Whether it’s a new affordable housing community or an acquisition–rehab project, the lengthy construction process entails many moving parts.
Open lines of communication and collaborative partnerships early on and often are key to ensuring the development is delivered on time.
Several experienced developers share their best practices for navigating the construction process from start to finish:
1. Boost Your Construction Cost Estimates
2. Review Documents With Key Players at the Start
“Right before the plans go out to bid, we sit down with the architect and review documents together. This includes our construction supervisor, our architectural quality control person, the development associate, the architect, and their consultants, as necessary,” says Scott Ewing, director of construction for the Plymouth, Minn.–based firm. “This enables us to answer contractor questions in advance and finely tune the scope of work. The architect then makes the final corrections and issues the documents for bid.”
Ewing adds that once the project is awarded and the contractor is about to begin the project, the team sits down again to walk through the documents with the general contractor’s project manager and superintendent. “This ensures we point out critical details and products and ensure they understand the project scope.”
3. Select Products for the Long Term
“Contractors always wonder why we’re so specific on things like a towel bar,” says Ewing. “First, it makes our life easier to inspect knowing the towel bar we install in Orlando, Fla., is the same in Iowa City, Iowa, and Greeley, Colo. When it’s wrong, it jumps right out at you. Second, we want it to last 20 years or more.”
4. Create a Centralized Purchasing Team
“Historically, each project manager would bid his or her individual project out using various bid platforms and sources to locate qualified bidders,” says president and CEO Jeff Kittle. “This created project silos where information wasn’t always shared between managers, even though many trade partners worked in multiple states and could add value across several projects. By centralizing purchasing, we’re able to discern multiple state firms, vet groups uniformly, and create value by having a team focus on this critical stage of construction.”
5. Hold Monthly On-Site Meetings
6. Require Weekly Labor Reports
7. Plan Reviews Mid-Construction
8. Schedule Frame Walks
9. Stay Up to Speed With Technology
“Our entire team utilizes project management software as a central repository for everything from land purchase agreements, due diligence documents, construction drawings, punch lists, etcetera,” says Kittle. “This allows access for all stakeholders regardless if they are based in our home office, remote offices, or field offices that are accessible via iPad and iPhone, android phones, and so on.”
Ewing says Dominium’s staff, and some of the developer’s regular general contractors, use the Plan Grid app to remain updated on different projects in real time and to have access to all the plans and specifications. “We’re also beginning to use drones for building inspections, as [they’re] more efficient,” he adds.
10. Plan for Resident Relocation for Acq–Rehabs
“We keep revisiting relocation phasing, construction phasing, resident notices/communications, and relocation budget often, throughout the underwriting, closing, and construction periods,” says Patton. “As part of that process, we start discussing construction phasing and relocation phasing early in the project’s development process and work diligently to facilitate open lines of communication between management, development, and construction staff throughout the pre-construction, construction, and lease-up phases.”