Tips On Managing Change Orders
In the latest issue of CM Advisor (not yet available on-line), Lisa C. Sachs writes an informative artcile about managing the Change Order process for your projects.
Sachs spells out the three opportunities you have to “embrace the inevitable and minimize the pain.”
The first and best opportunity is in the pre-construction phase before the budget is fixed.
Perhaps, you or your firm was not involved in the pre-construction phase. Sachs states, “You can include language in the front end documents to at least mitigate the battles that will ensue.”
Finally, if the design and bid phases have passed you by without the proper Change Order management strategy in place, you can always make clarifications prior to the construction beginning.
Here is a brief summary of ways to manage the Change Order process and the phase of the project in which is would be best suited:
Design Phase
- Plan an adequate contingency
- Ensure that there are adequate soft costs
Pre-Bid Phase
- Include upfront language in the contracts balancing risk and costs
Construction Phase
- Request all information in preparation for Change Orders and agree on up-front costs
- Resolve schedule issues as they occur
The article goes into specific details that can reduce the amount of conflict and loss when Change Orders arise. Sachs explains how to implement them as part of an overall Change Order Management strategy, and the article is well worth a full read.
photo credit: Multiple fragments of tissue
Loudon County = Good Business for Retailers
The potential for increased retail business in Loudon County is growing and the Loudon County Economic Development Agency wants to make sure that retailers and developers know about their attractive demographic information. Patrick Phillips, president of the Loudon County Economic Development Agency, said in the Knoxville News Sentinel, on June 18th, that Loudon County presents “a tremendous opportunity for retailers” due to its…
strong population growth, rising personal income and real estate values, and has property available convenient to Interstates 75 and 40 and roads that are easily accessible from Knox, Blount, Roane, Anderson and Monroe counties. “Loudon County has enjoyed outstanding growth in population, jobs and income due to the area’s natural beauty, plus its industrial and education base. With all of this business and residential development, we are encouraged that the retail sector will catch up,” Phillips said.
A more detailed analysis of these postive economic factors are outlined in a press release issued by the Loudon County Economic Development Agency on June 17, 2008.
This is welcomed news for The Tetra Companies and REDBUD Construction Services (providing Project Management Services to the developer) and Tetra’s Town Creek Center. According to The Tetra Companies’ Blog, Town Creek Center is mixed-use development including:
- 77 Acre Open Air Mall
- 240 Market Rate Apartments
- 126 Active Senior Apartments
- 53 Acres Office/Medical Center
- 15 Specialty/Restaurant Sites
- 17.5 Acre Neighborhood Center
- 6 Neighborhood Pad Sites The site has premier visibility to I-75 and Highway 321:”The Gateway to the Smokies. Both roadways have high traffic counts: I-75 averages 53,166 per day and Highway 321 averages 27,488.
CM Contract for RCS in Lenoir City
Town Creek Center is located between Interstate 75 and Highway 321, just west of Town Creek Road in Lenoir City, TN. This proposed mixed-use developed is owned and managed by The Tetra Companies of Virginia Beach, Virginia.
Shawn Van Dyke, Chief Manager of RCS, LLC, has been brought on board to manage this project for The Tetra Companies.
Construction has started on the Infrastructure Phase of the project, with the site prep and vertical construction phases to follow.
Town Creek Center will feature Big Box and Life Style retail areas, Medical Offices, Senior Living communities, Neighborhood Commercial, General Commercial, and Multi-Family components.
REDBUD Construction Services is honored to have been chosen to manage this project for such an outstanding development firm as The Tetra Companies. To find out about The Tetra Companies Philosophy of Development and other real estate investment opportunities, visit their blog.
REDBUD Construction Services featured in Industry-Leading Blog
REDBUD Construction Services’ advice has been featured in a post this week on the Mark Up and Profit blog. Thanks to Michael Stone and his staff for teaching RCS how to serve their clients and we hope that our example can help others in the industry.
What Type of Contractor Do You Want to Hire?
Michael Stone describes the 4 different types of contractors in this post.
In my experience, there are four kinds of contractors.
“A” contractors run their business like a business and make good money.
“B” contractors run their business like a business most of the time and make a living most of the time.
“C” contractors run their business like a hobby, make a living some of the time, but often (like today’s market) take a second job so they can keep their bills paid. If they are married, their wife’s income is usually the primary means of support.
“D” contractors are the ones we hear the most about even though I believe they are the smallest group. They are either con artists or complete flakes, the guys that cause over 90 percent of all the problems in this business.
As a client or owner of a project, ask yourself, “What type of contractor do you want to hire?”
And then ask yourself, “What kind of client do I want to be?”
The answer: an educated or teachable client.
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