Step 3: Decide the Construction Delivery Method
Before working with contractors, there are four approaches you need to understand, so that you can go about your remodeling project—design-bid-build, design build, construction manager-at-risk, and multiple prime or integrated delivery.
Here are some brief descriptions of each type of construction delivery method. You can find more information here: https://www.rexcs.com/2021/03/16/4-most-common-construction-delivery-methods/
Design-Bid-Build
Design-bid-build is a commonly used construction approach in the United States and is often considered a traditional method. This construction approach involves three distinct phases: the design phase, bid phase and build phase. During the design-bid-build process, the project owner first works with a design team to develop the project’s design. Once the design is complete, the project is put out to bid, and contractors submit proposals. Finally, the project is built based on the winning contractor’s proposal. By understanding the design-bid-build approach, you can determine if it’s the right construction delivery method for your renovation project.
Contractor pricing
Design-bid-build construction requires contractors to competitively price their services since the project’s design is known at the time of bidding. However, because this construction approach involves three phases, including the design phase, bid phase, and build phase, it also has the longest timeline. Therefore, this method is ideal for project owners who are comfortable with construction and want to be in charge of the entire process. Additionally, design-bid-build is best suited for those who don’t require a fast timeline and are looking for the most cost-effective option. By understanding the benefits and drawbacks of the design-bid-build method, you can determine if it’s the right construction approach for your renovation project.
Design-Build
When using the design-build approach, homeowners sign a single contract that covers both the design and construction phases. This can involve a single firm with both design and construction capabilities. Alternatively, it can be a partnership between a design firm and construction company. The design-build method is advantageous in promoting teamwork and efficiency. The combined expertise of the design and construction teams can prevent potential conflicts and save costs on materials and labor.
Construction Manager-at-Risk
The construction management approach involves hiring a construction manager or a company that specializes in construction management to oversee the entire project on behalf of the homeowner. The construction manager has the authority to make decisions and sign contracts, relieving the homeowner of these responsibilities. This approach is particularly helpful for homeowners with no prior experience in construction. While it may add to the overall cost, having a professional manage the schedule, quality, and scope of work can save time and money in the long run.
The Construction Manager at-risk approach typically involves two contracts: one for design and another for construction management. The reason for this is that the construction manager cannot provide a price until the design phase is complete. In this approach, the owner may choose to hire the designer or construction manager first. Hiring a construction manager first can provide insight to reduce costs or timelines. However, this approach requires an experienced general contractor, well-versed in the process.
Multiple Prime
The Multi Prime approach follows a sequential project phase similar to design-bid-build. However, the main difference is that the homeowner will contract specialty contractors separately. Performing different elements of the work instead of working with one prime general contractor.
Step 4: Begin assembling a contractor team
The team members you need for your project will depend on your chosen construction delivery approach. As well as the size and scope of your project. One crucial member is the designer or architect. They will help you plan the project, obtain necessary permits, and manage the contributions of each team member. Architects can also recommend additional team members. Such as mechanical, electrical, and plumbing (MEP) engineers, structural engineers, landscape architects, interior designers, or civil engineers. You can connect with an architect easily here.
Contracts
Contracts with architects or contractors will normally be based on standard contract templates from the American Institute of Architects. Two of the most common contracts used are:
- A101–2017, Standard Form of Agreement Between Owner and Contractor where the basis of payment is a Stipulated Sum
- B101–2017, Standard Form of Agreement Between Owner and Architect
Here is a link to the full list of AIA’s available sample contracts: https://www.aia.org/resources/6150803-list-of-all-current-aia-contract-documents
Working with an Architect
When meeting with an architect for the first time, there are important pieces of information to discuss, such as the address of the renovation site, ownership details, and zoning information. Understanding the zoning regulations is essential as it can impact the amount of space available for construction and planning policies. For instance, if the lot is close to a public recreational area or oil well, there may be additional taxes or fees associated with construction work. Providing this information to the architect during the initial consultation can help streamline the design and planning process.
A benefit or working with an Architect is their ability to interface with your local Building Department in acquiring necessary information permits, approvals, and inspections. Keep in mind that a home improvement project will require separate approvals from each office within the larger department.
During your first consultation meetings with an architect, you will decide upon a contract that includes a scope of work, the Architect’s understanding of service proposal based on discussions with the client, important aesthetic or functionality notes and information, and the contract period.
Here is an overview of the typical services an architect will provide, organized by the phases of work, such as pre-design, schematic design, design development, plan check, and helping start the contractor and construction process.
Pre-Design Services:
- Pull all permit and occupancy records on file at the local Building department, for use in application for addition to verify meeting all zoning, building, and historic codes
- Acquire Surveys like an As-Built Site Survey and a Slope Analysis Map
- Investigate Zoning, Planning, and Building Department requirements
- Investigate Utilities: Sewer, Gas, Water, etc.
- Investigate Fire Hydrants & Access, Address, Bureau of Engineering, and other specific requirements for the site
Schematic Design Services:
- Meet with Homeowner regarding project management and construction phasing
- Create several Schematic Design Plan options for the Scope of Work
- Meet with client to discuss options and preferences and their pros and cons as well as the schematic project budget
- Coordinate and acquire proposals from Geotechnical, Structural, MEP and Civil Engineers, if required
- A final Schematic Design Set of drawings for the scope of work, that consists of floor plans, schematic elevations of key areas, house elevations and sections and 3-dimensional views if needed
- Sometimes, share a Schematic Project Budget based on factors like the square footage, volume, or other unit costs, including all project soft and hard costs (permit fees, consultants, etc.) with a contingency.
Design Development Architectural Services:
- Coordinate and compile drawings from each Engineer, such as MEP, structural, civil, to acquire and adjust necessary plans
- Develop of architectural plans, key building sections, including typical details and materials, to create a complete scope of the entire project as a basis for Permit Drawings
- Develop a full drawing of the home’s window and door schedules (outline of window details such as locations, dimensions, manufacturer’s model number or name).
- Develop a full drawing of the home’s exterior elevations with materials and connections, and outlined interior elevations at all locations with tile, millwork, etc.
- Coordinate applicable systems such as lighting and electrical, plumbing, HVAC (Heating, Ventilation, Air Conditioning), radiant floors, hot water heater or tankless system, solar electricity or hot water panels, geothermal, rainwater catchment, etc.
Plan Check Documents Services:
- Meet with Engineers to discuss calculations and drawings needed, desired design, and implementation of structure, all to inform plan check drawings
- Develop a set of Plan Check drawings, to be submitted for plan check review with the local Building Department (and copies provided to the homeowner)
Construction Documents Services:
- Coordinate the homeowner’s specifications of details like fixtures and interior materials through notes, details, and elevations
- Complete any remaining drawings needed to bid for construction, such as a Construction Documents Set. This set includes drawings for the scope of work, consisting of the full approved permit set, plus additional plans and details for all scope of work, is shared with the homeowner (prints and a digital copy) to be used by the General Contractor or Construction Manager
Step 5: Requests Bids – Select and work with a Contractor
If you choose to work with a general contractor, they are responsible for overseeing a construction project – including the day-to-day site work, management of vendors and trades, overall project management, and communicating key information and updates to all involved parties.
Contractor Bidding Process
All building plan created for the plan check and construction process are used during the bidding, contract signing, and building of a remodel. These plans are meant to be a core plan – so that any two contractors could receive the same plans and achieve the same end result.
Bid Package
To obtain bids on the project, a “bid package” is put together. It’s important to ensure all of the bid package information and plans are finalized and correct before starting bidding, finalizing contracts, or starting construction. This is especially true because whenever a change is made, the building plan must be changed as well, and the permit updated. Changes like this can cause huge delays in the schedule, while still paying overhead costs such as loan interest, utilities, etc.
Building Plans
The bid package will include all building plans and designs. These plans are often used by suppliers and subcontractors to determine the costs to perform their activity.
Scope of Work and Specifications
The scopes of work and specifications will include a general scope of work that applies to all vendors, such as scheduling, workmanship, and warranty, as well as activity specific scopes of work and specifications.
Bid Sheets
There are also bid sheets, where vendors are shown how to break down their pricing, making it easier to compare costs and pricing among different companies. It is usually a standard form that each company will fill out to show how they arrived at their price – showing specific information like: estimated quantities, unit price, and additional costs if changes are made.
Subcontractor Information Sheet
The subcontractor information sheets are used to capture key information about the bidding company in one document. Key information will include things like the company name, license number, insurance company, customer references, authority to sign, and insurance certificate.
Bid Requests
Once the bid package has been prepared, this bid package can be sent to contractors, requesting them to bid for the project. It’s ideal to include a deadline for the bid, giving the contractor enough time to review the package and prepare the necessary documents, while also trying to ensure the homeowner is staying on schedule. Once bids come in, you want to review the bids with your team and take time to meet with the contractor, to see which is the best fit for your project.
Cost to Build Estimate
During the bidding process, each contractor can also share an estimate of the cost to build. Make sure that whoever provides this estimate has worked on relevant projects in the area, so they have a knowledge of the local costs. You will also want to revisit the overall costs of the project incurred so far, and overall costs anticipated for the project, and use this information to update your budget.
Here are some recommendations for how to choose contractors for your remodeling project.
Ask your network for referrals
Asking friends, relatives, and neighbors about who they would recommend is a great way to find a contracting professional. Be sure to ask questions like what made the experience positive for them, or how the contractor approached problems. It also can be helpful to ask who they would not recommend – in case you come upon that name during your research.
Pay attention to credentials
Before pursuing referrals, do some preliminary research about the contractor’s credentials and membership associations. It’s important to understand if they have all the required licenses from state and local municipalities, along with certifications from any professional associations such as the National Kitchen & Bath Association or the National Association of the Remodeling Industry. Also look into the contractor’s project history and specializations, to see if they are aligned with your needs and goals.
Interview candidates
After narrowing down the list of candidates, we recommend that you set up meetings with each one. Think of these meetings as interviews; be sure to pay attention to not just have the contractor answer questions, but also how they communicate with you, and if they ask questions about the project as well. You may also ask to see examples of their previous projects.
Some key information you want to ask about during the interview includes:
Does the contractor maintain permanent modes of communication, such as a mailing address, e-mail address, phone number, and voicemail?
Does the contractor carry insurance that will protect you from liability? It’s fine to ask for a copy of the remodeler’s insurance certificates.
Does the contractor have any professional certifications or designations? How long has the contractor been a member of any trade organizations?
How long has the company been in business? Does the remodeler maintain good relationships with subcontractors such as plumbers and electricians?
Does the contractor have a trusted reputation among customers and peers? Do they have a track record of success?
Check references
After interviewing your candidates, request references from your top selection(s) and take time to speak with their former customers. Ask their former customers about how the contractors performed on key things like meeting deadlines, staying within budget, delivering a quality end-product.
Finalize the contract
After choosing your contractor, you can approach it by creating your own contract, or closely reviewing the proposed contract they prepare for you. You may want to work with an attorney to review either contract to ensure you are protected. Ensure that the contract includes:
- Project location address
- Names of both parties
- Work to be done
- The total price amount to be paid
- Payment details – such as how a company will invoice and require payment. It’s important to ensure that the contract mentions that no payment will be made for work not listed in the contract or on a change order
- Detailed scope of work
- Details about how changes will be made to the contract if any – such as no changes without the homeowner’s signature (a “change-order”)
- Warranty information
- Relevant documents, such as the building plan
- Detailed sequential schedule of primary construction tasks
- A procedural list for close-out
- Information about the protection of both people and property
- A clause about dispute resolution, and a waiver of lien, which prevents subcontractors and suppliers from putting a lien on a house should their invoices go unpaid by the contractor.