Wolgast Blog - Construction Trends, Tips and Information

It’s not unusual that I encounter potential clients who are expanding and need new space to accommodate their growth, but aren’t able to expend their capital for the down payment on a typical bank loan.

We have found that there’s not a single formula to passing a school bond vote.  Every community is different in regard to their support of their school district, so each campaign needs to be tweaked and managed.  However, Wolgast's School Facility Specialists have discovered a couple of tactics over the years as former School Superintendents on how to give every bond campaign a better chance for success and offer their expertise as part of our Pre-Bond Services.

So, you’ve been elected to your District’s School Board and have four years (or so) to help make the best decisions for the students and staff. You likely anticipate facing many issues that’ll require research plus your life experience to decide what’s best for your School District. One of those issues could be the maintenance, remodel, rebuild or relocation of school buildings. Do you know where to start? Below, we explain the steps you should take to have a successful construction project.

Preliminary plans, such as those provided in a Phase I of the Design-Build process, are the most efficient and economical means to determine the budget for your construction project.

While there has been a shift in the numbers¹, there are still many business owners out there who are skeptical of the Design-Build method of construction.  They are more familiar with the traditional Design-Bid/Build method where they hire an architect, then have general contractors competitively bid the project, and the contractor with the best price/value builds the project.

Other than taking time to prepare a plan when the weather is poor for construction (so you can be ready when the weather is conducive for construction) there are additional benefits to contact your design/builder or general contractor in the winter.  Let me clarify that the following explanation works best when applied in Michigan and other cold winter states.  

Commercial Property Financing

As I found out recently by talking to Steve Canole, Vice President and Business Loan Officer  at 1^st State Bank, there aren’t as explicit criteria for securing a commercial construction loan as there are  for residential mortgage financing.  According to Steve, there are many more variables that lenders need to consider when reviewing a commercial property mortgage compared to a residential loan which is more stream lined.  Primarily, these variables include whether it’s an investment property versus owner-occupied, the size of the project, the varied ways commercial real estate can be purchased and held, the various types of operating entities and how the owner chooses to operate and file taxes, and finally the loan/cost ratio of the project.