Detailed Case Study: Granite Construction and Centex Homes Project

This case study examines Granite Construction Company's project delivery approach for the Centex Homes Cyan Master Planned Community in Reno, NV. The project involved site preparation for residential and commercial zones, including a new elementary school. The case study details Granite's use of a design-build approach, emphasizing risk mitigation and a streamlined management structure. It outlines the project's stages, from pre-design through post-construction, highlighting the selection of a lump sum contract, the bidding process, and contract administration. The analysis covers the different project delivery systems, contract types, and the roles of key players such as the architect and subcontractors. The study also describes the final completion and record documentation processes.

GRANITE CONSTRUCTIONCOMPANY
Granite construction is an American general
contracting company that provides solutions on
construction, program management and procurement
with an emphasis on sustainability.
Location: Santa Barbara
5335 Debbie road
Project :Centex Homes Cyan Master Planned Community
– Reno, NV. The project consisted of site preparation for
1,500 new single family and multi-family residences,
along with a 12-acre public park site, a commercial and
retail zone and a new elementary school.

Granite construction project delivery approach to
Centex homes :
 The main goals in this projects were: To deliver the
project in time, To deliver the project within the set
budget.
 The project owner decided to shed off the risk and thus
fully contracted Granite construction company in a joint
venture with an architecture firm to contract the rest of
the designers and sub contractors after acquiring the
design documents.
 The approach in this project was focused on minimizing
the risk and therefore there was need to reduce the
management levels while increasing the degree of
decentralization

The various project delivery stages Granite construction observed in delivering Centex
homes
 The Pre-design stage • The design stage • The Pre-
construction stage • The construction stage • The
post construction stage
Predesign stage
 This is also referred to as the programming phase and
the is the most important of all phases.
 In this stage the owner is one of the most important
players in determining the eventual outcome of the

Design phase
 This process begins with the selection of a design
consultant who in this case is the architect or an
architectural firm. The architect is the lead design
professional and also a representative of the owners
interests ion the project delivery. An architect
therefore carries the liability of the own work as well
as that of any other design professionals that are
brought on board in the design of the project

Pre-construction phase
 This part of the project delivery mainly involves the
bidding process. It involves the drafting of the bidding
documents and selection of the general contractor.
 Preparation of bidding documents is done by the
architect in collaboration with the associated design
team and a lawyer where necessary
 At this point the project delivery systems or methods
are also selected, they include:

Project delivery systems used by Granite construction in delivering
centex homes
There are three project delivery systems that were
explored in the delivery if the centex homes project.
They imclude
Design bid build
Design build
Construction project management at risk
The construction system chosen was Design build

Design build
 In this system of project delivery the entire project is undertaken by one
integrated firm: The owner of the project contracts a design professional
whose company or firm is in the business of construction or in other cases
the firm is involved in a joint venture with a with a construction company
for the course of duration of the project. The owner provides the contract
documents, Pays the professionals (design fees) pays the contractors
according on the stipulated times at either the bid price or the negotiated
price

Why design build?
It presents the opportunity to reduce the time used in
construction
It significantly reduces construction costs
It guarantees the owner a fixed price for their project
Integration of the construction and design in the package
within the same contract brings experience together as
well as technological knowhow

Project implementation
Types of contracts used by Granite construction
 There are four main types of contracts explored in the
centex homes project: lump sum contracts, unit price
contracts , cost plus fee contracts and guaranteed
maximum price contracts
 The contract type chosen was the lump sum contract
 The sub contractors were selection was based on a
competitive bid based on their qualifications, delivery
and financial statements
 A construction management contractor was selected
to assist the client in the definition, coordination,
reviw and management of the designs

Project submittals, progress documentation phase
 CONTRACT ADMINISTRATION
This is a part of the construction phase and involves the progressive inspection
of the work carried out by sub contractors by Granite construction company to
ensure that they meet the required level of workmanship and quality required
for the project.
The subcontractors were allocated the risks in the project meaning that they
were to bear all the risk of cost overruns provided the scope of the works or
site conditions described did not change

Post-construction phase: Project closeout
 This stage of the project is ushered in after the architect has made an
inspection of the works and certified it for substantial completion. This
confirms that the work is complete in many respects and to such a point
where the owner is able to occupy the building even though there could be
minor cosmetic works to be completed
 A punch list ( a list of the portions of the work that are not complete) is
issued by Granite construction company to the architect, the architect then
adds to the list when doing the inspection for the substantial completion of
work to act as a check list in the final inspection.
Awarding of the Certificate of Occupancy and request for Substantial
Completion Inspection by Granite construction company
The certificate of occupancy is issued by the authorities with a jurisdiction in the
area the project lies to as a confirmation that the project fulfils all the required
inspections and approvals to make it safe for use and occupation by the public

Final Completion Inspection
 This is the last inspection on granite construction projects and is
normally carried out by the architect in collaboration with the rest of the
design consultants after Granite construction company has carried out
all the corrections on the project noted over the substantial completion
inspection. If the project passes the set requirements then the architect
awards Granite construction company with a final payment certificate
Record Documents
Also referred to as as-built documents and they describe the building as
built documents
They are delivered to the owner by granite construction after construction
as part of the record document package. They detail the minor changes in
the designs made during the construction period by the designer