Key Considerations to Help Businesses Hire the âRightâ Commercial Construction Developer and Design/Builder
In todayâs economy, any business or organization looking to start a new commercial construction project faces certain challenges. Choosing the right construction manager and design/builder using criterion based on individualized, industry-specific needs can make the difference between a successful project and a bona fide disaster. With the glut of service providers floundering in this space and willing to cut deals â and corners in kind, itâs imperative to take even a few fundamental considerations into account before signing on the dotted line.
A commercial construction project usually involves one overriding factor above all others: the bottom line. While certainly a critical factor in the decision making process, budget should not be the only one. When cost alone is the primary focus of a project, serious repercussions are likely to follow - poor service, time delays, hidden costs, changes orders, and non-existent follow up to name just a few.
When vetting construction managers and design/builders, itâs important to consider each and every aspect of the project âlife cycle,â from the companyâs own vision to the post-project completion period. Here are a few key life cycle-based hiring considerations from Ryan Regina, co-founder of Big Sky Enterprises (www.bigskyllc.com):Â
Budget:Â Understanding precisely how financial limitations will impact the related financing process at large is far easier when partnering with an organization knowledgeable about commercial construction finance and can walk the customer through each and every step. While most developers and design/builders will simply refer their customers to a bank or other lenders for financial advice, its best to seek a higher caliber, full-service firm that provides such financial planning consultation in-house.Â
Service Scope: The construction manager and design/builder industry is fragmented and there is little service standardization. The majority of companies offer only a portion of services required in the entire project life cycle and do not provide the comprehensive oversight that allows clients to disengage from the construction project and maintain focus on their other business development and growth initiatives. Itâs optimal to retain a construction manager and design/builder with a full solutions, end-to-end project management approach, which offers the benefit of single contact-point project control and accountability. Â
Image: If the proposed project is out of reach due to image reasons, a reputable developer and design build organization should be willing and able to help resolve. This may involve the need to table the project for as long as necessary and assist the organization in corrective measures, such as an image change. Presenting lenders with the right image as a borrower can be facilitated by an experienced developer and design/builder that provides financing procurement as a service. Additionally, appearance is everything with local and regional authorities who can also impact a project. To best ensure necessary municipal approvals are granted, hire a developer and design/builder that can position and project your image in a way thatâs accurate and a benefit to the community.
Industry Experience:  Whether a medical office, a church, an office park or any type of commercial property, each type of business has specific needs that not all construction managers and design/builders are prepared to meet. It is essential to hire a company with the ability, experience, and expertise necessary to plan and execute the project so that it meets both the vision of the client and realistic financial restraints. Companies that are suited for a given project will not only have the technical expertise to build a new facility to the desired specifications, but will also have the clientâs best interests in mind throughout the entire process.
Development: Many times organizations attempt to serve as project developer only to learn it takes a specialized skill set and years of development experience to do the job effectively. While development is viewed as exciting and challenging, itâs usually underestimated from a time and experience perspective. When developing in the commercial realm itâs important to hire a firm that has a demonstrated track record of working in partnership with high caliber architects, engineers and subcontractors with synergistic philosophies and culture to deliver a high quality product.
Land/Property Acquisition: The most critical step to a successful land acquisition is a properly structured agreement. While this may sound elementary, all too often organizations forego consultation and enter into a land agreement that doesnât provide them the protection they need when faced with unforeseen circumstances. This can include land that ultimately does not meet their needs, more time is required to complete governing approvals or, worse, the project fails all together. Ensure the construction manager and design/build firm you hire has direct experience formulating land agreement documentation and be sure to cover a variety of âwhat ifâ scenarios as the paperwork is being prepared.Â
Architecture: The architecture aspect of a project can make or break the budget if clarity is not achieved in the organizational phase. Problems arise when organizations circumvent organizational and financial assessments and go right to the architect, which can lead to multiple plan changes throughout the design phase or a floor plan that does not meet organizational needs.  A qualified construction manager and design/builder will work very closely with the architect, along with professional subcontractors who will be performing the work, to ensure project parameters are crystal clear and maximize the chance of the project being completed to spec, on time and on budget.
Engineering:  A veteran construction manager and design/builder will partner with an engineering firm based on three criterion: The first is an exceptional relationship with town, borough or city personnel to better ensure required township approvals are secured. The second is firm size. Usually the bigger the firm, the higher the cost and longer the work turnaround time. While this isnât true with all large firms it does happen more often than not. Third, an engineering firm must have an in-depth understanding of state, county and local agency requirements. A well rounded engineer understands the black, the white and the grey of a projects interpretation.  Â
Legal:Â Hiring legal help is very similar to engineering with respect to relationships and understanding requirements of state, county and local agencies, including laws and ordinances. Legal counsel that knows the players within a particular township can make a project much less turbulent. Itâs also important that legal representatives have adequate experience in Land Use Law, as the right counsel will know when a governing body is operating outside its jurisdiction. As a course of businesses, a full service construction manager and design/builder will identify and manage such legal aspects of project to readily work through the red tape. Â
Construction: Once the design, development and other front-end aspects of a project are approved, itâs time to build! Having a construction manager and design/builder on board from the vision stage through project completion means that you donât have to go through the bid process yet again when itâs time to break ground. As goes without saying, the construction manager and design/build firm you hire should have extensive experience serving as project manager and general contractor for commercial construction projects of similar size, scale, scope and complexity â optimally in the same industry. Be sure to take on-site tours of buildings the company has helped design, develop and build, both new and old, as youâll want to ensure the buildings stand the test of time.
Client Service: Construction management and design/build companies, like any other organization, operate for profit. The most desirable of these, however, are aware that their own success hinges upon that of their clients. Be sure to assess a firm beyond photographs in a project portfolio. Look for a company that has verifiable examples of how they provided solutions when unexpected problems that arose. Experienced firms will have a well honed protocol to minimize surprises and to keep a client duly informed.  Much is also said about providing outstanding client service throughout the course of a project, but what about after final payment has been rendered and a project is complete? Will the level of service change?  Itâs important to thoroughly interview past clients of the development and design/build firm under consideration, and to specifically ask about post-project interactions. Stellar referrals in this regard will speak volumes about a companyâs integrity and character.
Use this project life cycle-based check list when hiring a commercial developer and design/builder and youâll be well on your way to a successful outcome that not only meets, but may very well exceed, expectations.
Ryan Regina is the co- founder and owner of BIG SKY Enterprises (www.bigskyllc.com) â an industry leading construction manager, design/builder and finance firm that strategizes, executes and oversees every aspect of a project development life cycle to provide clients with single professional contact-point control.Â
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About the Expert â Long Form:
Ryan and Michael Regina are Co-Founders and Owners of Big Sky Enterprises, a design, build and finance company that strategizes, executes and oversees every aspect of the project development life cycle, including land acquisition, funding, architecture, engineering, development and construction. The companyâs full solutions project management approach benefits its commercial and church construction clients with single contact-point project control, uniquely allowing them to maintain focus on other business development and growth initiatives. Reach the Reginaâs online at http://bigskyllc.com.
âIn line with the trends and best practices listed above, and others, our own company takes a holistic approach to every project,â notes Michael. âWe strategize, execute and oversee every single aspect of the project development life cycle, including land acquisition; financing; architecture, engineering and approval process management; and all construction activity. Our companyâs 360-degree project management methodology benefits our church and other commercial construction clients with single contact-point project control, uniquely allowing them to maintain focus on their business development and growth initiatives. In addition, our financial services division provides clients with financing strategies that reduce time, foster cost savings, and ensure a successful loan program.â
Itâs clear that operating in line with the above trends is paying off for Big Sky. Due to notable revenue growth and other key operational benchmarks, in 2015 the company realized an array of coveted industry honors, including being named among the Inc. 5000ÂŽ, the SmartCEO Circle of ExcellenceÂŽ, the Philadelphia 100ÂŽ and as a SmartCEO Marcum Innovator Ž.Â
Recently Completed & Currently Underway Projects:Â www.kerncomm.com/BSEProjectBrief.pdf
âWhile many other commercial construction companies continue to struggle and scramble for lucrative projects, our success this year âbuilding with a sure foundation,â as is our motto, is direct validation of our unique faith-focused business model that takes the project management burden off of our clients and allows it to rest solely with usâproven field experts in all facets of the small- and large-scale project design, development, financing and execution,â Ryan said. âOur one-stop, full-service professional oversight approach saves our clientsâ time, resources and money, also allowing them to tend to other business matters integral to their own corporate growth.â
Ryan continued, âIâm confident that as the church building industry continues to flourish and other facility construction verticals follow suit, we are extraordinarily well positioned to continue our sales and revenue growth. In fact, for 2015 we are forecasting a landmark year with multiple large-scale projects either coming to fruition or under construction, and with our burgeoning financing company continuing national expansion.â