Problem Solved: A Scenario of Efficiency - Developer, Architect, Contractor

A Construction Scenario:

In a typical contracting workflow to solve construction issues, a subcontractor (sub) creates an RFI (Request for Information) and sends it to the Contractor for review. The RFI is then forwarded to the architect for response. Depending on he severity of the problem, the contractor might take a day to generate and submit the RFI. The Architect has five days to respond with detailed instructions. Days later, the architect sends the response to the Contractor and it is reviewed for validity, then, submitted to the Subs to perfrom the work. A change order is generated by the sub and submits it to the Contractor for additional payment. Sometimes the RFI response requires additional clarification which restarts the RFI timer, potentially doubling the time.

Upon project completion, change order negotiations are a source of significant conflict. Large General Contractors, have specialized teams that deal with project change orders at the end of a job.

Ultra-Efficient Process:

When the developer, architect, and contractor operates as a single unit, many time consuming steps are trimmed away. Time and cost increases are significantly decreased, allowing a multitude of tasks to be executed rapidly or directly on the spot if possible.

With seamless coordination, construction conflicts can be reviewed it in the field. First, the sub is asked for their solution and expertise. In some cases the problem is solved right there; done. If necessary, a conference call with an engineer can be made to review the problem. A solution can be found quickly and the sub estimates the cost to perform the extra work. A confirming email to the engineer and subs, and the change is approved. After the work is completed the sub submits documentation of the agreed cost increase on their next pay application. The subcontractor is able to maintain productivity and be reimbursed for their additional efforts.

Conclusion:

Construction is a complicated endeavor. There are always challenges we cannot predict, however, an on-site issue that would days to solve, might take us a day, possibly an hour, maybe even a few minutes. The speed comes down to how engaged we are as a project team and how responsive our consultants are.

It is very simple – we create our own projects, we perform the design and permitting, we execute the construction, fix our own problems, keep everyone productive, pay our lenders, provide returns to our investors, and then move forward to the next project