Client Service Details

McCarthy handles your budget as carefully as we manage our own dollars. We practice a continuous process of cost control beginning on the day we are selected as part of the project team. On a daily basis, from pre-construction to close, we focus on realistic budgeting, accurate documentation and ongoing review of costs to achieve the highest efficiencies.

For any project, an accurate initial budget is critical. This early budget can aid in fundraising and long-term debt financing and serves as a cost model or yardstick against which the estimated cost of the evolving design can be measured. McCarthy's budgeting process, performed by McCarthy in-house staff, relies on historical data from hundreds of previous completed projects. Our database can provide accurate cost projections based on program data and block schematic diagrams.

Using McCarthy's Program Questionnaire, we will “fill in the blanks” based on your needs and preferences. Our budget is tailored to the unique features, systems and level of quality you have selected for your project.

We use MC2 software to track the budget throughout the project. Individual activities are assigned accounting codes and tracked separately to provide accurate budget comparisons.

McCarthy's in-house Estimating Department is staffed to handle all project estimating needs. Our team represents the various building systems, including:

• Civil
• Architectural
• HVAC
• Fire Protection
• Structural
• Electrical
• Plumbing
• Specialty Equipment

Drawing upon its extensive historical database as well as current information from vendors and subcontractors, McCarthy provides estimating that not only predicts costs but also functions as a cost control mechanism. Throughout the pre-construction phase, as conceptual information is converted to details, each system cost is compared to the corresponding estimate and updated. As a result, our team readily identifies changes in the project scope and increases in the anticipated construction cost. This allows the team to continue work on cost efficiencies as design efforts progress.

Using MC2 and Microsoft Office software, we provide a pricing framework upon which accurate estimates are built and design decisions are analyzed and tracked. McCarthy's estimators create three complete, independent estimates during the project:

1. Conceptual Program Estimate

Many contractors simply use costs per square foot for various departments to estimate at the conceptual level. This method can cause inaccuracies because it is dependent upon variables such as labor rates, productivity, material costs, schedule and quality of systems, all of which can drastically affect pricing. McCarthy provides accurate conceptual pricing through the use of its exclusive Program Questionnaire. Before preparation of the program estimate, the project owner and design team are asked to complete this questionnaire, which defines the level of quality and types of systems desired for the project. Using this information and block diagrams, McCarthy creates a comprehensive set of criteria which becomes the basis of future outline specifications. The program estimate is then created using unit quantities from McCarthy's historical database.

If the project requires, we can provide program estimates based on block schematic design for numerous alternative schemes that may be under consideration by the owner and architect.

2. Schematic Design Estimate

McCarthy prepares a Schematic Design Estimate based on the team's schematic drawings and outline specifications. This estimate includes measured quantities for architectural and structural items and database estimates for mechanical and electrical systems.

3. Design Development Estimate

At this point, McCarthy's estimates include measured quantities for approximately 90 percent of all items in the project, including mechanical and electrical. McCarthy's management team uses this document as a tool to review the results of the design development effort and once again confirm the project budget prior to issuing bids. We also evaluate subcontractor and supplier bids based on this estimate. From the Construction Documents Estimate, McCarthy prepares the Guaranteed Maximum Price for the project, which forms the basis of the Construction Agreement and includes all total direct cost of the work, subcontractor performance and payment bonds, on-site general conditions, necessary contingencies and cost of customary insurance.

McCarthy is extremely proud of its estimating system, which has been developed and refined over the years. Our historical database and current experience are the key to McCarthy's ability to establish a budget early and control costs throughout the project.

McCarthy's Value Analysis is a systematic approach to maximizing the effect of every project dollar spent.  Essentially, this process evaluates alternative materials and methods to maintain a specific level of performance, but at a lower cost.

Value Analysis is a critical component of our design phase. A systematic approach to maximizing the effect of every project dollar spent, Value Analysis evaluates alternative materials and methods to maintain a specific level of performance while reducing costs. Your McCarthy team reviews all plans and specifications during the pre-construction phase and recommends alternate design solutions that may impact the cost and quality of the final product. Can we suggest more cost-effective materials or processes? Would an alternative design result in improved functionality? We study site, foundations, mechanical and electrical systems, materials, construction feasibility, installation and construction costs and lifecycle costs, all with an emphasis on cost-control and the impact of potential decisions. As with our estimating procedures, our Value Analysis process minimizes variance from the schedule and budget.

McCarthy conducts an aggressive value analysis program in conjunction with the design team, particularly emphasizing areas of high cost and those impacting the construction schedule.  The evaluation process includes cost analysis, identification of alternatives, construction feasibility, considerations relative to labor and material availability, and effect on the project schedule.

The McCarthy project staff provides value analysis input through our involvement in regular team meetings and through special value analysis review sessions by our staff.  At project meetings throughout the design phase, we actively participate in discussions of design issues which affect the project cost.  Our role is to investigate and suggest viable design alternatives that will avoid unnecessary expenditures and provide improved value and economy.  McCarthy provides information on the relative cost of various systems or materials which may be more cost effective so that the architects and owner can make decisions as to the most cost-effective design. During the value analysis review, all expenditures relating to construction, maintenance, operation, and replacement, are considered.

During the program and schematic design phases, McCarthy's value analysis focuses on the major building systems being considered.  Specifically, we examine areas such as the foundations, frame, exterior skin, and roof system. In the later part of the schematic phase and during design development, we examine the building subsystems, such as detailed mechanical/electrical distribution, interior finishes and other details of the design.

It's where the rubber truly meets the road. You can have all the systems, procedures, processes and databases known to man, but if your people can't maximize their use, those systems are nothing more than useless. Which is why McCarthy places such a huge emphasis on finding and training the best construction professionals in America. McCarthy managers average 15 years of service with the company - service which exposes them to a wide variety of project experiences, and service which allows them to flex their "building" muscles. After all, McCarthy managers are just that - builders, which is why their on-the-job, "been there, got the t-shirt" experience can provide real added value to you.

Following award of subcontracts, McCarthy develops an automated, highly detailed Critical Path Method  (CPM)Schedule requiring input from each trade subcontractor. Subcontractors and members of the project team provide written sign-off on the CPM schedule. The CPM schedule is also expanded to integrate full detail for start-up, commissioning and occupancy issues, as they become fully known. Finally, the field staff regularly develops a Short-Term Schedule as a guide to immediate tasks for each trade. This schedule is distributed to subcontractors and foremen to ensure effective work planning.

Throughout your project, McCarthy uses Primavera and Suretrak status and exception reports to monitor schedule compliance. Effects of change orders and contract time negotiations are promptly analyzed and summarized based on their real effect to the network of integrated activities. Weekly updates and meetings with subcontractors and owners resolve coordination issues and develop recovery schedules when needed.

In short, McCarthy provides a system of schedule development and continual monitoring that enables flexibility and encourages communication while ensuring that all work is completed on time and on budget.

At McCarthy we provide quality construction to our clients using the Total Quality Management Process. McCarthy was a pioneer in construction TQM more than a decade ago. Today, all McCarthy employees undergo semi-annual TQM training focusing on internal and external customer satisfaction and new construction techniques. Our TQM program encompasses knowledgeable input into the design phase, communication among all team members, and a focus on inspection and reporting.

In addition to training our own staff, we have found that TQM commitment from all contractors and tradesmen is the key to providing the highest quality work. In order to reach this objective, McCarthy's process includes the following steps:

• TQM requirements are determined early in the project with the owner and architect/engineer team. These requirements are outlined in the project-specific Quality Management Plan for your job.
• All subcontract agreements require that subcontractors must have an acceptable TQM program or be incorporated into McCarthy's program, guaranteeing 100 percent participation.
• Quality control expectations are communicated to subcontractors and vendors during the pre-construction phase.
• McCarthy requires sample mock-up construction to verify that suppliers are aware of our quality standards and specifications required. We've taken mock-ups to a new level, insisting on full-scale on-site models where appropriate. It's your opportunity to inspect, modify and approve your plans.
• We avoid the common "inspection then rejection" mode of operation by directing quality management to the tradesman responsible for performing the work. Our project and field staff monitors ongoing construction to ensure finished work adheres to the quality of the approved sample.
• McCarthy holds regular reviews of project goals and requirements with the owner and design team to measure effectiveness of the TQM program.

The Melvin McCarthy Award is given annually to the best managed project within each division, with criteria including client satisfaction, overcoming tough logistical challenges, schedule control, budget control, quality workmanship and profitability. The motto of all McCarthy projects has now become “Go for the Melvin.” Our teams take pride in providing the highest quality construction available.

McCarthy's TQM process is a practical way of working and a better way of managing that helps avoid costly delays and claims. The complete program is detailed in our TQM Manual, available upon request.

McCarthy embraces a partnering approach, believing that the owner's best interests are served when McCarthy is a full-fledged member of a total project team that is focused on success. By formalizing a long-term alliance among all parties in the project delivery team — this organizational process can encourage progress toward separate but complementary objectives.

Throughout its history, McCarthy has engaged in active partnering with hundreds of clients and their constituents, repeatedly proving that a collaborative effort focused on shared goals can result in improved construction approaches, better adherence to the project schedule, enhanced communication, higher quality of work and, perhaps most importantly, cost savings.  As McCarthy enters into a partnership process with, we strive to:

• Promote a “win/win” approach to the project
• Encourage better understanding of all parties' needs
• Generate pride in being associated with a successful project
• Improve team communications
• Develop problem-solving methods
• Enhance team interaction and eliminate adversarial relationships

Our approach to a partnering process will the team includes:

1. A formal conference with the entire team to establish a cooperative working relationship. During this session, we develop a firm understanding of the goals of the various organizations and team members involved.
2. A half-day of reviewing and redefining the team's goals and objectives.
3. A comprehensive partnering session including subcontractors and suppliers. In this session we review the scope of work, reach mutual agreement as to the mission of the team, establish lines of communication and a problem-resolution process, and address any outstanding issues.
4. Half-day “re-dedications” to renew commitments to the partnering process at several intervals.
5. Continuous evaluation to ensure participation and address issues as they arise.

What makes partnering work?

• Real commitment to each other and to the project's objectives - success is mutual
• Relationships based on trust, respect and shared information
• Investment in partnering by all members of all participating organizations
• Continuous focus on improving the collaborative process among team members

McCarthy places top priority on safety and we make prevention of accidents a top concern on the job site. Our program is nationally recognized – and our safety statistics prove our program works – with incident rates far below industry averages.

Accountability, disciplinary policies, training, inspections, job-site meetings and reports are all critical parts of our safety program. Our safety goals are to:

• Build each of our projects with zero injuries and accidents
• Have the most highly trained and safest employees in the industry
• Protect life, limb and property
• Eliminate liability risk to our clients and subcontractors as well as to ourselves

Our formal safety program is managed by a dedicated staff, which oversees implementation of safety initiatives at the corporate and regional level. On your job site the Project Manager is responsible for safety compliance, including mandatory safety attire, 100 percent tie-offs for elevated work, bank shoring for trenching work and numerous other elements. McCarthy employs a full-time corporate safety/risk manager who monitors all safety initiatives. Each month, company management reviews safety reports on all jobs.

McCarthy's bonus program recognizes employees who work safely.

Policies

McCarthy's safety policies are spelled out in detail in our safety manual (available upon request). These policies are continually updated not only to comply with changes in the law but also to address accident causes and hazards as they are identified. Many of our policies exceed WISHA standards.

Employees, supervisors and subcontractors who do not comply with McCarthy's safety policies and procedures receive written notice of safety violations with consequences up to and including termination.

Training

All employees undergo continuous safety training through new employee orientations, supervisor safety training, OSHA construction safety training and safety“Toolbox” meetings. Employees are trained in proper use of personal protective equipment and emergency procedures. Supervisors participate both as students and instructors, with specific training topics assigned to each.

Safety on Your Job

Each project utilizes its own comprehensive site-specific safety program that begins with the pre-construction process. McCarthy' s safety Risk Manager participates in site construction planning to identify and address safety issues and develop a safety plan that addresses the site's unique characteristics. We complete a pre-job safety planning checklist.

Our program requires all subcontractors to submit site-specific safety plans. All contractors having labor on-site, including all levels of tier subcontractors, submit the following prior to work:

• Company's general safety policy
• Hazard communication data including company policy, project-specific material inventory and applicable MSDS information
• Fall protection program.

Comprehensive job site safety inspections occur on a regular basis, including:

• Daily inspections by foremen and safety monitors
• Weekly inspections with written reports by the superintendent and a labor representative
• Unannounced inspections by the Risk Manager at least bi-weekly
• Project director's safety inspection monthly.

McCarthy holds foremen crew safety meetings daily. Weekly safety meetings are held with the entire crew. Subcontractors are required to conduct their own on-site safety meetings and have a management representative attend weekly meetings.

We identify “long lead time” material and equipment purchases. To ensure timely delivery, McCarthy identifies, recommends for purchase and expedites procurement of any material and equipment which requires long lead time.

McCarthy has a long history as a successful Self-Performing General Contractor. We are capable of self-performing in the following areas:

• Excavation
• Concrete forming, placing and finishing
• Pre-cast concrete panel erection
• Structural steel erection
• Crane hoisting and rigging
• Rough and finish carpentry
• Millwork
• Miscellaneous metals placement
• Wood doors and hardware installation
• Hollow metal door installation
• General labor

By self-performing the most critical work, McCarthy drives the schedule and sets quality standards for the project. We're not just a “broker” of subcontractors. We are a signatory to the Carpenters, Laborers and Cement Finishers unions and have maximized our productivity through strong relationships with these trades.

McCarthy is a leader in self-performed concrete and carpentry work. Our qualifications are evident in the numerous concrete buildings and parking structures we've constructed across the country.

Two schools of thought exist surrounding self-performed work. Some owners might see a conflict of interest in the negotiated general contractor performing permanent construction work, feeling that objectivity is lost. Others believe self-performance can enhance the contractor's control of coordination, pace and sequencing. At McCarthy, we feel strongly that eliminating the general contractor from bidding (especially when it's McCarthy) locks out one of the area's strongest players. While serving as negotiated general contractor, McCarthy would bid on the appropriate packages if the owner concurs.

McCarthy bids on self-performed work competing in the open market, soliciting and receiving bids from other qualified general work bidders. Bids for such work are opened in their presence, with McCarthy's bid opened first, to maintain impartiality. The owner is then assured of a fair, competitive price for the work. As an alternative, McCarthy can perform the work on a demand account, compensated based on the cost of the work plus mark-up.

McCarthy has over the course of the past twenty years implemented a wide range of Minority Business Enterprise (MBE), Women-Owned Business Enterprise (WBE) Disabled Veteran Business Enterprise (DVBE) and Small Business Enterprise (SBE) compliance programs.

M/W/DV/SBE plans and programs can take many shapes, depending on the client's needs.  A number of common elements have been identified amongst the wide variety of owner needs and programs:

• Evaluation of owner's requirements
• Solicitation of disadvantaged business entities
• Evaluation of individual disadvantaged business enterprise capabilities
• Evaluation of proposals from disadvantaged business enterprise on a competitive level
• Reporting of attained levels of competitive DBE contracting
• Mentoring and monitoring of disadvantaged business enterprise performance
• Evaluation of Owner Requirements

Evaluation of Owner Requirements

Owner requirements can involve mandatory and target goals.  Most of the mandatory goals have been confined to the public sector however, given the recent political and subsequent regulatory changes associated with many affirmative action requirements, many of the mandatory levels of compliance have been relaxed or eliminated.

Despite this relaxation, McCarthy recognizes the need for voluntary affirmative action plans within our industry to help foster healthy growth of M/W/DV/SBE businesses.  These voluntary programs require a strong commitment on the part of the owner/client and the contractor as well as the cooperation and participation of the subcontracting community.  The owner must set realistic and attainable targets in collaboration with the contracting community.  These goals must be accompanied by a definitive list of compliance requirements and reporting procedures

Finally, the owner/client must decide what financial commitment (if any) they are willing to make to increase M/W/DV/SBE participation in the project.

Solicitation of M/W/DV/SBE Participation

Blanket solicitation is the first step in the development of a DBE list of contractors.  Many owners and contractors have taken this step on previous projects, however, due to the relatively high rate of turnover in the subcontracting community in general and the small business M/W/DV/SBE sector in particular, it is recommended (and is sometimes mandatory in the public sector) for the contracting entity to advertise in trade journals and newspapers for bids and qualification information.

Evaluation of Individual Disadvantaged Business Entities

Success of the construction team is dependent upon the ability of a diverse group of individuals and business entities to perform the work in a coordinated and timely fashion and for that work to be of the highest quality.

McCarthy's role as General Contractor is to develop and maintain the framework of this team.  This framework includes implementing time proven project management systems at both the pre-construction and construction phase.  One of the first steps during pre-construction is to pre-qualify subcontractors for participation in the project.  This pre-qualification process evaluates a subcontractor's capability to perform on the basis of a number of criteria:

• Proposed Team
• Company Principles
• Experience in the Industry
• Safety record
• Past performance on McCarthy projects
• Past experience on projects of similar size and complexity
• Financial strength
• Bonding capacity; insurance limits

Evaluation of Proposals on a Competitive Level

McCarthy's policy has always been to contract with the subcontractor who can best comply with the requirements of the bid documents and demonstrate the ability to deliver performance of the highest quality in a timely fashion.  When the pre-qualification process is effective, award is in most cases made to the lowest responsive and responsible bidder.

McCarthy has developed a sophisticated process of evaluating complex bid packages and presenting these evaluations.  Spread sheets detail scope items and costs associated with these items.  Our recommendations to the owner in a negotiated contract format can be customized to any required format.

The owner, once presented with these evaluations, can then evaluate economic factors associated with M/W/DV/SBE goals prior to final award.

The term “commissioning” has evolved over the years to include not just testing and balancing of systems but a complete check of the design, installation and performance of major systems. Our Commissioning Program's aim is simple: to ensure that all building systems are fully functional when you occupy the facility.

To that end, McCarthy employs the following equipment start-up and commissioning procedures:

• We develop a Commissioning Responsibility Matrix outlining the roles of engineers, relevant contractors and the McCarthy team.
• Our staff performs constructability reviews of your design and prepares checklists for testing, start-ups and system component verification.
• McCarthy confirms that all equipment and materials delivered meet project requirements and are installed in accordance with manufacturers' recommendations.
• We document that all equipment checklists are properly completed and that individual equipment is started under manufacturer's supervision.
• McCarthy supervises all testing and balancing procedures.
• We provide clear and comprehensive systems documentation and ensure that you staff is fully conversant in operation of all systems.
• McCarthy secures all guarantees, warranties and operations manuals and forwards them to you along with as-built drawings and final paperwork.
• A McCarthy field representative remains on-site for 60 to 90 days after occupancy to ensure that all systems are inspected, tested, balanced and operating properly.

McCarthy takes a systematic approach to post-construction work, and we take pride in our ability to quickly close out projects while not losing sight of the important details. On a recent $150 million project, we closed out more than 100 subcontracts within 45 days of substantial completion, and punch lists were 100 percent complete before substantial completion and owner occupancy.

Our post-construction process begins long before your project is completed. Here are just some of the steps involved:

Close-out starts on Day 1.

At the start of construction, we compile a close-out checklist, a computerized database that monitors required items for final project completion, such as warranties, final lien releases, as-built drawings and extra stock materials. We identify the earliest possible date these items can be obtained and pursue them early so nothing is left incomplete.

We make punch lists a priority.

The McCarthy team is developing - and completing - punch lists long before the architect and owner perform their formal punch list walk-through. Once the formal list is created, we work with individual subcontractors to ensure that all items are completed on time. We perform a follow-up walk-through for verification.

We close out all subcontracts in lightning speed.

We begin by issuing notifications identifying incomplete items to each contractor near the end of the project - items such as punch list issues, O&M manuals, warranties and as-built drawings. We summarize their financial status showing original contract amount, change orders to date and what we believe to be their final contract amount. If the contractor agrees, they sign and return the notification letter. Once all punch list items, final release of liens and other issues are complete we recommend release of their final payment including retention.

We get you in the door on time.

Your McCarthy team works closely with the fire marshal, building department and inspectors to define an occupancy plan. If phased occupancy is desired, McCarthy obtains temporary permits for those early sections in a timely manner.

We follow up on guarantees and warranties.

McCarthy and the project owner establish a date for beginning the Guarantee/Warranty period. The project director follows up on warranty issues and reviews with the owner on a quarterly basis. We first obtain all guarantees and warranties, test certificates and other paperwork required by the contract documents. We present the owner with a bound book of all equipment brochures and operating manuals, including lists of equipment manufacturers and service providers. We also furnish a list of subcontractors including contact information and expiration dates of all guarantee/warranty periods. We coordinate warranty work orders through correction or repair. Finally, McCarthy provides as part of our warranty commitment a one-year warranty inspection.

We tie up all loose ends.

The McCarthy project staff arranges for removal of field offices, termination of temporary services and utilities and final site clean-up and preparation. We obtain final inspections from required government agencies and forward copies of signed acceptance forms to the owner.