Episode Summary:

In this episode of CM Mentors, Matt Graves and Kyle Grandell welcome Patrick Reiser, Principal of Reiser Cost Consultants (RCC). Patrick delves into his extensive experience in commercial real estate, emphasizing the critical role of proactive cost control measures in construction projects. He highlights the importance of fair and equitable solutions for both owners and contractors, providing insights into change management, cost validation, and the intricacies of estimating. Patrick also shares his journey from various roles in the industry to starting his own consulting firm.

Key Topics Discussed:

Patrick Reiser’s Background:

* Transition from residential building component supplier to general contractor and owner-side roles.

* Launching Reiser Cost Consultants in February 2024.

Proactive Cost Control:

* Importance of early involvement in projects for effective cost control.

* Balancing the financial interests of owners and the cash flow needs of trades.

Change Order Management:

* Detailed breakdown of tasks and costs to ensure transparency.

* Avoiding the common pitfall of simply stating "this seems high" without factual basis.

* Emphasis on agreement over scope before discussing pricing.

Estimating and Cost Validation:

* Handling indirect labor and means and methods in cost estimation.

* The impact of material price fluctuations and labor cost increases on project budgets.

Effective Communication:

* Strategies for navigating contentious discussions about change orders.

* Importance of clear, detailed, and logical explanations in cost-related conversations.

Industry Trends and Challenges:

* Variability in subcontractor approaches to indirect labor costs.

* The necessity of flexible yet grounded contract language regarding change orders.

Watch the interview on YouTube:

About Patrick Reiser:

Patrick Reiser is the Principal at Reiser Cost Consultants, leveraging his extensive experience from both the owner and contractor sides to provide equitable solutions in construction projects. Skilled in negotiation, mediation, cost validation, estimating, and constructability, Patrick holds a Bachelor of Science in Integrated Science and Technology from James Madison University. He has held various roles in the construction industry, including Director of Construction Support at Axias, Inc., Senior Cost Manager, and Construction Manager at Carr Properties. Patrick is also a speaker at industry conferences, sharing his expertise in change management and cost control.

Connect with Patrick Reiser:

* Website: https://reisercc.com/

* LinkedIn: https://www.linkedin.com/in/patrickreiser/

This episode is sponsored by AltCMO, the go-to fractional CMO agency specializing in the construction industry. For marketing support, reach out to AltCMO and benefit from their extensive experience and growing team.

Don’t forget to like, follow, and share the podcast. If you have any questions for Patrick or topics you’d like us to cover, feel free to reach out. Thank you for listening!