Seniors Housing Business

AUG-SEP 2018

Seniors Housing Business is the magazine that helps you navigate the evolution of the seniors housing industry.

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Page 75 of 80 75 August-September 2018 n Seniors Housing Business Construction Costs L OV E F U N D I N G ' S B R I D G E L OA N P L AT F O R M WA S A N edible asset B E C AU S E I T G O T U S U N D E R C O N S T R U C T I O N M U C H FA S T E R T H A N M O R E T R A D I T I O N A L H U D F I N A N C I N G S C E N A R I O S . M O S T I M P O R TA N T LY, T H E B R I D G E L OA N A L L OW E D U S T O G E T R E S I D E N T S I N T O facilities quickly. - A L F I N S O U T H J O R DA N , U TA H | $ 6 . 8 M I L L I O N B R I D G E L OA N L E A D E R S I N S E N I O R S H O U S I N G F I N A N C E 8 4 4 . 3 4 4 . LOV E | W W W. LOV E F U N D I N G . C O M 5. Study finishes — Finishes (interior and exterior) can have a substantial influence on both initial costs and ongoing mainte- nance. They should be thoroughly discussed and evaluated to maxi- mize the value of each choice. For one facility, our project team realized a 40 percent reduction in brick costs by forgoing a conven- tional clay brick for a local con- crete brick product. The concrete brick achieved the aesthetic goals completely. This is the kind of cre- ative decision that impacts value, cost and satisfaction. 6. Partner up for savings — Sub- contractors who regularly bid, install and service equipment can offer valuable insights on cost sav- ings. Mechanical, plumbing and electrical engineers are sometimes unaware that the cost of systems and fixtures might be much higher than equally effective alternatives. By taking advantage of a multi- disciplinary team of engineering, design, and construction profes- sionals alongside expert consul- tants, you'll benefit from a unified approach. Through the team's combined knowledge and infor- mation exchange you'll be more likely to realize a design that is cost-effective while meeting or exceeding quality and perfor- mance expectations. 7. Look into the future — Be certain not to eliminate impera- tive items that can't be added later. Instead, create a base project with alternate bids to enhance space, fin- ishes and building amenities. Alter- native bids should consist of items where scope is clearly defined through drawings and/or specifi- cations that are not included in the base project. Pricing is obtained at the time of bidding to ensure greater competitiveness. In the event that the base project comes in below budget, some of the alternate items can be selected for inclusion. This is a more cost-effective tactic than eliminating an option that will be impossible or cost-prohibitive to add at a later date. For instance, it would be wise and less expensive to "shell out" future rooms (install- ing floors, walls, and roof) if you believe that you will need more bed space or administrative areas in the near future. Even if you can't afford to finish them out, it makes sense to do a little more construction now rather than start a completely new project later. 8. Compare budget to reality — A constant comparison of actual expenses to the original budget is crucial and should include site design, selections of materials and systems, and constructability. As the building design develops more clearly, the initial cost estimates in the conceptual and schematic design phases are replaced by more comprehensive quantity esti- mates of materials and systems. Obtaining up-to-date pricing from subcontractors is vital during the design process. 9. Think seasonal timing — The timing of construction can have an immense impact on costs. Rainy seasons and winter weather can make a sizable difference. Prefer- ably, the vast majority of the exte- rior work should be carried out and the building fully enclosed before inclement weather is likely to impact project schedules. Unex- pected delays can be expensive. In addition, bidding out a project in the winter months can result in more competitive bids since sub- contractors are trying to prepare for the upcoming spring and summer. Long lead times for items such as steel, custom fixtures or equipment should also be considered to elimi- nate paying a premium to have them expedited and/or to avoid costly schedule delays. 10. Stay centered on the target — An experienced estimator should work closely with the design team to enable adjustments while keep- ing the design near the center of the targeted budget. If bids come in above budget, avoid indiscrimi- nately cutting the scope in order to keep the project in budget. This can taint the final deliverable, forc- ing compromises of function, aes- thetics, and operations. By following these 10 steps, you'll have a comprehensive strat- egy for maximizing your money, controlling costs and delivering a project that meets the needs of your customers and staff. Chad Ulman is vice president of archi- tecture and Kevin Madalinski is vice president of construction for Hoffman Planning, Design & Construction. They each have more than 20 years' experi- ence in construction and design.

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