Tips to help make your Commercial Construction project a success!

3 Dec

Commercial construction projects are major investments that require proper planning, implementation, and professional management. Regardless of whether you are constructing an office, retail complex, or industrial facility, every detail counts. Very early choices that you make will directly affect the quality, schedule, and price of your project. The role of a seasoned construction partner can be massive in the case of businesses in Canberra and the NSW region. Having over 17 years of cumulative industry experience, Virk Construction Management has contributed to the success of many projects in the process of concentrating on collaboration, efficiency, and reliability. This article will present tips that can be put into practice to make sure that your next commercial construction project is a success and achieves the outcomes you are expecting.

Tips to help make your Commercial Construction project a success

Get your Brief right!

Any project can only be as successful as the brief from the client. The Project Brief has to stipulate the client’s requirement clearly and go through specific items that the client cannot live without, and without which would determine their project a failure. Even down to how many power outlets would be needed. As the Architect and engineers can only design what they know, and will need to know how much time they will need to spend on the project. So, they can submit an accurate fee proposal to start the project.

2. Appoint a PM

Any slightly complicated project would benefit greatly from appointing a professional Project Manager who knows what the next steps need to be and looks out for the client’s best interests in all aspects of the project. Any good Project Manager would help the project be delivered on Time, within Budget, and up to the required Quality the client is after. The Project Manager is the driving force and helps project stakeholders stay focused on the end goal.

3. Consultants

The next step is to appoint the right professionals for the type of project it is. A retail shop fitout, for example, would only need an Architect / Interior Designer, whilst a new building would need an Architect, Town Planner, Building Certifier, Surveyor, and Geotechnical engineer to start the concept phase of the project.

The Project Manager will help the client seek multiple Fee Proposals for each discipline, ensure they all allow for the same scope of work and effort required on the project, and provide relevant recommendations to the client for engagement. Ensuring the right scope is allowed for at the tender stage ensures that the consultant will not charge variations/extra costs later down the project, which can through the project out of budget.

4. Design

Once the right consultants are engaged, the next step is to seek their advice and allow them to undertake Concept designs. The Project Manager needs to determine the necessary Authority Approval pathway for the project, i.e., Developmental Approval or just a Building Approval will suffice. Generally, the Strata Authority or Building Owner would want certain design aspects to be covered and have the Client seek their approval prior to allowing them to proceed further. These items need to be covered from the Concept design stage to ensure the project is designed with the right intent.

5. Design Stages

Generally, the project will pass through certain design stages depending on the complexity and size of the project. A moderately sized $1-2mil project should go through the following for each design discipline (Architectural, Mechanical/HVAC, Electrical, Communications, Electronic Security, Hydraulics, Structural, Civil, Geotechnical, Audio Visual):

Concept Design - 20%
Detailed Design - 50%
For Tender Design - 80%
For Construction Design - 100%

These stages allow the client and all relevant stakeholders to systematically progress the design, client requirements, and finishes preferences, whilst incorporating technical details from Building Services Engineers (HVAC, Power, Structural, etc.). The Project Manager should manage this entire process, ensure all feedback comments are reflected in the Design documentation, and that all consultants work off the same requirements, have the same information, and, most importantly, work towards the same deadline and timeframes. Generally, a Gantt Chart / Timeline is prepared by the Project Manager to ensure deadlines are met.

6. Tendering

Once the For Tender Design has been completed and approved by the client, the Project Manager needs to begin preparation of the Tender Documentation for either of the following, depending on which pathway the client would like to proceed with:

Head Contractor
In this pathway, Virk Construction Management would prepare high-level tender documentation for a Head Contractor / Builder to be engaged as a Lump Sum provider. They would be expected to provide competitive Lump Sum quotes to enable the client to decide who to choose. Same as the below model, Virk CM would prepare detailed scope documentation, ensure all project requirements are captured, including the level of finishes, timeframes, base building requirements, etc. Once Quotes are received back, Virk CM would undertake a detailed comparative analysis to determine like-for-like scope allowances and ensure value for money is provided to the client. In this model, the Builder hides additional margin/profit into their lump sum prices as it is a closed book model, and the client pays for all costs, incorporating the builder’s profits and preliminary costs.
Managing Contractor - Open Book model
In this pathway, Virk Construction Management would capture all the project requirements, understand the construction scope, break down the scope into various Trade Packages, and draft up firm Tender Documentation for each Trade Package.
Once the documentation is prepared, Virk CM will begin selecting the most appropriate suppliers/trades for each package to tender to, thus ensuring multiple Quotes are received from Trades and suppliers. Once all Quotes are received, Virk CM would undertake a like-for-like comparative review of each quote to ensure all suppliers have priced the same scope and that no scope is missed, and then a recommendation would be provided to the client for each Trade Package, including prices from subcontractors and their quotes. This allows the client to make an informed decision on which trade to select and get value for money outcomes by undertaking competitive negotiation. In this model, the Builder cannot hide any additional margin/profit as it is an open-book model, and the client only pays for Professional Project Management costs and site management.

Conclusion

An effective commercial construction project in Canberra or NSW involves effective planning, professionals, and effective project management. Since it is important to develop a clear brief to convert consultants to the right consultants and tender management, each step is important. Working with a company that has experience, such as Virk Construction Management, underpins quality, efficiency, and cost. Their combined efforts build the confidence of their clients by delivering their projects on time, within the budget, and within their vision, giving the practical long-term reality of what they intended.

Adeel Virk