Construction Cost Reduction

McKenzie-Douglass is committed to finding the financial waste that occurs in, and needlessly inflates, nearly all construction bids, eliminating it, and redirecting those resources to better use and a more cost effective project.

Why You Should Work With Us

There is, on average, at least 15% waste in nearly all subcontractor’s and material supplier’s construction bids, even in the most competitive market. It is waste that neither the subcontractor nor the prime contractor know exists when the contracts are signed.

The waste exists because the subcontractors, fabricators, and suppliers providing pricing to the prime contractor commonly don’t fully understand the project’s intent, and less expensive alternative solutions are seldom explored. Bidders miscalculate that which is required to complete the work, and make common but substantial errors in the subcontractor bids that the prime contractor knows nothing about. The accumulation of these inaccuracies in the bid preparation accounts for a significant inflation of the bid price. Even the low bids are inflated, usually by 15% or more.

Many of the errors made preparing these bids will ultimately be found, but by the subcontractors or suppliers who made them, and only after the contract has been signed and the money has been spent, keeping the found money for themselves. McKenzie-Douglass identifies the bidding errors, finds the wasted money, and returns the savings to its rightful owner.

Our services are intended to supplement the efforts of the project team, not replace them. But with our work added to the team effort, project costs are customarily at least 15% lower than what can be achieved through conventional contract procurement efforts.

The best guess at the low bid is no substitute for effectively managing its cost.

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