CREJ - Retail Properties Quarterly - August 2017
One of the most common requests when working on retail and tenant improvement projects is a quick turnaround. This can be a challenging – and sometimes frustrating – situation for both the owner/leaser and the general contractor. But by working together and understanding the process up front, the experience can be successful. In the end, both the contractor and the end user want the same results: a quality project, done safely, that comes in on time and on budget. The general contractor’s name and reputation is at stake, and taking longer than planned means having to pull workers off other jobs and costs money. As a business owner, you need your doors to open as scheduled, and you may have contractual obligations to the municipality or the landlord to finish the work by a certain deadline. So what are the pinch points and how can we work together to avoid them? • Establish a realistic timeline. Planning a project well in advance and establishing a realistic timeline are paramount to the success of a project. This isn’t to say it can’t be done quickly – but it does need to be in line with the type and amount of work being done in order for it to be done safely and to the highest level of quality. One key factor to doing this is choosing a design team that has experience working with your specific type of project (franchise restaurant, clothing store, etc.) and, perhaps more importantly, experience permitting documents for the jurisdiction the project is in. Another key factor is to bring on the contractor as early as possible. • Be aware of permit timing. Permits are not a glamorous part of construction. Most people know they’re necessary, but often they may not understand what permits are required and the amount of time it can take to get them. Any inspectable item (such as framing, drywall, electrical, mechanical, plumbing, roofing, building façade alterations, signage, ingress/egress alterations, fire protection, life safety, etc.) needs a permit. Basically, anything that is not strictly cosmetic (e.g., paint, carpet, fixtures) needs a permit. Because of the heavy construction climate in the Denver metro area, city and municipality building permitting offices are requiring review times of up to 12 weeks. Three months – think of how much that could set your project back if you hadn’t planned ahead! And that’s just building permits. The local fire departments issue separate permits based on their review of fire protection and life safety. If your project involves items such as food preparation, child care facilities, swimming pools/spas, tattoo/piercing, etc., you also will need health department permits. When dealing with permits, having good drawings can make a world of difference. A designer that has worked with your authority having jurisdiction can create drawings that allow permits to be issued with minimal review comments and, therefore, minimal rework on the design. • Bring your contractor on early. Bringing on your contractor early in the process gives you several advantages in meeting your timeline and budget. It allows for constructability reviews, which ensures the design can be built as envisioned and diminishes the possibility of rework in the field. When your general contractor provides you with real-time pricing – which they should – you will stay up to date on your budget from the beginning of the project. This eliminates surprises that may require stopping work to figure out a solution because you’re suddenly (and unexpectedly) over budget. Hiring a contractor who understands the labor market is increasingly important and with today’s labor shortages, your contractor will need to start putting your team together as soon as possible – another reason to bring him on as soon as possible. If you wait until the last minute to bid the job, you may not find the workforce to complete it and costs will increase accordingly. Utilizing the general contractor early also permits a collaboration between him and the designer to further help keep your timeline on track. For example, if a long-lead item is going to push the project past the deadline, they can work together to procure these items early or suggest in-stock items that will fit within the schedule. • Consider a construction manager/ general contractor delivery method. Some owners choose to negotiate directly with their selected general contractor in lieu of the typical design-bid-build delivery method. This “hard bid” process leaves precious little time to understand lead times, overall construction durations and constructability. The subcontractor market can then dictate the schedule based on its availability and may not take into consideration the owner’s requirements. By negotiating in an open-book fashion with the general contractor, you can better customize your construction team who then understands the owner’s expectations and drives toward a common goal. • What else can you do? Planning ahead is the single biggest thing you can do to make your project a success, however there are many things that may seem somewhat inconsequential that can have a major impact on your project. Making sure that your financing is in place before you begin and having documentation that shows it’s in order (such as a letter from your bank) is very helpful. Make sure everyone involved in the project understands from the start what changes are and are not allowed to be made to the property – and who will be paying for each of those changes – this will save headaches and precious time during construction. Ensuring the design team understands the branding standards (especially in the case of a franchise) is crucial. If you, as an owner, are providing items that will be used in the construction process, be sure those items are ordered well ahead of time and coordinated within the design documents to avoid delays. Finally, being responsive and decisive are two of the most important aspects of a quick-turn project and can make the difference between finishing on time and not. There’s no doubt that quick-turn projects can be a challenge. But when all the parties involved work together to make them a success, it makes all the difference.