Project Delivery Methods
We understand that not all construction projects are built the same way. S&I has substantial experience with the following project delivery methods:
Your hired architect has created a set of construction documents (plans and specifications), working with you to fine tune the aspects of your project. Structures and Interiors is then invited to join the bidding process. We’ll take your plans and specifications sending them out to our trusted, closed and controlled bid list. On bid day we’ll provide you a bid proposal and you as project owner will select the bid with the most value for a construction contract.
This process will sometimes (but not always) start with the contractor having been selected prior to the architect. As contractor we can help you select the right architect for the project depending on your needs. Often times we will be involved in site or lease space selection. The process typically starts with an idea, then an initial budget. After plan development the budget is fine tuned to confirm the project is feasible as it’s being designed. Construction documents (plans and specifications) are then created which will be sent out to our trusted, closed and controlled bid list. We’ll then provide a not to exceed construction bid based on the project scope.
Upon completion of either the design-bid-build or design-build process we will then enter in to a construction contract based upon estimated cost, time frame and construction documents.
The most common contract types are the AIA-101 and AIA-102. AIA contracts are American Institute of Architect written and provide a standard industry wide language accepted by Owners, Architects, Contractors and Lenders.
AIA-101 Stipulated sum contract: This contract type sets a fixed amount or bid on the contract with a basis on the contract documents. This contract amount can be modified up or down via change order when the scope of work changes.
AIA-102 Cost plus contract with a Guaranteed Maximum Price: This contracts sets a Guaranteed Maximum Prices in lieu of a fixed amount. The contractor’s fee is established as a percentage fee on top of the cost of construction. Often times this type of contract is used for a design-build project when the scope is still being defined at time of contracting. Contingencies are included when certain sections of scope are not defined. In the event the project comes in under budget the difference is often split as a cost savings between owner and contractor at a predetermined split. This Guaranteed Maximum Price can be modified up or down via change order when the scope of work changes.
Most commercial construction contracts will have a retainage provision with a varying percentage of either 5 or 10%. 10% is the most common for a professional building project. If a contractor bills for $100,000 a retainage will be withheld from that amount through construction completion. In a 10% retainage scenario $90,000 dollars will be paid to the contractor and $10,000 dollars will be held in retainage. Retainage is most often paid at construction completion upon substantial completion of the project.
Local Jurisdiction Approval – Permitting
The permit process will vary based on the type of project and city.
A finish-out or renovation permit will often involve submitting final plans to the city building permit office and a 2-4 week (sometimes longer) review process.
A new building, addition or facade change can take months. The project may involve creation or modification of the plat; city council and planning department approval; subdivision or HOA approval and last but not least city permitting. Creating a schedule for this process on the front end is important. With a new building it is not unusual for the planning and approval process to take longer than construction itself.
Upon completion of Permitting, Contracting and Lender Approval the construction process can begin.