Posts Tagged ‘Construction’

Do it yourself Kit Home Company Defies Credit Crunch

This item was filled under [ Construction ]
Lake Michigan Home

Lake Michigan Home

As new home owners scramble to survive in a struggling economy, finding a decent, well constructed home becomes increasingly critical. One company provides tools for survival amidst major competition and economic crisis.

Most home markets are challenged in today?s struggling economy. One national and international kit Home company has discovered a vital tool designed to help them survive and edge out competition.

All Kit Homes has developed a way to help home owners survive amidst pressures from the economy, natural disasters and major competitors. The company provides a new practical home ownership plan which saves 20% – 40% construction time without delay.

Each unit is constructed in a controlled environment. Each home is assured with a great level of quality control with only 20% moisture by the time it arrives on the construction site. This construction technique also eliminates the cost of on-site theft and vandalism. Bulk purchasing abilities have been developed to reduce costs, and this savings is also passed to the home buyer. Costs are further reduced because there are no wasted materials likewise on conventional job-sites.

“Our homes are much different from other homes. They are basically built the same by any other contractor, but with well constructed, high quality materials in a factory controlled environment,” says David Edwards, President of All Kit Homes. “The method we use has no tolerance for error, and this revision allows simple, but fast erection and reduces the site costs and total cost of their kit.”

Purchasing a total pre-constructed package significantly cuts exaggerated local labor costs, and reduces the time required for completion. This lowers construction loan costs and allows the home to be sold, or moved into more quickly.

Hand built items cannot logically be competitive, cost-wise with assembly line style material. The more time saved the more dollars saved. Time is money. Furthermore, the home which is factory constructed, the less local labor which in turn is cost prohibitive in most areas.

“We are finding more people around the world do not know the full concept of open panel construction. A home kit is faster and more economically safe than prefabricated or modular homes,” says Edwards. “This allows sufficient time to prepare the home site and have the foundation ready when the package arrives.”

Obviously, quality craftsmanship, energy efficient and reduced per square foot cost are major factors. However, today’s consumers demand something more than dull, rectangular living modules. They demand contemporary design, eye appeal, and luxury. All Kit Homes is proud to say that these kit homes, not only meets this demand, but also exceed these requirements.

About All Kit Homes.

All Kit Homes is a national and international distributor/contractor of High Quality, Affordable, Custom Panelized Homes – Shipped World Wide.

All Kit Homes, Inc. (http://www.allkithomes.com)

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Alternative Dispute Resolution (ADR)

This item was filled under [ Construction ]

Most construction contractors try to prevent projects from heading to court. They spend endless hours trying to seek resolution amongst those who fail up uphold their end of the contract. But, what they also don’t utilize in the industry is a less expensive alternative to resolve or reach a mutual agreement to settle disputes.

I have made a decision to offer an alternative method prior to formal mediation, arbitration, and litigation. These services are available to owners, architects, and contractors. Foremost, these procedures can be utilized prior to either party(s) filing a formal claim through their attorneys. Thus, allowing final resolution of disputes in a more cost efficient manner.

This method does not waive any other rights or future claims through formal proceedings should either party(s) fail to reach a full agreement for any specific claim.

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The Stimulus Package will Not Create Skilled Construction Jobs

This item was filled under [ Business Development ]

The Stimulus Package will Not Create Skilled Construction Jobs

A portion of the trillion dollar stimulus package geared toward infrastructure projects will NOT create enough construction jobs. Why? Construction is dwindling in skilled labor. The craftsmen that once built America have died off or retired and our youth has NO interest at all in learning any of the skilled trades.

I remember my first job in construction. I was sixteen years old learning to build houses back in 1977. I went to school, worked on the family farm, and discovered a prominent trade organization until retirement. My instructors were top of the line tradesmen who knew nothing else but construction. You can say that I was made to see all the trees in the forest!

But, construction today is much, much different. In fact, during the middle 1980s there was a growing concern at our local training facility about the low application rate. The head administrator called all senior representatives from every contractor around the region to discuss the low attendance issue. I was fortunate to be on the panel that day, but it wasn’t a very productive meeting.

Unfortunately, construction today is a consortium of mostly immigrant workers. The industry is full of these people who work around the clock with little complaints. The weather doesn’t bother them, nor does the hard work, nor filth associated with construction. They don’t mind receiving low pay, and doing work that nobody else wants to do.

With the market full of low paid, ready made workers poised for more work, along with a lazy generation NOT interested, America’s construction industry is in DEEP trouble. Whoever thought the stimulus plan would create more construction jobs must have been playing video games. After all, who wants to get their hands dirty or break a sweat!

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Construction Downturn Impacts Job Labor Force on CNN

This item was filled under [ Business Development, Videos ]

Construction jobs are fading fast with no recovery in sight. This is a subject NOT typically discussed by members of the industry. We must get people back to work quick before we lose more qualified craftsmen. See the latest post on CNN.

video management, video solution, video streaming

View Video On CNN iReport

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HVAC Construction Management vs. Owners

This item was filled under [ Construction ]

In the litigated world of today’s HVAC construction, owners and corporate executives are faced with many challenges and options in regards to management of construction projects.

With a basic understanding of several of the options, owners and executives can select what is best for their project; achieve a level of protection, and most importantly, assurance of a successful project.

One of the most overlooked items that must be understood, is a construction project is not a painless undertaking. All projects create disruptions, inconveniences, and can pull key personnel away from their normal duties. Not to mention dealing with utility interruptions, design issues requiring correction, project decisions to make, and resolving contractor issues.

The Architect and Engineer must also be monitored for clarifications, design issues that are being resolved in a timely manner, and to ensure full compliance of all contractual obligations.

From project conception, internal meetings, project design, and through completion of the last punch list item, an owner or executive must have complete written documentation kept in an organized manner for the project.

On large projects with long durations, good project documentation is very crucial as anyone involved in the project could have personnel changes prior to the completion date. Another key item is the project must be kept moving forward at all costs, because an owner must not allow the project to sit idle, due to delayed owner decisions, or awaiting design correction of design issues.

Even if an owner change needs to be implemented immediately, but impacts the critical path of the project schedule, it may be less costly to implement the change at a later date, even though the change would require some demolition of installed HVAC work.

Negotiated projects run smoother and have fewer issues to deal with, but one of the more costly routes can increase 15% to 30% more than a bid project. Negotiated projects are only second to design build in contractor preference of performing work. The additional cost is due to the contractor?s reputation is at risk, and will utilize top subcontractors on the project. This generally does not bid to more than two subs in each trade.

The contractor is also assured of a guaranteed profit margin of 11% to 15% (depends on market area), which is in most cases at least double of their bid margins. However, with this type of project, the contractor must justify its cost to the owner and can only bill the final cost of completion amount.

Bid Projects tend to be the less costly approach, but require a tremendous more amount of time to manage, as contractors will push issues to their limits and request clarifications on minor details. Contractors also open the bidding to most subcontractors, and will utilize the lowest numbers to win the bid award.

Contractors will bid this type of a project as low as a 3% profit margin and will beat down a subcontractor whom will have numerous exclusions attached to the bids. This is where the problems begin, as contractors will only look at the numbers on bid day, then realize the exposure.

On the first day, the contractor will begin submitting design alternatives and recommend substitute materials to reduce project costs. The next thing that occurs is design deficiencies will not be submitted by the contractor until the time of critical path impact with a delay claim included in the change order.

At risk construction management seems to be the construction raze at this time, and many of the large general contracting firms are offering this service. At risk construction management means the owner is assured the project will not exceed the estimated cost, and if so, is picked up by the contractor or construction management firm. Should any monies be left over, these are returned to the owner excluding any bonuses that may be included.

Utilizing a contractor for this type of service does not offer any owner protection or provides owner documentation of the project. Generally, what occurs is contractors have a bid rate and a sale rate for their labor, and will submit the cost of the sale rate labor on pay applications to reach the estimated cost of the project, so there is no project savings to the owner.

At risk construction management firms will document a project for the owner, however, will also be limiting their exposure should the project develop major issues.

Construction management firms offer the owner, the highest level of protection and planning on a construction project along with having the most accurate documentation of the project, because when contracted, they are an extension of the owner as a Professional Consultant.

CM Firms are also dependent on their reputation and will manage a project in the best interest of the owner, because they are not at risk financially, and do not have a vested interest in the project due to set fees and/or hourly rates. CM Firms will keep the owner informed of all project issues and assist the owner with determining the best resolution.

CM  Firms will be out ahead of the contractor, clearing the path for subsequent installations and evaluating for potential issues that could arise. The contract documents are also implemented to the fullest extent along with ensuring contractual obligations are met by all parties, including A&E Firms. CM Firms also offer the highest level of owner protection should a litigation issue arise.

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Minimize Construction Management Conflicts

This item was filled under [ Construction ]

All Construction projects will have conflicts develop, while most are minor and easily resolved there will be the occasional major issue that redirects the attention of everyone involved and creates animosity. However, through the development of owner specifications, review of details which have a history of being deficient, schedule monitoring, and project documentation, these situations can minimized.

Some construction management firms claim all construction conflicts can be eliminated and avoided during the pre-design phase. However, even if all the details are correct, and specifications are absolutely clear, the contractor still has to build the project per plans and specifications.

In today?s construction market, most project managers and superintendents are on a bonus program and will attempt to install inferior materials and cut corners on details to expedite the project and reduce cost. In these situations, the owner must be prepared with complete project documentation to reduce its exposure. Architectural firms can only offer the owner a limited amount of protection due to the AIA guidelines and their liability associated with the design.

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