After you completed the list of your potential contractors, next is to select your top picks.
Again, we will be assuming that your project is a common mid-cost residence probably ranging from 2M to 6M pesos. Cases might be different on higher or lower cost projects. I am also assuming that projects worth 6M up already is worth hiring a Construction Manager and he is the one handling or assisting the OWNER in dealing with the contractors.
According to what you found out on your initial gathering of infos, give more points to contractors with a good office and warehouse, has proper business documents, and has client references. Narrow down your pick into top 3-5.
Schedule a meeting with these contractors. It is recommended that you are the one who goes to their office since contractors might not accept your invitation if they feel that they have a very little chance of getting the project. They actually know if a Client is just soliciting information from them. Also, another advantage is, you can see and feel how the contractor treats his client and he will also feel that you are serious in considering him thus making him give you further information you need. This will probably be your second visit to their office.
Things to ask on your initial meeting with a contractor:
1. How many on-going projects they have. Actually, the lesser on-going projects they have, the more advantageous to you. Simply because, you don't share attention with too many projects. Chances are, your project will have the most out of the contractor's resources. Although, contractors tend to adjust as the number of their simultaneous projects increases.
2. Ask for reference project. If your project is a 2-storey residential with floor area of more or less 300sqm, ask the contractor of specific finished project with the same description as yours. If he is in construction industry for several years, he should have gotten similar project as yours before. This is to prove that he already has the experience and the expertise perfectly fit for your project.
3. Ask for basic contract terms and conditions. Some items that you should clarify are the following:
a. Down payment. For these type of project, down payment usually range from 20-30%. Also, it is important to request a Guarantee Bond equivalent to the down payment. This is in case something goes wrong and the contractor abandoned the project before it even started, you can claim back your down payment from the insurance company. Just make sure that the insurance company is reputable.
b. Construction and Surety Bond. Aside from the Guarantee Bond, it is important also to have these so that you will be assured at any point during the construction period.
c. Duration of Construction. This is for you to know how long they can finish your project. Also, this will help you manage your cash flow.
d. Mode of Payment. The best mode of payment for contractors would be through Progress Billing with pro-rated down payment and retention.(We will discuss this further on my next articles)
e. Excluded items. Although you are probably dealing with a General Contractor, there are still items that you will prefer to be excluded in the contract. This is because these items are owner-preference dependent. And/or for you to save on overhead charges if included in the contract.
4. Before you meet with them, prepare a set of blueprints and a copy of the Material Specifications prepared by your architect/designer. You will be giving each contractor a copy of these to be their basis of the estimates/quotation you will be asking them. If possible, give them also a standard bid form. You can ask your architect/designer or CM to make this. This is for apple to apple comparison of bids.
Expect that they will be asking further question upon reviewing the plans. If you can not answer their questions, or the questions are too technical for you, you will have to forward these to your architect/designer. Even if only one contractor asked a question give your answers also to the other contractors. This is to keep them aligned and maintain a good cost comparison. In the architect's office, these are called bid bulletins.
Estimates usually takes a week or two to finish. If you are not in a rush, you can set the deadline of submission of bids 2 weeks after transmitting the bid documents to them.
For these types of project, a Closed Bid is usually the way to go. This means that they will be submitting their bids with their best price in an enclosed envelope and it is up to the client to decide on whom the project will be awarded.
Showing posts with label Contracting. Show all posts
Showing posts with label Contracting. Show all posts
Tuesday, September 30, 2014
Thursday, September 25, 2014
Project Fails
Before we proceed on my recommendations on how to select and deal with contractors, let's discuss first some common mistakes committed by each parties that often times result to project fail. These mistakes are considerations in order to fully understand the ways in dealing with contractors.
Mostly in a client's perspective, the project fails because of the contractor. But usually, it is not the contractor that should always take the blame.
CONTRACTOR'S FAULT
1. Underestimate. If discovered before signing of contract, the contractor will probably withdraw unless otherwise, the OWNER agreed to correct the estimates and adjust the contract cost. Options are to have a higher cost or make some downgrading. If found out during construction this will have an impact to both the Contractor and the OWNER. The contractor might not finish the project, leaving the OWNER in a compromising stage.
2. Cheating. We all have the impression that all contractors tend to cheat, from material quality, overpricing, overbilling, etc. But there are still many contractors that would not risk their reputation in exchange for small additional income thru cheating.
Skipping procedure or shortcut of works is also cheating. But take note that not all shortcut works are considered cheating. There are some that are just mere construction techniques and technically acceptable.
3. Incompetence and Negligence. This results to poor quality and workmanship. Either produced by low-skilled workers or poor supervision, monitoring and checking of the foreman and/or the project engineer. Project engineer's poor comprehension of the plans and miscoordination can terribly ruin the project. Due to negligence, the contractor might also overshoot. The estimates are fair enough, but due to wrong execution and repetition of works, the allotted budget is reached before finishing an item. This results to frustrating losses.
DESIGNER'S FAULT
1. Incomplete and Inaccurate Plans and Details. The saying "No Plans are perfect" is an excuse for this. But the basic details should be ensured included in the issued set of plans. The CM and the Contractor should also review the plans before starting construction.
2. Late Response to Detail Request. It is normal that in some point during the construction, the CM and Contractor might find out that there are missing details in the plans. They are then permitted to submit a RFI or request for information to the Architect to issue the required design detail. But sometimes the architect's reply is taking too long that the project cannot move forward.
CONSTRUCTION MANAGER'S FAULT
1. Negligence. We are assuming that CM is competent and duly qualified, but failed to conduct proper checking resulting to wrong execution, misalignment and inconsistency of actual with the plans. This may cause delay to the project, material wastage and additional expenses.
2. Corruption. Yes, there is corruption even in construction. Some freelance CMs receives extra cash from the contractor in exchange for approval, recommendation to owner and other favors.
OWNER'S FAULT
1. Late Decisions. During construction, the OWNER's main participation is to make decisions. As the project progresses, he begins to see the actual. And because of this, he may decide to change something because he realizes that its not what he wanted. This is normal. That's why we have construction revisions. But the problem is most of the time, it takes too long for the owner to decide on the revisions and makes delay on the project.
2. Late Payment. Late payment usually happens during construction. And its quite understandable but not being late for more than a month. Because of this, the contractor tends to slow down or even stop at all since he is underpaid.
3. Too much Questioning. We understand that OWNERS are spending hard earned money for their dream house so its normal for them to ask questions. But sometimes, due to this questioning, a lot of nonesense issues arises and affects either directly or indirectly the progress of the project.
What I've mentioned above are only the most common mistakes. There are still more but might depend on the case or situation.
Mostly in a client's perspective, the project fails because of the contractor. But usually, it is not the contractor that should always take the blame.
CONTRACTOR'S FAULT
1. Underestimate. If discovered before signing of contract, the contractor will probably withdraw unless otherwise, the OWNER agreed to correct the estimates and adjust the contract cost. Options are to have a higher cost or make some downgrading. If found out during construction this will have an impact to both the Contractor and the OWNER. The contractor might not finish the project, leaving the OWNER in a compromising stage.
2. Cheating. We all have the impression that all contractors tend to cheat, from material quality, overpricing, overbilling, etc. But there are still many contractors that would not risk their reputation in exchange for small additional income thru cheating.
Skipping procedure or shortcut of works is also cheating. But take note that not all shortcut works are considered cheating. There are some that are just mere construction techniques and technically acceptable.
3. Incompetence and Negligence. This results to poor quality and workmanship. Either produced by low-skilled workers or poor supervision, monitoring and checking of the foreman and/or the project engineer. Project engineer's poor comprehension of the plans and miscoordination can terribly ruin the project. Due to negligence, the contractor might also overshoot. The estimates are fair enough, but due to wrong execution and repetition of works, the allotted budget is reached before finishing an item. This results to frustrating losses.
DESIGNER'S FAULT
1. Incomplete and Inaccurate Plans and Details. The saying "No Plans are perfect" is an excuse for this. But the basic details should be ensured included in the issued set of plans. The CM and the Contractor should also review the plans before starting construction.
2. Late Response to Detail Request. It is normal that in some point during the construction, the CM and Contractor might find out that there are missing details in the plans. They are then permitted to submit a RFI or request for information to the Architect to issue the required design detail. But sometimes the architect's reply is taking too long that the project cannot move forward.
CONSTRUCTION MANAGER'S FAULT
1. Negligence. We are assuming that CM is competent and duly qualified, but failed to conduct proper checking resulting to wrong execution, misalignment and inconsistency of actual with the plans. This may cause delay to the project, material wastage and additional expenses.
2. Corruption. Yes, there is corruption even in construction. Some freelance CMs receives extra cash from the contractor in exchange for approval, recommendation to owner and other favors.
OWNER'S FAULT
1. Late Decisions. During construction, the OWNER's main participation is to make decisions. As the project progresses, he begins to see the actual. And because of this, he may decide to change something because he realizes that its not what he wanted. This is normal. That's why we have construction revisions. But the problem is most of the time, it takes too long for the owner to decide on the revisions and makes delay on the project.
2. Late Payment. Late payment usually happens during construction. And its quite understandable but not being late for more than a month. Because of this, the contractor tends to slow down or even stop at all since he is underpaid.
3. Too much Questioning. We understand that OWNERS are spending hard earned money for their dream house so its normal for them to ask questions. But sometimes, due to this questioning, a lot of nonesense issues arises and affects either directly or indirectly the progress of the project.
What I've mentioned above are only the most common mistakes. There are still more but might depend on the case or situation.
Monday, September 22, 2014
Tips in Finding a Contractor
If you prefer to find a contractor by yourself, please read on to have a heads up on finding a good contractor;
Steps in finding a good contractor:
1. Get a list of potential Contractors. If you are a first timer, at least 3 - 5 contractors should be in your initial list. But it is recommended that you keep as many contacts as you can so that you can have better options and add other candidates in case one contractor fails to meet your expectations.
Don't engage with them yet. Just get their contact and basic information.
Ways to find a Construction Contractor:
1. Relatives and Friends' Recommendations
2. On-line/Internet
3. Yellow Pages
4. Newspapers and Magazines
5. Ad posters, Billboards, etc.
6. Scout for ongoing construction projects
7. Ask for your Designer's recommendations
8. Product and Service Expositions
2. Gather information about the contractors. You can try searching for their website or online protfolio. You can also join forums and ask about any feedback about them. You can make a call to inquire and ask for their company profile. Many construction firms nowadays have online company profile.
Information to take note:
1. PCAB Classification. This is to ensure that the contractor is qualified to do construction works for your project.
2. Years in Service. Of course, the longer they have been in the industry, the more experience they have. But be sure to check the time line of their projects. Having only 1 project in 1 year is ok. But having no project in a year or two is an issue you should clarify with the contractor.
3. Finished Projects. Aside from reading the list of their accomplished projects, you can also ask about brief history of some of their notable projects so you can have an overview on how they handle projects and how they dealt with their previous clients.
4. Office. Knowing the location of their office is not enough. Go and visit. Investigate on how long they have been taking office in there. If they have been there for so long, about 10 years above, they might be doing good business then. Also proximity of their office to your project is an advantage.
5. Equipment and Material Warehouse. If possible, try to visit their warehouse also. A good contractor should have an organized warehouse. This is also a proof that they have the equipment, machinery and resources to finish quality projects.
6. Permits and Licenses. Although this should be there as expected, there's no harm in having a double check including the validity of the professional license of the engineers and architects in the firm.
7. Client and Project Reference. You can ask this at the early stage if you are seriously considering the contractor. But don't expect too much because arranging a project visit is not that easy but should not be impossible. In respect to their previous client, the contractor will normally seek for permission first before you go for the inspection. If this pushed through, chances are, you've found a good contractor. The fact that you have been allowed to visit their accomplished project only proves that they have established a good working relationship with their previous client, and possibly to you also in the future.
Remember, don't directly contact their previous clients and ask for feedback without asking the contractor first. This can be considered unethical and/or unfair collection of opinion. You'll never know. It might be that the client was the bad guy, and the cause of the project failure. If the contractor is in good faith, it would not be afraid to let you meet its previous clients.
We will continue with the Selection and Dealing with Contractors in the next articles. Thank you for reading.
Steps in finding a good contractor:
1. Get a list of potential Contractors. If you are a first timer, at least 3 - 5 contractors should be in your initial list. But it is recommended that you keep as many contacts as you can so that you can have better options and add other candidates in case one contractor fails to meet your expectations.
Don't engage with them yet. Just get their contact and basic information.
Ways to find a Construction Contractor:
1. Relatives and Friends' Recommendations
2. On-line/Internet
3. Yellow Pages
4. Newspapers and Magazines
5. Ad posters, Billboards, etc.
6. Scout for ongoing construction projects
7. Ask for your Designer's recommendations
8. Product and Service Expositions
2. Gather information about the contractors. You can try searching for their website or online protfolio. You can also join forums and ask about any feedback about them. You can make a call to inquire and ask for their company profile. Many construction firms nowadays have online company profile.
Information to take note:
1. PCAB Classification. This is to ensure that the contractor is qualified to do construction works for your project.
2. Years in Service. Of course, the longer they have been in the industry, the more experience they have. But be sure to check the time line of their projects. Having only 1 project in 1 year is ok. But having no project in a year or two is an issue you should clarify with the contractor.
3. Finished Projects. Aside from reading the list of their accomplished projects, you can also ask about brief history of some of their notable projects so you can have an overview on how they handle projects and how they dealt with their previous clients.
4. Office. Knowing the location of their office is not enough. Go and visit. Investigate on how long they have been taking office in there. If they have been there for so long, about 10 years above, they might be doing good business then. Also proximity of their office to your project is an advantage.
5. Equipment and Material Warehouse. If possible, try to visit their warehouse also. A good contractor should have an organized warehouse. This is also a proof that they have the equipment, machinery and resources to finish quality projects.
6. Permits and Licenses. Although this should be there as expected, there's no harm in having a double check including the validity of the professional license of the engineers and architects in the firm.
7. Client and Project Reference. You can ask this at the early stage if you are seriously considering the contractor. But don't expect too much because arranging a project visit is not that easy but should not be impossible. In respect to their previous client, the contractor will normally seek for permission first before you go for the inspection. If this pushed through, chances are, you've found a good contractor. The fact that you have been allowed to visit their accomplished project only proves that they have established a good working relationship with their previous client, and possibly to you also in the future.
Remember, don't directly contact their previous clients and ask for feedback without asking the contractor first. This can be considered unethical and/or unfair collection of opinion. You'll never know. It might be that the client was the bad guy, and the cause of the project failure. If the contractor is in good faith, it would not be afraid to let you meet its previous clients.
We will continue with the Selection and Dealing with Contractors in the next articles. Thank you for reading.
Thursday, September 18, 2014
Contractor with Construction Manager
Ideally in this setup, the OWNER seek first the services of an Architect or Architectural firm. After the plans are prepared, the Architect invites contractor to bid for the project. At least 3 contractors should participate in the bidding. If the OWNER knows a capable contractor, he can also invite him to join the bidding. It is important that the Architect should be the one conducting the bidding because he can set bidding guides so that every item in the bid breakdown can be compared apple to apple during evaluation. Also, if the contractors has questions regarding the design, they can directly ask the architect. The architect then can issue bid bulletins to answer all design related questions.
While the bidding takes place, the OWNER can then hire a Construction Manager. It is recommended that the CM is not related in anyway with neither the Architect nor the Contractor. This is to ensure a good check and balance during construction.
After the bidding, the winning contractor will then be engaged directly to the OWNER. Although the contractor will be the one preparing the contract agreement, it is still to be checked and evaluated by the Construction Manager. All provisions, terms and conditions will be reviewed by the CM. You should not ask directly your contractor of anything about the contract agreement because it might give you a bias answer. If you have doubts and questions, it is your CM that you should consult. The CM and the Contractor may have a language that you might not understand. But you can be assured that the CM is doing his best to make everything in your favor. Otherwise, his reputation of being a good Construction Manager will be compromised.
Again, the advantages and disadvantages are actually almost the same with the previous setups. The only difference of this setup is having a very good check and balance because these 3 Construction Professionals are directly engaged with you. The Architect will ensure that his designs and details are complete, accurate and on time because the CM and the Contractor will be checking these before the contractor executes the plans. The Contractor will less likely attempt to perform poorly or abuse you because they are being monitored and checked by the CM. The CM on the other hand must also do well because the project's outcome mostly depend on him. If the project is done accordingly and finished on time, the credit goes to the CM. CM firms are always after this, because of client reference. In short, because each of them are afraid of having an impression of being incompetent, they will have to perform at their best. And the one that will benefit from this is the OWNER.
While the bidding takes place, the OWNER can then hire a Construction Manager. It is recommended that the CM is not related in anyway with neither the Architect nor the Contractor. This is to ensure a good check and balance during construction.
After the bidding, the winning contractor will then be engaged directly to the OWNER. Although the contractor will be the one preparing the contract agreement, it is still to be checked and evaluated by the Construction Manager. All provisions, terms and conditions will be reviewed by the CM. You should not ask directly your contractor of anything about the contract agreement because it might give you a bias answer. If you have doubts and questions, it is your CM that you should consult. The CM and the Contractor may have a language that you might not understand. But you can be assured that the CM is doing his best to make everything in your favor. Otherwise, his reputation of being a good Construction Manager will be compromised.
Again, the advantages and disadvantages are actually almost the same with the previous setups. The only difference of this setup is having a very good check and balance because these 3 Construction Professionals are directly engaged with you. The Architect will ensure that his designs and details are complete, accurate and on time because the CM and the Contractor will be checking these before the contractor executes the plans. The Contractor will less likely attempt to perform poorly or abuse you because they are being monitored and checked by the CM. The CM on the other hand must also do well because the project's outcome mostly depend on him. If the project is done accordingly and finished on time, the credit goes to the CM. CM firms are always after this, because of client reference. In short, because each of them are afraid of having an impression of being incompetent, they will have to perform at their best. And the one that will benefit from this is the OWNER.
Tuesday, September 16, 2014
Managed Construction
This setup usually happens in a complex project being done in phases. In this setup, the Construction Manager is the main man. He is the only one engaged with the OWNER. All other construction professionals involved in the project is under him or reports to him. He is the one making all the decisions including design issues, except for critical ones like aesthetic and structural impact which are consulted to the designing architect/engineer.
In most cases, there are several contractors in a project. There is a General Contractor, but his scope is usually limited to structural phase only. All other trades and specialty works are bid out to several contractors as the construction progresses.
ADVANTAGES:
1. The OWNER has less worries since the Construction Manager will be handling everything.
2. If managed properly, the OWNER can have big savings since every item of work will be given to the contractor with the best bid. Bids became usually low due to competition within the project.
3. There is no General Contract. If the OWNER decides to cancel the project, he has minimal obligations to settle.
4. If there is a contractor that does not perform well, the CM can easily replace him after his contract because his scope is probably just a small portion of the project at first. On the other hand, if the CM finds the contractor efficient, the CM can award him more works extending the amount of his contract.
DISADVANTAGES:
1. You only trust your CM. It would be hard for you to know if the CM is faithful to you. He may be receiving favors from some contractors in exchange to more contracts. Since he is the one evaluating the bids and contract, you are not sure if the evaluated cost is the cheapest cost you can have.
2. Warranty issues. Because there are several contractors in a project, there are often times confusion on who to claim warranty services. The CM should have managed this properly and documented everything for future references.
3. Contractors conflicts. Similar trade contractors in one projects usually finds themselves in a tight competition. Politics and work sabotage most likely happens. Also, if one contractor failed to do his part, other contractors that depends on his work will not be able to finish his works also. And if one contractor either intentionally or by accident, damaged the finished works of the other contractor, rectification works blows out to be a big issue. The blaming game now starts!
4. Conflicts on Temporary facilities. This is also related to contractors conflict. Because there are many contractors in a project, You should have an organized barracks and warehouse. It's like having a small temporary baranggay. You will need to address the issue of peace and order.
5. As the works are being done simultaneously by different contractors, the CM may need to hire additional inspectors to cope up with the speed of the progress.
In most cases, there are several contractors in a project. There is a General Contractor, but his scope is usually limited to structural phase only. All other trades and specialty works are bid out to several contractors as the construction progresses.
ADVANTAGES:
1. The OWNER has less worries since the Construction Manager will be handling everything.
2. If managed properly, the OWNER can have big savings since every item of work will be given to the contractor with the best bid. Bids became usually low due to competition within the project.
3. There is no General Contract. If the OWNER decides to cancel the project, he has minimal obligations to settle.
4. If there is a contractor that does not perform well, the CM can easily replace him after his contract because his scope is probably just a small portion of the project at first. On the other hand, if the CM finds the contractor efficient, the CM can award him more works extending the amount of his contract.
DISADVANTAGES:
1. You only trust your CM. It would be hard for you to know if the CM is faithful to you. He may be receiving favors from some contractors in exchange to more contracts. Since he is the one evaluating the bids and contract, you are not sure if the evaluated cost is the cheapest cost you can have.
2. Warranty issues. Because there are several contractors in a project, there are often times confusion on who to claim warranty services. The CM should have managed this properly and documented everything for future references.
3. Contractors conflicts. Similar trade contractors in one projects usually finds themselves in a tight competition. Politics and work sabotage most likely happens. Also, if one contractor failed to do his part, other contractors that depends on his work will not be able to finish his works also. And if one contractor either intentionally or by accident, damaged the finished works of the other contractor, rectification works blows out to be a big issue. The blaming game now starts!
4. Conflicts on Temporary facilities. This is also related to contractors conflict. Because there are many contractors in a project, You should have an organized barracks and warehouse. It's like having a small temporary baranggay. You will need to address the issue of peace and order.
5. As the works are being done simultaneously by different contractors, the CM may need to hire additional inspectors to cope up with the speed of the progress.
Saturday, September 13, 2014
Contractor through the Architect
The Architect can actually directly recommend a contractor. But for the purpose of cost comparison and counter checking of estimates, several contractors are invited to bid by the architect. This is to show the client that he has options to choose. The OWNER can even recommend his bet contractor to participate in the bidding. You will not have to worry of finding and dealing with contractors since the architect will be the one handling the bidding.
After the project is awarded to the winning bidder, the setup or situation will most likely be the same as the previous setup. Basically the same advantages and disadvantages.
Some architectural firms are offering their in-house construction management where-in, they can assign a full time project architect that will monitor the contractor and manage progress of construction. You will then be paying monthly charges for this.
The following are in addition to the advantages and disadvantages mentioned in the previous setup:
ADVANTAGES:
1. You can request your Architect to do regular inspection or at least do checking on construction milestone. He can then help you in evaluating and advise you if your contractor's accomplishment claims are substantial or not. He or his representative can also do random material checking to make sure that the contractor is following the prepared specifications and not using substandard materials.
2. You can seek design related advise during construction. If you are in doubt of a certain detail or you promptly want to change something, you can directly tell the matter to the project architect. Replies would probably be faster and will not compromise construction schedule.
3. Because the contractor is recommended by the architect, there is a very good chance that the contractor is competent and reliable. He must have been proven his reputation already to the architect in his previous projects. So you will have less worries in the contractor's credibility.
4. You can expect that the contractor will also perform well because if not, the recommending architect might not give him projects anymore in the future.
5. Faster response on design revisions since the project architect has direct contact to the firm.
DISADVANTAGES:
1. You will pay extra cost for the construction management services of the Architect.
2. If the architect is the one checking the contractor, who is then checking the architect? We can not be 100% sure that the project architect can mange correctly and/or efficiently all the construction issues in the project. Often times, they tend to be bias and always thinks that everything should be in the architect's favor.
3. Sometimes, project architects tend to be too strict that even causes delays in schedule. Example, if a material in the specification is not available anymore or very hard to find, contractors find it hard to seek approval of alternative brands or specifications.
4. Contractor-Designer, conflict or connivance. Although this rarely happen nowadays, still problems like these may arise anytime during construction.
Engaging your architect to do management work will protect you from possible abuse by the contractor but will cost you additional expenses.
After the project is awarded to the winning bidder, the setup or situation will most likely be the same as the previous setup. Basically the same advantages and disadvantages.
Some architectural firms are offering their in-house construction management where-in, they can assign a full time project architect that will monitor the contractor and manage progress of construction. You will then be paying monthly charges for this.
The following are in addition to the advantages and disadvantages mentioned in the previous setup:
ADVANTAGES:
1. You can request your Architect to do regular inspection or at least do checking on construction milestone. He can then help you in evaluating and advise you if your contractor's accomplishment claims are substantial or not. He or his representative can also do random material checking to make sure that the contractor is following the prepared specifications and not using substandard materials.
2. You can seek design related advise during construction. If you are in doubt of a certain detail or you promptly want to change something, you can directly tell the matter to the project architect. Replies would probably be faster and will not compromise construction schedule.
3. Because the contractor is recommended by the architect, there is a very good chance that the contractor is competent and reliable. He must have been proven his reputation already to the architect in his previous projects. So you will have less worries in the contractor's credibility.
4. You can expect that the contractor will also perform well because if not, the recommending architect might not give him projects anymore in the future.
5. Faster response on design revisions since the project architect has direct contact to the firm.
DISADVANTAGES:
1. You will pay extra cost for the construction management services of the Architect.
2. If the architect is the one checking the contractor, who is then checking the architect? We can not be 100% sure that the project architect can mange correctly and/or efficiently all the construction issues in the project. Often times, they tend to be bias and always thinks that everything should be in the architect's favor.
3. Sometimes, project architects tend to be too strict that even causes delays in schedule. Example, if a material in the specification is not available anymore or very hard to find, contractors find it hard to seek approval of alternative brands or specifications.
4. Contractor-Designer, conflict or connivance. Although this rarely happen nowadays, still problems like these may arise anytime during construction.
Engaging your architect to do management work will protect you from possible abuse by the contractor but will cost you additional expenses.
Wednesday, September 10, 2014
Direct to Contractor
Again, assuming that you already have your plans prepared and you've found a good and reputable contractor, we will proceed on the next construction set-up which is Direct to Contractor. Here are some notable advantages and disadvantages of this set-up.
ADVANTAGES:
1. You can better plan your expenses because you already have a target cost for the construction works unlike in the previous setup, where in you continue to spend money until the project is finished. You will only know the cost of the project after it is completed. You only pay for the monthly accomplishment of the contractor meaning you only pay for the items that have been finished within the billing period
2. You don't need to engage yourself in the construction site since everything will be taken care by your contractor.
3. You will not be liable of any accident that might happen during the construction period
4. You will not have any problem regarding labor issues or workers' demands. You don't have to go look for workers by yourself since your contractor will be the one to manage all labor works and all issues related to manpower management.
5. You don't need to invest for construction equipment, power tools, and form works. A construction firm usually has these.
6. You wouldn't need to worry on the leg works for the legal documents regarding the project. Processing of permits and other documents are commonly part of the contract including all coordination works needed until the project is finished.
7. You don't have to worry on sourcing and buying of materials. Also, you will not worry of wastage, pilferage and warehousing since these are all part of the contractor's responsibilities.
8. You have a fixed schedule. If you agreed to finish the project in 6 months, the contractor should deliver the project to you in 6 months unless there are acceptable delays as stipulated in your contract. Otherwise, you can impose penalty charges on the delay of turnover.
9. If you have questions, expect that you can have professional answers and advises since most qualified contractors are professionals.
10. Warranty. All the works done by the contractor has 6 months to a year warranty. They will repair it with no extra cost from you.
11. You can request for as-built plans and other construction documentation that you can use as reference in future repairs, renovation or troubleshooting.
12. Contractors normally deploy at least 1 full time construction supervisor so that the project can be monitored and built accordingly.
DISADVANTAGES:
1. Higher cost. Because of mark-up and overhead charges, the net contract cost is surprisingly high if you will compare on direct cost estimates by informal contractors.
2. Any changes or additional works you want to impose during construction will be charged separately. These are called Change Orders or Extra Work Orders. Including item of works that you forgot to include in the scope of works. Although, most contractors are willing to charge no extra cost if the item you are requesting are just too minimal compared to the total contract cost. I actually don't fully consider this as a disadvantage because for me, it is just fair to charge for any additional works done which are not included in the signed agreement.
3. Unless you hired a Construction Manager or Inspector, it will be hard to check if the contractor is faithful in doing his construction works. It will be hard to monitor and check if all the materials the contractor is using are according to the prepared specifications and in acceptable quality standards.
4. If not monitored properly, contractors tend to speedup the construction but sacrifices the quality of workmanship.
5. Unless you hired a Construction Manager, it would be hard for you to evaluate the contractor's monthly accomplishment. unless, you know construction also. But again, you can ask questions if you have doubts or you can't understand the billing.
ADVANTAGES:
1. You can better plan your expenses because you already have a target cost for the construction works unlike in the previous setup, where in you continue to spend money until the project is finished. You will only know the cost of the project after it is completed. You only pay for the monthly accomplishment of the contractor meaning you only pay for the items that have been finished within the billing period
2. You don't need to engage yourself in the construction site since everything will be taken care by your contractor.
3. You will not be liable of any accident that might happen during the construction period
4. You will not have any problem regarding labor issues or workers' demands. You don't have to go look for workers by yourself since your contractor will be the one to manage all labor works and all issues related to manpower management.
5. You don't need to invest for construction equipment, power tools, and form works. A construction firm usually has these.
6. You wouldn't need to worry on the leg works for the legal documents regarding the project. Processing of permits and other documents are commonly part of the contract including all coordination works needed until the project is finished.
7. You don't have to worry on sourcing and buying of materials. Also, you will not worry of wastage, pilferage and warehousing since these are all part of the contractor's responsibilities.
8. You have a fixed schedule. If you agreed to finish the project in 6 months, the contractor should deliver the project to you in 6 months unless there are acceptable delays as stipulated in your contract. Otherwise, you can impose penalty charges on the delay of turnover.
9. If you have questions, expect that you can have professional answers and advises since most qualified contractors are professionals.
10. Warranty. All the works done by the contractor has 6 months to a year warranty. They will repair it with no extra cost from you.
11. You can request for as-built plans and other construction documentation that you can use as reference in future repairs, renovation or troubleshooting.
12. Contractors normally deploy at least 1 full time construction supervisor so that the project can be monitored and built accordingly.
DISADVANTAGES:
1. Higher cost. Because of mark-up and overhead charges, the net contract cost is surprisingly high if you will compare on direct cost estimates by informal contractors.
2. Any changes or additional works you want to impose during construction will be charged separately. These are called Change Orders or Extra Work Orders. Including item of works that you forgot to include in the scope of works. Although, most contractors are willing to charge no extra cost if the item you are requesting are just too minimal compared to the total contract cost. I actually don't fully consider this as a disadvantage because for me, it is just fair to charge for any additional works done which are not included in the signed agreement.
3. Unless you hired a Construction Manager or Inspector, it will be hard to check if the contractor is faithful in doing his construction works. It will be hard to monitor and check if all the materials the contractor is using are according to the prepared specifications and in acceptable quality standards.
4. If not monitored properly, contractors tend to speedup the construction but sacrifices the quality of workmanship.
5. Unless you hired a Construction Manager, it would be hard for you to evaluate the contractor's monthly accomplishment. unless, you know construction also. But again, you can ask questions if you have doubts or you can't understand the billing.
Contractor's In-house Design vs Architectural Firm's Design
Before we proceed on the next set-up, it is important that you first understand the difference between designs from an Architectural firm and designs by in-house designer of a Construction firm.
Many contractors nowadays already have in-house designers. So you can actually have the contractor make the design for you. But, you should be aware of the following;
1. When it comes to design expertise, design firms usually produces better designs than a contractor's in-house designer. Simply because the firm has a wider range of design resources, the firm allots more time in research and design improvement to keep them in trend and competent in all aspects of design. They already have a library of their design information, style evolution and compilation of reliable design solutions. They even have wider design exposure including in international design trends.
2. In-house designers are usually contractor-inclined. A design firm has the experience in dealing with their clients. They can easily understand the clients preferences according to their lifestyle and social status. In-house designers are usually young architects who knows architecture in theory but still lacks the experience in understanding their client since they rely mostly on their experience as a contractor and not as a designer. They focus more on constructing the house rather than understanding how the design works best to satisfy the needs of the client. Sure they can produce good designs, but designs produced by firms are probably better.
3. Even if the contractor tells you that they will be giving you the design for free, it may not be actually free at all. The charge may be indirectly included in the contract bid.
4. Drawing quality, accuracy and completeness is strict in every architectural firm. They make sure that the details are complete and precise. In house designers on the other hand focuses only on the drawing requirements and thinks that other drawings can be made later as the construction progresses.
5. And of course, if your house is designed by a known architect, you can brag about it! And of course, you will spend more since you will be paying design services separately.
I've stated the above points because you might be asking why you will need the services of a design firm if contractors can already prepare designs.
Many contractors nowadays already have in-house designers. So you can actually have the contractor make the design for you. But, you should be aware of the following;
1. When it comes to design expertise, design firms usually produces better designs than a contractor's in-house designer. Simply because the firm has a wider range of design resources, the firm allots more time in research and design improvement to keep them in trend and competent in all aspects of design. They already have a library of their design information, style evolution and compilation of reliable design solutions. They even have wider design exposure including in international design trends.
2. In-house designers are usually contractor-inclined. A design firm has the experience in dealing with their clients. They can easily understand the clients preferences according to their lifestyle and social status. In-house designers are usually young architects who knows architecture in theory but still lacks the experience in understanding their client since they rely mostly on their experience as a contractor and not as a designer. They focus more on constructing the house rather than understanding how the design works best to satisfy the needs of the client. Sure they can produce good designs, but designs produced by firms are probably better.
3. Even if the contractor tells you that they will be giving you the design for free, it may not be actually free at all. The charge may be indirectly included in the contract bid.
4. Drawing quality, accuracy and completeness is strict in every architectural firm. They make sure that the details are complete and precise. In house designers on the other hand focuses only on the drawing requirements and thinks that other drawings can be made later as the construction progresses.
5. And of course, if your house is designed by a known architect, you can brag about it! And of course, you will spend more since you will be paying design services separately.
I've stated the above points because you might be asking why you will need the services of a design firm if contractors can already prepare designs.
Monday, September 8, 2014
Direct Supervision
We will assume in all the articles regarding Construction Setup that you already have the plans prepared by your designer.
In this setup, parties involved are the following;
OWNER: the Client
SUPERVISOR: Freelance Engineers or Architects are usual candidates
WORKERS: Usually a group headed by a foreman.
This setup commonly happens in small projects. The owner usually has already engaged to a group of workers to do the job but he knows nothing about construction so he decided to hire a supervisor to oversee the project and to have it regularly checked professionally. This setup has great chances of working but will depend on the following;
(1) Construction expertise of the Supervisor
Expertise in construction is gained through years of experience. Young newly-licensed engineers might probably have learned the theories in school but would likely fail for the first time if not properly guided by a senior. An experienced professional however are hard to find and make them engage in this setup unless he is a relative or a close friend of yours. Solutions to most problems that arises in a project are not taught in school but learned through experience and active participation in the jobsite.
(2) Skill level of the Workers
Workers are generally categorized as skilled and unskilled. skilled workers however also has levels. Their daily rates are actually based on their skill level. The foreman usually is the most skilled of them all. He should be a multi-skilled person to qualify as a foreman.
The skills of workers are actually the hardest thing to gauge from the start. Someone who referred them to you would say that they are good but still you'll never know until the project starts.
ADVANTAGES:
(1) Less professional expense. Since you will be paying only 1 professional in monthly basis. Small projects are usually completed within 3-6 months.
(2) Less worries. Since someone is already taking care of practically everything, you will not need to worry of many things. And since the project is overseen by a professional, you will have greater assurance of safety.
(3) Less wastage. Materials for ordering can be quantified and computed accurately by a construction professional based on plans.
(4) Construction documentation. You can request for as-built plans and other documentations that you can keep for future reference if you will need to troubleshoot or renovate. You can also have your supervisor sign on documents needed in applying for occupancy and other permits.
DISADVANTAGES:
(1) Check and balance. Since there is only one professional present, no one will at all times check if he has supervised the project well. It will also hard for you to prove if he has been faithful and did not do any manipulations whatsoever that made him gain extra income or favors. You will just rely on your trust in him. Worse is if you found some irregularities in the middle of construction. By then, it would be hard to have him replaced if you decide to since he has already knowledge of the construction history of the project and the new one you will hire will have too much catching up works.
(2) Lack of tools and equipment. Most probably, tools and equipment are not included in the professional service of your supervisor. But he can probably help you in finding equipment to use may it be for rent or purchase cheap. Normally clients do not purchase equipment because its not practical since it might only be used once in the project. Contractors have probably invested for these machines because it can still be used in their other projects.
(3) Time and Budget adjustment. The longer the project takes, the more money you spend. Although, you have set a schedule, it would be very hard for you to push the deadline if something unexpected happened. Unexpected repairs or adjustment due to bad weather conditions will be added to your expense. Whereas if the work is in contract, you pay in fixed regardless of what happens or what unexpected things would come up. Also, at some point, you might encounter something that is beyond the technical knowledge of your supervisor thus prompting him to suggest to you to hire a consultant. This again will add up to your expenses beyond the budget.
(4) Warranties. Since the setup is pay per work, repairs on defective works will also be pay per work. Again, comparing it to contract setup, Works are usually in warranty of 6-12 months after the completion of the project. and this warranty is already included in the contract amount you paid. The contractor will do repair works with their expense for the period of warranty.
Overall, direct supervision is not that bad at all and actually professionally acceptable for small projects. At least you get to comply with the National Building Code that every project should be supervised by a qualified professional.
In this setup, parties involved are the following;
OWNER: the Client
SUPERVISOR: Freelance Engineers or Architects are usual candidates
WORKERS: Usually a group headed by a foreman.
This setup commonly happens in small projects. The owner usually has already engaged to a group of workers to do the job but he knows nothing about construction so he decided to hire a supervisor to oversee the project and to have it regularly checked professionally. This setup has great chances of working but will depend on the following;
(1) Construction expertise of the Supervisor
Expertise in construction is gained through years of experience. Young newly-licensed engineers might probably have learned the theories in school but would likely fail for the first time if not properly guided by a senior. An experienced professional however are hard to find and make them engage in this setup unless he is a relative or a close friend of yours. Solutions to most problems that arises in a project are not taught in school but learned through experience and active participation in the jobsite.
(2) Skill level of the Workers
Workers are generally categorized as skilled and unskilled. skilled workers however also has levels. Their daily rates are actually based on their skill level. The foreman usually is the most skilled of them all. He should be a multi-skilled person to qualify as a foreman.
The skills of workers are actually the hardest thing to gauge from the start. Someone who referred them to you would say that they are good but still you'll never know until the project starts.
ADVANTAGES:
(1) Less professional expense. Since you will be paying only 1 professional in monthly basis. Small projects are usually completed within 3-6 months.
(2) Less worries. Since someone is already taking care of practically everything, you will not need to worry of many things. And since the project is overseen by a professional, you will have greater assurance of safety.
(3) Less wastage. Materials for ordering can be quantified and computed accurately by a construction professional based on plans.
(4) Construction documentation. You can request for as-built plans and other documentations that you can keep for future reference if you will need to troubleshoot or renovate. You can also have your supervisor sign on documents needed in applying for occupancy and other permits.
DISADVANTAGES:
(1) Check and balance. Since there is only one professional present, no one will at all times check if he has supervised the project well. It will also hard for you to prove if he has been faithful and did not do any manipulations whatsoever that made him gain extra income or favors. You will just rely on your trust in him. Worse is if you found some irregularities in the middle of construction. By then, it would be hard to have him replaced if you decide to since he has already knowledge of the construction history of the project and the new one you will hire will have too much catching up works.
(2) Lack of tools and equipment. Most probably, tools and equipment are not included in the professional service of your supervisor. But he can probably help you in finding equipment to use may it be for rent or purchase cheap. Normally clients do not purchase equipment because its not practical since it might only be used once in the project. Contractors have probably invested for these machines because it can still be used in their other projects.
(3) Time and Budget adjustment. The longer the project takes, the more money you spend. Although, you have set a schedule, it would be very hard for you to push the deadline if something unexpected happened. Unexpected repairs or adjustment due to bad weather conditions will be added to your expense. Whereas if the work is in contract, you pay in fixed regardless of what happens or what unexpected things would come up. Also, at some point, you might encounter something that is beyond the technical knowledge of your supervisor thus prompting him to suggest to you to hire a consultant. This again will add up to your expenses beyond the budget.
(4) Warranties. Since the setup is pay per work, repairs on defective works will also be pay per work. Again, comparing it to contract setup, Works are usually in warranty of 6-12 months after the completion of the project. and this warranty is already included in the contract amount you paid. The contractor will do repair works with their expense for the period of warranty.
Overall, direct supervision is not that bad at all and actually professionally acceptable for small projects. At least you get to comply with the National Building Code that every project should be supervised by a qualified professional.
Construction Setups
I've already discussed in advance the 2 most popular informal type of setup in construction ("Pakyawan" or "Arawan"), As I've said, as a professional, I wouldn't recommend any of the 2 setup.
Here are my reasons;
1. You need to be more hands-on. You are the one taking care of everything your workers need. It consumes most of your time. And if you don't have any experience in job site construction, you may be abused by your workers. You will be also handling all the paper works, leg works, permits and other documents pertaining to the project.
2. You cannot guarantee that the foreman or lead man can fully read and understand the plans, specifications and other documents. Some skilled workers are able to read the plans through experience, but would not probably understand everything in it specially technical engineering annotations. This might then pose a big risk on the structural safety of the building. But just to be fair, I've met some foreman that can read plans very well. Lucky for you if you found one like him.
3. Usually, there is no scientific justification in quantifying materials for ordering. When you ask your foreman about the materials they need, he will most likely just make a wild guess of how many of these... and how many of that...etc. which may end up either too much ordered materials which leads to possible wastage, or short in quantity making you pay more on delivery charges for ordering again.
4. The workers probably has no equipment, power tools and warehousing schemes. Your best option for the equipment is to rent and you might also need to buy some power tools. Some important equipment you might need are: 1-bagger mixer, Jackhammer, Concrete Vibrator, Water Pump, Welding Machine, Formworks and Scaffoldings, etc. Some of the power tools you will need are: Drills and Grinder/Edger, etc. Contractor's normally have all of these so you wouldn't need to worry about these including safekeeping and maintenance of these tools and equipment. You might also have material pilferage problems if you don't have proper warehousing. This is the most common problem with the 2 setup.
5. Legal issues. After your project is completed, you will now need to process your occupancy permit. This permit is also needed when you are applying for Power and Water connections. And because there are no construction professional that supervised the project, you might find it hard looking for an engineer to sign and seal the documents risking his license for a project that he doesn't know if built correctly as per design. You might again end up paying more than you should at this point.
6. No one is to be blamed or be held responsible if something terribly wrong happened in anytime during the construction period. Sure you can blame the foreman or the workers. But how can you hold them responsible? Jailing them will still leave you with the problems they've caused.
7. You will not have warranties and construction documentations after the project is completed. So if something wrong happened months after the construction is finished, there is no assurance that you can still find the foreman or the workers. You will again be paying them for the repair works that they will be doing. Also, troubleshooting(commonly on electrical failure) will be difficult since you don't have any reference documents or as-built plans.
CONSTRUCTION SETUPS INVOLVING PROFESSIONALS:
1. Direct Supervision - You hire a pro who directly supervises the workers, interpret the plans and make the estimates and ordering of materials. You pay either fixed monthly supervision fee or Cost-plus (monthly fee plus certain percent on the total actual expenses)
2. Direct to Contractor - You engage into a contract with a licensed contractor or construction firm. Some contractors with in-house designer/architect even offer free design and preparation of all needed plans and other contract documents.
3. Contractor through the Architect - You probably hired an Architect to prepare the plans. The architect, then invited contractors to bid for the project. And after bid evaluation, awarded the contract to the best bidder. (note: lowest bid is not always the best bid)
4. Managed Construction - You hire a Construction Manager. The CM then, hires a Contractor or several sub-contractors. CM manages the project and deals with the contractors on your behalf.
5. Contractor with Construction Manager - Same as no. 3 but with the addition of the Construction Manager directly hired by you.
For the next articles, I will be discussing each setup in details. I will point out advantages and disadvantages so you can have better idea on which setup will suit your requirements.
Here are my reasons;
1. You need to be more hands-on. You are the one taking care of everything your workers need. It consumes most of your time. And if you don't have any experience in job site construction, you may be abused by your workers. You will be also handling all the paper works, leg works, permits and other documents pertaining to the project.
2. You cannot guarantee that the foreman or lead man can fully read and understand the plans, specifications and other documents. Some skilled workers are able to read the plans through experience, but would not probably understand everything in it specially technical engineering annotations. This might then pose a big risk on the structural safety of the building. But just to be fair, I've met some foreman that can read plans very well. Lucky for you if you found one like him.
3. Usually, there is no scientific justification in quantifying materials for ordering. When you ask your foreman about the materials they need, he will most likely just make a wild guess of how many of these... and how many of that...etc. which may end up either too much ordered materials which leads to possible wastage, or short in quantity making you pay more on delivery charges for ordering again.
4. The workers probably has no equipment, power tools and warehousing schemes. Your best option for the equipment is to rent and you might also need to buy some power tools. Some important equipment you might need are: 1-bagger mixer, Jackhammer, Concrete Vibrator, Water Pump, Welding Machine, Formworks and Scaffoldings, etc. Some of the power tools you will need are: Drills and Grinder/Edger, etc. Contractor's normally have all of these so you wouldn't need to worry about these including safekeeping and maintenance of these tools and equipment. You might also have material pilferage problems if you don't have proper warehousing. This is the most common problem with the 2 setup.
5. Legal issues. After your project is completed, you will now need to process your occupancy permit. This permit is also needed when you are applying for Power and Water connections. And because there are no construction professional that supervised the project, you might find it hard looking for an engineer to sign and seal the documents risking his license for a project that he doesn't know if built correctly as per design. You might again end up paying more than you should at this point.
6. No one is to be blamed or be held responsible if something terribly wrong happened in anytime during the construction period. Sure you can blame the foreman or the workers. But how can you hold them responsible? Jailing them will still leave you with the problems they've caused.
7. You will not have warranties and construction documentations after the project is completed. So if something wrong happened months after the construction is finished, there is no assurance that you can still find the foreman or the workers. You will again be paying them for the repair works that they will be doing. Also, troubleshooting(commonly on electrical failure) will be difficult since you don't have any reference documents or as-built plans.
CONSTRUCTION SETUPS INVOLVING PROFESSIONALS:
1. Direct Supervision - You hire a pro who directly supervises the workers, interpret the plans and make the estimates and ordering of materials. You pay either fixed monthly supervision fee or Cost-plus (monthly fee plus certain percent on the total actual expenses)
2. Direct to Contractor - You engage into a contract with a licensed contractor or construction firm. Some contractors with in-house designer/architect even offer free design and preparation of all needed plans and other contract documents.
3. Contractor through the Architect - You probably hired an Architect to prepare the plans. The architect, then invited contractors to bid for the project. And after bid evaluation, awarded the contract to the best bidder. (note: lowest bid is not always the best bid)
4. Managed Construction - You hire a Construction Manager. The CM then, hires a Contractor or several sub-contractors. CM manages the project and deals with the contractors on your behalf.
5. Contractor with Construction Manager - Same as no. 3 but with the addition of the Construction Manager directly hired by you.
For the next articles, I will be discussing each setup in details. I will point out advantages and disadvantages so you can have better idea on which setup will suit your requirements.
Friday, September 5, 2014
Construction Professionals
In my previous post "An Overview", my aim is for non-technical people to understand the roles of individuals in construction. But the question that follows is "Who's who?"
Note that this article will only focus on Construction in general.
FIELDS IN THE BUILDING INDUSTRY
1. Design - Professionals in this field are the ones conceptualizing and preparing the plans. Design is composed of Architectural, Structural, Electrical, Plumbing, Mechanical, and Specialized Allied (Interior, Acoustics, Lighting, etc.)
An Architectural design firm is usually headed by the principal architect. The firm is composed of architects, engineers, draftsmen(now CAD operators and 3D Renderers), Architectural design firms usually has consultants. They are the designers of the other trades mentioned above. They are not directly part of the firm but merely Partners in the business. A firm may actually have several consultants on each field.
Professionals of each trade:
Architectural - Architect, Interior Designer, Landscape Architect
Structural - Civil Engineer, Structural Engineer
Electrical - Registered Electrical Engineer, Professional Electrical Engineer, Registered Master Electrician
Plumbing - Sanitary Engineer, Registered Master Plumber
Mechanical - Mechanical Engineer, HVAC Engineer
Specialized Allied - Interior Designer, Interior Decorator, Acoustic Engineer, etc.
2. Contractor - Mostly composed of Engineers but there are some architects on board also. The contractor is the one in the site doing the construction works. Contractor or constructor has classes. This gauges their capability to handle size and complexity of a project. Contractors of multi-storey buildings should be a Tripple-A General Contractor. For residential projects, even class C or D are qualified depending on their performance.
Sub-contractors are usually hired by the General Contractor for a specific work in the construction. This can be Electrical works or Plumbing works, etc. Subcontractors are also considered as standalone contractors. They are only called sub-contractors if they are under the General contractor and does not have direct contract with the client.
3. Project/Construction Management - The Construction Manager is considered as the OWNER's representative, This can also be composed of a team of professionals depending on the scale and complexity of a project. In most residential and small commercial projects, there is usually one full-time construction manager but he is assisted by other trade consultants as needed. They are the ones managing the project, setting and monitoring of the schedule, checking of the materials and contractor's workmanship quality, review of the plans, contracts and other documents and coordinates with the Designer as necessary, making sure also that the plans are strictly implemented. They are also the ones assisting the OWNER of his responsibilities as well. As I've mentioned before, his main duty is to protect the OWNER's interest. He makes sure that the Contractor is doing his job faithfully and evaluates the accomplishments for payment. He fills up the owner's lack of technical knowledge to avoid being abused by the contractor. A construction manager can be an architect or engineer with years of experience in the industry.
4. Product Development and Sales - Some engineers chose the path of specializing in a specific construction material. Instead of involving directly in construction, they develop materials and services for use in buildings.
5. Government Service - Engineers, architects working in DPWH and other related government institution. Professionals in the office of the Building official and City Engineer and City planning and development.
6. Maintenance and Administrative - Often times, as a new building is completed, the OWNER absorbs one of the Construction Managers to be his Building Administrator. This is to take advantage of his knowledge on the construction history of the building. There are also new firms today that offer maintenance works only.
Construction is actually broader. But I believe the above explains the basics.
The question next is who to contact first if you want to build your house? I will be discussing this later. It is important that the CLIENT first understand the different construction setup. Please read my next post regarding this.
Note that this article will only focus on Construction in general.
FIELDS IN THE BUILDING INDUSTRY
1. Design - Professionals in this field are the ones conceptualizing and preparing the plans. Design is composed of Architectural, Structural, Electrical, Plumbing, Mechanical, and Specialized Allied (Interior, Acoustics, Lighting, etc.)
An Architectural design firm is usually headed by the principal architect. The firm is composed of architects, engineers, draftsmen(now CAD operators and 3D Renderers), Architectural design firms usually has consultants. They are the designers of the other trades mentioned above. They are not directly part of the firm but merely Partners in the business. A firm may actually have several consultants on each field.
Professionals of each trade:
Architectural - Architect, Interior Designer, Landscape Architect
Structural - Civil Engineer, Structural Engineer
Electrical - Registered Electrical Engineer, Professional Electrical Engineer, Registered Master Electrician
Plumbing - Sanitary Engineer, Registered Master Plumber
Mechanical - Mechanical Engineer, HVAC Engineer
Specialized Allied - Interior Designer, Interior Decorator, Acoustic Engineer, etc.
2. Contractor - Mostly composed of Engineers but there are some architects on board also. The contractor is the one in the site doing the construction works. Contractor or constructor has classes. This gauges their capability to handle size and complexity of a project. Contractors of multi-storey buildings should be a Tripple-A General Contractor. For residential projects, even class C or D are qualified depending on their performance.
Sub-contractors are usually hired by the General Contractor for a specific work in the construction. This can be Electrical works or Plumbing works, etc. Subcontractors are also considered as standalone contractors. They are only called sub-contractors if they are under the General contractor and does not have direct contract with the client.
3. Project/Construction Management - The Construction Manager is considered as the OWNER's representative, This can also be composed of a team of professionals depending on the scale and complexity of a project. In most residential and small commercial projects, there is usually one full-time construction manager but he is assisted by other trade consultants as needed. They are the ones managing the project, setting and monitoring of the schedule, checking of the materials and contractor's workmanship quality, review of the plans, contracts and other documents and coordinates with the Designer as necessary, making sure also that the plans are strictly implemented. They are also the ones assisting the OWNER of his responsibilities as well. As I've mentioned before, his main duty is to protect the OWNER's interest. He makes sure that the Contractor is doing his job faithfully and evaluates the accomplishments for payment. He fills up the owner's lack of technical knowledge to avoid being abused by the contractor. A construction manager can be an architect or engineer with years of experience in the industry.
4. Product Development and Sales - Some engineers chose the path of specializing in a specific construction material. Instead of involving directly in construction, they develop materials and services for use in buildings.
5. Government Service - Engineers, architects working in DPWH and other related government institution. Professionals in the office of the Building official and City Engineer and City planning and development.
6. Maintenance and Administrative - Often times, as a new building is completed, the OWNER absorbs one of the Construction Managers to be his Building Administrator. This is to take advantage of his knowledge on the construction history of the building. There are also new firms today that offer maintenance works only.
Construction is actually broader. But I believe the above explains the basics.
The question next is who to contact first if you want to build your house? I will be discussing this later. It is important that the CLIENT first understand the different construction setup. Please read my next post regarding this.
Tuesday, August 26, 2014
"Pakyawan" or "Arawan"
To define as a setup in construction...
"Pakyawan" - You have an informal contract with your workers and agreed to finish a certain scope of work for a certain amount. Usually, the Foreman or Leadman bills you weekly according to the accomplishment of their work. This can be Labor and Materials or Labor only.
"Arawan" - You pay your workers weekly according to the number of days they worked. This is very common in the province. In some place, meals are even provided for the workers by the owner.
So which is better?
Actually, as a professional, I wouldn't recommend any of the two except maybe if you have a very simple project. Hiring a Contractor or Project Manager is still ideal. I'll explain why in my succeeding posts. But for now, we'll get into the things we should know about the two setup.
In "Pakyawan" the faster they finish the works, the bigger the earnings they get. Unfortunately, often times, the quality is sacrificed because the workers tend to work in their fastest pace otherwise they will only end up earning less than their daily rates. While in "Arawan". The workers tend not to care about the time to finish the works since they would have their salaries at the end of the week anyway.
In "Pakyawan", the weekly accomplishment is often hard to quantify since there would be probably unfinished works that we can only assume percentage of completion. So, its either you overpay or less likely underpay. But of course accomplishment claim is always more than the actual accomplishment. In "Arawan" you only have the weekly payroll as basis of your labor expenses.
So how can we deal with these?
If you decide to engage in pakyawan, here are some of my tips;
1. Have a written agreement.
Can be handwritten as long as understandable. This will be good for both of you. This will prevent the workers from denying a specific work as not included in their scope. If you have a list of scope of their works in your written agreement, you can easily check what's included and what is not. It can also help you in evaluating the cost of the finished work since every item has corresponding amount in the agreement. For the workers' favor this will also prevent you from insisting item of works that is not really included in the agreement.
You can also have an agreement on the quality. You can set an existing house or building near you as basis or benchmark of the quality that they should deliver, otherwise they will not be paid.
2. Ask other parties for quotation.
This is to gauge more or less if someone is overpricing. Or if the quotation is too good to be true.
3. Learn to Evaluate.
At least check the basics. measure, check the straightness, level and plumb line. Inspect visually. If this would be hard for you, go ask someone who can do this for you. Don't rely only on the claims of your workers. Remember, if you overpay them at first they tend not to finish the works since they are thinking that the remaining works has now lesser value.
4. Have a regular inspection
Inspection and monitoring the progress of your project will boost the work and avoid cheating and wasting of your materials.
As you have guessed, engaging to this might take up more of your time. Otherwise, you accept the risks of not completing the project or spending more than you expected.
If you decide to engage in arawan, here are some of my tips;
1. Know your workers.
Atleast the foreman or leadman is a relative of yours or someone you know. Some workers claim that they are skilled carpenters or masons but actually knows nothing but labor works. You will then be paying higher rates and worst, wouldn't get the job done correctly.
2. Set schedule.
Be idealistic! Expect that they will argue with your set schedule, but that's just fine! You can then arrive at a good agreed schedule. Atleast they are aware that they should finish the works by then.
3. Have a regular inspection.
This is very necessary. You should always let them know that you're always there watching them. So that they will not be encouraged in working slowly. You can also always remind them of the schedule.
4. Set site rules.
Curfew, Timekeeping, proper outfit, safety, etc.
If you don't make this, most probably, your jobsite will be a mess! Workers like to drink after work. If your place allows it, let them take a bit. But be clear that this should be regulated. Your neighbors might file complaints that may compromise your project. And also, hangover may cause your workers not to be efficient the following day.
5. Pay on time.
Remember that most of your workers rely only on their weekly salary. If you delay their payroll, they might get angry and even intentionally make damages on your project or worst, beat you.
As you have guessed, engaging to arawan might take up most of your time. Otherwise, you need to hire a trusted supervisor to do the works for you.
What I've discussed are just mere part of the issue. There are other important matters like; reading the plans, estimating bill of materials, securing permits etc. We'll go in details with these in my next posts.
Thanks for reading.
"Pakyawan" - You have an informal contract with your workers and agreed to finish a certain scope of work for a certain amount. Usually, the Foreman or Leadman bills you weekly according to the accomplishment of their work. This can be Labor and Materials or Labor only.
"Arawan" - You pay your workers weekly according to the number of days they worked. This is very common in the province. In some place, meals are even provided for the workers by the owner.
So which is better?
Actually, as a professional, I wouldn't recommend any of the two except maybe if you have a very simple project. Hiring a Contractor or Project Manager is still ideal. I'll explain why in my succeeding posts. But for now, we'll get into the things we should know about the two setup.
In "Pakyawan" the faster they finish the works, the bigger the earnings they get. Unfortunately, often times, the quality is sacrificed because the workers tend to work in their fastest pace otherwise they will only end up earning less than their daily rates. While in "Arawan". The workers tend not to care about the time to finish the works since they would have their salaries at the end of the week anyway.
In "Pakyawan", the weekly accomplishment is often hard to quantify since there would be probably unfinished works that we can only assume percentage of completion. So, its either you overpay or less likely underpay. But of course accomplishment claim is always more than the actual accomplishment. In "Arawan" you only have the weekly payroll as basis of your labor expenses.
So how can we deal with these?
If you decide to engage in pakyawan, here are some of my tips;
1. Have a written agreement.
Can be handwritten as long as understandable. This will be good for both of you. This will prevent the workers from denying a specific work as not included in their scope. If you have a list of scope of their works in your written agreement, you can easily check what's included and what is not. It can also help you in evaluating the cost of the finished work since every item has corresponding amount in the agreement. For the workers' favor this will also prevent you from insisting item of works that is not really included in the agreement.
You can also have an agreement on the quality. You can set an existing house or building near you as basis or benchmark of the quality that they should deliver, otherwise they will not be paid.
2. Ask other parties for quotation.
This is to gauge more or less if someone is overpricing. Or if the quotation is too good to be true.
3. Learn to Evaluate.
At least check the basics. measure, check the straightness, level and plumb line. Inspect visually. If this would be hard for you, go ask someone who can do this for you. Don't rely only on the claims of your workers. Remember, if you overpay them at first they tend not to finish the works since they are thinking that the remaining works has now lesser value.
4. Have a regular inspection
Inspection and monitoring the progress of your project will boost the work and avoid cheating and wasting of your materials.
As you have guessed, engaging to this might take up more of your time. Otherwise, you accept the risks of not completing the project or spending more than you expected.
If you decide to engage in arawan, here are some of my tips;
1. Know your workers.
Atleast the foreman or leadman is a relative of yours or someone you know. Some workers claim that they are skilled carpenters or masons but actually knows nothing but labor works. You will then be paying higher rates and worst, wouldn't get the job done correctly.
2. Set schedule.
Be idealistic! Expect that they will argue with your set schedule, but that's just fine! You can then arrive at a good agreed schedule. Atleast they are aware that they should finish the works by then.
3. Have a regular inspection.
This is very necessary. You should always let them know that you're always there watching them. So that they will not be encouraged in working slowly. You can also always remind them of the schedule.
4. Set site rules.
Curfew, Timekeeping, proper outfit, safety, etc.
If you don't make this, most probably, your jobsite will be a mess! Workers like to drink after work. If your place allows it, let them take a bit. But be clear that this should be regulated. Your neighbors might file complaints that may compromise your project. And also, hangover may cause your workers not to be efficient the following day.
5. Pay on time.
Remember that most of your workers rely only on their weekly salary. If you delay their payroll, they might get angry and even intentionally make damages on your project or worst, beat you.
As you have guessed, engaging to arawan might take up most of your time. Otherwise, you need to hire a trusted supervisor to do the works for you.
What I've discussed are just mere part of the issue. There are other important matters like; reading the plans, estimating bill of materials, securing permits etc. We'll go in details with these in my next posts.
Thanks for reading.
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