Stretching Your Building Dollar

by David Burt



In the following article, the cost and time implications of several different approaches to purchasing building construction are examined. It is found that on a typical 130,000 square foot building, savings of $700,000 are most likely through selection of one of the contracting methods, which are described in this article. In addition, use of this method is associated with a most likely reduction of 140 days in the time required to obtain this facility. The author examined the construction industry from the point of view of purchaser of building construction. Builders, architects, engineers, and individuals responsible for purchasing building construction were interviewed. Data were obtained on 112 light manufacturing plants constructed in the United States during the period 1960-1970. As a result of the interviews, it appears that five major approaches are commonly employed to purchase building construction. These approaches are examined and the procedure for selection of appropriate contracting method is outlined.

California Management Review

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