Wolgast Blog - Construction Trends, Tips and Information

For both Design-Build and Construction Management delivery methods, the start of Preconstruction Phase is Architectural Design and it’s a very exciting time for most building owners.  They love the ideas, options, and decorating aspects for their building.  And then, when drawings are done, the owner is eager to get to the other main event of Construction Phase.  But there is so much more happening during Design than they know and a lot more to be done before this Preconstruction Phase, “Pre-Con”, is complete.  This is also when the contractor gets organized to save the most time and money during construction.   

When you’re a small business owner who is responsible for your building, you likely don’t have a budget for a facility manager and building maintenance likely doesn't hit your to-do list until a problem presents itself.  However, maintenance is very important to the longevity and cost of building operation. Having a building maintenance strategy can help you proactively catch repairs, leaks, and heating deficiencies early with way less expense out of pocket.

Architects and engineers are smart people who are dedicated to taking the information their clients provide them and designing an aesthetically pleasing and functional building to meet their client’s goals.  In their design specifications, they include specific products for building finishes, which they’ve researched or have experienced, to match the desired outcome expressed by their client.  Typically, these materials or products have also been discussed with and accepted by the client.

The 2015 Michigan Energy Code, as directed by Licensing and Regulatory Affairs (LARA), went into effect Sept 20, 2017.  The changes to the code involve lighting controls of new commercial buildings and remodels with more than 50% lighting alterations in an effort to increase energy savings.  In a nutshell, different areas of a commercial building will need both sensors and a wall switch or dimmer to control lighting.

In 2015, there were roughly 53 million Americans¹ who were disabled either in mobility, in hearing, or with their vision.  Moreover, there are the aging baby boomers with special needs, mothers with strollers, and an increasing number of people using service dogs who each have different accessibility needs to public places.  Whether you are a restaurant, retailer, bank, medical office, or school (to list a few), you likely already have Americans with Disabilities Act (ADA) standards to meet when you build a new building or remodel your existing one; however, if you aren’t already regulated by Title II or Title III, there are still benefits of planning your building for access to everyone, also known as Universal Design, which is different from ADA.  Some are considering Universal Design an emerging concept of good citizenship, much the same way LEED has done for reducing a company’s carbon footprint.  Compared to ADA which is mandated by the government to provide accessibility for disabled people within publicly used buildings, Universal Design is a choice that a building owner makes to include accommodations not regulated by the ADA to provide easy accessibility to everyone.

Uncommon (and Common) Reasons to Use Construction Management

One of our Construction Management (CM) clients recently stated that starting a large construction project is similar to drinking from a fire hose.  He has appreciated relying on us to help him through the process.  If you don’t know, CM is a construction delivery method where an owner hires both the Architect and Contractor on the team before the design process begins.  The Owner, the Architect, and the CM work together to identify the scope of the project, estimate the budget, and determine the schedule.  During the Design Phase, the Architect is responsible for creating the design based on the scope, and the CM estimates the budget needed for constructing it and coordinates the schedule.  During the Construction Phase, the CM finds the subcontractors and oversees construction through the Warranty Phase; the Architect offers checks and balances to ensure that their design is executed accurately and that schedules and budgets are met.  This method is typically suited for most large projects that either span more than a year, involve more than one building, or both.  It is also suitable for other types of projects in instances described below.

Benefits of Using CM

As construction broker companies continue to pop up, they’re coming up short compared to a Design-Build – General Construction (DB-GC) Firm in many important areas for project success.  DB-GCs provide much more control over the schedule and the budget on your project versus a construction services broker.

 

(At Wolgast's request, CPA, Andrew Rose of Rehmann's Commercial Industry Group, generously shared the following expert insight into Cost Segregation to help guide our clients to find tax savings in their building.)

As the economy rebounds, businesses are becoming more profitable. At the same time, higher individual taxes are placing a financial burden on business owners. If you’re looking for ways to reduce taxes and boost cash flow, consider a cost segregation study.