Today’s construction environment is nothing short of crazy. Inflation, supply chain problems, labor shortages. you name it. But work still needs to go on and projects continue to move forward at a fever pace. Figuring out what a project will ultimately cost and how long it will take to design and construct has always been essential to clients during the early concept stages. In today’s world, this is much more difficult, and not all contractors will take the time to do it right. Clients looking to hire a general contractor should use this initial process to evaluate their potential partner for overall approach, attention to detail and willingness to tell it like it is, even if it may be hard to hear.
Projecting a Realistic Cost
No one wants their project’s cost to be more than their budget will allow. An experienced contractor can take limited conceptual information available in a preliminary stage and use their knowledge to read between the lines and extrapolate to the eventual project. The issue is most often not what is on the concept drawing or space plan, it’s what isn’t on the drawing. Owners should be able to rely on a general contractor’s expertise to think beyond what’s on paper, look for the pitfalls, price accordingly and then transparently share that information. Here are a few reasons to start with a real, well thought out value.
Inflated values that cover any and every contingency can kill a deal unnecessarily. Beware of round number $/sf estimates that show little or no thought.
Lenders are wary of price creep. They want to see detailed estimates and contractor credentials to build confidence and prevent the need to add large contingencies of their own. With interest rates rising, this issue is compounded.
The amount and timing of cash outlay has become more critical. Long lead-times mean purchasing as early as possible, sometimes spending well in advance of the project’s physical start to assure materials are on hand when needed.
Change orders are no one’s friend. A realistic price helps keep unexpected change orders in check.
Determining a Realistic Timeline
The “how much” is only half the battle. When will it start and how long will it take are key factors that owners need their contractors to get right. As with price, getting into the details and having experience with all of the project elements is essential to making accurate timing predictions. Everything is taking longer, from permitting to inspections to material acquisition and labor. No one wants to hear how long it is taking to execute work these days, but banking on an unrealistic date has some negative consequences. Here are a few reasons to start with the right schedule.
The construction delivery schedule has a lot of other elements that wrap around it: moving; IT; product stocking; and other transitions that need to take place in conjunction with construction completion.
In rental situations many hold-over provisions can be punitive. These can often be negotiated in advance to the benefit of both landlord and tenant.
Knowing when a revenue stream will start is incredibly vital to any new venture or expansion.
Getting timing accurate will help owners manage the expectation so third parties like lenders, their clients and suppliers have a realistic expectation from the start.
Will your contractor take the time to come up with realistic answers or tell you what you want to hear? We believe that being informed and transparent, even if it includes bad news, is the best approach. This is a time for contractors to be fully disclosing information to clients, making them aware of the uncertainties and working together to solve the problems. This fits well with KasCon’s approach as it’s always the way we behave. We would rather lose an opportunity than win it and be unable to meet expectations. In our experience the successful client wants to hear it all, good, bad or indifferent and the relationship now more than ever requires us to be in the same boat rowing in the same direction.
/wp-content/uploads/2019/03/kascon_logo.png00Jeff Kassman/wp-content/uploads/2019/03/kascon_logo.pngJeff Kassman2022-03-28 15:56:502023-05-09 19:53:10Why You Want Your Contractor to Tell You the Truth, Even When It’s Not What You Want to Hear
Whether it is simply pent-up demand or a shift in thinking, physicians and medical groups are showing greater interest in licensing and building private Ambulatory Surgery Centers as part of their practices. Ambulatory Surgery Centers, or ASCs, have been popular for some time as they offer a lower cost alternative to performing procedures and operations in hospital settings. Insurance companies often favor this approach. ASCs offer increased convenience for patients and the centers help generate revenue for physicians that may receive smaller reimbursements for routine services. The ASC licensing, certification and construction pose many challenges. The elements an ASC may need to contain tend to drive up construction costs in an already price inflated market.
Partner with a Surgical Consultant Specializing in ASCs
Before a single screw should be turned, or for that matter, a single line drawn, we recommend doctors contact a specialty surgical consultant like Tina DiMarino of Custom Surgical Consultants www.customsurgicalconsultants.com. Consultants are experienced at listening to the needs and desires of the physician and assessing the viability of the project quickly. These surgical consultants can handle tasks such as determining the proper level ASC, navigating the rules and regulations, obtaining accreditation, and in some instances, proving medical necessity (Certificate of Need). It’s hard to deal with such daunting tasks without a pro at your side. Engaging a surgical consultant is a vital first step towards a successful project.
Create a Comprehensive Design and Construction Team from the Beginning
KasCon uses a “Design-Build” approach, meaning that the design team (architect and engineer) are joined with the contractor at inception to insure a consistent value driven product with single point accountability. We lead the RFP process for design team selection and contract these services directly or simply facilitate and have the medical group hold the design contract. Whatever the preference, the key is to have architect, engineers and contractor work together up front. This group, in conjunction with the surgical consultant, will work to determine the best fit and most accurate preliminary construction cost so informed decisions can be made.
Prepare for ASC-Specific Complexities
The complexity of ASC construction doesn’t end at the licensing and certification issues. These facilities offer a number of building challenges that all must be considered. ASCs require additional space, not only for the operatory or procedure rooms, but for required ancillary functions like pre-op, post-op, and clean and dirty segregated areas. Access is important: can the facility be accessed at grade or will an elevator be needed? If an elevator, is it large enough? What about power? Will a battery back-up system suffice, or will a generator be required? An ASC has HVAC and plumbing demands that exceed those of a medical office. Also, the ability to sanitize floor and wall surfaces require products that may differ from a typical medical office. Other aspects such as fire separation, use of medical gases and the need for automatic doors – just to name a few – must be considered and accounted for in both design and pricing. There will be fewer surprises when you are working with an informed contractor and design team, experienced in ASC projects.
The private ASC offers some great advantages for both physician and patient. The key to making the build process pleasant and cost effective is to gather the right team and allow them to guide you through the challenges, as well as provide information and options for consideration, so the physician can focus on the medical practice.
/wp-content/uploads/2019/03/kascon_logo.png00Jeff Kassman/wp-content/uploads/2019/03/kascon_logo.pngJeff Kassman2021-04-12 16:38:412023-05-09 19:53:26Tips to Building a Successful Ambulatory Surgery Center Project
In our role as commercial General Contractor, we have had the opportunity to see first-hand how strong corporate cultures with solid values drive success both internally and externally.
KasCon has developed a culture over our 20-year history which mirrors those values so vital to establishing and growing our client relationships. The cornerstones of the KasCon culture include transparency, personal and timely communication, empathy, equity and respect.
Transparency
Transparency is a popular buzz word that captures the importance of playing it straight. On the client side it means just that, providing complete information in a candid and timely way. Within the organization, transparency comes with open and full disclosure regarding expectations, performance and compensation. Open communication is the norm at KasCon, but it is supported by having two sit-down reviews per year with each employee. Everyone knows exactly where they stand relative to expectations and there are no surprises.
Accessibility
Accessibility, timely communication and responsiveness are keys of our client service. When questions or issues arise on a construction project, they are usually time-sensitive; clients need to know they can reach out on the moment and get answers. Internally, our employees feel they can share openly any concerns or issues related to their work and lives. If an employer wants its team to share what factors are affecting performance the firm’s managers need to be accessible and approachable.
Empathy & Equity
A sense of loyalty and respect is generated when communications between client and contractor include empathy. Understanding the pressures the client faces is a key contributor to a successful relationship. The same holds true inside the organization. A climate of caring and understanding facilitates communication and good communication drives performance.
Fairness in the contracting relationship creates a backdrop for a successful project by reducing the need for parties to jockey for position and leverage each other. The result is a win-win arrangement that assures less stress, so common in many construction projects and better collaboration. Individuals within an organization will much more likely thrive in a climate of equitable compensation, merit based evaluations and opportunity.
Building a company culture rooted in values of transparency, accessibility, empathy and equity sets a foundation for success inside and outside the organization. Greater employee satisfaction and self-worth promotes both performance and employee retention. These same values in the marketplace fosters relationships and repeat business. This allows the organization to sustain itself and assure that it will thrive.
Why You Want Your Contractor to Tell You the Truth, Even When It’s Not What You Want to Hear
Today’s construction environment is nothing short of crazy. Inflation, supply chain problems, labor shortages. you name it. But work still needs to go on and projects continue to move forward at a fever pace. Figuring out what a project will ultimately cost and how long it will take to design and construct has always been essential to clients during the early concept stages. In today’s world, this is much more difficult, and not all contractors will take the time to do it right. Clients looking to hire a general contractor should use this initial process to evaluate their potential partner for overall approach, attention to detail and willingness to tell it like it is, even if it may be hard to hear.
Projecting a Realistic Cost
No one wants their project’s cost to be more than their budget will allow. An experienced contractor can take limited conceptual information available in a preliminary stage and use their knowledge to read between the lines and extrapolate to the eventual project. The issue is most often not what is on the concept drawing or space plan, it’s what isn’t on the drawing. Owners should be able to rely on a general contractor’s expertise to think beyond what’s on paper, look for the pitfalls, price accordingly and then transparently share that information. Here are a few reasons to start with a real, well thought out value.
Determining a Realistic Timeline
The “how much” is only half the battle. When will it start and how long will it take are key factors that owners need their contractors to get right. As with price, getting into the details and having experience with all of the project elements is essential to making accurate timing predictions. Everything is taking longer, from permitting to inspections to material acquisition and labor. No one wants to hear how long it is taking to execute work these days, but banking on an unrealistic date has some negative consequences. Here are a few reasons to start with the right schedule.
Will your contractor take the time to come up with realistic answers or tell you what you want to hear? We believe that being informed and transparent, even if it includes bad news, is the best approach. This is a time for contractors to be fully disclosing information to clients, making them aware of the uncertainties and working together to solve the problems. This fits well with KasCon’s approach as it’s always the way we behave. We would rather lose an opportunity than win it and be unable to meet expectations. In our experience the successful client wants to hear it all, good, bad or indifferent and the relationship now more than ever requires us to be in the same boat rowing in the same direction.
Tips to Building a Successful Ambulatory Surgery Center Project
Whether it is simply pent-up demand or a shift in thinking, physicians and medical groups are showing greater interest in licensing and building private Ambulatory Surgery Centers as part of their practices. Ambulatory Surgery Centers, or ASCs, have been popular for some time as they offer a lower cost alternative to performing procedures and operations in hospital settings. Insurance companies often favor this approach. ASCs offer increased convenience for patients and the centers help generate revenue for physicians that may receive smaller reimbursements for routine services. The ASC licensing, certification and construction pose many challenges. The elements an ASC may need to contain tend to drive up construction costs in an already price inflated market.
Partner with a Surgical Consultant Specializing in ASCs
Before a single screw should be turned, or for that matter, a single line drawn, we recommend doctors contact a specialty surgical consultant like Tina DiMarino of Custom Surgical Consultants www.customsurgicalconsultants.com. Consultants are experienced at listening to the needs and desires of the physician and assessing the viability of the project quickly. These surgical consultants can handle tasks such as determining the proper level ASC, navigating the rules and regulations, obtaining accreditation, and in some instances, proving medical necessity (Certificate of Need). It’s hard to deal with such daunting tasks without a pro at your side. Engaging a surgical consultant is a vital first step towards a successful project.
Create a Comprehensive Design and Construction Team from the Beginning
KasCon uses a “Design-Build” approach, meaning that the design team (architect and engineer) are joined with the contractor at inception to insure a consistent value driven product with single point accountability. We lead the RFP process for design team selection and contract these services directly or simply facilitate and have the medical group hold the design contract. Whatever the preference, the key is to have architect, engineers and contractor work together up front. This group, in conjunction with the surgical consultant, will work to determine the best fit and most accurate preliminary construction cost so informed decisions can be made.
Prepare for ASC-Specific Complexities
The complexity of ASC construction doesn’t end at the licensing and certification issues. These facilities offer a number of building challenges that all must be considered. ASCs require additional space, not only for the operatory or procedure rooms, but for required ancillary functions like pre-op, post-op, and clean and dirty segregated areas. Access is important: can the facility be accessed at grade or will an elevator be needed? If an elevator, is it large enough? What about power? Will a battery back-up system suffice, or will a generator be required? An ASC has HVAC and plumbing demands that exceed those of a medical office. Also, the ability to sanitize floor and wall surfaces require products that may differ from a typical medical office. Other aspects such as fire separation, use of medical gases and the need for automatic doors – just to name a few – must be considered and accounted for in both design and pricing. There will be fewer surprises when you are working with an informed contractor and design team, experienced in ASC projects.
The private ASC offers some great advantages for both physician and patient. The key to making the build process pleasant and cost effective is to gather the right team and allow them to guide you through the challenges, as well as provide information and options for consideration, so the physician can focus on the medical practice.
Corporate Values Drive Success
In our role as commercial General Contractor, we have had the opportunity to see first-hand how strong corporate cultures with solid values drive success both internally and externally.
KasCon has developed a culture over our 20-year history which mirrors those values so vital to establishing and growing our client relationships. The cornerstones of the KasCon culture include transparency, personal and timely communication, empathy, equity and respect.
Transparency
Transparency is a popular buzz word that captures the importance of playing it straight. On the client side it means just that, providing complete information in a candid and timely way. Within the organization, transparency comes with open and full disclosure regarding expectations, performance and compensation. Open communication is the norm at KasCon, but it is supported by having two sit-down reviews per year with each employee. Everyone knows exactly where they stand relative to expectations and there are no surprises.
Accessibility
Accessibility, timely communication and responsiveness are keys of our client service. When questions or issues arise on a construction project, they are usually time-sensitive; clients need to know they can reach out on the moment and get answers. Internally, our employees feel they can share openly any concerns or issues related to their work and lives. If an employer wants its team to share what factors are affecting performance the firm’s managers need to be accessible and approachable.
Empathy & Equity
A sense of loyalty and respect is generated when communications between client and contractor include empathy. Understanding the pressures the client faces is a key contributor to a successful relationship. The same holds true inside the organization. A climate of caring and understanding facilitates communication and good communication drives performance.
Fairness in the contracting relationship creates a backdrop for a successful project by reducing the need for parties to jockey for position and leverage each other. The result is a win-win arrangement that assures less stress, so common in many construction projects and better collaboration. Individuals within an organization will much more likely thrive in a climate of equitable compensation, merit based evaluations and opportunity.
Building a company culture rooted in values of transparency, accessibility, empathy and equity sets a foundation for success inside and outside the organization. Greater employee satisfaction and self-worth promotes both performance and employee retention. These same values in the marketplace fosters relationships and repeat business. This allows the organization to sustain itself and assure that it will thrive.