1. Behold: The Construction Contract
Oddly enough, it’s not the fine print to which you are vulnerable
It would require the text equivalent of “Gone With The Wind” to
adequately describe the details necessary to execute an average dental
office construction project. As a result, most contracts- including the AIA
[American Institute of Architects] document, defer the “description of
services” to the respective construction documents, AKA: drawings,
plans, etc. The dreaded fine print in the construction contract, although
duly worthy of scrutiny and evaluation, is simply additional legalese intended to protect one or both parties in the
agreement. Eyes wide open: no harm, no foul.
So if the contractual fine print is essentially harmless, you might ask how you might otherwise be vulnerable. The
answer is right there in big bold print: Construction Documents. The signed contract itself- replete with its legal
jargon, both large and small print- is only an agreement stating that your contractor will “provide… in accordance
with the construction documents” and you will “pay…”[and pay, and pay]. As such, the actual contract for the
services to be provided is contained in the Construction Documents. To wit, according to Merriam Webster a
“‘doc-u-ment: [is] an original or official paper relied on as the basis, proof, or support of something.” Those pretty
pages containing dream-inducing images of your future office- formerly referred to as benign “plans” or “drawings”-
will heretofore to be known as “exhibits of the contractual agreement”. And here’s the kicker: The author of those
documents is not a required signatory on the contract.
In most cases there is no three-party communication (client, contractor, designer) prior to the signing of the two-
party agreement. This often results in costly change-orders. Yes, change-orders are sometimes unavoidable. But,
they should be limited to things like unforeseen site conditions- not to be the expected norm. I’ve witnessed
projects that grew by as much as 30% in cost overruns- that’s $90,000 on a $300,000 project, and 98% for those
costs were predictable, preventable or at least known potentials to be included in the construction cost proposal.
No excuses.
We were recently asked to review plans that were prepared by another firm. The results of that review, although
daunting, are immaterial. But, I will note that the first sheet in the set of drawings contained a large text table listing
services, dates and trades- for change-orders*. Talk about your “red flags”. Also, visible in blazingly bold print
were disclaimers exempting the designer from the responsibility of anything from building and life-safety code
compliance to construction detail- deferring them to be addressed in the field or “by others”; thereby placing the bulk
of responsibility on the contractor. But, despite this complete communication and budgetary disconnect, the client
was prepared to sign a construction contract that left them vulnerable to extensive additional costs. Close call.
Analogously, construction is much like dentistry. Both will have a superior result when thoroughly prepared and
detailed. So, I would like to site an example of the deficiencies that are quite common in construction documents.
The drawings referenced above did note that a backflow preventer should be installed “per code”. That would be
perceived by many lay people as having met the obligations associated with compliance and inclusion as a
budgetary line item. The fact is that the directive did not include: location [at water source/inline to defined
locations]; whole-house or dedicated run; size; manufacturer; model number; associated plumbing specifications
[hard-plumbed/air gap/vacuum breaker]; testable/non-testable; also some towns require more than one. The cost
differential could easily span costs of several hundred dollars. That’s just one small, but costly, example of a very
predictable, and preventable, cost overrun. Professional design fees are fractional by comparison.
Continued
Diversified Design Technologies Inc
117 Hubbard Street, Glastonbury, CT 06033
Phone: 860-562-0841 or 800-622-5563 · Fax: 860-652-0840
E-mail Garrett Ludwig at: garrett@designrx.biz
2. Behold: The Construction Contract Page 2
Besides construction details like those noted above, it is vital that all materials be defined in advance. This is
necessary for two budget-related reasons: 1. The cost of the products have an obvious impact on the budget; 2.
The labor associated with the installation of different products can vary significantly. This information is typically
provided on the drawings and are referred to as construction schedules; which includes door, window, plumbing,
lighting and finishes, at the very least. This data takes the guesswork out of construction cost estimating, and aids
in the process of value-engineering (substituting a similar product of a lower cost) if needed. For example, a door
schedule will contain the following: height; width; thickness, detail (flush/raised panel/inlay/glazed) construction
(hollow-core/solid-core) species; stain/finish; lights (glass- full/partial, divided); type of frame (wood/metal/etc.);
direction of swing, type and finish of hardware; rating (fire protection). The cost differentials can range in the
thousands of dollars. You may have wanted cherry or maple doors with a distinctive grain. But, the budget may
only allow for standard Douglas fir. Imagine first-class dentistry in an average facility. Oh! That’s what you’re
moving from.
So, that brings about another irretrievable forfeiture- quality. Besides accommodation for growth and improved
operational function, the most desired result is the achievement of an enhanced professional image- The “wow”
factor. If you plan and budget for a granite transaction counter (as opposed to plastic laminate) it is likely that the
cost would be quite manageable; particularly if other products and services provided in the contract are value-
engineered [if necessary] to make that accommodation.
Clearly your attorney will protect you from the potentially harmful legal vernacular of the contract with the general
contractor or construction manager. But, who is governing the content of the construction documents for the actual
services that the contractor has agreed to perform? No one. But, all costs are yours to absorb- because you
agreed to pay for them; whether by definition or by tacit acceptance of the designer’s documents. In a nutshell, you
have given the designer a blank check to spend as they see fit with no accountability or remorse. There is very
good reason and practicality to hire a professional. They are the only ones who are capable of actually defining and
managing your project and the associated costs of development.
A footnote to hiring a professional designer- make certain that they are not deferring any services like MEP
(mechanical, electrical and plumbing) to a third party. It is essential that the designer have a full and articulable
understanding of all equipment and associated construction materials and services. Without that knowledge, they
will be unable to effectively control and manage the project.
Please note that most of the contractors with whom we have worked are honest, hard-working and accommodating
people. Regardless, they are in business to make a living, and can’t perform their services for free. Consequently,
if additional work is required as a result of missing or insufficient information, they are entitled to be compensated
for that work. That’s the good news. For that small percentage of unscrupulous contractors- caveat emptor!
Lastly, the contract to which your attorney’s attention should be directed is the one between you and your designer.
Paramount within that agreement are two major concerns: 1. Beware of disclaimers- professionals “own’ their
work. 2. Request verification that they are capable of providing the necessary construction details that will allow
you to establish and adhere to a budget. Take heed, and God-speed.
Garrett Ludwig founded Diversified Design Technologies Inc. in 1971. The company has specialized in the design and
construction of private-practice, health-care facilities since 1975. During that time, he has designed more than 300,000 square
feet of professional office space. He has a U.S. patent on his emergency services “crash cart” design. Ludwig has shared his
experience in dental office design in numerous trade publications, and continues to lecture on the subject throughout the United
States. He can be reached at (800) 622-5563 and garrett@designrx.biz. Visit his Web site at www.profitbydesign.us.
Diversified Design Technologies Inc
117 Hubbard Street, Glastonbury, CT 06033
Phone: 860-562-0841 or 800-622-5563 · Fax: 860-652-0840
E-mail Garrett Ludwig at: garrett@designrx.biz