The Value of Construction Management

The Value of Construction Management

Nov 2, 2016 | Construction Management

In our recent blogs, we covered the importance of pre-construction management, detailed design/build processes, and how to save time and money throughout construction. But, what if your project is a little more complex and requires a little extra time and attention?

In this blog, we decided to cover DBG’s approach to complex, multi-phased projects through Construction Management.

 

General Contractor vs. Construction Manager

While the terms “general contractor” and “construction manager” are often used interchangeably, these titles actually represent two very distinct roles within the construction industry.

Construction managers are typically involved from the start of a project, helping the client with the initial planning, as well as the selection of an architect and, sometimes, a general contractor. Construction managers frequently perform the first two tasks, then also serve as general contractor for the project.

Primarily, construction managers schedule and integrate all design and construction processes to ensure constructability and feasibility of the client’s project. They coordinate all the moving parts of a project – clients, architects, trades, subcontractors, tools, equipment, and materials – to complete projects on time and on budget. Overall, construction management is intended to streamline all primary concerns and decisions through a single entity.

A construction manager is also your primary point of leadership – both on-site and in the office. Your construction manager is responsible for strategic collaborations with architects, engineers, and city officials. Using these partnerships, your construction manager takes your vision and assumed the responsibility of coordinating all the necessary components of bringing your project to life.

 

Reasons to Consider a Construction Manager for Your Project

A Construction Manager Saves You Money

  • Construction management is particularly useful for projects that include elements of technical complexity, are multi-phased, or require multi-trade coordination. Construction management is a critical approach that streamlines a large project that may evolve or change in scope. Having a good estimate of the costs of your project is extremely important in ensuring your expenses don’t snowball out of control once construction has begun. A construction manager works alongside your architect to value engineer and provide alternatives for staying within-budget.
  • DBG was selected as the construction manager for repairing extensive tornado damage to the Moore Administrative Building. The project was multi-phased, with renovations covering over 60,000 square feet and multiple floors. In order to cover the cost of repairs, DBG’s client opened a purchasing order for $8,000,000.00. Through strategic phasing and value engineering, DBG was able to complete the necessary renovations under budget, saving our client 33% of their anticipated expenses.

“ …saving our client 33% of their anticipated expenses. “

Reduce Your Risk

DBG managed the Moore project through a construction manager-at-risk contract. CM-At-Risk is a delivery method that implements a ceiling cost for the client and shifts the risk of additional expense to the construction manager. Working under a Guaranteed Maximum Price (GMP) is a powerful incentive for the construction manager to operate in the owner’s best interest.

A CM-at-risk contract also motivates the construction team to efficiently manage construction costs, knowing they are liable for any expense that exceeds the GMP. When a construction manager is bound to a GMP, the contractual relationship is fundamentally changed, usually resulting in a positive outcome for both client and construction manager.

Reduce Scheduling Problems

As the project lead, your construction manager should be able to phase out a complex construction job in a way that is financially beneficial for you. Renting a space for company operations comes with a hefty price tag for any sized business; so, moving clients into their own space faster usually means money saved.

During DBG’s work on the Moore Administrative Center, our team implemented strategic phasing to allow the clients to resume occupancy sooner than anticipated. By moving into their own building ahead of schedule, they saved an additional $50,000 in anticipated renting costs.

“ …they saved an additional $50,000 in anticipated renting costs. “

Now that’s mission accomplished.

The Big Question: Lease vs. Buy

The Big Question: Lease vs. Buy

Oct 12, 2016 | Lease vs. Buy

Considering a move?

For businesses looking to expand or move, one of the first matters at hand is: Leasing vs. Buying. A serious question. There really is no short answer. It requires diligent examination; as with every large endeavor, every detail matters.

 

Leasing vs. Buying

Usually, the most logical place to start is by examining the benefits and drawbacks of each of you options, especially as they pertain to your business. For example, a business undergoing rapid growth may consider buying a building to accommodate future expansion rather than increasing their leasing space – and expenses – as the company grows.

To help with your decision-making, here is a list of some pros and cons.

 

Benefits of Leasing

  • Property costs are spread out over the term of the lease.
  • The landlord pays for the cost of capital and repairs.
  • You can free up more money to put back into the business.
  • You are able to lease property in a prime location with fewer budget restrictions.
  • You have the flexibility to relocate at the end of the lease.
  • You have no responsibility for the building if it is damaged due to fire, storm, floods, etc.
  • Long-term costs of leasing are easier to forecast and budget.

Drawbacks of Leasing

  • You will have no control over the other tenants in the building. They could have a negative impact on parking, hours of operation, use, and compatibility.
  • For a business with easy access to capital, leasing may actually turn out to be more expensive than owning.
  • Even if your business becomes unprofitable, you must continue paying rent or face penalties to get out of the lease.
  • Most leases stipulate that the landlord may require you to remove 
any improvements you made to the premises.

 

Benefits of Buying

  • After the initial upfront costs, ongoing costs may actually be less.
  • You’ll have an asset for the business, and any appreciation that comes with it.
  • You have full control over the property and can make changes to suit your needs.
  • You will gain equity as you pay down the mortgage.
  • You have the option to lease part of the property to someone else, and you can use that money to help pay the mortgage more quickly, or reinvest.
  • You’ll have some tax shelter in the interest and depreciation deductions. Also, upon the sale of the property, the tax on the gains is usually lower than on ordinary income. The capital gains tax rate is currently 20% and depreciation recapture is 25%.

Drawbacks of Buying

  • Relocating may be more difficult. The process could take months or even years.
  • The down payment is often 20-30 percent. This is money you could otherwise use for the business.
  • Property management issues can become complex in areas such as legal compliance, health and safety, and maintenance issues–which can be costly.
  • The ability to refinance may be limited in times of economic recession or depression.
  • There are several transaction costs associated with buying a commercial property.

Leasing or buying commercial real estate is a big commitment–of both your time and your finances. You may want to check out DBG’s great tool for assisting with the decision-making process: a Buy vs. Lease Analysis Tool.

And a final note: If you have decided to proceed with purchasing a property, you also have the option of constructing a brand new building to suit your needs. You can always contact a qualified General Contractor to discuss your property and project needs.

Check back with our blog frequently to view future posts on that topic, and take a peek at some of our finished projects! If you have any questions about current or future projects, we would love to hear from you!

4 Reasons to Hire a Professional General Contractor

4 Reasons to Hire a Professional General Contractor

Oct 5, 2016 | Reasons to Use a General Contractor

Television makes construction and renovations look so easy. Hire a few people to help you slap down some fresh paint and lay a few tiles and you’re good to go. Maybe just rebuild a wall here or there. Find an electrician to rewire the room and voila! Job done!

In reality, it is rarely that easy. If you think that a particular job is beyond your do-it-yourself skills, you’ll need a general contractor to help break-down and implement your project. If the job is as simple as replacing a leaky sink in the bathroom, you can probably handle hiring a plumber yourself. But, when you launch a ground-up project for your new business location or need major renovations, save yourself a few headaches; don’t be your own general contractor.

Reasons to Hire a Professional General Contractor

 

Save Money

A good general contractor is familiar with the local trade companies and know what they charge.

When you hire a company with local market experience, you hire someone who has spent time cultivating quality relationships with subcontractors. A general contractor who has taken the time to source and team up with subcontractors usually offers the best price and the best quality work. These types of experienced teams usually produce realistic time lines for project completion and deliver according to schedule.

An experienced general contractor may also be able to offer Guaranteed Maximum Pricing, assuming the risk of cost overruns and sparing your wallet the extra fees.

 

Save Time

If your rapid company growth requires new or expanded facilities, then your time and energy are most likely committed to supervising and encouraging that growth.

It’s worth considering – do you have the time to receive and critique bids from multiple contractors, and ensure that every aspect of the project is covered?

This is the value of a General Contractor: She handles bids, monitors progress, and doesn’t need to learn a new trade while handling her primary trade full-time.

 

Job Done Right the 1st Time

You will get the job done right the first time. When you don’t spend time hiring, working with, or vetting local tradesmen, it is difficult to determine which subcontractors deliver a great pitch, but then provide subpar work.

An experienced general contractor is familiar with the quality of work done by the people in your area. She will know who to avoid, which tradesman to use for which tasks, and which subcontractors she can reach out to in case of emergencies.

Regardless of the project’s phase, a good general contractor is prepared with contingencies, back-up plans, and a reservoir of trusted subcontractors to get the job done.

 

Experience Makes for Smooth Inspections

Building inspections go more smoothly. Your professional general contractor knows at which points (yes, more than one for some projects) to call for inspections.

You want someone who has taken the time to develop transparent relationships with local officials. A general contractor who has an adversarial relationship with the building department is more likely to experience delays in permit approvals and scheduled inspections. A general contractor who has taken the time to abide by regulations and be in good standing with officials doesn’t get pushed to the back of the line. This helps on keeping costs down too.

Paying for extra inspections adds up in both time and money, as does fixing things that weren’t up to code to begin with.

 

If you are considering expanding your business and need help building or renovating, please contact us to find out how we can help you. With over ten years of experience in the commerical construction , we can get your job done on budget and on time.

A League of Their Own

A League of Their Own

Sep 28, 2016 | DBG Construction, Reasons to Use a General Contractor

Reasons to Not Be Your Own General Contractor

Maybe there’s no crying in baseball, but tears are shed in construction. Don’t get in over your head by assuming you know the ins and outs of commercial development, and don’t be your own General Contractor! Commercial projects require scheduling precision, hardball deadlines, and sizable risk. Here are some, but not nearly all, considerations that are crucial in commercial building projects:

1. Pre-construction Meetings:

An ace commercial construction firm knows how to ask the right questions to meld a client’s concept and a designer’s ideas into a finished project, so everyone involved is happy with the results. Pre-construction meetings set up the command center for the subs, so they don’t get in each other’s way. To manage architects, designers, engineers, subcontractors, and building supply vendors takes incredible coordination.

2. Identifying The Right Trade Contractors:

Trade contractors picked solely on low-ball bids show their incompetence on the job. You don’t need greasy footprints on newly installed carpeting after they showed up two hours late. Notice the game plan of a good commercial contractor managing a team of excavators, masons, framers, drywallers, electricians, plumbers, carpenters, carpet layers, painters, landscapers, and roofers they know and trust. They’ll bat 1.000 on a project.

3. Budgeting:

A commercial contractor will set up a construction budget jointly with the chosen designer to integrate the initial stages of a project. Later, if building supply vendors become problematic or if any unexpected cost surprises pop up initiating a change order, your commercial contractor can suggest alternate materials and adjust another phase of the project. Controls are in place throughout the project to assure a predictable outcome at completion.

4. Facility Maintenance:

Some commercial contractors provide comprehensive facility maintenance services. Who better to fix it than the builder who installed it in the first place? If a general contractor offers facility maintenance and repairs, then the client has no need to search for technicians when something goes awry. Scheduled maintenance for HVAC, electrical, plumbing, roof, and fire protection need checking annually, in some cases quarterly, to keep a lid on maintenance costs. As an example, your commercial contractor can come in before a commercial kitchen inspection and address any maintenance issues for an A+ rating. DBG Construction provides its own facility maintenance firm, handling multi-trade repairs and even small renovations to keep clients’ buildings safe and operational.

5. Check Credentials:

Remember, professionals you hire must have completed their education and acquired the proper credentials to earn your trust. Your cardiologist has a Doctor of Medicine degree, your accountant has earned her bachelor’s degree in Finance, and you want to make sure if you have to appear in court that your attorney has passed the bar exam! The alternatives, performing heart surgery on a family member, taking a chance on being your own financial advisor or representing yourself in court would be ludicrous.

 

In essence, you’ll want your builder to know the nuts and bolts of the profession with a portfolio of successful projects and proven experience – an assurance of excellence. When an investment in a commercial building is right for you, save the hammer for hanging pictures and call an accredited commercial contractor.

Sold on our pitch yet? Contact DBG Construction to discuss your next commercial project. We’ll hit it out of the park.

Conserving Construction Cash

Conserving Construction Cash

Sep 19, 2016 | DBG Construction, On Budget Construction

Tips to Save Money on Your Next Construction Project

Price tags for construction project have a dangerous tendency to run high. Whether the work requires renovation or ground-up construction, expensive costs can be hard to avoid. So what are some tips to save money on construction projects? To provide you with effective, real-life advice, we consulted our firm’s professionals.

DBG Construction’s experts pull from nearly 200 years of combined experience in the construction industry. When asked how they would encourage clients to save money, these were their responses:

Conduct Thorough Price Comparisons

Shop around for the best price and the best services. You’ll save money by holding off on the first offer or the first cost. Invest a little extra time and effort into research until you find the best deal for your money and expectations.

Renovation vs. Ground-up Construction

Consider restoring or renovating an already existing property. Warehouse conversions, build-outs, or remodels are sometimes cost-effective alternatives to ground-up construction. You avoid expensive concrete costs and shorten your project’s timeline, enabling your business to open sooner.

Building Space and Efficiency

More space means more money. Consider your project’s size and determine what elements are and are not necessary. This is particularly important for businesses who are looking to cut-costs by using smaller spaces efficiently.

Business Growth Plan

Have a long-term business growth plan. Company growth is a critical consideration for any company – especially when considering building space. Develop a trajectory of your business growth and share projected growth percentages with your GC and project architect. They will be able to implement a versatile design that accommodates your current and future needs, without tacking on excessive costs.

Details and Vision

Identify the level of finish you want. You have that mental image of how your space will look upon completion. Discuss the details of that vision with your general contractor. They should be able to recommend the best choices or cost-effective alternatives to accomplish the level of finish your project deserves. It saves you time and money to know your options from the beginning.

Building the Wow Factor

Determine your businesses wow-factors. Every business has an aspect of their building that they use to catch potential clients’ attention and draw customers in. It can be an elaborate entryway, a luxury lobby, a critical industrial structure, or vibrant office space for your team. Whatever it is, make sure your general contractor knows how to properly and effectively emphasize your wow-factor.

Efficiency of Eco-Friendly

Take efficiency into account. Go green with eco-friendly options. Find a general contractor that can balance the concerns of economy, environment, utility, durability, and comfort. Water and energy efficient amenities will reduce excessive consumption and you save money in the long run.

Get Started in the Off-Season

Start the project during the off-season. You won’t only save money, you’ll have more one-on-one quality service from your contractors because they will have more time.

Plan Ahead

Go over the project schedule and to-do list line by line. Get rid of any unnecessary or excessive expenditures and/or things that you don’t really want. A reputable general contractor will help you value engineer the finishes to meet both expectations and budget.

Organization is Key

Stay organized throughout the entire project. From paperwork to the budget and from supplies to workers, stay organized. You should work with a general contractor that assists you with robust project cost accounting and construction management software. You have the right to know when and where your money is going at every step of the project’s development.

Knowledge is Power

Use wisdom. Know when to save and know when to spend. Some costs are better left for a later project.

 

 

So if you have a project that needs building or if you have questions about how we can help you save a buck, contact us! We’d love to help you build your savings and maybe even something else!

Saving Money on Your Next Construction Project

Saving Money on Your Next Construction Project

Sep 12, 2016 | DBG Construction, On Budget Construction

Two Tips to Save Money on Your Next Construction Project

Construction Projects are an exciting time for commercial properties, whether a new building constructed from the ground up, or a major renovation of an existing establishment. Here are the two best tips to save money on your next construction project:

 

1. Bigger Doesn’t Always Mean Better

Once you know exactly what you would like to build or renovate, meet with a contractor to have them examine your plans for inconsistencies or improvements. For a credible source, choose a contractor that is reputable, insured, has the proper licenses and certifications; and, more importantly, will provide detailed examples of their past projects.

You can save money by choosing a contractor that meets all of your fundamental criteria, but specializes in middle tier project size and value. This way, you still receive quality construction work without the excessive cost.

 

2. Know Your Budget

Decide on your maximum budget and discuss it in detail with your contractor.

As a general contractor, it is our goal to help you prioritize the essentials and assist with cost-effective redesigns if needed. This approach helps ensure that you are happy with both the physical and financial results of your project. As with every large endeavor, however, keep in mind that unforeseen circumstances may potentially increase your overall project cost; so discuss contingency plans and a buffer amount set within your budget with your contractor.

 

Keep these two money-saving tips in mind when you are selecting a commercial contractor for your next development or renovation. Choose contractor that is in tune with your needs and expectations to result in a project that is delivered promptly and cost-effectively.

Considering a commercial construction project? Let our experts help! Contact us to tell us more about your project.

How to Start a Construction Project: A Realistic Timeline

How to Start a Construction Project: A Realistic Timeline

Aug 10, 2016 | Starting a Construction Project

How Do you Start a Construction Project?

Your business is booming, and you’re looking for a way to physically keep up with your growth. It’s time for a new building, and you know it, but where should you start?

Many business owners and operators know that the need for expansion to a new location or improvements on an existing building are necessary, but few truly understand the time it takes to revamp a whole structure or build a new one from the ground up.

Since your business is different from all the rest, a generic time frame will not be able to accurately predict the time it will take to finish the project. Typically, estimated completion dates can range from 3 months to a year and a half, depending on the type of work and the size of the job.

For any construction project there are several factors to consider:

  • Will you lease an existing structure, or will you be building a new one?
  • Do you have a new general location in mind?
  • If the structure exists, is it in good repair?
  • If you’re building a new structure, does the location you’ve chosen meet the criteria for the type of building you desire?
  • Have you factored in the time it will take for an architect to come up with plans for the building before construction can begin?

Lease vs. Buy

Both the choice to lease an existing structure and to build a new one have their merits and drawbacks. Leasing eliminates to need to build from nothing, but will most likely require modification of the building, especially if extensive repairs are necessary. It’s possible to transform a drive-through fast food restaurant into a satellite bank branch, but is the transformation as desirable as erecting a new building specifically designed to suit the bank’s needs? Building from scratch allows for custom design, but may require significantly more time to complete than remodeling. In this decision, a business should carefully consider all the options available.

For additional help, download our free Lease v. Buy forecasting tool!

Selecting a New Location

Deciding on a new location requires a great deal of time and forethought. Researching demographics, market trends, and traffic past the area are all wise moves when determining where to go. Sandwiching a business space between two busy, one-way streets heading opposite directions and a railway crossing that impedes traffic often doesn’t necessarily make as much sense as relocating somewhere less highly traveled. Building an enormous structure to accommodate more stock can be a great asset, but only if it doesn’t reduce parking space or accessibility to your clientele. Willingness to compromise in one direction or another sometimes becomes the greater asset in those types of situations.

Finding an Architect

Finding and employing an architect who has the skill to translate what you want for your business structure from your vision to the plans can be a daunting task. Researching architectural firms to find the perfect fit takes time, and that’s time spent before anything is laid out on paper. Maybe you’re lucky enough to have recently seen the finished work of a tremendous architect, but chances are you will spend some serious time asking around, searching online, and making phone calls to find the right craftsman for your job. Once that’s accomplished, drawing of the blueprints can begin.

Obviously, the planning required to embark on a major construction project dictates that it won’t happen overnight, but talking to a professional general contracting firm is a great place to start.

Contact us today to learn more about what it takes to realize your construction ideals.

Or call us at 405.601.2700 x 104

How to Start a Construction Project with Fewer Stresses

How to Start a Construction Project with Fewer Stresses

Aug 2, 2016 | Starting a Construction Project

As a construction company, it is our mission to make sure our customers are familiar with the benchmarks necessary for evaluating and selecting a general contractor.

At DBG Construction, we have ten years of operational experience in the construction industry and nearly 200 years of combined professional experience. Now, we’re offering our expertise to proactively address the stresses and concerns associated with any construction project. Here are a few points we would like to highlight, specifically geared to help you make an informed decision about your future facility and the contractor responsible for building it.

Pre-Construction Services

Pre-construction services are critical for identifying potential obstacles before your construction project even begins. The sooner you implement pre-construction services, the more effectively our team can work to analyze potential weaknesses and develop contingencies to remain on-schedule and on-budget.

We work hard to maximize your investment, and that means we adopt an integrated approach with the design team to ensure project constructability and eliminate budget surprises.

Design-Build

Design-Build is the most streamlined approach to your construction project. As your designer-builder, DBG becomes the single point of contact for every phase of your project – from design conception to construction completion. We have mastered and improved this linear method over and over again, excelling in design/build projects for law firms, restaurants, retailers, and industrial facilities.

We bring every detail of your project to life, by turning your concept into a building.

Construction Management

Construction management services provide you with invaluable resources from our knowledgeable professionals. As construction managers for your project, we tackle feasibility studies, reduce risk by committing to your budget, and track project performance. It is our responsibility to navigate the obstacles to provide you with budget and schedule certainty throughout the entire process.

DBG works meticulously with our subcontractors to provide a clean, safe job site; these details are critical factors that help ensure timely completion of your project.

Facility Maintenance

Facility maintenance services keep your project in excellent working condition. DBG’s facility maintenance department pulls from our extensive resources throughout Oklahoma to provide timely and cost-efficient repairs.

Our expert team even handles construction with smaller scopes of work, streamlining the repair process for a project that requires expertise from multiple trades. DBG’s maintenance portfolio includes a wide range of projects including parking lot repair, roofing, plumbing and electrical services, and the installation and implementation of video security systems.

We offer quick delivery and on-site emergency assistance, establishing clear communication to keep clients informed of project costs and status.

If you have a project in mind, DBG Construction will help bring every detail to life – on time, under budget, and according to your expectations. A job rightly done speaks for itself.

Contact DBG Construction today to discuss your project and get it started!

Details Matter Blog: Welcome

Details Matter Blog: Welcome

Apr 22, 2016 | DBG Construction

Welcome to the new DBG Construction blog page! We are excited about launching this blog as it coincides with relaunching our new DBG website.

In the Details Matter Blog, we’ll share our experience and information about what we enjoy most: helping you bring life and vision to your projects. Our purpose is to setup for success, ensuring that every person involved in a project is successful: clients, architects, subcontractors, business-owners, developers, and staff alike. Our mission is to delight our customers by bringing teams together to build projects faster than any other general contractor.

Here is what information you can expect to learn from the Details Matter Blog:

  • We’ll share information to consider when making space decisions for a new or existing business/commercial property.
  • We’ll share an optimal timeline for locating new space and making renovations to meet your expected move-in date.
  • We’ll introduce you to key people who make DBG Construction different.
  • Look out for tips on how to save money when building and get the space you dreamed of for less.
  • We will answer your questions about how to effectively plan before beginning a project and what you should expect.

Who can benefit from reading?

  • Architects – find out how we can partner with you and gain your expertise on projects since we do not have an architect in-house.
  • Business Owners – learn when the time is right for leasing vs. buying and what the difference is between negotiated bid vs. competitive bid.
  • Commercial Relators & Developers – get help with sourcing investors, financing, design, tenant improvements, and facility maintenance.

Rules of Engagement

We invite you to join in on the conversation as we explore how to bring your construction project dreams to life. To create the most informative forum for discussion, we invite you to contact us through our contact page or email us your feedback here.

Thank you for reading, visiting, and contributing. We’re excited to have you here!

Click here to contact us for more information.