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The Construction Process
How do we get the project built?
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Typically, a General Contractor is retained to complete construction described
in the Contract Documents. Those documents consist of a Contract between the
Owner and Contractor to provide a finished product as described in the
Construction Drawings for a prescribed form of payment.
The Construction Drawings typically include plans, elevations, sections,
details, notes, and specifications that the Architect deems necessary to
obtain required building permits and execute the design.
The contract between the Owner and Contractor may be a relatively simple
agreement. Larger or more complex projects may require a more comprehensive
contract, such as the industry standard AIA contract. Contract documents may
specify costs, responsibilities of both parties, procedures and costs for
making changes to the design, time schedules, remedies for nonperformance, and
payment schedules. They may also include detailed specifications or cost
allowances for the finish materials, fixtures, and equipment to insure that
the final product that the contractor intends to provide is understood by both
parties.
Construction may be performed under a number of different contractual
arrangements: In all of these arrangements most contractors rely on
subcontractors to do the majority of the work. The quality of the
subcontractors can be critical to the overall quality of the project.
Traditional, or 'Turnkey' construction:
This is the standard arrangement in which several general contractors are
asked to bid on a project, and a contractor is selected. The contractor
agrees to complete the project described in the drawings and specifications
for a stipulated fee.
- Advantages
- The Architect may be retained to act as the owner's agent, and may inspect
construction, verify completion and quality of work, etc.
- The bidding process is intended to result in the most competitive
contractor.
- Disadvantages
- The General Contractor typically includes contingency amounts in his contract
to cover unforeseen problems which can increase the cost to the owner.
- The bidding process requires more time - of the client and Architect - for construction documentation and
time to evaluate bids properly.
Design Build Services
A design build agreement provides for the Architect and builder to work
together as one entity. Some building firms have in house designers, who may
or may not be licensed Architects.
These builders prefer to work from their
own designs where they can control the type of
construction and detailing they are providing.
- Advantages
- The drawings can be somewhat less detailed, because the designer does not
need to communicate the intent quite as specifically - this can speed up the
process, and reduce the cost of architectural design services.
- The owner has only one entity to deal with who is accountable for both design
and construction.
- Time spent in the bidding process is reduced or eliminated.
- Disadvantages
- Because the construction documents may be less detailed, it may be more
difficult to arrive at an accurate cost.
- Because the designer and the builder are the same entity, the owner has less
control over design decisions, and must place more trust in the ethics and
ability of the contractor.
Construction Management:
In this arrangement, the owner hires a construction manager to oversee the
construction project, procure materials, and hire and organize subcontractors
to accomplish the work, at the best available price. The construction manager
functions in a role similar to the general contractor, except that the entire
process is transparent to the owner; the invoices of materials and labor for
each component of construction are available for the owner's review.
Subcontractors and suppliers may be paid directly by the owner or through the
construction manager. The Construction Manager may work for a fixed negotiated
fee, a percentage of construction costs, or an hourly fee.
Aitken-Sadlik Architects can provide
Construction Management services.
- Advantages
- Final cost may be lower, because the construction manager doesn't include
the contingency fees for unforeseen problems.
- The owner can track exactly how all of the money going into the project is
being spent.
- Disadvantages
- Final costs are estimated not guaranteed, as with fixed fee contracts.
- The owner may have to be more proactive in the building process, particularly
if he is responsible for payment to the individual subcontractors.
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In conclusion, all of these types of construction contracts have their pluses
and minuses and all of them can deliver a successful project.
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