely known as dependable steel contruction project consultants.
