The KSD Group was retained to manage a significant project involving a 102,000 square foot automobile dealership, which encompassed a showroom, parts store, sales tower, administrative offices, a cafeteria, three service shop buildings, and an 11-acre site development.

The engagement began under challenging circumstances: the owner’s initially chosen contractor had exceeded the budget by $500,000, prompting the withdrawal of the project lender’s commitment for construction financing. In response, KSD swiftly took action, interviewing prospective builders and selecting Vanderson Construction to negotiate a contract on a fast-track basis. Within three weeks, KSD successfully procured new bids that cut the budget overrun by $400,000, maintaining the design quality and desired finishes.

The urgency of the project was further compounded by the imminent expiration of a permanent financing commitment from Ford Motor Credit Company. This situation necessitated an aggressive construction contract negotiation featuring a 175-working-day schedule, linked to a liquidated damages clause of $5,000 per day.

KSD spearheaded all construction management activities and expedited processes, resulting in the project’s completion seven days ahead of schedule and $74,000 under the initially contracted $4.5 million. This saving was refunded to the owner. Subsequently, KSD was also tasked with expanding the parking facilities onto an adjacent three-acre lot, which was completed on schedule and $13,000 under budget.

Overall, KSD’s effective management reduced the project’s initial overrun by $487,000 without compromising the square footage or the completion schedule. The excellence of their work was recognized when Fremont Ford was honored by Ford Motor Company at the National Automobile Dealership Association Convention in January 1989 as “State of the Art” in Ford Dealerships for the 1990s.