Early contractor involvement is a hot topic in the world of contracting, but is it delivering the goods?
The early contractor involvement (ECI) process has become increasingly common in recent years – particularly for complex and sophisticated builds that have the potential for extensive variations over time.
What is ECI?
ECI is a process whereby a designer and constructor work together in a contractual relationship with a client, first to scope and price a project, then to design and construct it. This differs from the traditional design-bid-build approach, where there is typically much less collaboration between design and construction.
When ECI is done well, it has the potential to secure a better result for all parties, because client and designer receive input on buildability and value engineering opportunities while still in the design phase, reducing risk of surprises during the build.
De-risking your project
Cassidy Construction general manager Brendon Vincent says clients engage an ECI contractor so they can get certainty on design direction at an early stage. ‘We are typically brought in once the concept has been approved and it is progressing to detailed design. We are there to represent our clients to make sure the right selections are made for cost efficiencies, be that materials, civil, structural, architectural or services.’
Cassidy’s in-house building information modelling (BIM) technology enables the team to work through the detailed design on the same virtual models as the design specialists. ‘We build the project virtually so we can iron out any issues before it goes to pricing and before it gets consented,’ says Brendon.
‘Our expertise is what provides certainty. Without an ECI process, what typically happens is the contractor receives documentation for a project that already has a building consent. Then during the structure build, the contractor establishes design coordination implications that affect time and cost.’
ECI can also help achieve greater gains in terms of sustainability if this is something the client prioritises, and Cassidy’s Building Positive Change sustainability strategy makes us well placed to support this.
Five steps to successful ECI
Not all ECI is created equal. Here’s what we’ve learned over decades of working closely with clients and their consultants.
- The client needs to clearly identify the project vision upfront and determine the desired outcomes.
- Ideally the client will have a senior, experienced project manager leading the project, and they will direct the design consultant to engage meaningfully with the contractor throughout the process. It’s critical to establish a one-team mindset at the outset.
- The client should choose a contractor with sufficient relevant experience and expertise to add value through the ECI process. As well as advising on buildability, they should have the right financial skillsets to identify cost savings through value engineering, with gains to be captured and documented along the way.
- If the same contractor is appointed at phase two, the contractor team members who work on the ECI process will ideally continue through into construction delivery.
- There must be a strong environment of trust and confidence between all parties. If appointed to phase two, the contractor must not overinflate costs by commanding a premium for their preferred subcontractors and trades.
Adding greater value
Brendon says the Cassidy team are such big believers in ECI that they are happy to work on projects at the ECI stage without commitment to the main contract. ‘We’re not trying to put clients in a headlock. We’re here whether they are going to negotiate or tender the contract – no strings attached.’
He believes there is potential for the ECI process to continue to develop in a way that drives even greater value for all parties.
Here’s what one of our clients said about our ECI involvement in a recent project:
‘Not every ECI contract works but in this case Cassidy nailed it. We were really impressed with the level of detail and options for cost savings that were offered up. It was a refreshing experience and it led to a very successful project and awesome project team.’
Find out more about our approach to ECI here.
