Home  Sustainable Land Development Today March 2007
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Written by Rod Johnston
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Thursday, 01 March 2007 |
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This column will appear quarterly in Land Development Today. Readers are encouraged to submit questions regarding land development projects by email. Please put “Project Logic” in the subject line.
Our family is relatively new to land development. Recently, while managing the site work and vertical construction of all units on our 45-lot plat, we are beginning to feel overwhelmed. As we expect to develop more land, we are wondering at what size project it becomes more efficient to hire someone else to manage our contractors. Of course, we believe in the adage, “if you want it done right, do it yourself.” What should we do?
First, you don’t necessarily have to manage a project to ensure that it will be built right. In most jurisdictions, at minimum, quality is maintained through survey control, geotechnical reports, regulatory inspections, and as-builts - not to mention the efforts of good contractors and their subs. Of course, as the owner, you should attend coordination and contractor meetings, walk the site and compare what’s being built with what has been approved in the plans. When is comes to managing vertical and horizontal construction, I’ve known few individuals that can handle both sides with equal skill. In general, it takes more years to understand site work that it does residential construction so there – I’ve said it. But it’s true. And since no number exists in dollars, units, or acres, that demarcates when a project owner should seek help. Be honest with yourself. Unless you are sport building, manage whichever is easier for you, horizontal or vertical, and then hire someone else to handle the other discipline. Or, hire two managers: one to handle horizontal and the other to handle vertical. Sit back, take notes, stay out of the way, and learn. Then go fishing.
What is the quickest way to reduce site work costs?
The answer depends on where you are in the land development process. Begin by avoiding steep challenging terrain. If it’s early and you have time: a) cover yourself with thorough geotechnical soils work; b) price and bid work using an all-inclusive unit-price schedule of values, and; c) proceed only with accurate plans and specifications. These tactics will allow you to better control your project later and decrease your exposure to change orders. Other sure-fire ways to reduce site work involve re-configuring your lots and roads with the goal of lessening your length of infrastructure. Less road area means less construction cost and potentially more net-development land. Also examine your grading plan. Raising or lowering grades by a fraction of a foot can yield significant savings in earthwork. However, contrary to popular belief, rushing out and re-biding your site work usually doesn’t result in sustainable bottom-line cost savings. Why? Most contractors today are working with tight margins. Said another way, things aren’t rosy in residential right now. A contractor may bid extraordinarily low to get your job but his true costs are inelastic. Once conditions change or an opportunity for an extra materializes, look out. The sound of snapping of inelasticity indicates that your costs are about to increase.
I pay our consultants on time, I use them continuously, and I promptly answer their calls. However, I have an awful time getting a few of them to respond to my e-mails. It can take a week or more before I receive an answer and by then, it’s usually too late. Any suggestions?
You mention phone calls and e-mails in the same sentence so, just to make sure, ask your consultants how they prefer to communicate. Otherwise, consider “triangulating” your e-mail messages to multiple parties. That could mean carbon-copying your e-mails to any number of project participants including colleagues, other consultants, and your contractors. I have found that employing a witness works to lubricate two-way digital communication. You can also try printing your e-mail and faxing it to your consultant. Hand write something like: “Where are you?” or,” Let’s have lunch” or, “Are you still accepting e-mails?” Onto the fax. Faxes are nice because they are usually handled, and sometimes read, by other people. Imagine that! If all else fails, send your consultant an e-mail asking them for the name and number of their fiercest competitor. I think that will get you what you are looking for. LDT |
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