Generally, construction projects consist of two major phases: the preconstruction phase and the construction phase. Keystone and its professional staff strongly believe that the effort and planning expended during the pre-construction phase of the project is essential to the smooth running of the construction phase and ultimately, to your move-in. In order to familiarize you with the process, the following is a list of services that are generally included in Keystone's construction management approach.

PROJECT TEAM START-UP
Today, as time/cost issues take on unparalleled importance, budgeting and scheduling control must start at the pre-construction phase to ensure the overall success of the project. By bringing the contractor on board as a member of the Project Team in the early planning stages, the Owner will receive significant advantage in terms of controlling time and costs. Once the Project Team, consisting of Owner, Construction Manager, Architect and Engineer and Keystone, is assembled, Keystone will immediately begin to deliver the full range of pre-construction services that lead to actual construction start-up. Keystone has a proven capability to work under this team approach from the earliest stages of a project to final occupancy, maximizing time and money to the Owner's benefit.

In order for the project to be entirely successful, the project team members must be completely sure of the Owner's requirements for the project. These requirements, in terms of design, cost, quality and time, must be thoroughly understood by all team members. Once the project requirements are formalized, the Project Program can be developed and finalized. The timing and costs can be monitored.

PROJECT SCHEDULING
Considering time's value in dollars, Keystone realizes the importance of maintaining the project schedule for the Owner. Our scheduling process begins immediately upon completion of the project program. It monitors not only the construction process but the design process as well. The schedule is updated continually as plans and specifications are prepared. Schedule input includes:

• Drawing and specification delivery dates
• Long lead material and equipment
• Testing, start-up and trail operations
• Shop drawing delivery dates
• Construction processes
• Owner's beneficial occupancy

VALUE ENGINEERING
Keystone has a highly qualified staff to perform useful scheduling, value engineering and meaningful conceptual estimating. Typically, on projects where we have provided pre-construction expertise, the value received in maintaining the overall schedule and budget have been far in excess of the cost of our pre-construction services. Our approach to value engineering emphasizes value received as opposed to concentration solely on initial costs. In carrying out our value engineering, we obtain the maximum effect for the time spent. We see maintainability, function and energy consumption as key factors important in the evaluation of alternative designs and materials.

Keystone has many years experience as a Contractor participating on a project team with the Owner and Designer. Our recommendations have consistently provided cost economies and schedule acceleration, relating to products and costs. Through design development monitoring, we have demonstrated an ability to keep projects within budget.

CONSTRUCTIBILITY REVIEW
The constructibility review insures that the final contract documents are free of non-constructible or impractical construction elements. This process identifies areas of potential cost savings without sacrificing function, performance and reliability. The constructibilty reviews are part of the overall program management process which includes the budgeting, value engineering and cost analysis. Keystone's overall program management plan allows the Owner to keep the project within the original project parameters.

BUDGET/COST ESTIMATING
A primary mission of a contractor is to monitor and control costs. Keystone estimates are developed at the preliminary design stage and updated through the design development process. In order to refine the budget, we work with the design team to determine all required assumptions and outline specifications. We endeavor to minimize the number of allowance-type prices included at this stage.

Our staff includes personnel experienced in preparing detailed preliminary and final cost estimates. These people have the expertise and experience required to ensure reliable results. Our estimate at the working drawing stage will be based on detailed quantity surveys of all materials and systems or competitive subcontractor quotes. As with all our work, all back-up information will be available for the Owner's review. In developing capabilities to provide contracting services, Keystone has committed itself to providing full scope estimating.

During the construction phase, Keystone will complete the review of subcontractor bids and award contracts to the appropriate subcontractors and vendors.

We will mobilize to begin the construction phase as quickly as possible. During your project's construction phase, we will perform the following services:

• Project Administration
• Project Documentation
• Quality Control
• Budgets and Schedule Control
• Cost Control
• Building Start-Up

AWARD OF CONTRACTS
An orientation meeting with the entire Project Team. Topics for discussion will include:

• Special conditions
• Schedule requirements
• Submittals
• Work limitations
• QA/QC requirements
• Subcontractors
• Meetings and information flow

SUBMITTALS
Keystone's office and field staff will make an initial review of all submittals (shop drawings and samples) for compliance with contract documents. They will review the specifications and make a written record of all submittals that will be required for this project. They will prepare a shop drawing log so that the status of all shop drawings can be ascertained at any time. A shop drawing status report will be compiled weekly during peak submittal periods with copies of the report forwarded to all parties concerned.

BID ANALYSIS & AWARD
As plans and specifications are completed for a given work package, Keystone will issue an "Invitation to Bid" to pre-qualified bidders establishing a reasonable time for the return of competitive and responsive proposals. Cost saving alternatives and value engineering options will be studied for possible acceptance and presented for consideration. Bids will be evaluated and compared with our estimate to assure reasonableness. Keystone will make a recommendation to the Owner as to the award of a subcontractor or if necessary the rejection of all bids and re-bid of the package.

PRE-QUALIFICATION OF SUBCONTRACTORS
On any project the role of the subcontractor is important to its success. In the qualification and selection process, each subcontractor will be pre-qualified on the basis of capability, experience, financial responsibility, current work load and Construction Manager's input and consideration. A select and pre-qualified bidders list will then be provided to the Owner for approval.

Keystone, with input from the A/E and from the Owner, will develop a list of all required submittal data, including:

• Approval data whose submission is required prior to performing work and purchasing materials or equipment.
• Certified Vendor Information (CVI) such as maintenance procedures and parts lists, which become the file for the project. The CVI files will be set up based on contract number/submittal number/contract specification reference number. Logs will be maintained and monitored continuously throughout the entire project.

BUDGET AND COST CONTROL
Keystone provides overall cost control by monitoring cost from the original approved estimate. We use this as the "benchmark" from which to measure all cost updates. By tracking cost from the original budget, we assist the Owner with total cost exposure control.

Keystone's cost control system will allow the Owner to know not only what the project has spent "to date", but also forecast what the project "will spend". This is a most important aspect of our cost control system. This feature allows the Owner to act, not react to changing cost conditions.

TIME CONTROL
Time control involves monitoring the progress of all activities against the master schedule, including shop drawing status reports, material status reports, and trade subcontractor construction progress.

Variances to the schedule are reported to project management for appropriate action or alternative plan development, thus averting potential problems. In short, Keystone is "proactive", initiating actions rather than reacting to problems and conflicts after they have been allowed to materialize.

QUALITY CONTROL
Quality is perhaps our most important deliverable. Keystone seeks to achieve the highest quality standard of construction at the most efficient and economical level consistent with design intents. As a contractor, quality is a key element in Keystone's successful history.

From start to finish, all subcontractors and suppliers are monitored to ensure compliance with contract drawings and specifications. Keystone's quality control efforts eliminate time-consuming rework and increase productivity and physical progress. The program benefits derived from our quality control program include:

• Owner satisfaction; your primary concern and a must to Keystone's continued success.
• Elimination and reduction of rework and punchlists.
• Increased efficiency of subcontractors, craftsmen and labor through constant work monitoring.

The foundation of Keystone's quality control program is based on prevention rather than correction. We focus on averting errors, omissions, discrepancies and deficiencies. The submittals and the performance of contractors are examined, and the importance of quality is underscored at the outset. In addition, an on-going monitoring of trades and materials is in place to assure the quality of craftsmanship performance.

Our reputation is based on uncompromised quality and the Owner's satisfaction. As such, our strict attention to detail is not only the norm in each of our project assignments, but it is your assurance that a full measure of quality has been for each construction dollar.

PERFORMANCE AND PROGRESS MEASUREMENT
The measurement of construction status is accomplished in several ways. As Contractor, Keystone has the capability of monitoring commitments made for the purchase of materials as well as the management of subcontractors currently on the site performing scheduled work. Tracking of purchase orders and subcontractor application for payment and bid and quotation comparisons are also additional applications used.

SAFETY AND ACCIDENT PREVENTION
The Keystone Group has established an Accident Prevention Policy to provide its management, employees and clients with a firm understanding of the company's position regarding the prevention of accidents, to provide the guidelines for the corporate accident prevention program and to assist management in meeting its responsibility to provide safe working conditions for its employees.

The Keystone Group ensures thorough compliance with standards and procedures promulgated under the Occupational Safety and Health Act of 1970 (OSHA) and approved state OSHA plans.

All Keystone projects are required to maintain various project reports which indicate the status of the project. This includes all approved change orders, revised budgets, payments and a percent complete for the specified time period.

• Meeting Minutes
• Submittals
• RFI's
• Correspondence Log
• Daily Activities
• Transmittals
• Change Orders
• Punchlist

POST CONSTRUCTION
Project close-out, including claims management, administering the submission of waivers/guarantees/warranties management, and issue final payments to contractors after approval of work-in-place.