Construction Processes and Stages
Ready to start construction? First you have to determine the contract style you want! Here are 3 typical contract styles you can use, along with their pros and cons!
Quote – based on your questions and the information above, get a detailed quote from them that specifically includes answers to the items above. If it’s not in writing then it can’t be proven.
Some contractors get their prices low by only giving small allowances or pricing based on cheapest options. If you don’t have specific drawings and finishes selected how do you know what the price includes?? Some contractors also keep their prices low by not including much supervision by a qualified person on the job site. Ask who the superintendent will be, what their experience is and how often they will be on site. Ensure the details are included in writing.
Another scam we have seen is where they don’t complete their finishing to proper standards – which, again, can’t be proven if it isn’t detailed. Example – for a proper finished look, exposed sides of tiled areas should be finished with schluter (metal trim piece). Some contractors will cheap out on these details which can affect the functionality and overall finish of the space. If there are proper complete drawings for your project it protects you from contractors taking short cuts.
This is a typical process by your contractor if you select a Fixed Price contract – note: it can still vary slightly depending on contract style.
Create scope of work documents for each segment of work, detailing specifics of what each trade should include in their prices
Tender call to a qualified list of trades
Issue addenda and clarifications during bidding period (if you have a separate designer, your designer would do this upon each of the contractor’s requests and may charge for it)
Review and analyze all trade and material bids, and finalize project pricing
Any re-tendering or requests for alternate pricing/bids (often at additional costs)
Upon pricing approval, contractor will issue a contract to be signed by you and them and will collect deposits
Send out letters of intent to successful trade and material bids to ensure time and materials are set aside
Complete all trade contracts
Apply for all permits
Prepare all change order requests to prime contract or trade contracts
Ensure site safety requirements and documentation is completed
Supervise all client site visits due to safety requirements.
Ensure site supervision and site cleanliness
Manage budget and send budget updates to client (budget updates only with cost plus or owners rep contracts, for fixed price contracts you will only have change orders)
Ensure all inspections are completed and passed
Collect all as built drawings
If acting as owners rep – review progress claims and issue certificates of payment for your approval
Facilitate site meetings as required
Complete a final inspection and compile deficiency list
Issue substantial completion document
Collect schedule C’s and occupancy certificate
Make sure you review the different types of contracts, and what is involved in each one, to manage your expectations during the construction process!