Introducing a novel healthcare design and construction model
An elite partnership like no other
Partner with a progressive healthcare construction company with thousands of successful projects on time and within budget. Top leaders in the healthcare industry trust us to create life-saving spaces because we:
- Have demonstrated success building healthcare facilities of every kind all over the country
- Embrace sustainability, lean, green and pre-fabrication concepts — hallmarks of sensible modern construction
- Engage independent subject matter experts whose insights drive optimum solutions and add value
- Take total ownership of the results of your project for a seamless owner experience and better overall results
- Have created the only totally integrated hybrid design and construction delivery model on the market — more on that below
Since our founding in 1958, The Korte Company has grown to include offices across the nation, so you’ll get that local touch no matter where you are.
We live in a fractured design and construction world
Healthcare leaders are committed to providing the highest quality of care. But too often, that commitment is challenged by errors in design, poor estimating and external factors like supply chain challenges that lead to cost overruns and delays.
As reported in studies from McKinsey, KPMG, the World Economic Forum and others, consider these troubling construction project statistics over the past 10 years:
- A staggering 85% of construction projects experienced cost overruns
- The average cost overrun was 28%
- A scant 31% of projects concluded within 10% of their budgets
- Larger or more complex projects took 20% longer to complete than planned
- Only 25% of projects came within 10% of their original deadlines
Poor project coordination and communication was primarily to blame.
And as indicated in the graph below, construction cost escalation is unrelenting and forecasted to continue.
Construction cost index
Introducing The Korte Company’s Hybrid Design and Construction (HDC) project delivery model
For the first time, we have blended all the advantages of the top project delivery models — construction manager at risk (CMAR), Design-Build (DB), design-bid-build (DBB) and integrated project delivery (IPD) — along with assembly of a truly specialized, world-renowned hospital design and construction team, into one totally integrated and optimized hybrid model for the healthcare industry.
There are spectacular advantages to this innovative model. Here are some of the highlights:
- Simple single-entity contracts with one point of responsibility and accountability
- Designs that are super-efficient to operate, of great value to build and beautiful to behold
- Dramatically reduced litigation risk with straightforward owner risk underwriting
- Optimized team selection and teamwork from day one
- Streamlined, highly collaborative and coordinated project delivery workflow between design, engineering and construction allows important value-driven cost decisions to be made much earlier in the process, where they are most effective (see image below)
- Superior project speed with enhanced fast tracking if needed
- Exceptional owner controls for timely decisions
- 7D BIM across the entire project to drive key parameters, including design/construction collaboration, innovation, quality control, scheduling, estimating, sustainability and post-construction facility management (see image below)
- Excellent quality is assured through detailed, high-grade, performance-driven specifications
- No client change order costs whatsoever except those initiated by the owner
- Pragmatic approach to green, lean and sustainable construction methods
- Outstanding service providers with an emphasis on partnering with local qualified subcontractors
- The process allows your team to work at the top of their licenses and capabilities, instead of having to micro-manage the project to keep it on track
Here’s how the process works
Our approach to applying this optimized Hybrid Design & Construction model on your project is deep and methodical, yet purpose-built for rapid results.
Our unique model allows for what we call first opinions, when projects that are in pre-design and/or very early design; and second opinions, for projects that are in a later design stage up to construction start.
In the case of a first opinion, this could occur when setting an initial budget, design and schedule based on early programming. The big difference is our first opinions include a guaranteed lump sum price for the full project, not early rough estimates that have no guarantees whatsoever.
In the case of a second opinion, where a CMAR approach is utilized, this could occur when the design is further along and early GMP estimates are running too high, or when the owner simply questions or needs validation of current pricing from their existing team’s estimates. It’s also useful in the case of a design, bid, build approach when hard-bid results are troubling or suspect. A second opinion should also be considered by the owner in situations where overall design and/or operational efficiency is in question.
In the event of both a first or second opinion opportunity, where another team is already hired, we work on a separate but parallel path to that existing project team’s efforts, so there are absolutely no project delays whatsoever while we create our proposal. In the end, you then have a viable alternative solution, with a choice of price points, guarantees and project delivery methods.
This approach essentially eliminates all owner risks in allowing The Korte Company the opportunity to create a proposal in a variety of project situations. The end result can then be viewed as a “live test” of our unique project delivery model rather than simply a theoretical one. The responsibility to perform is all on us. And we pay for it.
The company we keep
Founded in 1958, The Korte Company, along with its elite architectural and engineering partners, have offices throughout the U.S. and abroad, and have designed and constructed thousands of healthcare projects worth tens of billions of dollars, including some of the most prestigious, complex and operationally efficient healthcare projects in the world.