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Outback Power Technologies

After being unable to reach a satisfactory arrangement with their original design/build contractor, Outback Power Technologies was happy to engage the Project & Construction Management team at Kidder Mathews as project manager for their new facilities.

Project Outline

Outback Power, a subsidiary of major international technology organization, The Alpha Group, is a leading designer and manufacturer of reliable power electronics for renewable energy applications. Up until spring 2013, they occupied approximately 18,000 square feet of combined office and engineering space in two separate locations. They were, at one time, spread between five buildings.

In October 2012, we were introduced to Outback with the objective of providing consultative services on their ongoing negotiations with a design/build contractor regarding their move into a 30,000 square feet facility that Kidder Mathews industrial specialist, Brian Kenworthy, had located for them. Over the next couple of months we advised them as their negotiations with the design/build contractor continued. Meanwhile, their planned occupancy date of March 2013 for their new space was getting closer, but with no actual construction contract in place. In late December 2012, Outback requested that we expand our role to a full project management service as their occupancy date was approaching and they had still not come to terms with the design/build contractor. An agreement had not been reached for project costs, particularly as it related to general conditions cost, mark-ups on sub trade work, and fees. For these combined costs the contractor was requesting four or five times the current accepted industry standard, for ultimately what has amounted close to $900,000 construction cost.

Results

With just six weeks remaining before Phase 1 of their new facility had to be completed, we successfully negotiated a contract with Unimark Construction at very favorable terms, 6% for general conditions and a 2% contractor's fee. Phase 1 was completed on time, despite the challenges of the ongoing design development process that had not been completed by the design/build contractor. Phase 2 was completed as scheduled in April.

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Services Provided

  • Protection of tenant interests
  • Construction oversight
  • Financial analysis
  • Consulting
  • Contract negotiations