Menu
Log in


Log in

Planning Ahead for Construction Projects

12/01/2021 5:48 AM | Anonymous member (Administrator)

By Meaghan Brown, EmpireWorks Reconstruction

Year after year, I’m somehow always surprised by the amount of HOA communities that wait until the eleventh hour to solicit a bid with the full expectation that the project will be completed in its entirety before the first snowfall.  Time and time again, they’re disappointed to hear that the project, which they put out to bid in October, will likely not be able to get done until the following spring.  This is usually the case due to weather, contractor capacity, shortages in materials, etc. The list goes on.  This article outlines a few helpful steps you can take to help you plan ahead for construction projects. 

Step 1: Understand your Board of Directors (BOD) & get BOD buy-in.

At a minimum, the BOD should take a physical look at the work and agree on the desired outcome.  A community’s needs must be fully addressed in the scope and specifications. The BOD should be involved in the scope development, so they know exactly what they are investing in and to ensure proper expectations are set.  Ideally the BODs should walk the project with the manager and bidding contractors to determine details prior to the formal RFP being issued.

Step 2: Know how the project will be funded. 

Before going through all of the hoopla of obtaining multiple bids, knowing where you’re obtaining funding is crucial.  Have a clear understanding of what the board is budgeting for this particular project. If you are unsure of what the ballpark cost of the project looks like, reach out to a trusted contractor for a budget price. If the budgeted cost is higher than expected or outside of the amount budgeted in reserves, plan accordingly by getting a loan, doing a special assessment, or raising the monthly HOA dues.  Due to material cost increases, contractors can usually only hold their pricing for about 30 days.  So, make sure that the project is funded and the board is prepared to move forward before bidding it out to multiple contractors. 

Step 3: Develop a clear and detailed scope of work to send out to bid.

A properly written request for proposal (RFP) is important for various reasons.  Not only does it help vendors understand the board’s expectations and how they would like the job to be outlined or broken out, but it also helps the manager in obtaining apples-to-apples bids from the various contractors.  This reduces back and forth questions from the contractor to the manager. You may want to ask a trusted business partner (such as a contractor or engineer) for assistance.  

Step 4: Schedule a pre-bid site-walk with all bidding contractors. 

Ideally, this happens all at once, with all bidding contractors present at the same time.  By doing this, you’ll ensure that the same details are explained to each of the bidding contractors.  Other ideas, product recommendations, or a more efficient way to attain the desired outcome may be recommended by a contractor, which can then be relayed to everyone on the walk. The bidding contractors may also be able to tell you at this time if engineered drawings are going to be required.  As a helpful tip, you can almost always expect that drawings will be required for things related to life and safety.  This includes railing, staircase, or balcony replacement, as well as retaining walls over 4 feet in height. 

Step 5: Set the proper expectation for the BODs, so they better understand the timeline of turning around a bid.

Once the RFP is received by the account executive, the estimating team reviews the RFP to clarify details.  The estimator will then inspect the property and determine the means/methods for project execution. Once quantified and calculated, the bid is then reviewed for accuracy, feasibility, schedule, exclusions and unforeseen conditions. From there, the account executive formats this information into a bid-packet presentation and delivers the proposal to the manager. During our busy season, it may take up to four weeks to turn around a bid.  From there, it usually takes about 30 days to start the project from the time the executed contract is received. Not to mention, if the project requires engineered drawings, the community manager should allocate another three to four weeks on the front end for the drawings to be prepared.  Below is a general timeline showing how this all pans out.



TASK

TIMELINE

1

Community Manager and BOD identify the issue and agree upon a desired outcome.

Dependent on BOD

2

If applicable, Community Manager and BOD involve an engineering firm to attain engineered drawings. The firm reviews the project and submits a proposal to the BOD for signature.

2-4 weeks

3

If applicable, the BOD signs the proposal and hires the engineering firm to develop the scope of work and drawings.

2-4 weeks

4

The Community Manager, BOD, and/or engineering firm submit the RFPs to bidding contactors. The bidding contactors review the scope, clarify details, put together the estimate and submit their bid to the BOD.

3-4 weeks

5

The Community Manager, BOD, and/or engineering firm review and compare the bids.  They clarify any questionable details, select a contractor, and submit the signed contract. 

Dependent on BOD

6

The contactor receives the signed contract and begins planning logistics.  If applicable, they’ll submit applications for any necessary permits (timeline on this can be several weeks or even months.)  They will then order materials. Depending on the project, this can also take several weeks.  

4 weeks


TOTAL: 2-4 months from RFP to Project Commencement


Step 6: Review all bids for accuracy & schedule interviews.

Once the bids are received, thoroughly review all of them to make sure they are exactly per the RFP.  A detailed step-by-step scope of work, products and equipment being used, exact quantities, and locations should all be clearly outlined in the proposal. Review the bids with the BOD to assure that every bullet point is covered.  I recommend using a bid comparison worksheet to compare.  You’ll then want to interview potential contractors.  Many managers and boards are reluctant to interview and that is a disaster waiting to happen. 

Taking all of this into consideration, it’s easy to see how a project can quickly be pushed back to the following year.  By setting the right expectations for your board, identifying potential pitfalls, and starting the process early on, you can help to better serve your communities and board members alike.


About the author: 

Meaghan Brown is an Account Executive at EmpireWorks Reconstruction, working with HOAs, multifamily, and commercial properties for their exterior, community-wide reconstruction projects.  As an Account Executive, Meaghan acts as the liaison between their production team, the community/property manager, board of directors, and residents throughout the course of each project.  Some of their core services include roofing, carpentry, EIFS/stucco, concrete, painting, decks/walkways, steel fabrication, and construction defect services. 

CONTACT US
(303) 585-0367

Click here for email

  

Did you see us on HOA Line 9? Or hear about us on CPR?
Need more resources?

Click Here

Powered by Wild Apricot Membership Software