The Importance of an Administrative Foundation

This month’s discussion will focus on the importance of foundations when ready to construct a building. Our focus is not on the building’s concrete foundations but instead on the foundation before the foundation.
There is an administrative foundation before construction that, if not prepared thoroughly, can become catastrophic. No matter how the crack in this foundation is discovered, it is usually expensive and sometimes worse than anticipated. This is an often overlooked part of building construction, as is the operation and maintenance of a building, whatever its use is or will be.
Before construction plans have begun, some preliminary items must be investigated and documented first. To follow are just a few items to consider:
  • Surveys of the property
  • Zoning of the property
  • Occupancy and Use of the building
  • Rights-of-way
  • Easements
  • Liens
Whose responsibility is this? This question has various answers among different people. Some have a portion of the needed information, and others don’t have any of the required information. Some of these items fall under the umbrella of pre-construction services, and some do not. What is included in “pre-construction” services must be clearly defined.
While we want to believe that we have all of the information and that spending a small (in comparison) amount of money for these services is an unnecessary expenditure, making that decision can turn into a colossal error in judgment.
Case in point: The property owner hired a design team after the purchase of a property which was assumed to be correctly surveyed and investigated for liens, encumbrances, easements, utilities, zoning, etc. Then the design team took over and began drawing plans, defining applicable zoning and municipal ordinances, and clarifying jurisdictions of the various portions of the project.
Based on the information provided, the design team assumed all investigative work had been complete. Plans went through the Plan Review process in all three jurisdictions. All parties involved stamped the plans approved for construction, assuming all of the preliminary investigative work had been thoroughly completed.
Having approved plans for construction, the selected General Contractor commenced building a construction team of suppliers and subcontractors. In the bidding process, all subcontractors, suppliers, and even the General Contractor assumed that all preliminary work was complete and the project was ready for construction.
Having built a team and contracted with selected subcontractors, the General Contractor mobilized and went to work on the project. One month later, the adjoining property owner declared there was a parking easement recorded and that the construction seemed to be encroaching on that easement.
The moral of this event is that proper preparation should never be based on assumptions. The most important lesson in this scenario is that a small investment in pre-construction services could be worth more in the long run than the expenditure of the entire project.
The project could depend on a qualified, experienced contractor who is willing to go the extra mile for the sake of the client and all of the people who will be involved in the project. Had the design team communicated with all of the separate entities before sending the project out for bidding, the results may have been different.
Utilizing a design-build, integrated project delivery method or pre-construction services provides more collaboration and communication and fewer assumptions. Knowing that another set of eyes is paramount to a strong foundation for any project is priceless to all involved.
Next month we will explore the value of consultations and collaborations in those areas where others have more experience and expertise before taking action on any construction project.
We will discuss the dangers of saving a few dollars by not obtaining permits and the effects those decisions have financially and, more importantly, on the life safety of the people those decisions affect directly and indirectly. Preparing properly to leave positive ripples costs less in the long run.

A Family-Owned Business Empowers It’s Team

How would you answer these questions?
  • Is there an advantage to working with a family-owned business?
  • Is there an advantage to working with a smaller company?
  • Is there an advantage to working with a company that has a lot of repeat business?
  • Is there an advantage to working with a company with high internal organizational trust and long-term subcontract relationships?
If you answered “yes” to all of the above, you are correct. As a family-owned business, every employee has a common interest. Tri-Bay is family-owned in two ways.
  • Immediate family members hold key management positions.
  • Field personnel and management have 20+ year relationships. They are family also.
We work as a cohesive team, and information is shared freely among family members, so there are no secrets about our business. This creates an internal environment of trust and confidence in decision-making and the common goal to grow the business. Every one of our management team is empowered to make decisions based on what is best for our clients and our business.
As a small company, our clients and subcontractors still receive individual attention. Management is not separated from clients after a project starts. In our technological world, personal interactions seem to be waning, and reliance on electronic communication continues to rise. Face-to-face and person-to-person contact fosters trust that an email or text cannot accomplish.
Our subcontractors trust us (external trust), and we trust them because we see and work with them regularly. Consistency breeds trust between subcontractors as well. When tradespeople recognize the same faces from project to project, a relationship develops, egos are put aside, and an environment of mutual respect is developed. Information is shared more freely, which breeds efficiency and productiveness. Our clients benefit from these relationships, which fosters recommendations and future work.
A company with repeat clients clearly demonstrates that the Contractor is trustworthy, skilled at what they do, and provides the client with what they need every time. When we complete a project, we do a completion review (post-project) with our subcontractors, the designers, and most notably with the client. Our client’s feedback is what allows us to improve with every project. 
No construction project is perfect, nor is it accomplished error-free. When we review a completed project, we want to know what we did well, but we also want to know where and how we can improve. If your Contractor is not doing this, you will likely not refer them to your friends and colleagues.
Do you trust your Contractor? What we sell is a service, not a product. Without trustworthy people, there is no good service.

The Importance of Trust

Last month we discussed “What to Look for in a Contractor When Planning a New Project.” This month, we will explore that in a little more depth, emphasizing the importance of trust and how trust between all parties is essential throughout a successful project.
“Trust” is an integral component of the construction industry, not just the “buzzword” it has become in the business world. A construction project (small or mega-large) represents a considerable investment in time and money for any client project type.
  • Public or private sector.
  • TA tenant starting a new business.
  • Municipality constructing a bridge and a new eight-lane highway.
Every client makes an investment, signs a contract with a General Contractor (GC), and then needs to trust that the Contractor they selected will provide the expected outcome.

Construction is an industry where numerous companies (people) are thrust together in one location daily. They are there to meet a common goal (for someone else) and together to meet it efficiently, on time, and within budget. They are asked to do this quite often without ever having met each other, much less having worked together. A daunting ask. Would you have a deeper level of trust in your General Contractor going into the project, knowing that they have a strong relationship with the subcontractors because they have a proven track record of working together? There is an immense difference between a contractual relationship and a personal relationship.

A contractual relationship by itself does not require trust. Terms are defined, scopes of work are explained, and procedures to handle every situation are spelled out. As long as we both sign the document (and it is a well-written contract), trust doesn’t enter the equation. On the other hand, a personal relationship is based on trust and, in conjunction with a contract, becomes a formula for success.

A relationship based on trust doesn’t need a contract except in rare circumstances. The contract becomes a “fallback” document if something goes wrong and the two parties cannot agree on a solution.
Let’s explore some qualities that foster trust and the impact various levels of that trust have on a project’s outcome. When subcontractors know what to expect from a General Contractor, and the General Contractor knows what to expect from subcontractors, there is a mutual benefit to the client and all personnel involved. The project will be completed quicker, and each day brings a higher level of productivity and levels of collaboration. The more communication and collaboration between subcontractors, the fewer mistakes are made. Less work needs to be re-done ($) because one subcontractor wasn’t thinking about where the other subcontractor’s work overlaps his. For example, if the electrician is not communicating with the cabinet installer, we may wind up with a receptacle covered by a backsplash.
The “lowest bidder” comes into a job with a lower level of trust before they even start a project, as the GC is wondering why the bid was so low. The Superintendent is at a distinct disadvantage because they don’t know who they are working with, their skill level, communication skills, or how they will interact with the other subcontractors.
The subcontractor has little trust in this Superintendent because in the last project he worked on, the Superintendent lied to him, belittled him, etc., so, in his mind, all Superintendents are the same. Building a relationship takes time.

Consistency is a quality of trust that seems academic but unfortunately not easily found. If a person always does what they say they are going to do, trust increases. Trust builds teamwork.

Familiarity is a key to building trust and teamwork. When subcontractors work together on multiple projects, relationships are formed and strengthened as the goals become equal. Helping one another is easy when there is trust and a team atmosphere. Multiple perspectives amongst trusting peers bring faster solutions and require less money and less time.

One of the difficulties found in Design-Bid-Build projects is that the collaboration between GC, Subcontractors, Clients, and designers rarely exists and doesn’t have an opportunity to grow, thereby reducing the level of trust (i.e., between subcontractors and designers). If there were direct contact, such as in Integrated Project Delivery, the trust between the Architect and the subcontractors is being formed from the start, and the collaboration flows through the entire project, not just when there is a problem.

When there is a centralized data system, and everyone has access to the same information simultaneously, there is less room for finger-pointing. Every member of the team has to take equal responsibility.

The chances of conflicting sources of information are reduced, and members of the team trust that everyone has the most recent data.

Trust requires fostering an atmosphere of personal responsibility and mutual respect. When I make an error, it is essential to own it and not blame someone else. Everyone involved now knows that integrity is present. Building a relationship in the field (external trust) also requires trust inside (internal trust).
When subcontractors witness the relationship between the field Superintendent and their office and see that information flows freely, timely, and accurately the subcontractors then know they can trust the Superintendent because of how others trust him/her.
And finally, as customers become more committed to your organization, their behavior progresses from recommending your services to others and resisting competitor’s approaches all the way to paying a premium to do business with you. Taking a risk on a newcomer becomes less attractive. Customers know the outcome to expect when they work with you. This will create more business. With repeat work, you develop a deeper relationship, and through that relationship, you build even more trust, making the work more enjoyable.
And as we know, if you enjoy what you do, it isn’t work!
In future issues, we will discuss why greater trust leads to better performance on every project.

Tri-Bay Takes Pride in Going the Extra Mile

Is doing the right thing the same as going the extra mile? Many construction companies pride themselves on “doing the right thing” during construction. Tri-Bay Construction will go the extra mile from beginning to end. We take experiences from previous projects where we’ve worked with suppliers and subcontractors and evaluate for continuous ongoing improvement.
We take into account all the pieces that go into a project, such as:
  • Evaluating where scheduling can be improved upon
  • Clarifying ambiguities on plans and other documents (i.e., surveys)
  • Assessing the effects construction may have on neighboring businesses or residences
  • Best practices to effectively create a collaborative environment inclusive of Owners, tenants, landlords, subcontractors, and designers. And considering the relationships with local officials before getting to the construction phase of a project.
Cleaning up after a specific operation is the standard operating procedure for most construction companies. Enhanced preparation before the project to minimize clean-up and operate more efficiently and safely is what we do.
This small amount of extra time beforehand results in a better, more efficient operation, less chance for collateral damage, and most importantly, a safer work environment. Best of all, it reduces costs in the long run by eliminating repairs and doing things a second and third time.

When you demand this type of preparation and efficiency, subcontractors want to work on our projects and leave owners knowing without question that we value them and their project. This approach results in a more collaborative and cohesive team effort on every project we do.

There is typically a warranty period of one year following the completion of your project.
The seemingly minor extra efforts, inclusiveness of field workers in daily operations and decisions, and collaborative teamwork between all trades set us apart from many typical construction companies.
You should be asking questions like:
  • Where does your construction company go after one year?
  • Can you call on them to solve problems that arise after the warranty expires?
  • Have they provided you with a maintenance schedule for your new building or the equipment you now own?
  • Do they show you how it operates or provide you with an instruction manual?
  • Will they help you find solutions or tell you how much it will cost to involve them in a solution?
By focusing on details from the start (pre-construction), changes become less frequent and less costly. Identifying challenges or gaps early on can make a project smoother in the construction process.
Getting it right the first time saves time and money for all involved. One glitch or hiccup has a trickle-down effect that can quickly snowball into significant delays.

Transparency between all parties allows for last-minute adjustments that have a less negligible impact on the overall project. There cannot be any “islands” on a construction project. Every component will affect other parts of the project.

Tri-Bay Construction goes the extra mile for Owners, designers, and subcontractors alike. That is why we have repeat clients, referrals from satisfied owners and designers, and subcontractors who want to work with us. The extra mile we take in our work results in a victory for all.

Construction Pre-planning is Vital for Success

Last month we discussed the qualities to look for in a Contractor. This month we will explore some of the pre-planning you can do before you even get to permitting and construction. Whether you are about to lease a space for an existing/new business or purchasing land to construct a new building, there are many things you should do in advance.

Do not rely solely on the “experts” or assume that these upfront items have been taken care of before the project launch. Keep the old adage in mind that “failing to plan is a plan to fail.” This saying especially rings true in the construction industry. Any gaps can become a costly delay.

Define the scope with a contractor, including how you want the space or the building to perform. The result will always turn out better than if you hand a contractor a set of plans and say, “Can you build this?”; How fast? How much? Defining the scope and performance often will change the cost for the better.

Walking through this pre-construction process with a Contractor is equal to interviewing to find the right fit. You should identify the level of risk the project may have, such as delay points, permitting procedures, and design decisions that will affect the overall budget, material specifications, and more. Walking through this process can determine whether the project is viable at all.
To follow are some of the crucial elements that make up a successful project:
  • Clearly define goals and deadlines for the Owner and Design & Construction Teams: Set realistic cost projections, confirm scheduling, and establish clear communication lines early to prevent misunderstandings.
  • Collaborative scheduling: This critical step requires all team members to create a realistic schedule for the project, from design to project turnover.
  • Sustainable Building: Know the benchmarks that make a building or a space considered “Green.” Having a clear understanding of the costs associated with green building methods and materials will eliminate surprises during construction and may even alter the performance goals before the project begins.
  • Permitting and Jurisdictional idiosyncrasies can often delay the review process: Understanding the local codes and ordinances by meeting with jurisdictional officials before the submittal process may shave valuable days from the overall schedule. Otherwise, poor communication can derail a plan before it gets started. Gaining clear direction helps alleviate items easily overlooked if unfamiliar with the project’s jurisdiction location.
  • Accurate budgeting and expense tracking plan: The team can accomplish this with the early selection of finish materials, so costs are known before construction begins—brainstorm to uncover the hidden fees that are bound to arise and can often be budget busters.
There are many more components that makeup Pre—Construction Services and Planning. We will continue to discuss the benefits of Pre-Construction planning and will then follow that with the types of Project Delivery available and their pros and cons.