B. Construction Team

Strategies for Assembling the Construction Team

Match Capacity with the Scope of the Project

Successful housing development requires rigorous planning and clear definition of roles and responsibilities among the members of the Development and Construction Team. The Project Management Section addresses how to assemble and manage the overall Project Development Team while this section focuses on the Construction Team, which has direct responsibility for building and/or rehabilitating the house(s) on time and on budget.

The following are key issues that the developer must resolve in assembling an effective Construction Management Team:

What is the scale of your project? What type of talent, capacity, skills and experience is needed to supplement what you organization has to offer? Clarify construction quality standards and/or code issues of your organization, the municipality, lenders and funders. Distinguish bottom line standards in terms of code compliance, marketability of the house product, and values of your organization (e.g. brick versus siding). Know thyself! Staff and Board members need to assess what is their capacity to manage the complexities of the construction management process. What are you good at? What do you like to do and what do you want to get better at? You are responsible for setting the tone and norms for communication, decision-making and accountability to keep the process moving. Take the initiative to find quality talent and be prepared to pay accordingly. You get what you pay for. If it is too good to be true, it usually is.

Levels of Construction

The scale of construction impacts how to organize your construction team. The following are the most common levels of construction in homeownership development:

1. Moderate Rehabilitation of Existing Houses Moderate rehabilitation is needed when the major systems, such as the electrical, plumbing, heating, and roof are in working order and meet code standards. However, some level of improvements for both function and appearance is needed. Moderate rehabilitation may involve the replacement of no more than one or two major building systems and upgrades of baths and kitchens and cosmetic renovations. 2. Substantial Rehabilitation Of Existing Housing Substantial rehabilitation can involve:

Repair and/or often complete replacement of all major building systems Removal of any and all hazardous materials (no encapsulation) Repairs to the building structure Possibly re-design of floor plans and room additions

Substantial rehabilitation often requires engaging the services of an architect and engineer in order to provide working drawings and detailed specifications of what and how to rehabilitate the house. Moderate rehabilitation can often be directed by simply using a detailed Scope of Work. People often think of Substantial Rehabilitation in terms of the most derelict, blighted, unstable properties. Questions often asked are "Why bother to rehab? Why not tear down and re-build?" It is often more cost-effective to demolish and re-build houses that have totally deteriorated roofs, plumbing, electrical, HVAC and structural systems. If the property is detached and there is enough land on the lot, introduction of a modular house could be a very cost-effective alternative. However, if the house is in the middle of a row of houses or is one half of a semi-detached house, then there is a stronger case to explore the cost-benefits of rehabilitation. Many nonprofit Boards of Directors instruct staff to rehabilitate as much as possible in order to preserve the look and character of the neighborhood housing stock. Often these sensibilities are impacted by a desire for historic preservation of properties. Historic preservation is very costly and often not the most affordable housing option for the low-income buyer. Therefore CDCs that seek to initiate historic rehabilitation programs should make sure that their source of funding allows for higher per unit development costs and opportunities for moderate-income families (who have more money for maintenance) to purchase. 3. New Construction New Construction is chosen when there is a vacant piece of land on which to build several units, when there are individual vacant lots ("in-fill" housing), and when there are dilapidated units that will be demolished. Today, with all of the exterior design options available, it is possible to build a new unit with finishes that make the house fit right into an existing neighborhood. New construction is often chosen to save costs. There may be substantial economy of scale when a number of housing units are under contract with one contractor. In addition, there are two ways to build new - "stick-built" units, that are constructed from the ground up, and modular units because they can be built and delivered within 6-8 weeks and assembled on-site in less than a month - which allows a new house to be built and sold in less than 3 months.

Modular Construction - Pros and Cons

Pros Impact is immediate because of the speed of construction Less material theft; increased security, as property is enclosed almost from the start More predictable costs; smaller construction contingency Standardized construction quality Fewer subcontractors Slightly less affected by weather / construction season Cons Less flexibility in design, particularly for narrow urban lots. Not less expensive to develop Negative public perception - that they are trailers TIP Be sure you are clear on what the modular builder is providing. Who is responsible for site work such as basements/foundations, walkways, sewer and water taps, plumbing hookups, electrical hook-ups and permitting for those services. Who is responsible for delivery, police escorts, if necessary, street closure permits, crane and heavy equipment permits, etc. Who is responsible for porches, garages, gutters, downspouts, rough grades around the house, finish grades around the house.

Construction Team Roles

As Project Manager, the developer is responsible for getting the houses built and delivered to the buyers. This involves many skilled professionals:

Construction Manager - The construction manager coordinates all phases of the construction project and acts as a liaison between all parties. The duties of the Construction Manager are:

Pre-Construction:

coordinates with all project professionals on all issues related to design establishes lines of communication with all inspectors and inspection agencies procures all owner-related testing and reports, including soil test reports and Phase I environmental coordinates the bidding process and selects the General Contractor negotiates the final pricing and prepares the construction contract for approval

During Construction:

holds reconstruction meetings coordinates construction site meetings with the general contractor and architect reviews requests for payment and conducts inspections prior to payment reviews all change order requests reviews all shop drawing inspects work in place

Project Close Out:

coordinates the punch list preparation and follow-up inspections requests warranty information from the general contractor readies the completed unit for the new buyer

Architect - The architect's responsibilities vary from just providing preliminary feasibility analysis to full design and construction oversight when needed. Typically, the architect coordinates the design process and involves other design professionals as needed.

Civil Engineer - The civil engineer, also known as the site engineer, deals with such issues as zoning approval, roadway design and large scale landscaping. This responsibility revolves around the design of the entire project, such as parking lot layout and development perimeters. The civil engineer is the key professional involved in the planning and zoning processes. This person is responsible for surveying the site and locating all existing and proposed structures on a drawing that can be presented to the municipality. The civil engineer is responsible for determining the need for any zoning variances or changes that may be required.

Landscape Architect - Once the development perimeter has been established and the site design has been set, the landscape architect determines which plantings are appropriate for the site and addresses such concerns as erosion control, wetland issues and the finished "look" of the project. Using landscape architects allows the developer to plant trees and shrubs that look appropriate to the project and can withstand the climate. The architect chosen should be sensitive to the upkeep requirements of the plantings in the affordable housing units.

Environmental Engineer - The environmental engineer is usually the first professional consulted on the development project and performs the crucial Phase I environmental site assessment.

Mechanical Engineer - The mechanical engineer is responsible for the HVAC system, plumbing and piping design and the design of the sprinkler system, if needed.

Electrical Engineer - The electrical engineer is responsible for all issues related to electricity traveling through wires around any structure. This includes the general power system into each house as well as the electrical set-up inside.

Historic Preservation Consultant - The historic consultant is hired to deal with local officials, such as the National Park Service and historical societies, for houses and structures that are on the historic register, to ensure that the renovation is consistent with historic preservation guidelines.