What is the Future of Multi-Family Housing?

When my friend Andrew Favata of BACI Advisors posted on LinkedIn the "Top 5 Mistakes Owners Make" in developing their projects, it prompted me to share my recommendations based on my own 40+ years of experience working on a range of projects from extremely small and straightforward to large complex corporate projects. Whether you are contemplating a porch addition or you are a corporate officer or facilities manager, the missteps and their solutions are equal. It’s just a matter of magnitude in time and dollars. In this article, I will mostly address the smaller projects. More about those really big projects in another post. Misstep No. 1: "Assembling the Wrong Project Team and People." You would think that this is a no-brainer. For small projects this may actually be a bigger issue than for larger projects. Corporations have facilities managers who perform this task and are charged with keeping the corporations from making this and the other four mistakes. But small project owners have to do everything themselves - right? What should the small project owner do? Enlist someone they trust in helping put a team together Interview several firms needed to design and construct the building Review the resumes of the individuals who will design and build the project Ensure continuity of the team Misstep No. 2: "Insufficient Planning Without the End Goal in Mind." When you consider building something there is usually some semblance of a goal in mind. Again, the larger projects have the advantage in that there is a team of people who have done a lot of homework (architects call it Programming), identifying goals and objectives of meeting the resultant building’s image, function, and life-cycle operation. What should the small project owner do? Put together the right team who can provide the best direction for your project Work closely with architect or construction manager to develop a proper Program Don’t think this omission will save time and money - it won’t A recent prospective church client came to me with two pre-engineered heavy-timber structural system buildings designed by the heavy-timber fabricator. The fabricator was also asked to basically design the building, EVEN though they informed the client that they were not architects. Both buildings were to be two stories in height with people occupied second floors. There was no elevator, toilet rooms did not meet the building code and in general, the building was not well designed. The church representative already had hired a civil engineer to design the site and locate the buildings without the aid of an architect. One of the two buildings did not orient itself to the site in the best method for energy efficiency. Putting the WHOLE team together before starting one aspect of a design will save time, money and headaches. Misstep No. 3: "Creating Inaccurate Budgets." This mistake takes on exponential impacts, especially if you have made Missteps 1 and 2. What should the small project owner do? • Employ the professionals in developing your budget • If budget exceeds funds, adjust the scope of the project • Allow for a contingency fund, especially for early budgeting (usually 20% above budget) Misstep No. 4: "Underestimating the Time Involved and Missing Deadlines." This mistake can have dire consequences. Every project needs a realistic schedule as well as a budget. Architects and construction managers develop schedules with milestone dates for the completion of the design and construction. The ancient Chinese proverb that a man will never arrive at his destination if he doesn’t know where he is going applies here. The schedule IS the road map. What should the small project owner do? With the professionals, develop a realistic schedule Understand that the schedule impacts the quality of construction Understand - accelerated schedules have cost impacts Take into account climatic conditions that can affect the schedule Misstep No. 5: "Managing a New Project While Running Their Main Business." Because the large projects have staffs that are tasked with performing the management on the owner’s behalf, this misstep more likely happens on smaller projects than large. What should the small project owner do? If the budget can accommodate - hire a professional to represent your interests Meet regularly with your representative - have an update schedule Insist that written progress reports be submitted to you for approval By assembling the right team and right people to execute your vision, will allow you to continue to do what you are good at doing. Rely on the team you have assembled. They will likely ensure your success and if they do their job properly, make you look like the "smartest person on the block." Avoiding the "5 Missteps" will not totally guarantee that your project will move smoothly along without bumps in the road. But avoiding these slip-ups will ensure that you will spend less time, money, and sanity on getting the building constructed. No one can predict when a natural disaster will impact your project. Or, will the market tumble, affecting your bottom line? However I can be one-hundred percent accurate that if you make any of the errors outlined above, you will adversely impact your schedule, money, or sanity. Or all three. Greg Burke, FAIA