Construction Today - Volume 16, Issue 2 - 111
Simile Construction takes
pride in building long-term
relationships with clients.
be completed in May, involves carefully
dismantling the historic depot, moving it
several blocks and then restoring it again.
"You have to tear it down and rebuild it
in a fashion that keeps the historic integrity of the building," Simile says. "We have
to re-utilize the existing doors, windows
and finishes and architectural paneling.
You have to pull it off the building and
rehab it. Then you have to reinstall it. It's a
touch-and-feel demolition. You're pulling
out a nail but making sure you don't
destroy the wood."
Other family members have worked for the
company over the years as well.
The company prides itself on building
long-term relationships with its clients.
It wants to help them plan, design and
build their businesses to make them more
efficient and to enhance the image they
present to their own customers.
One way that Simile Construction has
been able to build trust with its clients
is by using a guaranteed maximum
price (GMP) contract. "It's very transparent," Simile says. "It takes away a little of
the nervousness that people have when
dealing with general contractors."
A GMP is an open-book, cost-type contract where the contractor is compensated
for actual costs incurred plus a fixed fee
subject to a ceiling price. "We agree on a
max price and a reasonable profit margin
and then we show you all the invoices,"
Simile adds. "A lot of clients like that because we can provide them with multiple
trade bids so they know they are getting the
The traditional and most common form
of procuring construction is via a stipulated/lump sum contract, he says. Under
a lump sum contract, a single price for all
construction work is agreed upon before
the work begins.
"It's easier to do a lump-sum contract
project," Simile says. "GMP contracts involve
a lot of paperwork; we have to track every
single invoice. But our clients like it."
Being a faith-based company, Simile
Construction also places high value on
giving back to the communities it serves.
This includes hosting a number of employee-fundraisers for various charities and
performing volunteer work.
The company also donates its construction management services for a variety of
community projects including the restoration of Modesto's Historic State Theatre.
'It takes a special contractor
to keep the
A Transparent Process
Simile Construction is a family-owned
and operated business. Guy Simile serves
as president. His wife, Gina, works for the
company and his daughter, Megan Simile-Neuson, is the head of human resources.
VOLUME 16, ISSUE 2 CONSTRUCTION-TODAY.COM