How to Complete a Construction Project Under Budget

Summit Design + Build’s Senior Project Manager, Kevin Criner, shares his insights on how to complete a construction project under budget without sacrificing quality and project schedule.

There are three aspects that are commonly thrown around while determining the success of a construction project: quality, timeliness and within budget. Often one is sacrificed to achieve the other but, in my eyes, (and most clients’ eyes) all three are essential. With numerous years of construction project management experience under my belt, I want to share my take on how to successfully complete a project within or under budget, while keeping quality and schedule in mind. Be aware that a project within budget is the project itself and not the bottom line profit you turn into your boss at the end of the job. An owner with a blown budget can be just as detrimental.

The “Not Included” Winter Conditions

Start with a Good Number

Obtain proper subcontractor coverage and understand scope– You should always be mindful of what you are plugging into a bid estimate. During the hustle and bustle of putting a bid together this might be tough, but if you have three prices for a particular trade you should ultimately be able to understand what they have or what they may have missed. Remember, you must buy the scope from each subcontractor. Don’t plug in low numbers just to drive the number down on a piece of paper, that number isn’t real.

Confirm the client understands what you have– It is very common when getting scoped for a job to become a “yes man/women.” After all, you want the project and you’ve put in a lot of work to get to the table. It is important to remember that because you are at the table to begin with, your number is something they can live with. If it is substantial and you do not have it, let it be known. The cost of it will not go away. The same concept applies when negotiating a contract. Multiple meetings will be held over weeks/months/years in which many subjects are covered. If the owner insists on leaving something out of the budget, make sure you are very clear that it is being left out each step of the way. In some cases, if you know it is going to be a cost, fight to have it included. The project will run smoother should you not have to get a change order for it later.

Negotiate Wisely– If you must skim a little to win the job or to make the job happen, you should always know where that money is coming from. Lower your budget in areas where you can make the numbers work.

Limit Change Orders

Avoid the Big One– “The Big One” (a large change order) will more than likely come from a failure to achieve one of the items above. Sometimes a client voluntarily makes a big add to the scope of the job or a change derives from a source you have no control over (i.e., municipality, utility company). It is extremely important to go over these things during preconstruction and try to get them in the budget. You know it’s a possibility, so why not discuss it?

Buy out the details– It is your job to buy the plans from the subcontractor. Make sure every item in each plan detail has a subcontractor attached to it. Run through the schedule and make sure each sequence makes sense. Make sure you aren’t buying an ideal schedule from one subcontractor that cannot work. This results in changes and/or delays to the schedule.

Challenge each change order– When there is inevitably going to be a change in something understand the work involved. Do not be the pass-through between the subcontractor and the client. Agree with what you are presenting and have multiple solutions to present. Very commonly there is an easier way to achieve the same thing. Get creative and come up with solutions that are least detrimental to the budget, schedule and quality of construction.

Preserve the schedule (time is money)– Subcontractor schedule input should be provided as early on as possible. Your perfect schedule usually has some duration or sequence errors and the subcontractors can help you fix it. Also, in some instances, they can help you pick up time. Sub durations should also be constantly monitored. Just because it doesn’t seem like a delay at the time, it could be in the very near future. If the schedule is not maintained, it will result in an accelerated/overtime schedule that ultimately costs the project money.

Define and Know Your Budget

Timely Buy-Out– Knowing what savings you do or do not have determines your strategy throughout the project. If you have un-bought scope then you are at risk of additional overages you are not projecting for. In budget management this can be detrimental to the bottom line.

Monitor the budget– If you know where your numbers are then you know when you do or do not have money to spend to handle an issue and push the project through. If you wait for monthly (or worse) reconciliations then you may be approving too much or spending time fighting something you could have handled prior.

The Missed Blocking Scope

How to Master Adaptive Reuse Construction

Summit Design + Build’s Project Engineer II, Ben Cohen, shares his insights on how to master an adaptive reuse construction project.  

Adaptive reuse is the process of revitalizing old buildings for new and modern functions, other than those the building was originally designed. These projects play an extremely important role in maintaining the aesthetic of historic districts and protecting architecturally significant buildings. In order to master adaptive reuse, you must always expect the unexpected and take the following key points into consideration.

Discovered Conditions and Changes to the Plans

In order to accomplish the modern open floor plan design that is typical for today’s new structures, selective demolition and exploratory work are necessary to better understand the true existing structure of the building. It is extremely common to find undocumented adaptions to the “existing” drawings that impact layout, design, or have structural implications. In order to help flush these potential show-stopper issues out ahead of time, it is extremely important to have surveys and exploratory demolition done to confirm dimensions and assumptions before the general contractor is fully mobilized and beginning work on site. It’s not uncommon to come across conditions such as undocumented underground storage tanks, abandoned basements, structural wall footings that were narrower than the wall that was bearing on it, walls installed at all sorts of angles off of plumbing, and roofs built over other roofs! The more investigatory work you can do to give your general contractor a fuller picture the better.

Before of 210 N Green Street

Hazardous Material Abatement

When working in old buildings, hazardous construction materials such as asbestos, lead, mold and refrigerant are common to encounter. Dealing with, or at the very least surveying and identifying these materials before construction commences on site is extremely important, as discovering any of these during the selective demolition process could trigger work to stop until the materials are properly abated.

Water Intrusion

According to Architect Magazine’s article: When it Leaks it Pours, water intrusion makes up more than 70 percent of construction litigation. In order to avoid a lot of headaches down the road make sure to have a 3^rd party expert review the architectural drawings and/or the site conditions to make sure the designs proposed apply to, and will work well with, the existing structure. The specialists we’ve had the most success with in the past have been Wiss, Janney, Elstner Associates, Inc. Having a separate pair of eyes on the drawings to ensure the building envelope design is robust and detailed to be fully water tight is money well spent.

MEP’s

Depending on the age of the building, and of the mechanical, electrical and plumbing elements therein, you may choose to re-use, abandon in place, or fully remove and re-do these components. If the plan is to keep these elements in a workable condition, make sure the existing equipment meets the current code. If so, a plan must be made to protect them from water, dust and damage during the construction process. If the plan is to demolish and start fresh, make sure that all assumptions and dimensions are verified on-site. Are the existing shafts sufficiently sized for the new ductwork, plumbing risers and electrical homeruns?  Do the duct sizes and light placements work with the given floor to ceiling heights? Is there sufficient water pressure for any additions being made to the existing structure? The more of these types of questions you can answer before work starts on site the better off you’ll be.

In conclusion, the way to master adaptive re-use projects is to do your due diligence. Surveying and exploratory work are upfront costs that are well worth the expense and will help reduce headaches and costly change orders while the full gears of construction are in motion. Additionally, make sure to work with general contractors who have done this type of work before. When it comes to working in older buildings, experience plays a major role. Check out your GC’s previous projects, ask for references and walk the space with them to see how comfortable they feel with your vision. You can check out Summit Design + Build’s extensive adaptive reuse work here. Adaptive reuse is an incredible way to breathe new life into an old building while preserving the historic value and local resources and will be an undertaking worth pursuing if you follow these guidelines!