11-Oct-02				Numbers are Approximate Only-- Not for Quotation or Duplication
Corel Centre Case Study-- Crashing the Schedule
By using both a Project Manager/Construction Manager and a GC with a GMP, the Development/Architectural team
was able to bring the GC on the same side of the table. Benefits included faster construction at higher levels of quality.
TCs bid competitively and cost savings* were shared by the Developer, the GC and the PM.
The contingency allowance was used to ensure quality and to cope with Cos.
Cost savings came  from three sources-- 1. faster construction, 2. competively bid subs, 3. innovations in the field**.
Another factor came into play as well: by completing the project earlier, revenues (and greater revenues) flowed to the
Ottawa Senators and the Building Owners sooner, especially as compared to the much smaller, city-owned Civic Centre.
Also by completing the building sooner, interim financing costs are reduced.
To guage these effects of faster constrution, see below.
Constrcution Cost						CAD
Land		100	acres	$150,000		$15,000,000
Architecture/Engineering						$8,500,000
Legal						$3,000,000
Infrastructure						$40,000,000
Financing Fees						$8,000,000
F,F&E						$9,000,000
Building, Landscaping, Parking			550,000	s.f	$275	$151,250,000
Contingencies						$7,500,000
Total						$242,250,000
By shaving 8 months off the construction schedule (from 30 months to 22), the Corel Centre enjoyed reduced
interim financing costs and higher reveneues
Financing Costs Savings
Savings		8	12	10%		$16,150,000
Revenues
Civic Centre				$35,000,000
Corel Centre				$65,000,000
Increased Revenues						$20,000,000.00
Total Savings and Increased Revenues from Crashing the Schedule						$36,150,000.00
* note: the reverse also applies. GCs and PMs may be penalized if projects are late.
** e.g., splitting the building into four quadrants each with their own construction manager and tower crane.