The Problem Construction Managers Face
When Construction Managers launch a commercial construction project, the current process they use to acquire lighting often results in unnecessary compromises. Whether it’s compromised to the integrity of the architect’s design, the budget, or the project timeline, plans get altered because of an outdated and ineffective lighting acquisition model.
The problem is structural. The current setup of the supply chain is a Design-Bid-Build model that does not serve the best interests of the owners, construction managers, or designers. There are too many layers, which leads to a complete lack of transparency in costs.
Lighting solutions are selected during the design phase primarily on form and function. The product costs are considered, but they are only budgetary at this point. Without firm, fixed prices, the owners’ interests are not protected. They should be able to see a selection of criteria that outlines the best value and showcases product costs and lead times across multiple manufacturers. Unfortunately, that rarely happens.
Everyone in the industry realizes this system is broken. All stakeholders have had to make unwarranted compromises, especially on projects with intricate lighting demands. The frustration lingers, but the cycle continues. At Monterey, we believe that there’s a better way.
A Different Approach Derived from Big Brands
After seeing all of the problems with the Design-Bid-Build model, we developed The Monterey Way. Not only does our approach alleviate the headaches of the current process, but it allows owners and construction managers to significantly save on lighting costs and avoid project delays.
We designed the concept based on the methodology used by major brands when they roll out large multi-location projects. The big brands were subject to the same problems that Construction Managers currently face – compromising on design, budget overruns, and project delays. These companies learned that if they let the local market set the pricing for their lighting solutions at each specific location, they end up paying varying prices for the same products, and don’t receive the volume discounts they deserve.
The fix to this problem, they found, was simple: bring in a lighting distributor in the design phase. This shift changed large scale commercial construction projects significantly: with national rollouts, the lighting distributor could secure pricing options from multiple manufacturers, negotiate fixed pricing for each location, and really leverage volume discounts. Lighting became a more affordable and seamless acquisition simply by bringing in a distributor during design.
Turning This Approach into The Monterey Way
Monterey Lighting adapted this process and applied it to the local market. The Monterey Way empowers construction managers on individual projects by shifting the balance of power from the sellers in the supply chain to the buyers. By partnering with our team during the design phase of a project, construction managers now have a seamless lighting procurement process that saves their client 30%-40% in costs, and results in significant time savings for the design and construction teams without compromising design.
Our process is simple. Once the design team is established, Monterey is appointed and empowered to represent the team as a key member of the lighting product selection process.
During the design process, here is how Monterey supports the project team:
- We interface with the architect, engineers, and owner to understand design intent.
- We source line-item pricing on all fixtures requested by the design team.
- We provide suggestions for alternate options and source line-item pricing from multiple manufacturers.
- We vet lead times on all products to ensure they will not delay projects.
- We present all options and prices to the design team in a transparent manner.
- We enable the owner, Construction Manager, and designers to make informed decisions on the best value to achieve the design intent.
- We negotiate volume discounts and establish consistent pricing for products that may be used across multiple projects (building standards)
In the design phase, we simplify the process and save the client significant money. However, The Monterey Way doesn’t stop there. Our involvement continues throughout the construction phase and we serve as the single point of contact for all lighting related issues. We have designed and built our internal processes and project management tools to be best in class for supporting the electrical contractors, general contractors, architects, engineers, and construction managers during construction.
During the construction process, here is how Monterey supports the project team:
- We attend pre-construction and construction meetings.
- We provide a single point of contact for any plan changes during construction.
- We resolve issues quickly and effectively through direct engagement with all participants in the supply chain.
- We effectively schedule, communicate, and manage product delivery.
- We make recommendations and arrange substitutions where necessary.
In both design and construction, our services aim to eliminate any compromises to design, budget, and timeline. As a lighting distributor, we know how to navigate the convoluted supply chain to provide the most value to Construction Managers and bring significant cost benefits. Our work with Teradata, Lincoln Properties, or DecisionLogic speaks to the value of The Monterey Way and our trusted partnerships.
If you’re interested in learning more about how Monterey Lighting Solutions can save you time and money on an upcoming project, please contact us today!
