Wolgast Blog - Construction Trends, Tips and Information

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.

 

By hiring a Construction Manager at Risk (CMAR) you’re getting a construction consultant on your team who handles all aspects of your building from design through warranty for a guaranteed maximum price. The CMAR oversees your project and can even hire the architect on your behalf, working with them to see that your design goals are recognized within the allotted budget. Then they complete all the pre-construction activities and hire the contractors as if it were the CMAR’s own project. The CMAR oversees the construction of the building through completion and any warranty issues.

The Ford Motor Company reimage program is in full effect.  Dealers had to be committed earlier this year and now have until the end of 2016 to complete their design.  We are experience with designing and constructing many flagship dealers and can do the same for you.

Rick Keith, Wolgast Corporation's Architect, is ready to assist dealerships however he can.  Rick has been through corporate design programs with other dealerships, hotel chains, and restaurants, so he knows the protocol involved.