F.I.T. ... Much More Than a Three-Letter Word

Purchasing construction services can seem a little like draft day for pro athletes, selecting the right medical school, or purchasing your first home. All these have the same sense of excitement, confusion, accomplishment and even anxiety for some. This article will provide information that can both inform and guide you through what can seem like a daunting task. While navigating through this article — and eventually the process of purchasing construction services — keep in mind the word “fit.” Many of your questions about selecting the “right” firm should come down to “fit.”

The design and construction industries for decades have discussed and reviewed the impact of “cost, quality and time.” The message has always been: you can only have two of the three, depending on your focus. If you want it done fast, it will be higher priced and you cannot have high quality. If you want high quality, it will be higher priced and take more time. If you want it cheap, you will sacrifice quality and, well, time; we will worry about that later.

Cost/quality/time certainly have a relationship in every business; however, a balance can be achieved. A conscious effort of what is the right “Fit” for cost, quality and time on your project is imperative. A good construction partner should be able to speak to “fit” as well as manage this throughout the process.

As we think about process, we need to understand the relationship between the design process and the construction process. These services must overlap, coordinate and be part of a team approach. Referencing the opening paragraph, just like a recruiter and coach on draft day, the client has the task of assembling a “team.” The talents you need to assemble should include a strong surgery or healthcare design professional who has the experience of understanding and participating in the development and construction process, a construction management firm with a strong surgery or healthcare background and understands the design and development process. There are also firms that specialize in the combination of the design/build/development process. Again, the rules of selection based upon surgery or healthcare experience should apply.

To select the option that best “fits” your needs, ask yourself how much time and involvement you want to spend on the project, as well as who in the firm will be the point person. To truly assemble a quality team, the chosen firm should provide you with the most service and the most transparent financial management. You should expect and demand a team that puts the client’s needs first and foremost.

Are you ready to purchase construction services? Well, what is the first step?

Through the use of an RFP (Request for Proposal) process, you can solicit proposals from professional firms. The following are examples of how to establish who should receive RFPs:

Discuss with other like-minded physician groups to see who they may recommend.

Research firms that you may have been introduced to at trade shows and conferences.

Ask your consultants or equipment suppliers who they would recommend.

Once the process of who and what has been decided (design firm and construction firm or a design/build firm), the focus becomes contracting with the firm that is the right “fit” for the project. A few selected firms should be invited to provide you with a presentation as a follow-up to their RFP response.

Now the question becomes, what is the process to see our project through completion?

You should be willing to invest in a planning phase that will establish a program (written space needs assessment that determines size of facility). You will need to establish a site through a selection process, create schematic design plans, establish a budget to incorporate all aspects of the project — including site cost, professional fees, construction cost, financing cost/fees and equipment cost — create a base lease rate to help establish initial investment, and a long-term cost for your business plan. Once the planning phase is completed, a review should be done to establish whether or not the project is feasible and ready to proceed. The planning phase is the culmination of the feasibility study.

The project is feasible and ready to proceed. Now what?

The project should move into the execution phase. This phase will be when the design moves from schematic design (SD) to design development (DD) and then to final construction documents (CD). The construction management team is responsible for establishing and managing the project timeline, which should include all activities from the start of the execution phase to owner occupancy, as well as tracking design activities. The team will also manage the project budget so the initial values established in the planning phase are adhered to. The team should provide services to include bid strategy planning, permit review process, equipment planning and fulfillment, occupancy requirements/move transition, bid/award process and regular review of project financials. An open book, transparent process is recommended. The team should discuss and understand all aspects of what the client does, how they do it and what systems and support are needed to run their business. If this is done, there should be no loose ends or forgotten items.

Remember throughout the process to ask about and make decisions based upon cost, quality and time. This will help you and your team focus on delivering the best project. The right process and “fit” should create not only a great facility, but an enjoyable process while establishing a relationship that will live beyond the project.

Todd McDonald is group vice president with Kalamazoo, Mich.-based CSM Group, a construction management firm. He can be reached at todd.mcdonald@csmgroup.com.