Modern Design

Resources
    
 Selecting the Design/Construction Team for Your Project
 

As you make important decisions that will influence your project’s outcome, the following suggestions may help guide you in the selection process: 

 

If this is important to you... ... you should look for
1. Aesthetics creative design ability, artistic talent and skilled craftsmen
2. Completion Date management ability, control systems, technology, fast tracking and commitments in writing
3. Compliance with regulations professionals who are up-to-date
4. Energy cost savings electrical studies, value engineering and life cycle cost analysis
5. Financing business contracting/development experience
6. Function effective communication, interior design skills, attention to detail, thorough inspection and written guarantees
7. Initial cost/economies simple design, standard items, value engineering, local materials and people with experience
8. Location contractor/developer who can assist you with finding a location to maximize your business
9. Maintenance costs value engineering and life cycle cost analysis
10. Minimum stress confidence, trust and relationships
11. Safety a written safety program
12. Quality demonstrated quality on similar projects


 
 What the Construction/Design Team Expects from You, the Owner
 

 

When you enter into an agreement with a contractor, architect, designer or design/build team, it is important you know what that team expects from you, the manager or owner. Above all, communication is the most important factor.  It is important that you are accessible to the design/build team or the contractor for questions and feedback through the duration of the project.  Your presence (or a company representative’s) at meetings that affect your project is imperative.

  1. Communicate your specific objectives and expectations from the very beginning, including those associated with quality and performance standard
  2. Assure that you are financially viable throughout the project and make payments promptly to keep the job on schedule
  3. Lead the team or designate a qualified, trusted associated to lead the effort
  4. Attend all important meetings associated with the project or designate a qualified representative who is familiar with the project to attend the meetings
  5. Make decisions promptly to not delay processes
  6. Accept the risk of unpredictable conditions; weather is not a controllable factor in the construction industry
  7. Accept responsibility for your decisions that affect the job 
 Selecting Your Contractor
 

Low bids ≠ successful projects or cost savings.  Some business owners and managers are tempted to select a contractor/builder/architect based on a low bid in order to save money; however, this decision can often end up costing the company more money in the long run.
 

Project owners who select a contractor based on low bid, often run into problems with multiple change orders or poor quality work.  Change orders, which happen throughout the project, can cause a project’s cost to rise from the original bid.  When your job is not completed according to the time frame, you may see interest costs rise and earnings from not occupying the new building diminish.
 

Most important, a poor quality building will affect your business for a long time.  You do not need constant reminders that you made a bad building decision in the beginning.  So, resist the temptation to select your contractor based on the lowest bid.  Take time to research different contractors’ abilities, skills and past work.  Talk to other business owners and managers in your area to determine which contractors have good reputations.  If you have to pay a bit more for quality, it will be worth it in the end.

Listed below is a checklist to help you select your contractor.

  1. Meet with the owners and the key employees who will be managing your job to determine if they are good listeners and communicators.  Ask specific questions about your job and ask to see photos, renderings and design documents from past projects.
  2. Visit with current and past customers of the contractors.
  3. Check the credit history, financial stability and payment reputation of the company.
  4. Check litigation history.
  5. Review job control strategies.
  6. Determine if the contractor can handle handle the scope of your project in relationship to their other work.
 Estimating the Costs of Your Project
 

While costs will vary from market to market, you can begin estimating your expenses based on the scope of your project.  The following list may help you determine which expenses you could expect to incur:

•  land costs   
•  legal fees  
•  survey costs 
•  project financing costs 
•  government fees 
•  architect/engineer fees
•  various consultant fees 
•  direct costs including site development and building construction
•  contractors’ costs, including general conditions
•  contingency for probable scope changes
•  furniture, furnishings and equipment
•  other costs depending on the project type and location
  
 Jargon
 

The following definitions may help you better understand the terms that the building trades commonly use when estimating building costs.
 

Contractor Overhead– Salaries, general incentive compensation and any other business expenses necessary to operate the contractor’s principle office and branch offices.  Overhead expenses are usually all the expenses that are NOT charged to a specific job.


General Conditions– Items that are charged to a specific job, including but not limited to: permits and government fees, bond fees, insurance fees, superintendent, project manager, surveying, testing, temporary utilities, temporary offices, storage trailer, travel to the jobsite, jobsite safety, and cleanup.  These are all covered in a contractor’s bid item called the General Conditions for that specific job.