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K. Project Management Services City of Sunny Isles Beach | Request for Qualifications No. 15-08-02 September 23, 2015 Page 44 The Financial Status Report (FSR) is the primary tool utilized to track the evolution from a final GMP budget, through the subcontract procurement process, to a fully contracted project. Hensel Phelps closely monitors the results of the purchasing/subcontracting process to ensure that the overall project budget is met. The FSR is organized in the same manner as the GMP Budget, and divided into three major sections: • Budget, which will always match the latest estimate. • Purchase, which indicates the amount of the actual purchase agreement/ subcontract value issued. • Gain/Loss, which tallies the resulting +/- comparison of budget costs vs. purchase costs. This establishes the buyout trend as it relates to the budget or contract amount. This tool allows Hensel Phelps to evaluate the current purchasing/subcontracting status of every incremental GMP and/or Work packages undertaken. The FSR is reviewed in detail at every project team meeting. The FSR is also the primary tool used for reconciliation of the GMP. As a “living document” that is updated throughout the course of the project, the FSR maintains the following information: • Subcontract Values - in addition to purchased amounts, change order amounts are tracked. • Contingencies - amounts that are subcontracted from or added to contingencies are recorded so that an accurate picture of the remaining contingency is maintained. • Financial Transaction History – every dollar moved from one budget to another is tracked and recorded as history within the FSR. The FSR will be used to determine when contingency amounts can be reduced and when purchasing gains can accrue in favor of the Owner, either to enhance the Scope of Work or reduce the overall project value. Change Management Hensel Phelps has a proven history of delivering projects within or under budget for our Clients. We have utilized lessons learned over the course of our firm’s history and implemented systematic management processes that have been demonstrated to be successful time after time in delivering projects within or under budget. Hensel Phelps takes great pride in the efforts we take to avoid unnecessary and unwanted changes and/or claims through proactive management practices, teamwork and relentless planning to deliver the most cost efficient project possible within the scheduled time frame. Hensel Phelps’ philosophy is to minimize change orders and their cost/schedule impact. When changes do occur, Hensel Phelps’ on-site staff will rapidly conduct an analysis to determine if work in progress or future work will be affected. A complete listing of all affected areas and involved parties will be developed along with an analysis of cost and schedule impacts. Any required changes to the schedule or the cost between Hensel Phelps and Sunny Isles or between Hensel Phelps and subcontractors or suppliers will be negotiated in a timely manner. Hensel Phelps’ philosophy is to work in Sunny Isles’ best interest.