Fiduciary Partner Model Analysis Cost Savings 17%

JCAT was invited to bid on a tenant build-out in Atlanta, GA. We explained to the Client that we could approach the build-out in two ways:

1. Traditional GC Model
   Under the model used across the industry, JCAT would submit a bid based on the property manager’s scope of work. JCAT competes against other General Contractors, largely based on price, to win the project. The property manager selects the GC of her choice and oversees the that GC until project completion.
2. Fiduciary Portfolio Partner Model
   Alternatively, JCAT could serve as a fiduciary partner to the Client. In this role, JCAT would assess the project, define the scope of work, obtain three comparable bids for all sub-categories, vet each bid, and help the Client select the best option to deliver the project on time and within budget. After the selection, the Client could either manage the construction directly or hire JCAT to manage it at cost + 20% margin without the assistance of the property manager.

Result: The Client chose the Traditional GC Model and solicited bids from three GCs, including JCAT. All bids were within 10% of each other proving the scope of work was well understood. However, when comparing the Traditional GC Model to the Fiduciary Portfolio Partner Model, the data shows a tangible savings of 17% with the Fiduciary Portfolio Partner Model.