What are the steps in the construction process? Solution In an earlier publication of “Today’s Facility Manager,” Aarno Nurminen, President of NJ based Nurminen Construction Corp., summarized six construction steps to be cognizant of as an end-user of office space, a landlord, a broker, a design professional or a project manager. Because Mr. Nurminen hit the nail on the head with his concept of the process, I thought I would share the article in a “Clift’s Note version” if you will. As market conditions in the Bay Area crept toward stabilization from the abnormalities in the market place created in large part by the turbulent dotcom industry, the fundamental approach to office leasing, design and construction has returned to be the norm as opposed to the exception. Step 1. Realistic Schedules Most real estate professionals use the completion date in a typical construction schedule to determine the chain of events that follow in their effort to organize the logistics of occupying or utilizing the constructed area. And why not, that’s what “completion date” means. However, whatever your expectations for a large project build-out, you may want to consider padding that schedule by up to 20% to take into account unforeseen conditions, additions or changes. This will save you dollars, grief and hard feelings. It is common for all facilities professionals, real estate brokers, and related personnel to underestimate the multiple time factors involved in delivering a finished product. Some contractors may be equally at fault because they may submit, or agree to, schedules that are not realistic in their effort to appease the prospective client. Expediting the return-on-investment maximizes value; but, if common sense regarding the daily business decisions is taking a time-out, no one benefits! Collectively review schedules amongst all parties and verify the feasibility of those schedules Step 2. Top Management Pre-Design Meetings In my humble opinion, which is based on my experience in real estate brokerage and property and asset management, this step—Top Management Pre-Design Meetings—is the single most critical aspect for a smooth, successful project; one without extraordinary change orders and costly delays. Frequently, as senior corporate management or other logistically important personnel of a company reviews the final plans, or worse yet, walks the project or facility that is nearing completion, they determine that the finishes are inadequate or that the layout does not flow from department to department. Changes in a project, particularly those that are late in the process, are most often quite costly in both time and money; something most parties, even the contractor, want to do everything they can to avoid. Senior corporate management must be involved from conception and design through construction and punch list phases. Participating senior management members should make their preferences, tastes and other important details known before des.

1. What are the steps in the construction process?
Solution
In an earlier publication of “Today’s Facility Manager,” Aarno Nurminen, President
of NJ based Nurminen Construction Corp., summarized six construction steps to be cognizant of
as an end-user of office space, a landlord, a broker, a design professional or a project manager.
Because Mr. Nurminen hit the nail on the head with his concept of the process, I thought I would
share the article in a “Clift’s Note version” if you will. As market conditions in the Bay Area
crept toward stabilization from the abnormalities in the market place created in large part by the
turbulent dotcom industry, the fundamental approach to office leasing, design and construction
has returned to be the norm as opposed to the exception. Step 1. Realistic Schedules Most real
estate professionals use the completion date in a typical construction schedule to determine the
chain of events that follow in their effort to organize the logistics of occupying or utilizing the
constructed area. And why not, that’s what “completion date” means. However, whatever your
expectations for a large project build-out, you may want to consider padding that schedule by up
to 20% to take into account unforeseen conditions, additions or changes. This will save you
dollars, grief and hard feelings. It is common for all facilities professionals, real estate brokers,
and related personnel to underestimate the multiple time factors involved in delivering a finished
product. Some contractors may be equally at fault because they may submit, or agree to,
schedules that are not realistic in their effort to appease the prospective client. Expediting the
return-on-investment maximizes value; but, if common sense regarding the daily business
decisions is taking a time-out, no one benefits! Collectively review schedules amongst all parties
and verify the feasibility of those schedules Step 2. Top Management Pre-Design Meetings In
my humble opinion, which is based on my experience in real estate brokerage and property and
asset management, this step—Top Management Pre-Design Meetings—is the single most critical
aspect for a smooth, successful project; one without extraordinary change orders and costly
delays. Frequently, as senior corporate management or other logistically important personnel of
a company reviews the final plans, or worse yet, walks the project or facility that is nearing
completion, they determine that the finishes are inadequate or that the layout does not flow from
department to department. Changes in a project, particularly those that are late in the process, are
most often quite costly in both time and money; something most parties, even the contractor,
want to do everything they can to avoid. Senior corporate management must be involved from
conception and design through construction and punch list phases. Participating senior
management members should make their preferences, tastes and other important details known
before designs are developed and approved. Initiate early and frequent communication at the top

2. to minimize costly surprises Step 3. Thorough Document Coordination Once the general
contractor (GC) has been given the green light to commence construction, the GC mobilizes all
trades in accordance with the project schedule’s critical path. Frequently, the time -frames within
the schedule are reviewed by all parties and all concur that the project has little or no room for
delays. Therefore, to avoid delays, it is critical that everyone involved with the design and
construction conduct a complete review of the construction documents prior to the start date.
Aarno Nurminen states, “Many change orders (estimates range between 15% & 35%) can be
traced to unresolved drawings coordination issues. With today’s computer aided design (CADD)
and drafting systems, it’s much easier to coordinate and clarify drawings in a conference room
amid white collar managers.” The cost overruns created by trades’ people duplicating efforts or
awaiting correct drawings while on the jobsite can be minimized by each of the relevant parties
appropriately investing their respective time to thoroughly review the project documentation.
Actively scrutinize the details of the documentation prior to construction Step 4. Realistic
Comparisons This particular section cannot be stated any more effectively than its published
version (“Today’s Facility Manager,” February 2001). Therefore, I’ll quote Mr. Nurminen
verbatim: “People in the board room too often accept a low bid (especially one where the cost
difference between the low bid and the second-low bidder is 17%, 22%, or more). They see this
as a gift from Heaven instead of a warning sign. When a discrepancy like this occurs, [real estate
professionals] should ensure that everyone is interpreting the plans in the same manner. When
bid proposals are received, the building team should meet with a few of the low bidders to verify
that everyone’s bid proposal is comparable. This should be done before the contract is awarded.
Sophisticated, construction-savvy [real estate professionals] know that accepting a low bid that
plays “loose and easy” with their plans and specifications, is really not in their best interest. All
too often, when bid proposals are checked and validated, considerable degrees of interpretation
begin to surface, frequently closing the gap between low bidders.” Ensure that the low bidder has
correctly interpreted, clarified and included all specifications in its pricing Step 5. Confirm
Exclusions All too often, as a bid is submitted, the GC has not taken the time to identify the
exclusions in detail or may have only vaguely stated them, and therefore, the real estate
professional assumes that the pricing is all inclusive of that same professional’s vision of the
finished product. We are all aware of the ramifications of making assumptions, so it is suggested
that the real estate professional demand that contractors itemize their exclusions, and if none are
shown, it should be understood that the language in the contract documents will be adhered to by
all. Demand that all clarifications and exclusions be itemized Step 6. The Pre-Construction
Meeting I think we’ve all heard the cliché that “Failing to Plan is Planning to Fail,” and although
some would say that all of the planning should have been accomplished in the pre-design
meeting, it is still vitally important to kick off construction with a pre-construction meeting. It is

3. critical for the contractors to understand the end user’s goals and needs. In the same breath, the
top management as well as all of the other parties to the transaction should know what the
concerns and questions are of the contractor. The pre-bid and pre-construction meetings are the
best place for any issues to arise, as the further into the project the team ventures without
addressing potential issues, the riskier each day becomes with the potential cost overruns and
schedule delays looming largely. The project team will live together from start to finish and
should have mutual respect for one another throughout the process. With all parties
understanding each other’s goals and objectives, where all concerns and issues are addressed
openly, there will be greater harmony and a higher probability of success from start to finish.
And, as Aarno Nurminen concisely stated, “At the conclusion of a well-planned project, all
parties should look forward to working together again on a future undertaking.” Clarify that all
team members have a clear understanding of the game plan prior to game time. 6 Essential Steps
to Ensure Success in the Construction Process Collectively review schedules amongst all parties
and verify the feasibility of those schedules. Initiate early and frequent communication at the top
to minimize costly surprises. Actively scrutinize the details of the documentation prior to
construction. Ensure that the low bidder has correctly interpreted and included all specifications
in its pricing. Demand that all clarifications and exclusions be itemized. Clarify that all team
members have a clear understanding of the game plan prior to game time.