New York Real Estate Journal

Owners benefit from engaging construction professionals early on

April 24, 2009 - Long Island
Managing the complex process of designing and planning a construction project presents a host of challenges for the owner and the design/engineering team. Unless the project calls for a fast-track delivery method, the failure to thoroughly analyze and complete the design prior to the bid phase almost always results in cost overruns, change orders, and delays during the construction phase. Experienced owners, developers, and facilities managers frequently engage construction professionals early in the design process and in some cases even prior to engaging architects and engineering consultants, in order to expedite the project delivery and avoid pitfalls other team members may not be aware of. The early involvement of construction specialists helps to develop cooperative team spirit and optimize the design from the cost and operational perspective. When engaging a construction firm, owners should look for an organization that has a dedicated in-house pre-construction team experienced in reviewing cost and schedule consequences of various design, material, and equipment options; managing the budget; ensuring constructibility; performing a value engineering analysis, and confirming the design completeness. The stage at which builders should be engaged depends on the size and complexity of the project. On technically or logistically challenging projects, it is often beneficial for the construction personnel to investigate the site as early as a year before actual construction commences, as the level of detail in up-front diligence is extensive. The builder's tasks change with the progress of the design process and vary depending on the project type. They may include: * Research pre-existing site conditions, including probing and materials testing when necessary, in order to discover contamination, deterioration, and re-use opportunities; * Assist the design/engineering team in developing the most cost-effective design that fulfills the client's functional and operations needs; * Consult with specialty vendors and contractors to obtain information on the latest technologies and alternatives; * Evaluate alternative methods, materials, and systems for impact on budget, schedule, and operation/maintenance cost (life-cycle cost analysis); * Develop the preliminary construction budget; * Perform value engineering and constructibility analysis; * Research potential energy saving opportunities and, if applicable, LEED-certified materials and systems; * Develop the procurement strategy and long-lead item prioritization; * Coordinate with the client's vendors to ensure smooth transition from the construction phase to the fixturing phase; * Assist the design team in developing a simple and realistic maintenance plan through review of proposed materials and systems; * Develop a preliminary site logistics approach, including access, bridging, deliveries, storage, and crew facilities; * On multi-site projects, initiate establishment of national vendor accounts in order to obtain better pricing; * Assist the design team in document and permit filing. The construction consultant's work, of course, includes many more tasks than listed above. However, they all lead to the development of a complete, practical design. Even prior to the completion of the design, the builder will commence the procurement process for long-lead items and begin work on designing the bid packages in a manner that will encourage competition. The reinforcement of the design team with the general contractor's or construction manager's pre-construction specialists has been gaining popularity in the recent years, as the cost and technological complexity of projects has been increasing. We expect this trend to continue, as benefits to owners are numerous and extend beyond the construction process itself. Kevin Harney is principal of Stalco Construction, Inc., Islandia, N.Y.