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Jason Wilson

Dec 20
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Fulton Market Boom and Evolution

By News

The Evolution of Fulton Market: A Hub of Innovation and Growth

Fulton Market, once a district known for meatpacking and food distribution, has undergone a remarkable transformation over the past few decades.

Today, it stands as one of Chicago’s most vibrant neighborhoods, blending its industrial roots with modern developments that have made it a prime destination for businesses, residents, and visitors alike.

Summit Design and Build was born in the heart of this booming area, in 2005. Ever since, Summit has played a role in shaping Fulton Market and the broader city of Chicago’s infrastructure.

A Brief history of Fulton Market

Originally established in the 19th century, Fulton Market was the epicenter of Chicago’s meatpacking industry. With its proximity to the Chicago River and rail lines, it was the perfect location for warehouses and distribution centers. For years, the district was a bustling hub of industry, supplying food products to much of the Midwest.

However, by the late 20th century, changes in the food distribution industry and shifts in urban development began to take their toll on the neighborhood. Many warehouses were abandoned, and the area saw a decline in its original purpose.

Fulton Market, once a district known for meatpacking and food distribution, has undergone a remarkable transformation over the past few decades.

Today, it stands as one of Chicago’s most vibrant neighborhoods, blending its industrial roots with modern developments that have made it a prime destination for businesses, residents, and visitors alike.

Summit Design and Build was born in the heart of this booming area, in 2005. Ever since, Summit has played a role in shaping Fulton Market and the broader city of Chicago’s infrastructure.

The Boom Begins

The real shift in Fulton Market began in the early 2000s when creative businesses and artists started moving into the area, attracted by the large industrial spaces and proximity to downtown. Around the same time, the city recognized the potential of the neighborhood and invested in infrastructure improvements. With the opening of trendy restaurants and office spaces, the neighborhood’s revival began to accelerate.

Then came the tech and corporate boom. Google’s decision to open a Midwest headquarters in Fulton Market in 2015 was a turning point. The addition of the Morgan CTA “L” stop in Fulton Market was instrumental in making the area a destination as well as an easy to reach neighborhood.

This major move, coupled with popular companies such as McDonald’s relocating their global headquarters to the neighborhood, signaled Fulton Market’s arrival as a premier business hub in Chicago.

Recent zoning changes approved by the Alderman to permit large-scale residential development have significantly enhanced Fulton Market’s growth, livability, and walkability.

“The area offered affordable real estate opportunities that we could renovate while maintaining proximity to downtown Chicago without the Loop’s premium costs. The neighborhood was primed for redevelopment, making it an ideal area for us to grow in…”

– Adam Miller

Fulton Market Skyline

The Role of Summit Design + Build

As one of the leading general contracting companies in the area, Summit Design and Build has been a part of Fulton Market’s growth from the very beginning. 

When speaking with Adam Miller, President of Summit Design and Build he explained they created in Fulton Market back when “…no one really knew what the area was, most of the businesses were meat packers or people in the meat, produce, and broader food industry.”

“The area offered affordable real estate opportunities that we could renovate while maintaining proximity to downtown Chicago without the Loop’s premium costs. The neighborhood was primed for redevelopment, making it an ideal area for us to grow in. We were one of the newer businesses to move into the neighborhood, well ahead of the upcoming boom.”

Summit’s strategic location in the center of Fulton Market provides a unique perspective on its evolution. From transforming historic warehouses into modern office spaces to constructing state-of-the-art residential and commercial buildings, Summit has been instrumental in many high-profile projects.

“We have completed forty-seven focusing on renovating existing heavy timber masonry buildings and converting them into modern offices, retail spaces, restaurants, and residential units – all contributing to the West Loop’s transformation. 

Our first major project was 1313 W Randolph, an industrial building renovation completed post-recession that marked one of our first conversions. We went on to convert the City Winery space, transforming an industrial building into a restaurant, event space, and winery. Another notable project on Randolph Street eventually became home to Girl and the Goat restaurant, now a Chicago culinary landmark. 

We also converted a six-story food processing building into one of Chicago’s first WeWork locations, and completed 905 W Fulton Market, a substantial addition to an existing building that became the headquarters for Mondelez.”

We’re committed to staying and growing in Fulton Market. We built our new office building with the specific intent to grow and thrive in Chicago. There’s significant development happening in both Fulton Market and Chicago as a whole, and we want to be an integral part of that continued growth.

– Adam Miller on Summit’s future vision

Summit’s work isn’t solely limited to Fulton Market. With projects spanning across Chicago and the country, Summit brings expertise in urban development, adaptive reuse, and innovative design to every build. As the company continues to expand, its roots in Fulton Market remain a key part of who they are—a company dedicated to shaping the future while respecting the history that brought them here.

Adam Miller remarked when asked about the challenges of working in a historic district: 

“Working in Fulton Market presents unique challenges, particularly in maintaining and preserving the existing facades of buildings to meet city requirements. We work closely with the Chicago Landmark Commission to ensure our projects both maintain the historic character of the neighborhood while meeting modern needs. This careful balance between old and new is exactly what makes Fulton Market so desirable today – it’s created a perfect blend of historic architecture and contemporary development.”

On Summit’s future vision: 

“We’re committed to staying and growing in Fulton Market. We built our new office building with the specific intent to grow and thrive in Chicago. There’s significant development happening in both Fulton Market and Chicago as a whole, and we want to be an integral part of that continued growth.”

On leveraging Chicago success in other markets: 

“Being from the Midwest gives us real credibility when we work in other parts of the country. People associate the Midwest with hard work, honesty, and high-quality results – which is accurate. Plus, being based in one of Chicago’s top two or three fastest-growing neighborhoods, where we can walk to incredible dining, fitness, shopping, and business destinations, demonstrates our understanding of what makes urban developments truly successful.”

Looking Ahead

Fulton Market shows no signs of slowing down. With new residential developments, hotels, and a growing number of corporate offices, it’s clear that the area’s growth is far from over. For companies like Summit Design + Build, this means endless opportunities to continue shaping one of Chicago’s most dynamic neighborhoods.

As we look toward the future, Summit remains committed to providing the highest level of quality and service in every project undertaken.

Summit Design and Build is proud to call Fulton Market home. Our team continues to contribute to the area’s incredible transformation and looks forward to building a lasting legacy in this ever-evolving neighborhood.

Author: Sylvia Miller

Sep 24
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How to Run Great Construction Management Projects

By Construction Management

At Summit Design + Build, our commitment to excellence is the cornerstone of every project we undertake. We believe that running great projects isn’t just about meeting deadlines and budgets – it’s about fostering collaboration, ensuring quality, and creating success for everyone involved. Drawing from insights provided by our team of industry professionals, let’s explore what it takes to manage and execute exceptional construction projects.

1. Establishing a Clear Vision and Defined Path

One of the first steps in ensuring the success of a construction project is having a clear vision and a well-defined path. Tony Denofrio, Vice President of Field Operations, emphasizes the importance of planning with precision and establishing a sequence that guides the project from inception to completion. A clearly defined roadmap ensures that all stakeholders understand the project’s goals, timelines, and milestones. This clarity minimizes confusion and aligns the efforts of the entire team towards a common objective.

A construction project without a clear vision is like a hiker setting out on a trek without a detailed trail map. They may eventually reach the summit, but they’ll likely encounter countless diversions and dead ends along the way, wasting valuable time and energy.

That’s why it’s essential to invest considerable time in the planning phase, meticulously charting each step of the project journey. This upfront work ensures we navigate the project landscape efficiently, avoiding pitfalls and staying firmly on the path to success.

2. Vital Role of Strong Communication

Strong communication is the backbone of any successful construction project. Steven Moodie, Project Manager, points out that open lines of communication facilitate problem-solving and foster trust among team members. Effective communication ensures that everyone is on the same page, which is critical in a field where delays and miscommunications can lead to significant setbacks.

Multiple Summit team members echoed the sentiment that effective communication is foundational. It involves not just the exchange of information, but also active listening and understanding. Regular meetings, updates, and transparent reporting mechanisms are essential tools to keep the communication flow seamless.

3. Adherence to Budget and Schedule

Doug Hayes, Director, and other professionals highlight the critical importance of staying on time and on budget. A project’s success is often measured by its ability to meet these two key parameters without compromising on quality or safety. Effective budgeting and scheduling prevent cost overruns and delays, ensuring the project is delivered as promised.

This involves accurate estimates, proper staffing, diligent monitoring of progress, and the flexibility to adapt to unforeseen circumstances. Regularly reviewing the budget and schedule allows project managers to identify potential issues early and take corrective actions promptly.

4. Commitment to Quality and Detail-Oriented Execution

Chris Bridgman, Senior Project Manager, speaks to the essence of building to the highest quality possible. Attention to detail and a commitment to quality workmanship are distinguishing features of great construction projects. Ensuring that every aspect of the project meets the highest standards of quality not only satisfies clients but also enhances the reputation of the construction firm.

Quality management involves setting clear standards, conducting regular inspections, and employing skilled craftsmen who take pride in their work. It’s about doing things right the first time, rather than cutting corners and dealing with costly rework later.

5. Cultivating Collaboration and Teamwork

A culture of collaboration is essential for the success of any construction project. Kevin Milenkoff, Senior Superintendent, emphasizes the importance of being honest, open, and available for discussions. A collaborative environment enables better problem-solving and fosters a sense of shared responsibility and trust among team members.

Collaboration isn’t just about working together; it’s about creating an environment where every team member feels valued and heard. Encouraging input from all stakeholders and fostering a spirit of teamwork can lead to innovative solutions and a more cohesive working environment.

6. Selecting the Right Subcontractors

The quality of subcontractors can make or break a project. Kevin Milenkoff and Chris Bridgman both highlight the importance of hiring reliable and skilled subcontractors. Proper selection and management of subcontractors ensure that the work is performed to the highest standards and within the agreed timeline and budget.

Selecting the right subcontractors involves a thorough vetting process, clear contracts, and regular oversight. It’s about building relationships based on trust and mutual respect, ensuring that everyone is aligned with the project’s goals and standards.

7. Continuous Learning and Improvement

Continuous improvement is a hallmark of great construction projects. Tony Denofrio and Doug Hayes share that verifying everything and over-communicating are vital lessons learned from past projects. Being proactive in addressing potential issues and making informed decisions early on can significantly impact project outcomes.

Learning from past projects involves conducting post-project reviews to identify what went well and what could be improved. This feedback loop helps in refining processes, adopting best practices, and avoiding past mistakes.

Key Takeaways from Successful Projects

Prenuvo Phase I stands out for Tony Denofrio due to its successful coordination despite complex requirements. This project showcases the importance of adaptability and precision, demonstrating how thorough planning and execution can lead to outstanding results.

Taverna Toscana and William Dean’s Chocolate projects, mentioned by Steven Moodie, exemplify the pride and meticulous planning involved in delivering exceptional outcomes. These projects highlight the importance of quality workmanship and strong project management.

Essential Qualities of Project Managers and General Contractors

  • Patience and Understanding: Managing diverse teams and navigating challenges require a calm and patient approach. A good project manager listens actively and understands the needs and concerns of all stakeholders.
  • Attention to Detail: Ensuring all aspects of the project meet the required standards. Detail-oriented project managers catch potential issues before they become major problems.
  • Goal-Driven and Organized: Keeping the team focused on the end goals and maintaining order throughout the project lifecycle. Organizational skills are crucial for coordinating various aspects of the project efficiently.
  • Problem-Solving Skills: Addressing issues promptly and effectively. A good project manager anticipates challenges and develops contingency plans to mitigate risks.

Fostering a Collaborative Culture

Creating a culture of collaboration involves several key practices:

  • Honesty and Transparency: Being straightforward with subcontractors and stakeholders fosters trust and encourages open communication.
  • Active Involvement: Engaging all stakeholders in decision-making processes ensures that everyone feels invested in the project’s success.
  • Building Trust: Listening to different viewpoints and understanding diverse perspectives builds a solid foundation of trust and respect among team members.

Running Great Projects – The Summit Design + Build Way

Running a great construction project is a multifaceted endeavor that requires meticulous planning, robust communication, quality management, and fostering a collaborative environment. By adhering to these principles and continuously learning from past experiences, Summit Design + Build and our construction professionals can ensure the successful delivery of outstanding projects.

In the end, great construction projects are not just about bricks and mortar; they are about building relationships, trust, and a legacy of excellence that stands the test of time. By focusing on these key aspects, we can elevate the standards of our industry and deliver projects that truly make a difference.

Ready to bring your commercial construction project to life? Reach out to Summit Design + Build and experience firsthand how we run great projects!

Sep 05
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Design-Build Construction: Everything You Need to Know

By Design-Build

Design-Build Construction Guide

 

What is Design-Build Construction?

Design-Build is a construction delivery method where the owner signs one contract for both architectural design services and physical construction. This approach simplifies collaboration, communication, and coordination.

In design-build construction, the architect and general contractor collaborate from project inception, offering unified recommendations tailored to the owner’s needs.

All team members address changes collectively, fostering innovative problem-solving without blame-shifting. Besides single-source contracting, the collaborative culture is equally vital.

Benefits of the Design-Build Approach

  • Single Point of Contact: The owner has one point of contact (the general contractor) for questions and input.
  • Minimizes Owner Risk: More risk falls on the design-build contractor, protecting owners from unexpected costs from design errors and construction delays.
  • Single Contract: Simplifies project management and reduces the potential for conflicts.
  • Emphasis on Collaboration: Increased early-stage collaboration between the general contractor and other team members leads to significant cost savings and a more efficient schedule.
  • Unified Recommendations: General contractors and architects work as a team, providing unified and efficient recommendations.
  • Reduction in Change Orders: Single-source responsibility minimizes costs and streamlines schedules.

 

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Comparison with Traditional Construction Methods

  • Design-Bid-Build: The owner hires the architect first to develop scope, program, and design, then the project goes out to bid to General Contractors. This separation can lead to siloed communication and costly change orders.
  • Construction Management at Risk (CMAR): A construction manager oversees the project, but design and construction are still separate phases.
  • Integrated Project Delivery (IPD): A collaborative approach involving shared risk and reward among all parties but can be complex to implement.

 

The Design-Build Process

Step-by-Step Guide:

  1. Project Initiation: Define project goals, initial consultation, and create a detailed project brief.
  2. Site Selection: Identify, analyze, evaluate, and secure the optimal site.
  3. Project Conception/Feasibility: Conduct feasibility studies, develop a preliminary budget, assess risks, and seek client approval.
  4. Team Selection: Issue RFQs, RFPs, evaluate proposals, and select the design-build team.
  5. Project Planning/Preconstruction: Hold kickoff meetings, develop detailed plans, and create a risk management plan.
  6. Design: Create schematic designs, develop detailed designs, update cost estimates, and prepare construction documents.
  7. Construction: Mobilize the site, procure materials, execute construction, implement quality control, and conduct regular inspections.
  8. Completion: Perform final inspections, create and address a punch list, conduct a client walkthrough, provide as-built documentation, and formally hand over the project.

  
Traditional Construction vs. Design-Build Construction Process
  

Role of the Design-Build Team

The design-build team includes the building owner, general contractor/construction manager, architect, engineers, subcontractors, and suppliers working as a fully integrated team.

Challenges and Solutions in Design-Build

  • Scope Creep: Mitigation through detailed initial planning and continuous stakeholder engagement.
  • Communication and Coordination: Implementing integrated project management tools and regular coordination meetings.
  • Design Quality Control: Establishing rigorous design review processes and early involvement of construction professionals.
  • Risk Allocation: Clearly defined contracts that outline risk responsibilities.
  • Budget Management: Continuous cost monitoring and flexible budgeting.
  • Regulatory Compliance: Early and ongoing involvement of regulatory bodies.
  • Quality Assurance: Stringent QA/QC processes.
  • Subcontractor Management: Careful selection of subcontractors and clear communication.
  • Client Involvement: Establishing clear roles and responsibilities for client interaction.
  • Technology Integration: Adopting compatible and integrated software solutions.
  • Schedule Management: Detailed scheduling with built-in flexibility.
  • Contractual and Legal Issues: Engaging experienced legal counsel.
  • Stakeholder Management: Regular stakeholder meetings and transparent communication.
  • Sustainability and Environmental Concerns: Early integration of sustainability goals.

 

Design-Build vs. Traditional Construction Methods

  • Design-Bid-Build: Unforeseen issues can derail schedules and budgets, whereas design-build’s collaboration uncovers these issues during the design phase.
  • Construction Management at Risk: Provides some integration but lacks the single point of responsibility found in design-build.

 

When to Choose Design-Build Over Other Methods

Design-build is best for larger, more complex projects, offering predictable costs, faster construction, teamwork, total accountability, and fewer change orders. It’s particularly effective for manufacturing projects and projects with well-defined scopes.

Key Players in the Design-Build Process

  • Owner: Creates vision and goals, selects the design-builder, and manages one contract.
  • Design-Build General Contractor: Includes project executives, managers, engineers, and superintendents.
  • Architects and Engineers: Develop designs and provide technical expertise.
  • Subcontractors and Subconsultants: Provide specialized services and expertise.

 

Summit Design+Build Case Studies:

MethodMethod Project

Method’s 157,660 SF manufacturing facility in Chicago’s historic Pullman neighborhood utilized the design-build approach to integrate sustainable features such as a refurbished 230-foot wind turbine and a rooftop greenhouse. The collaborative team managed significant scope changes efficiently, maintaining the project’s schedule and LEED® Platinum status.

“Summit completed the project on time, on budget, and on strategy.”

– Jordan Martin, Method

EJ BaslerEJ Basler

The renovation of an existing industrial warehouse involved selective demolition and the new construction of an addition. Effective communication, thorough pre-construction planning, and integrated project delivery were key success factors.

 

“Our newly constructed production machining facility is amazing; all of our employees are excited to come to work in the new space.”

– Dennis Basler, President, EJ Basler

 

Selecting the Right Design-Build Contractor

Questions to Ask Potential Firms

  • What is your experience with similar projects?
  • How do you manage project scope and changes?
  • Can you provide references from previous clients?

Red Flags to Watch Out For

  • Lack of experience with similar projects
  • Poor communication or transparency
  • Unclear project management processes

 

Future of Design-Build Construction

The future of design-build construction looks promising, with increasing adoption across various sectors. Advances in technology, such as Building Information Modeling (BIM), are enhancing the design-build process, making it more efficient and collaborative. Additionally, new infrastructure legislation is likely to increase the use of design-build for public projects.

 

Quotes from Summit Design + Build Professionals:

Alekhya Pujari, Project Manager: “The design-build method gives us a deeper understanding of your needs and expectations. When we are involved in the design process, we are always thinking about value engineering to meet the budget and schedule proactively. The process is seamless, and the results typically exceed expectations. Not to mention, you know we got it all covered this way!“

Prajit Hari, Project Engineer II: “The design-build approach meant we were involved in the project from the very beginning, back when it was just an ‘idea’. This helped us understand the client’s expectations a lot better and put us in a better spot to manage and ultimately deliver them. It’s a lot more involved than the traditional ‘design first-build later’ approach but at the same time, a lot more rewarding.“

Glenn Miles, Vice President of Project Management: “This integrated approach not only accelerates timelines and optimizes costs but also enhances the quality and innovation of our projects.“

Tony Denofrio, Vice President of Field Operations: “Design-build, as used by Summit, offers a streamlined and collaborative approach that combines design and construction into a single phase, promoting efficiency, cost savings, and improved project outcomes.“

Amber Autumn, Director of Business Development: “Design-build is not just a method; it’s a mindset. It’s about working together from the outset to align our goals, streamline our processes, and deliver exceptional results.“

 

Design-build is not just a method; it’s a mindset. It’s about working together from the outset to align our goals, streamline our processes, and deliver exceptional results.

– Amber Autumn

 

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Summit Design + Build’s Design-Build Methodology

Summit Design + Build approaches each project by breaking it down into smaller, manageable components. This method, akin to the approach used by design professionals, helps identify the needs and requirements of each subcomponent, ensuring the successful completion of the entire project.

  1. The methodology begins with an initial consultation to understand the client’s vision, goals, budget, and timeline, followed by a thorough site evaluation.
  2. Preliminary design concepts and a feasibility study ensure technical and financial viability. Detailed designs are refined, with comprehensive cost estimates and project scheduling.
  3. Regulatory compliance is ensured before pre-construction planning, which includes resource allocation, subcontractor selection, and risk management.
  4. During construction, daily activities are managed, quality control is maintained, and effective communication among all parties is ensured.
  5. Upon project completion, final inspections are conducted, deficiencies addressed, client training provided, and the project handed over with all necessary documentation.
  6. Post-construction, warranty services and maintenance plans are offered, and client feedback is gathered to continuously improve the process.

This integrated approach ensures efficiency, collaboration, and quality from start to finish.

Processes and Procedures for Cost-Effective and Efficient Solutions

  • Document Control: Day-to-day documentation and project control via Procore project management software.
  • Subcontractor Supervision: Ensuring quality and adherence to project specifications.
  • Quality: Project sequencing, material delivery, and decision documentation.
  • Scheduling: Master schedule development, construction phasing, and logistics.
  • Constructability Review: Monitoring and reviewing contract documents.
  • Procurement Plan: Subcontractor scope reviews, cost savings, and value engineering.

 
Benefits of Design-Build Approach
 

Design-Build FAQs

How Does the Design Process Work in Design-Build Construction?

The process starts with the client defining their needs, goals, and budget. The design-build team conducts a feasibility study, develops initial design concepts, and then detailed designs. Early contractor involvement ensures cost-effectiveness and constructability.

Are There Any Drawbacks or Limitations to Design-Build Construction?

While design-build offers many advantages, it may not be suitable for all projects. Potential drawbacks include less control for the owner over the design and the risk of less competitive pricing if not managed properly.

How Does Budgeting and Cost Control Work in Design-Build Construction?

Budgeting and cost control involve close collaboration between the design and construction teams. Early contractor involvement helps identify cost-saving opportunities and manage the budget effectively.

What Are the Typical Timelines for Completing a Design-Build Project?

Timelines vary depending on the project’s complexity and scope. Typically, pre-construction takes 1-3 months, design development 3-6 months, permitting 1-3 months, construction 6-18 months, and close-out 1 month.

Are There Any Specific Legal or Contractual Considerations in Design-Build Construction?

Design-build projects require specific legal and contractual considerations to ensure clarity and accountability. Contracts should clearly define the roles and responsibilities of the design-builder and outline the project’s scope, budget, and timeline to avoid disputes.

Apr 01
Love1
construction contract review

Construction Contracts 101

By Industry Insights

Guide to Construction Contracts

Along with the excitement and anticipation surrounding the design and construction of a new
addition, building or a campus, every project begins with a construction contract.

There are several types of contracts available, each with its pros and cons, so it’s important to evaluate which approach is going to work best for the project at hand.

Factors to consider include the project’s scope, schedule, including the time you have to get the
project started, budget and the parties involved. These variables and the selected contract will significantly impact the project’s delivery and often profit margins.

The following is an overview of the five most common contracts used in the commercial construction industry today.

Cost-Plus Contract

With this type of contract, all construction-related expenses are covered by the owner. This includes labor, materials, supplies, etc. In addition, overhead costs like insurance, gas mileage, construction trailers, etc., are accounted for as well.

Expenses are reported as they occur and contractors run a low risk of losing money in materials.

This type of arrangement is well suited for projects where the scope is not well defined and/or it’s difficult to provide a thorough estimate of the work. Also, if there is not ample time to move forward with other types of projects. That said, it will fall on the contractor to track expenses and submit them for reimbursement.

The cost-plus contract can also include incentives for coming in under budget and set caps on expenditures. Consequently, both owners and contractors are motivated to manage the project costs.

Design-Build

With design-build, a project’s design and construction is combined into one contract. With this project delivery approach, construction may commence before the design is completed. This fast tracks the construction and supports greater collaboration between the design and construction teams.

At the same time, it can be more challenging to estimate costs, plus the fact that there’s no competitive bidding in certain areas beyond the project’s onset. That said, the highly collaborative aspect of design-build construction and the expedited speed to market often more than compensates for this.

Guaranteed Maximum Price

With a guaranteed maximum price (GMP) contract, the maximum amount the owner will have to pay the contractor is capped. Consequently, the building owner’s risks are lowered as the general contractor takes acts as the construction manager at risk (CMAR).

The contract includes costs for labor, materials, overhead and a percentage of those costs to generate a profit. This structure makes budgeting easier and can help expedite the lending process. Project plans are often finalized before construction, so change orders are minimized.

GMP requires careful review and analysis of expenses, which can be particularly time-consuming for large, multi-phase projects. In many cases, a shared savings clause is introduced, which allows any leftover funds to be spent by the contractor should the scope be missed during contract buyout. Further, the contractor must carefully price the project or risk paying out of pocket.

Lump-Sum

In the lump-sum contract, a total price is named for the entire job. This comprises all the time and materials, regardless of any changes or setbacks. Because the contractor is taking on a lot of risk, the cost is often set a little higher. This can be done on GMP and others as well.

This approach works well for projects with a well-defined scope.

Administration and cash flow estimates are easier and the contractor is freed up to focus on quality, materials and output.

For this type of contract to really pay off, contractors need to do a good job of estimating the project’s schedule, materials, labor costs, overhead costs and profit margins.

Integrated Project Delivery

With large, complex projects, integrated project delivery (IPD) can be a good choice. Like design-build, both the design and contract is included in one contract.

The owner, designer and building are motivated to work closely together, often applying lean principles, as they share risk. A lump sum profit is then divided amongst the owner, designer and builder in a financially successful project.

On the downside, IPD contracts are relatively new in the industry and some contractors might find it challenging to secure funding.

About the author

Barbara Horwitz-Bennett is a seasoned architectural journalist, covering the design and construction industry for the past 25+ years. She writes for numerous industry magazines and creates content for AEC firms, product manufacturers and industry associations.

Mar 19
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Construction workers on job site

Preconstruction Best Practices

By Industry Insights

Preconstruction Best Practices

Just as the foundation of a building must be strong, robust and precise in order to support the highest quality, long-standing structure, the same applies to the construction process itself, starting with preconstruction.

Beyond simply gathering bids for different aspects of the work, a project’s initial pre-construction phase should be a thorough and thought through process, beginning with establishing team communication.

This includes setting up the frequency of meetings, how documents will be transferred and determining the building team’s preferred communication styles.

Post-pandemic, the convenience and efficiency of platforms like Microsoft Teams and Zoom are well established. To optimize these online meetings, screen sharing is highly recommended.

Overall, the preconstruction phase establishes the project’s direction and allows for the designers and contractors to share ideas. When this process is organized, moving forward and on schedule, it will be the most effective.

Bid Management

During the bid management phase, the contractor identifies trade packages and creates clear scopes of work.

Experienced contractors often utilize master scope sheets developed over time. Reviewing past project scope sheets, change orders and sub quotes for different trades will help best inform the current scope document.

Through this process, it’s important to identify gray area items and address constructability to make sure that all material, equipment and labor is covered in the scope.

Prior to inviting subs to bid on the project, apps like TradeTapp is a useful way to  prequalify subcontractors.

A bid and award schedule is then developed and bid packages are electronically released to a broad range of vendors and trade subcontractors through tools like SmartBid and BuildingConnected. The latter platform, in particular, is quite popular amongst subcontractors and is therefore an effective way to solicit bids.

The contractor then conducts pre-bid conferences and answers subcontractor questions during the bid process.

Next, the bids are received and evaluated. This includes an in-depth bid review process to minimize uncertainties and hidden contingencies. Post-bid interviews are conducted with potential subs and then the contractor issues award recommendations and contracts.

Design Analysis and Constructability Review

The construction team then performs design analysis/reviews, identifies project constraints and performs constructability reviews. Contractors can lend their expertise in providing input on materials and product specifications, and assessing options for value engineering.

The contractor also develops a cost model and provides estimates as the design evolves. Once the cost model and budget are established, a budget tracking system is implemented to monitor any issues or changes in scope that put pressure on the budget.

To the extent that the team is organized and establishes regular lines communication and collaboration, the fewer surprises will arise down the road. This reduces the risk of project conflicts and delays, and increases opportunities for project savings.

Along these lines, team are encouraged to establish risk management strategies and examine all “what if” scenarios.

A recommended best practice is establishing a Master Schedule to identify long-lead time items, critical path items, occupancy and closeout. For example, equipment like elevators, electrical gear, HVAC units and generators tend to require longer lead times for delivery.

Bringing Value

To ensure a high level of quality and efficiency through this whole process, another best practice is establishing internal budgets at the conception of the job. Working hand in hand with architects and engineers then helps confirm that the project is staying on budget.

As for selecting subcontractors and companies to work with, it’s important to rigorously scope subs and suppliers to build the best qualified building team and ultimately offer the best value.

Another best practice is planning and sequencing phasing and site logistics to best coordinate project activities and address any safety concerns.

And finally, before construction commences, all necessary construction permits must be obtained. If time is of the essence, contractors may benefit from the services of a permit expeditor.

To learn more about working with Summit Design + Builds’ expert team of contractors, visit our Let’s Build Together page.