Construction and Project Management

A service of Coldwell Banker - North Coast

An increasing number of North American and European clients are expressing interest in buying properties in the Dominican Republic with the intention of building a personal villa, apartment and condo projects, and small commercial centers. Many are deterred by the challenges of finding competent architects and general contractors, obtaining the necessary permits, understanding the local construction codes, and, most importantly, assuring quality and timely execution of the construction at a fair price.

CB-NC’s Construction Project Management Service is designed for those clients who either don’t wish to spend 8 to 10 months full time in the DR overseeing the daily construction activity or who do not have the necessary engineering and construction experience. The Service consists of two separate but equally important phases.

Design and Contractor Selection Phase

Proper attention to detail in this phase has the potential to significantly reduce the final cost of the project and increases client satisfaction with the finished product.

• Architectural Plans
We screen and present Dominican architects with demonstrated experience in the type of project desired, be it single family beach house or multi-unit condominiums. The importance of fully developed architectural plans can not be over stressed when entering into a fixed price or lump sum contract. Every detail down to the number and location of the electrical and TV outlets should be set before solicitation of construction bids.

Another little understood factor in the selection of the architect is his or her demonstrated ability to successfully get the permits from the various local agencies and authorities in the area of the project.

• Invitation to Bid
As the design is being developed, we select (usually) three contractors to bid for the project. Selection criteria include successful completion of similar projects, interviews with their previous clients, evaluation of their current workload, and, wherever possible, assurance of their financial stability.

We prepare a customized Bid Proposal document which, combined with the final architectural plans, form the basis for the bids. This document requires that the bidder define in exacting detail both the quantity and the quality of his deliverables. Many quality aspects of the project are still undefined at the bidding stage. For example, the client is probably not ready to select the exact ceramic tile for the floors or the marble and granite for the counters. In such a situation, we request that the contractor include a defined unit cost (RD$/square meter) for those commodities.

• Bid Reconciliation
By requiring all bidders to submit their bids in compliance with the detailed breakdown required by the Bid Proposal document, large differences in price are often encountered. By analyzing the detailed pricing we can reconcile the differences and identify where an honest misunderstanding may have occurred. The intent is to get all of the bids on an equal technical basis and allow the client to make an informed decision and to assure that client and contractor are in full agreement on the project deliverables.

To illustrate, one recent project received three bids ranging from $405,000US to over $600,000US. The reconciliation quickly identified an exorbitant fee built into the highest bid which was dropped from further consideration.

• Contract Terms
The final step in this phase is the drafting of the contract for execution of the construction. We will advise the client and help negotiate clauses covering the builder’s warranty, responsibility for escalation, and the progressive payment schedule. We will also draft the contract addendum that spells out the quantity and quality of the deliverables in the same format as the bid proposal document.

Construction Phase

During this phase, we serve as our client’s onsite eyes, reporting progress and alerting the client on his need to take action as situations arise. We do not direct the contractor unless we are specifically authorized to act as Client’s Agent. Our function is to monitor, evaluate, and report.

Our services during the construction phase involve closely monitoring three parameters of a successful project.
• Schedule
• Quality
• Cost Control

Schedule – prior to the start of construction, we will develop a calendar of definable milestones and the dates when they should be completed. The status of the schedule is updated weekly, negative deviations noted, and corrective plans developed with the contractor.

Quality – the architectural plans and the detailed Bid Document deliverables list appended to the Contract define most but not all of the parameters that constitute a good quality project. “Good Engineering Practice” is the difficult to define parameter. Our daily presence on the job site is intended to assure that both the letter of the contract and sound construction practices are followed. In the extremely rare instance where we can not resolve a quality issue with the contractor directly, we will advise the client to halt construction until a resolution can be negotiated.

A daily written log of observations at the job site is maintained and transmitted weekly to the client in conjunction with digital photos.

Cost Control – changes are inevitable. The client may wish to add features or change the quality of some component. The contractor may want to substitute a new material if the specified material is not available.

Every change works to the contractor’s advantage since he does not need to compete with other contractors when he prices the change. Our function is to make the change process as fair as possible and advise the client of his options. For example, it may be beneficial to remove a disputed change from the primary contract and pay a third party to perform it.

Good cost control requires formally executed Change Notices. We document every proposed change, included both cost and any effect upon the schedule, and present to the client for approval before the contractor is allowed to proceed. We maintain a continuously updated running log of all approved and pending changes so that the client knows exactly the impact upon the final price at closeout of the project.

We participate with the client in the final inspection walkthrough and the preparation of the closeout punch list. We then monitor the required corrections and completions and advise the client when he may release the final payment.

Conclusion

This multiphase program is designed to provide the client with the highest level of professional project management while minimizing the need for his direct personal involvement in the day-to-day execution of the project. The program is flexible and can be tailored to each client’s specific needs, expertise, and desire to personally participate. We believe that the direct cost savings alone far exceed the nominal cost of this service.