The Guaranteed Savings Contract method is a collaborative process that gives the Owner control over the Project Team and equipment selection. Engaging the Contractor early in the progression of the project at the opportunity stage allows for the highest potential to increase value to be realized. The Owner, Design Team, and Contractor are able to work together to utilize Value Engineering throughout the project to provide creative, energy efficient, and sustainable solutions in a design-build fashion. A Guaranteed Maximum Price and open book pricing allow risk to be shifted from the Owner to the Design-Build Team and allows for successful projects with NO change orders. Project schedules can be fast-tracked as work can progress as final designs are being finalized with input from all parties and innovative funding options, such as the use of SRF Financing, can be utilized.
How GSC Works:
- Based on Indiana Code 36-1-12.5
- Municipal water and wastewater utilities are eligible
- Qualified contractor selected based upon qualification from a pre-authorized list
- Qualified contractor monitors savings guarantee and must self-perform at least 20% of the work
- Savings over 20 years must be greater than project cost and reported annually by contractor
- Savings may include: energy, water and wastewater, operations and maintenance, and future capital expenditures
