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Wolgast Blog - Construction Trends, Tips and Information

Get commercial construction questions answered by a professional contractor sharing building trends, tips and information

Posts about Risk Management (2)

Four Key Site Selection Factors before Purchasing Commercial Property

When searching for commercial property you can and should rely on your realtor for many key details and features of the site that will benefit your business. That being said, there are details that only a Design/Build partner can help you make a more complete, educated decision. With the Architect and Contractor on the same team, they will review the site together and determine obstacles and costs quickly. Specifically, Design/Build contractors are looking for infrastructure, constructability, and challenges of a site that could potentially add cost to a construction budget or schedule.

Certificate of Need and Your Design Build Contractor

Updated 11/24/20: The controversial Certificate of Need (CON) program in Michigan is in question through several new bills that passed the Michigan Senate in February 2020.  It has yet to be decided in the House.  The debate has been ongoing and seems to be getting more and more heated with those against it arguing for an open market approach to drive down cost and those for it are claiming that the medical industry needs to be regulated to keep a high standard of care at an affordable cost.

What to Do with an Old School Pool?

School Districts with older pools that have floated, no longer pass inspection, or pools that are simply underutilized, we have an answer to your dilemma. Other School Districts who have faced this problem just closed the door to their pool room, others use the pool shell to store old desks, chairs, athletic equipment, or general storage, etc., but this is obviously not the most efficient use of space. Plus there is still additional expense of insurance coverage and for the heating costs of the large area.

Building Maintenance Strategies for Small Business Owners

When you’re a small business owner who is responsible for your building, you likely don’t have a budget for a facility manager. Building maintenance probably isn’t something that hits your to-do list very often, but is still 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 with way less expense out of pocket.

The Inside Scoop on Construction Manager at Risk Delivery Method

 

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.

Popularity Increasing for Design Build Construction

As an update to this blog originally posted a few years ago, we have new information to add  from the June 2018 Design-Build Utilization Report funded by Design-Build Institute of America. Findings in this report determined that popularity continues to grow for this delivery method. The results showed, "Design-Build Construction spending in the assessed segments is anticipated to increase 18% from 2018 - 2021", and will likely represent 44% of construction spending by 2021. Researchers determined that the education of building owners on Design-Build benefits is gaining traction, and more owners are experiencing enjoying the benefits first hand.  Additionally, FMI Corporation, a management consulting and investment company, had released a report in March 2019 titled 2019 AGC/FMI Risk Management Survey, whereby they found that "38% of contractors were <planning> to increase their in-house design capabilities last year and 43% this year".  So there will be more collaboration, less risk, and more competition among design and construction moving forward.

Original blog article:

According to the May 2013, “Design-Build Project Delivery Market Share and Market Size Report” by Reed Construction Data and RS Means Intelligence, Design-Build construction delivery method has taken an additional 9% of the construction market since 2005 and General Construction has lost 10% of the market share in that same time.

What is the Design Build Method of Construction?

We've been providing Design-Build services for almost 40 years and we're curious if it's a well known term among those who haven’t previously been involved with the construction of a commercial building.  Have you heard the term before?  In a nutshell, it’s a method of construction delivery in which the building owner executes a single contract with one entity to provide architectural/engineering and construction services.

Ample Estimating Time Can Lower Price of Construction

Obviously, planning a construction project doesn’t happen overnight.  In most cases, the client has a set occupancy date when construction has to be completed either to satisfy a contract they have acquired or to meet their seasonal market (to name two).  During that construction project time frame, planning through completed project, there are five main activities that need to take place, which include design, cost estimating, obtaining regulatory approval, acquiring materials and construction. 

The Good and the Bad of How Contractors Lower Their Bids

 

In a competitive bid situation, contractors can go to the extremes to lower their bids, especially when work opportunities are scarce.  In the end, a business owner may like the price, but may not like the final results.

How Wolgast Selects the Best Subcontractors

 
The science of selecting the best subcontractor (sub) for a construction project is based on finding the right balance of price and value among the entire pool of contractors available.  Looking at price alone is a gamble the purchaser takes with the potential of surprises and unmet expectations.  If you mix the price with good value, you’re likely to get exactly what you expect at the price you were quoted and with the customer service to back it up.

 

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