Construction Cost Guarantee Model (CCGM)

On the one hand, construction projects must be geared towards their intended purpose and marketing opportunities; on the other hand, however, they need to focus on the security of the investment. It is precisely security of investment, i.e. adherence to cost and schedule with no loss of quality, that represents an enormous challenge to the modern construction industry. Based on a specific problem, RMI AG therefore set out to guarantee construction costs by means of a model.

The problem

How can architects guarantee construction costs in the absence of financial statements and thus retain responsibility for execution? Faced 17 years ago with the problem of an architect friend in Geneva, the fundamental principles of the Construction Cost Guarantee Model (CCGM) were created "on the spot".

The goal

To protect the client by estimating potential cost overruns, optimising costs and guaranteeing a fixed construction price. The idea of ​​using basic insurance to make architects competitive against main contractors and sub-contractors in the implementation, supervision and execution of construction projects was subsequently developed between RMI AG and the Swiss Society of Engineers and Architects (SIA). The result was a cost guarantee agreement in accordance with SIA V1018 and V1019 and the establishment of the first guarantors.

The solution

Through the involvement of a certified SIA-guarantor (cost, schedule and quality control), an insurance guarantee can be provided for the architect and / or client. Since its inception in 1992, the model was developed further and the number of SIA guarantors grew steadily. Finally, in 2007, the CCGM was put on a new platform, the number of guarantors increased and fundamental principles were contractually secured. As a result of this innovative measure, the SIA in 2007 officially certified four guarantors and established binding certification criteria. A mandatory component of the SIA principles is insurance protection by RMI AG or an insurance consortium, respectively. All 4 guarantors are currently active throughout Switzerland and accepted by the insurance consortium.

Certified guarantors

- SGC SA, Geneva ( www.sgc.ch )
- SGC AG, Basel ( www.sgc.ch )
- Metron AG, Brugg ( www.metron.ch )
- Keytek AG, Lausanne ( www.keytek.ch )

See also: www.sia.ch