Tag: project manager

Design-Build vs. Design-Bid-Build

You decided to build.

Do you know what type of build process you want to commit to?

Beyond choosing the right builder, you need to understand how the builder will complete the scope of work. Two methods are design-build and design-bid-build. We go over the differences between these two processes below. 

Design-Build

With design-build, the owner signs just one contract with the builder (or project manager).

Often, design-build companies have their own team to handle all aspects of the project, including design, construction, and all trades. With this type of construction process, the owner has one point of contact, making it easier to communicate. 

The contractor can also hire subcontractors for trades as needed, though they resume all responsibility for the finished project, cost, and schedule. 

Design-Bid-Build

Design-bid-build is the more traditional model in construction. Design and construction are handled by two different companies, with two separate contracts. 

Where does the bidding come in?

First, the design team works to complete a set of construction documents for the project. From there, various contractors can submit bids for the project. Usually, the work goes to the lowest bidder. This can help to ensure the cost of construction will stay low. When communication between all parties is strong, this process is effective. 

When completing new construction, it is most important to feel comfortable with who you are working with. From there, you can discuss the type of building process that best fits your needs. 

 

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4 Types of Construction Contracts 

A construction contract is a legal agreement between all parties involved. Construction projects have numerous people involved both on and off-site: the project manager, owner, designer, contractors, subcontractors, and more. To ensure all parties involved are protected, the contract must be clear and agreed upon by all. 

Construction contracts clearly state project compensation, responsibilities of all involved, and risks assumed by all parties. 

The following contract types are used in construction projects and are customized to meet the needs of each new build. 

Lump Sum or Fixed Price Contract

A lump sum, or fixed price, contract includes a total fixed price for the entire project. The contractor estimates the total cost of the project, including costs associated with overhead and risk. With a lump sum contract, the contractor assumes all risk. Incentives or penalties can be included in the contract for timeline adjustments.

Cost Plus Contract

With a cost plus contract, the contractor is paid for actual purchases and labor costs. A pre-negotiated amount to cover the contractor’s overhead is also included. All expenses are classified as either direct or indirect. 

In this type of contract, the owner assumes all risk and is involved in construction administration. In addition, there is no incentive to reduce labor costs by finishing ahead of schedule. 

The most common variations for a cost plus contract are:

  • Cost Plus Fixed Fee
  • Cost Plus Fixed Percentage
  • Cost Plus with Guaranteed Maximum Price Contract
  • Cost Plus with Guaranteed Maximum Price and Bonus Contract

Time and Materials Contracts

With a time and materials contract, the owner and contractor agree on an hourly or daily rate. Similar to a cost plus contract, all fees must be included and classified as direct or indirect. Overhead and markup costs also need to be added, and owners can put a cap in place. Time and materials contracts are most often used for a small scope of work. 

Unit Pricing Contracts

For larger scopes of work, builders and federal agencies will often use a unit pricing contract. This contract determines the payment for a specific task (i.e., the number of residential units), which is multiplied by the quantity of that task. With unit pricing, the exact price will not be known until the project is completed. 

The type of project you are working on will determine what contract you will need. Always review your contract in full and discuss any questions with your builder or project manager. 

 

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5 Tips to Prepare for a Remodel

You’ve met with your contractor, set a budget, and are excited to see the vision for your updated home come to life. 

Now you have to live through the remodel. 

Remodeling your home is a thrilling venture, especially if it is something you have been working towards. Knowing the changes you want is the first step, and it is exciting when construction gets underway. If you plan on living in the home while renovations are taking place, you need to prepare for life in a work zone.

Here are some tips to make the construction phase as seamless as possible. 

Prepare Emotionally

By preparing mentally to live in a home that is being remodeled, you will ease into the mindset needed. There will be a certain level of mess (after all, things are being ripped up and put back together), noise, and workers entering and exiting. Find a contractor who communicates clearly and plan extra time outside or visiting loved ones. Remind yourself that though things may get hectic, it is just a phase!

Pack Up

Pack up your belongings as if you are moving. This helps the workers, as they will not need to work around any of your things. This step will also be beneficial to you because the space you are living in will not be overcrowded. Keep your essential items, and put the rest in storage.  

Establish Living Zones

Where will you be spending your time when you are in the house? Decide how you can repurpose the rooms that are not being worked on to help you live as comfortably as possible. Perhaps the master bedroom becomes more like a studio apartment, with an area for sleeping and a space for a living room. If your kitchen is being remodeled, set up a countertop with a coffee maker, small fridge, microwave, and toaster oven for use at home. You will need to be creative when creating living zones, but it will help make the transition easier. 

Seal the Work Zone

Work zones are full of dust, construction materials, and tools. If possible, make a separate entryway for construction workers, and tape off the work site from your living space. 

Prepare to be Flexible

During a remodel, unforeseen issues may arise. Your contractor works to make sure everything runs smoothly. Plan to communicate with your contractor regularly, so you understand the progress of the project. This way, if a surprise does pop up, you can calmly decide what your next step is. 

Renovations do not have to be extremely stressful, but they do require preparation, communication, and flexibility. Are you ready to complete a remodel?

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How Drones are Changing Construction Sites

Drones are becoming increasingly popular at construction sites. These small, easy-to-maneuver cameras are controlled from a remote on the ground. They are proving to be useful during every stage of construction, from mapping out a worksite to monitoring safety and timelines. 

Construction sites are large areas where a lot of people and machinery are coming in and out daily. Missing even one detail on the job could cause complications for weeks. Communication, attention to detail, and timeliness are essential to making sure a build happens correctly and on schedule. Drones are being used on construction sites to aid in the process. 

Design and Pre-Construction

When planning to build on a new site, it is necessary to survey the land and prepare plans for the build. Drones quickly and accurately survey the job site. This cuts out surveying tools and human error, which means drones can save both time and money in the initial stages on construction.

In addition to surveying, drone photography gives a clear birds-eye view of the land, which you can use to map out the site. Project managers can then use this real data and merge it with the virtual design of the project. This can help owners visualize the project, making it a useful tool when bidding on a project or explaining your vision to your client. 

During Construction

During construction, drones can collect data to see the progress of the build. Again, this can be useful when meeting with clients to discuss the phase of development. In addition, it helps the project manager to stay on track with the schedule. 

When equipped with streaming video, drones make it possible for the project manager to monitor the work site from another location. Management can instantly communicate needs based on video happening in real-time. This decreases delays that occur when workers need an answer, or a project manager notices an issue that needs to be resolved. Video streaming with drones also allows managers to track materials on the site and acts as a 24-hour surveillance system, keeping the worksite safer. 

Inspections

Rigorous inspections can be done almost instantly with drones. These small flying cameras can fit pretty much anywhere, without the need for workers to climb to the roof or below ground. Flying a drone to one of these hard-to-reach areas of the structure saves time, gives a close-up view, and eliminates safety concerns.

Project Completion

Once the project is complete, drone photography and video can show a timelapse of the build from start to finish (as long as the entire project was streamed). Giving your client aerial views of the full project can help with marketing and show the entire site in one photograph. 

Drones, along with other advanced technology, continues to change the construction industry, helping to make worksites safer and more efficient.

 

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New Construction: the Process of a Residential Build

New construction means you don’t have to deal with hidden issues that come with older homes, knowing you are up to code on everything, and you don’t have to compete for a highly desired home during a seller’s market. While building a new house is a process that takes time, patience, and open communication, the end result is a home built specifically for your needs and desires.

How long does new construction take?

Based on your plan, your builder or subcontractor will be able to estimate the timeline, but it’s essential to remain flexible throughout the process. The timeframe of new construction varies for every home. Factors that affect the process include the land being cleared and approved for building, the size of the house, weather conditions throughout the build, and change orders. In addition, if decisions about finishes and materials are put off, items may take weeks to arrive, pushing back the finish date.

Hire Professionals

When you choose who to work with, you can decide to hire a contractor, builder, or subcontractors for each part of the build. Contractors and builders will oversee the project from start to finish, so you don’t have to worry about hiring multiple people throughout the process. When hiring, take into consideration the experience and communication styles of the people you meet with. You will be working with these people for an extended period of time on your biggest asset, so take the time to interview and choose people you trust.

Site Preparation

Once you have a piece of property that is zoned for residential living, the first step is getting it ready for a new build. Depending on the state of the lot, this can including clearing land or tearing down an existing structure. Vacant land may also need work to reach electric, gas, and plumbing for the house.

Layout and Design

Working with an architect or builder, create the design of the home. The professionals you work with will help keep you on track so basic systems like HVAC and electrical work correctly. Communicate your overall vision, your style, and your must-have items. Once the floorplan is complete, you will be able to get into more specifics of each room. This can be a time-consuming step, as the number of options that go into the design of a home, from the layout down to the cabinet hardware, can seem endless. Be patient and begin with the overall vision before narrowing in on design elements.

Build

As the build progresses, you get to see your vision come to life. At this point, the professionals you hired take control, as they make sure the job is done correctly while adhering to code.

The build begins with pouring the foundation and framing the walls, floors, and roof of the house. From here, “the guts” are completed. This includes everything you can’t see behind the walls, including heating and cooling units, electrical work, and plumbing. During this time, SmartHome systems can also be installed. Workers will then close up the walls with insulation and drywall. At this point, you can really begin to see the vision come to life.

The next phase includes installing finishes and design elements. Starting with the floors and paint, then moving on to cabinets, appliances, and light fixtures. The final few weeks of the build include all the finishing touches.

 

Are you interested in a custom residential build? We’re happy to answer any questions. Contact us to learn more.

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General Contractors, Subcontractors, Builders: Who should I hire?

When constructing a new home, deciding who to hire can be a time-consuming process. You want to be sure you hire someone who is trustworthy, does quality work, and sticks to budgets and timelines. But who exactly do you need?

General Contractors

General contractors (GC) can be an individual or an entire company, and oversee the entire construction site. They are hired for both residential and commercial projects. The first responsibility of a GC is to make an estimate of the entire project including the cost of materials, labor, and any subcontractors that will be needed. From there, a project manager will oversee the project, communicate with the homeowner, ensure materials are ordered and delivered on time, and oversee subcontractors. A big benefit to hiring a general contractor is they already have built a pool of subcontractors they trust. In addition, subcontractors will often consider projects for a contractor as a priority over a job for a homeowner. To learn about Horton Group as a general contractor, click here.

Subcontractors

Subcontractors are typically skilled in one specific trade, such as tile, drywall, insulation, or roofing. Subcontractors fill their contract directly with the contractor, so you do not need to worry about hiring each different subcontractor if you have a general contractor. If you are only updating one part of a room, such as installing new tile flooring, you may want to hire a subcontractor to complete the job.

Builders

A builder, like a general contractor, will see the project through from start to finish. The difference is that a builder often has a crew to complete the construction work, from foundation to roof, subcontracting only for specialists like electricians and plumbers. They also manage the project and communicate with the homeowner throughout the process.

No matter who you hire, you are entrusting another person or company to carry out your vision. Be sure to communicate your vision, budget, and timeline clearly so the outcome is what you want.

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What is the Role of a Project Manager?

Project managers, especially in construction, are responsible for juggling a handful of responsibilities. From start to finish, they carry out all aspects of the building process to align with the visions set forth by clients and developers. All the while, a project manager must ensure that tasks get completed safely, on time, and on budget.

Construction project managers must be experienced within the industry, as they tend to a variety of responsibilities requiring a great deal of knowledge. These include:

Planning: Before a project gets underway the project manager must establish a timeline for each stage of construction. Throughout construction, the project manager makes sure each stage is finished for timely completion.

Resource Management: Project managers must understand what resources and tools are required for a given project and have them available.

Staffing: Just as they are responsible for the resources for projects, a project manager is also responsible for staffing individuals of all trades. Hiring the correct people is essential, as the timeline and quality of work is dependant on it.

Setting Benchmarks: Setting benchmarks allow all parties involved to have a clear understanding of when certain things need to get done.

Budget Management: Project managers are responsible for the financial planning of a project and ensuring that the scope of work stays within budget. If any changes are made that influence cost, those too must be accounted for by the project manager.

While the above list encompasses the broad roles of a project manager, a lot more work goes on behind the scenes in order for a project to be completed on time and at a high quality. For a project manager to be successful, it takes a great deal of cooperation, communication, and confidence in his or her decisions.

 

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