Transparence on costs
The open-book contract is based on mutual transparency. Before the start of the project, the profit of the enterprise and the overall cost to be borne by the client are defined. This involves the client in the selection of subcontracts.
During the work, the firm transparently shares the costs incurred for the project, giving the client a clear view of the work done.
Flexibility on times
The Open Books contract allows great flexibility in timing.
In fact, the phases of the construction site can be overlapped, and the contractor can open the worksite even without a definitive construction design. The site manager is involved as early as the design phase so that strategies on the construction process, the budget for the works, and the schedule of purchases to be made can be defined there.
When does it pay off?
The open book contract is ideal when:
- Some parts of the project are still in phase of elaboration
- You want to overlap design and construction phases
- The client wants to have visibility over each subcontract
How does it work?
- Kick-off meetings to set timelines and goals
- Works budget
- Value engineering
- Schedule of works
- Shortlisting of subcontractors
- Predisposition of worksite
- Coordination of suppliers and workers
- Regular monitoring of project costs
- Weekly work updates
- Delivery of spaces
- Definition of the maintenance schedule
- Collection of all end-of-site documentation
- Supporting client relocation to new space
Open Books Contract vs. Traditional Contract.
The diagram shows how the possibility of overlapping project phases allows for a substantial shortening of delivery times
CASE STUDY
Mondo BricoCasale Moferrato
The building has three levels: a basement parking lot, the store with reserves on the ground floor, and an office deck.
The Open Book contract applied on this project allowed significant savings on initial budgets and maximum efficiency of workmanship, which in turn enabled the building to be delivered with all certifications in just six months.
