People often throw around the phrase “I’m an open book,” when talking about themselves, but rarely do they follow through on the level of transparency it suggests. But when it comes to construction, having an “open-book” pricing method requires complete transparency between the owner of a project and their design-builder or contractor. When pricing out the cost of a tenant improvement (TI) project, there are several methods of costing you can choose from, like the “lump sum” or “cost plus fee” models. But these pricing methods close the books, and while they can often simplify the payment process, they also somewhat remove the owner from the conversation about the cost of a project.
At South Bay Construction (SBC), we favor the open-book pricing method for many different reasons. We believe in transparency with our clients, and we want them to feel like they are always a part of conversations about their tenant improvement projects.
We believe open-book pricing is the basis for a type of contracting effort that in time will become the new normal. In business, and particularly in construction circles, the principles embodied in a design-build project—teamwork, transparency, and fairness—have made timesaving and cost-reduction efforts not only possible but almost standard. By bringing owners, contractors, and architect/designers together in a truly cooperative way, a project can be developed and completed with no delays and seamless efficiency.
When all parties involved in a construction project are on the same page from the start, and they commit to working together to achieve a single goal, there may not always be a consensus. But finding a workable solution should be easy and painless. If there are differences of opinion, it is always easier to solve a problem when all interested parties can meet around a single table.
Being able to easily convene is part of the beauty behind the concept of an open-book, design-build project. As professional contractors in Silicon Valley, we have had our share of success in traditional design-bid-build projects and with shell construction, interior build-outs, renovations, and rehabilitation projects. But we prefer an open-book/design-build approach, particularly for TI projects. Here are eight reasons why:
At South Bay Construction, we have 40 years of experience with tenant improvements for R&D and tech firms of all kinds, addressing the need for new technologies, modern materials, and sustainable practices. We have built our reputation on trust and on our ability to deliver what we promise.
Simply put, that’s why we support open-book pricing and design-build projects — the collaboration, transparent budgeting, and open design approach benefits everyone involved.
If you have questions about just how well it works, you need look no further than the fabrication plant that we completed for Thin Film Electronics ASA. With a time frame spanning only three months, we were able to decontaminate the former space and decommission equipment effectively, add a Class 1000 cleanroom, and thoroughly meet all safety specifications and corporate needs. It was the collaborative aspect of the design-build project that made it all possible.
For 23andMe in Mountain View, we used the open-book and design-build concepts to completely refinish three floors of their office. The existing shell was turned into a showpiece office environment complete with a fitness facility. The build-out included polished concrete floors, use of reclaimed wood panels, open ceilings, and floor-to-ceiling glass walls for a work environment that is truly spectacular.
When we bring our expertise to a design-build project with an open-book budget, our projects are completed within the time constraints and on budget. It’s a win-win for everyone — the project owners, South Bay Construction, and the employees who get to move into their new facility sooner.
If you are interested in starting a TI project or just want to learn more about our collaborative approach, here at SBC, we’re ready to help you get started.
Photos: SBC, Shutterstock / wavebreakmedia, SBC
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