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Just read the monthly MADDPROJECT newsletter by @antonia_mdprjct
If you aren’t signed up for it and are in the business of building anything, then
do it.
Some quick thoughts related to the newsletter and retail-
If you aren’t signed up for it and are in the business of building anything, then
do it.Some quick thoughts related to the newsletter and retail-
Over a period of ~2 yrs I spent some time on the Light side of the Force (Tenant side).
I was responsible for sight identification & selection , deal and Lease negotiation, prototype build (partly), GC selection, owners rep selection, build oversight, and helped w/ accounting.
I was responsible for sight identification & selection , deal and Lease negotiation, prototype build (partly), GC selection, owners rep selection, build oversight, and helped w/ accounting.
To say I was learning on the job was the worlds biggest understatement. In retrospect, it should have been a team of 3 people minimum. Leasing, Construction, & Accounting.
Anyways, avg. build was 32k sf, $4M cost (incl. soft costs), GMP format.
Anyways, avg. build was 32k sf, $4M cost (incl. soft costs), GMP format.
<if you haven’t read Nov newsletter read it now or this won’t line up>
As she states, and in my circumstance, precon was super important (because we were building a replicable prototype with previously unused materials).
If you are in retail this point is extremely important.
As she states, and in my circumstance, precon was super important (because we were building a replicable prototype with previously unused materials).
If you are in retail this point is extremely important.
Commencement Dates (rent, term, whatever you call them) are very real in retail.
If you can’t hit construction timelines because your architects “vision” doesn’t align with proforma costs, you’re SOL. Account for this by giving yourself plenty of time in precon.
If you can’t hit construction timelines because your architects “vision” doesn’t align with proforma costs, you’re SOL. Account for this by giving yourself plenty of time in precon.
Next, makes sure your precon identifies lead times of unique materials. Nothing is worse than a change order related to re-mobilizing a crew because the plans you bid for Cost+ didn’t account for it.
Pay special attention to local inspection requirements.
Pay special attention to local inspection requirements.
An example of local requirements killing a construction timeline— elevators.
Muni we were building in required inspection of elevator shaft once it was framed out (structural, fire, ground water for pit). Elevator company wouldn’t take order w/o approvals.
Muni we were building in required inspection of elevator shaft once it was framed out (structural, fire, ground water for pit). Elevator company wouldn’t take order w/o approvals.
Other recent examples of timeline killers:
HVAC in Summer ‘18
Soft lumber tariff in ‘82, ‘04-‘09, ‘17
Skilled labor shortage ‘16-‘19
HVAC in Summer ‘18
Soft lumber tariff in ‘82, ‘04-‘09, ‘17
Skilled labor shortage ‘16-‘19
Another key point to look out for in GMP— your architectural contract.
What if you architect royally f’s up on the plans? Sure you have tort law avenues, but how does that help you in the middle of construction? And are they going to fix plans if you’re actively suing them?
What if you architect royally f’s up on the plans? Sure you have tort law avenues, but how does that help you in the middle of construction? And are they going to fix plans if you’re actively suing them?
I don’t have a good answer for that, maybe Antonia does.
Regardless, it’s circles back to a point she consistently makes; have a proper construction attorney review everything. Not just GC contracts, but architects as well.
Regardless, it’s circles back to a point she consistently makes; have a proper construction attorney review everything. Not just GC contracts, but architects as well.
Best attorney I ever had broke it down for a moron like me to understand—
Weigh the likelihood of an adverse scenario happening versus it’s consequence.
Possible but low consequence, you try to address but can live with.
Unlikely but catastrophic, you never agree to.
Weigh the likelihood of an adverse scenario happening versus it’s consequence.
Possible but low consequence, you try to address but can live with.
Unlikely but catastrophic, you never agree to.
Finally, my favorite point she made, know your cost buckets. What’s included in General Conditions? Overlaps in Electric/AV? Where does site work end and concrete begin?
Anyways, awesome newsletter, tons of super helpful info.
Did I say subscribe yet?! Subscribe.
Definitely subscribe.
/end
Did I say subscribe yet?! Subscribe.
Definitely subscribe.
/end
