Lump Sum Grading Contract? Owners Still Need Site Intelligence Software

Owners should own their data‍

Grading contractors are often under a lump sum contract, so owners don't want to pay extra for drone flights and site intelligence software. Here's why they should:‍

Delays are expensive!‍

What does a two-week delay cost? Let's break it down.

Let's say the cost of money on a $10 million project is 6.5%. A two-week delay would cost the owner $25,000 ($1,800/day) on the cost of money alone! Delays also open owners up to risk, including material escalation in other phases of the project, housing market volatility, and increased administrative costs.

It's in the owner's best interest to prevent delays as much as possible, and here's how using regular 3D topographical drone scans and software can help:

• Identify problems early: Weekly drone scans enable owners to catch errors and prevent rework before they cause major schedule disruptions.
• Make better decisions faster: Not having the right data can delay project schedules. Accessible project data can reduce the decision-making time from days to hours.
• Settle disputes: A visual record of the project allows owners to settle disputes with contractors to keep the project moving.

‍Billing accuracy protects cash flow‍

How are owners verifying contractor billings as the project progresses? While the overall cost won't change in a lump sum contract, it's in the owner's best interest to only pay for the work completed. If owners are looking at the contractors reports that use truck counts and time cards, there's a much better way. 3D topographical drone scans provide accurate measurements of work performed from week to week, month to month, and over the course of the project. Using TraceAir's software, owners can quickly measure quantities to ensure their contractors bill accurately, protecting their cash flow.‍

Better workflows reduce consultant hours‍

Grading contractors may be under a lump sum contract, but engineers and consultants bill by the hour. Owners can significantly reduce the amount of billable hours using drone scans and software, like TraceAir, to collaboratively develop solutions based on real time site conditions using accurate measurement tools. Engineers estimate that the number of meetings and billable time to the owner is reduced by 50%.‍

Better relationships create better projects‍

When the entire project team collaborates transparently, the project–and ultimately the owner– benefit. Lump sum contracts can leave the owner in the dark, but tools like TraceAir provide better visibility into their projects, and save time in the long run.‍

Worth the investment‍

The cost of drone flights and site intelligence software provides an excellent return on investment by preventing delays, reducing consultant fees, protecting cashflow, and allowing better communication.