Resources
We believe that a professional approach to every phase of a project reduces stress for our customers.
Constructing any building involves literally thousands of decisions. It helps to have a trustworthy, seasoned guide to help you through the process. We will be glad to show you the other estimating, project management, and accounting tools that we use to manage all of our projects. We have enclosed these resources to help you get started on the right foot.
Process Map: Residential (PDF)
Getting Started Checklist
Setting your goals for the project (what architects call the “Program”)
- Size is usually expressed in square footage, can also be acres of land, or number of items (parking spaces, horses, hospital beds).
- Style includes the architectural type of the project as well as the number of stories, single structure or a cluster of buildings.
- Functional requirements include specific things you want the project to accomplish or be able to support, like: entertainment needs, access for elderly, hypo-allergenic materials, low energy use, etc.
- Features that are important to you, such as: play areas for kids, shop for projects, art studio, open floor plans.
- Finish levels describe the intensity of your expectations. For example, wall finishes range from textured sheetrock to venetian (marble) plaster.
- Budget sets boundaries for the total cost of the undertaking. It is important to remember that there are many “Non Building Costs”.
- Time Frame includes your desired move-in date and any constraints or deadlines like weddings, births, or school schedules.
- Location sets the parameters of where the project will be built and can initially be defined as a certain spot on a property you already own, one valley or town, or a general region.
- We can help you explore these options along with your design team.
Your site selection affects the rest of the steps.
- Properties with potential can be found reading newspapers, searching the internet, asking friends, meeting real estate agents or just driving around an area you like.
- Walking the site usually starts the decision process.
- Building locations and orientation affect views as well as costs.
- Infrastructure needs – water, power, roads, sewer/septic, all must be accounted for.
- Development constraints such as zoning and deed restrictions need to be checked out.
- Community considerations like neighbors, schools and roads must be weighed.
- Micro-climates affect the desirability of an area.
- JMA consults with many of our clients on these issues
Choosing a building style & key materials usually happens early in the process.
- Styles such as Tuscan, Southwest, Contemporary, Farmhouse, Georgian, French Country, Sea Ranch and Victorian can all be adapted to this region.
- Structural materials include deciding on floor, wall and roof systems. Wood framing, masonry, metal studs, and concrete each have pro’s and con’s in different applications.
- Selecting surface materials on floors, walls, windows, ceilings and roofing complete the overall impression of the project.
- Our proven experience enables us to assist you with these complex questions.
Controlling the project budget is an on-going process requiring teamwork and communication.
- Feasibility estimates are “back of a napkin” budgets done to verify if a project is feasible, usually before the first financial commitments are made.
- Preliminary budgets set the initial course for developing the project, when the basic parameters of location, size and style are known. They include breakdowns of variables like the non-building costs and major building elements.
- Design progress budgets are often done during schematic design, design development, and working drawing preparation, to explore options and make sure costs are staying within budget.
- The contract estimate usually is prepared as the final plans are being reviewed by the government agencies. It should be highly detailed and include multiple subcontractor bids in most trades.
- Changes are inevitable on a project, so accurate estimates of their impact on cost and schedule are vital to budget control.
- Our cost history databases derived from actual experience guarantee accuracy for all of the estimates above.
Building your team does not have to be stressful, if you know what you need and what to look for.
- Selecting team members is foremost an issue of communication. Look for:
- Evidence they understand your needs and priorities.
- Compatible personalities that will help build a positive relationship. Demonstrated experience in your type of project.
- Meeting deadlines based on a track record.
- References you can check to verify their claims.
- Competitive pricing to get the most out of your budget.
- Your design team may include: Architect, Interior Designer, Soils Engineer, Civil Engineer, Surveyor, Septic Engineer, Structural Engineer, and consultants on special systems such as: Energy Use, Audio-Visual, Lighting, and Technology Integration.
- Your builder (General Contractor, Construction Manager, or Design/Builder) leads the construction team. They plan, direct, coordinate, and supervise the activities of subcontractors working on site and suppliers of commodities and custom items.
- Service and maintenance contractors can help you keep your place operating at top efficiency and appearance once you take over.
- We can save you money, effort and time assembling a top quality team.
The design process is a special blend of art and science, following time-tested steps.
- Initial scope and objectives are clarified first to get the project started in the right direction.
- Preliminary ideas/sketches/options are shared between you and the architect to verify that you understand each other.
- Schematic design is the first milestone. You review basic elevations, small scale floor plans and various alternative schemes to determine the heart of the design.
- Design development is the process of fine tuning the design, incorporating the structural, mechanical and electrical systems and working out spatial relationships.
- Working/permit drawings involve producing all the design details for contractor pricing and plan check review.
- Clarifications and interpretations occur during the pricing and construction process to help the building team resolve construction questions for the optimum results.
- Post-project evaluation of successes and opportunities for improvement is an extra step that JMA likes to do with the design team.
Contractual relationships develop with each team member. The main options are:
- Single lump sum price is also known as “fixed price” or “hard bid”.
- Time & materials plus a fee, or “cost plus”, involves reporting all costs and adding a percentage or fixed fee on top of the cost.
- Guaranteed maximum price puts a ceiling on the cost to the owner and may include provisions for the parties to share any savings below the maximum.
- Design/Build uses a single source of responsibility for both design and construction, usually involving a designer hiring a builder or vice-versa. Some companies have the expertise to do both in-house.
- JMA has experience with all these arrangements. We can advise you on the best agreements with all your team members, based on your specific situation.
Contract Types
“It is unwise to pay too much, but it is worse to pay too little. When you pay too much, you lose a little money – that is all. When you pay too little you sometimes lose everything because the thing you bought was incapable of doing the thing it was bought to do… If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better.”
John Ruskin (1819-1900)
In the world of construction contracts, there are typically two different approaches: the Hard Bid, also called Fixed Price or Lump Sum, and the Time & Materials, or Cost Plus contract. Each has its advantages and disadvantages for the owner who has contracted with a builder:
“Hard Bid” AKA “Fixed Price” AKA “Lump Sum”
Advantages
- Firm price for work on the plans.
- Price competition from many bids.
- Can specify exact requirements.
- Can transfer risks to contractor.
- Owner has clear rights and duties.
Disadvantages
- Change order negotiation is tough.
- Uncertain quality of contractors.
- Plans/specs must be “bullet proof.”
- Don’t benefit from cost savings.
- Contractor has opposing interests.
“Time and Materials” AKA “Cost Plus”
Advantages
- Total freedom to make changes.
- Can start from preliminary plans.
- Actual cost records are open.
- Contractor works with owner.
- Owner, Architect & Contractor can be a team.
Disadvantages
- All cost risk is on the owner.
- Owner pays to correct mistakes.
- Don’t know cost in advance.
- Contractor lacks savings incentive.
- Subs are not competitively chosen.
The “Guaranteed Maximum Price” Alternative
At JMA, we advocate the Guaranteed Maximum Price (GMP) alternative. After our clients learn about the three contract choices, the GMP is the one they typically choose, that is, if the choice has not already been made before they met with us.
The GMP achieves many of the advantages of the Hard Bid and the Time & Materials contracts, with few of their disadvantages. The basic concept is to use a “hard bid” estimate to set the contract ceiling and account for the expenses on a “time and materials” basis. The owner has the assurance that the cost will not exceed the upper limit, yet can benefit from any savings the contractor achieves.
A GMP contract can be established at any point in the development of the design. It is usually finalized when the plans are submitted for a building permit. The owner and architect have the option to participate by approving the subcontractors to bid, selecting the sub bids to use, and reviewing the estimates of our work. The GMP includes a small percentage for contingencies along with the agreed fee.
During the course of the project, cost reports are provided to assess the amount of savings accrued or contingency used to that point. Our contracts often include provisions for us to share in any savings that exceed the contingency. This provides motivation for both parties to work together for potential savings. As changes are made to the plans, full cost information is shared before we proceed.
The essential advantage of a GMP contract is that the owner, architect, and contractor can form a team with the common goal of producing the most desirable building at the most economical price.
“Guaranteed Maximum Price”
Advantages for Owner
- There is a firm ceiling on the price.
- Can specify exact requirements.
- Price competition from multiple, pre-qualified bidders.
- Freedom to make changes (with some cost risk).
- Plans and specs do not have to be “bullet proof.”
- Change order process is non-adversarial.
- Can start from preliminary plans.
- Actual cost records are open.
- Contractor works with owner.
- Contractor shares cost risks and savings with Owner.
Disadvantages for Owner
- Owner shares some of the cost risks and savings with Contractor.
- Amount of savings depends upon owner’s participation in decision-making.