December 23, 2011
Eric Schmitt
Benefits of a Pre-Construction agreement with your builder:
Great builders engaged early in the design process are invaluable and often overlooked for their 1st hand knowledge of site evaluation, constructability, practical feedback on cost, as well as budget updates throughout the design phases. We are there to listen, discuss material options, and propose alternate systems methods & materials to achieve the aesthetic, design, and budget goals.
• We can help predict and control cost, schedule, coordinate with consultants to help finalize plans and specifications.
• Provide detailed budgets, cost analysis, and alternative options.
• We help facilitate permitting issues by working with the various County or City agencies as needed.
• Coordinate design build and pricing with subcontractors directly if that is a more cost effective route to use rather than independent engineers and consultants in some cases.
o This is mostly related to mechanical, plumbing, and electrical work.
• This is a great way to get to know your Contractor (if you don’t already have a relationship) before entering into a contract and construction only to find out you really don’t click.
o If the Owner elects not to proceed with Contractor or the project, the Owner has no further obligation to the Contractor other than payment for Pre-Construction services agreed upon.
• The key is avoiding major change after a project is designed, engineered and bid out. This is not only costly but creates delays in construction, often missing the window to start until the following season. The sooner you can determine a preliminary budget, the more room you have to change and tweak as the design progresses.
o More often than not when pricing is provided after design without using Pre-Construction services the owners are shocked that budgets are substantially more than ever discussed with their architect.
o Starting this process earlier avoids going backwards with not only the architects design but all the consultants that have to adjust and re-do their work as well. Once you get beyond the conceptual & schematic stage it becomes more costly to make any major program changes.
Some things to consider and ways around them:
• Let’s assume you are already talking to well qualified architects and builders.
o Beyond your initial attraction to their work, or references we believe one of the keys when choosing team members starting from the architect and builder on down is not just experience or size of the firm but respect for this process and willingness to collaborate and share ideas with others.
• Larger firms whether it be civil engineers, consultants, or subcontractors are often (not always) less flexible and open to change and a team approach. The other issues here are normally there are more levels of management, and likely not working w/ principles directly. Both of these things cause inefficiencies in design, construction, scheduling, and overall cost.
• Budget issues and escalation from initial pricing and through construction are caused by rushed or incomplete design, poor or no collaboration with a good builder during design phases who could have provided important feedback on budgeting and design issues.
• Looking for and taking low bids is another issue. If competitive bidding a project, the pricing is only as good as the level of detail and specifications in the plans or bid documents. Bidders will only price what they see on the plans (to be competitive) even if it’s obvious that many details are missing or not clearly defined. This just leaves the client wide open to cost increases through change orders after construction begins.
o It’s very difficult for the clients to know if they have a good, and biddable, completely detailed sets of plans & specs. For custom designed projects, especially residential this is often not the case. It’s more expensive to have the architect prepare the plans to this level and normally they are not hired to do so.
• Change and Project evolution – We’ve been involved in all types of projects, some are more defined and spelled out from the beginning. Many of the most innovative ones involve change as they evolve. Change is OK and a good thing, but only if properly communicated and understood by all. This doesn’t always mean cost increase and often leads to much more creative/elegant solutions to design details that can’t be envisioned during design even by the best of architects or in the client’s visions.
The true secret is great collaboration with a well chosen team, great communication, and utilizing this overall approach to avoid surprise which can really sour a project or relationship with all involved.
Please feel free to get in touch to discuss this in more detail. We’re always open to suggestions on how to further improve the process for all involved.
Schmitt + Company
