PLANNING PROCESS: LIFELINE OF A PROJECT

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TABLE OF CONTENTS

Chapter 1: FACTOR INFLUENCE THE CONSTRUCTION COST

Chapter 2: SELECTING THE RIGHT DESIGN/BUILD TEAM

Chapter 3: SITE SELECTION

CONCLUSION

BY HARRIS KHAN, PRESIDENT

INTRODUCTION

It is no secret in turning your prospective building for your business into a

successful investment. Above all else, implementing effective method for

moving through the planning process in which 90% of the construction

Cost is established.

This eBook is your blueprint guidance for planning process. First we establish

What you are looking to accomplish with your investment .Then, We give

proven steps in determining the right team for your construction project.

At last, We provide a checklist for selecting the best location for your building.

PLANNING PROCESS: LIFELINE OF A PROJECT

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CHAPTER 1

FACTORS THAT INFLUENCE CONSTRUCTION COST

The decision to construct a new building for your business is a important investment

That require precise details and careful consideration. It is imperative for an investor

To determine the structures usage, utilization for improvement in operation, and most

Importantly the return of the investment from the investment of construction cost.

Different buildings have different needs, and different needs have different construction cost.

When evaluating the preliminary cost of construction of building and determining the tasks neces-

sary for the planning phase of your project, it is essential to consider the numerous factors that ef-

fect the cost. In assessing the needs, the potential expense of your investment, the following consid-

eration play a major factor:

WHAT DO YOU NEED ACCOMPLISHED IN THE BUILDING? WHAT WILL THE BUILDING BE

UTILIZED FOR?

Building a shell could be the requirement for your business, but the end goal for your building

should be to maximize the efficiency & effectiveness on the operations inside the building.

Naturally, the process and materials used to maximize the efficiency of a high-tech medical clinic

are going to be vastly different that the process and materials for a storage facility. The materials

and processes will be the determining the factor for the construction cost of your project.

In the end what really matters is balancing the efficiency and environment of the building to the con-

struction budget you have projected. The key to maximizing the return of your investment is to thor-

oughly understand and layout the internal operations of your business. This way, you can decide

what materials and construction processes are best suited to your project, which will help you create

the best value.

Trying to establish the lowest construction cost could actually be more expensive in the long term as

the cost may come at the expense of the productivity and durability of your building. Should this be

the case, a buildings interior may not facilitate maximum efficiency, the building may incur higher

maintenance cost, loss of time of productivity of your team. Saving money in the short term through

low construction costs does not necessarily yield lower business cost– it could actually lead to high-

er business cost and render the buildings poor investment.

DOES THE APPEARANCE OF THE BUILDING IMPACT THE BUSINESS? IS IT A SALES TOOL?

While buildings are no more than shells in the business realm, it is sometimes important to

have an attractive eye-catching shell. For some businesses, the exterior allure is significant

in drawing customers into the building. For others, it is entirely irrelevant. Online retailers, for

example may not have any regard how their buildings exterior aesthetics look. A simple ex-

terior could be just as effective as an extravagant and attractive one at maximizing effi-

ciency for such a company. On the other hand, retailers that sell their products from their

buildings are highly dependent on their exterior appeal. Their efficiency and sales can only

be maximized if the exterior draws in customers. Therefore, such a business would probably

invest more in their appearance than an online retailer.

WHAT ARE THE SITE CONDITIONS?

Not all locations are created equal.. Different sites have different soil conditions, incline, &

regulations among numerous other things. Building on a certain kind of soil can be much

more expensive than building on others. Similarly, building on a very steep soil can require

much more landscaping cost than constructing a building on a flatter terrain. Moreover

some cities building codes could have aesthetic requirement that could significantly drive

up the construction cost such as requiring stone or brick on the exterior façade.

Without understanding a prospective buildings functionality and locational needs and the

implications on your project, however it is impossible for anyone to accurately predict the

costs of a commercial construction project, much less design the building without the nec-

essary information required. Upon establishing what you need your building to accomplish,

you can begin assembling your design team and deciding the best course of action of

tasks required for constructing your building. In other words, you have chosen your destina-

tion, now it is time to choose what vehicle will be the most effective means of travel to

reach that destination.

Where you decide to build your structure has significant implications on a project’s price. In assessing where you want to build

your facility and how much it will cost, it’s important to consider the following items:

Basic Information: These are simple questions about the site and its physical characteristics that other important site selection, or

due process information depends on.

§ Who has jurisdiction over the site? If the site is located within city limits, important regulations such as zoning are determined

by a city government. If not, they are defined by a county government. This is important to know early so you know who to con-

tact to get information about these regulations.

§ What is the size of the site and where are its boundaries? The overall size of the site and the length of the property line against

the street are important to consider in making sure that the site is compatible the goals of your structure.

§ What are the site’s soil conditions? The soil must be investigated to determine its bearing strength, or whether or not it is suita-

ble to build on, and overall compatibility with the project. If the soil is not capable of withstanding the building’s load, you may

have to replace it or install special foundation improvements, which can be very costly. Furthermore, some soils expand when they

come into contact with water, which can cause cracking in the building’s foundation. Before purchasing a property, it is vital to

understand the soil and its implications.

§ Does an analysis of the site’s history suggest potential soil contamination? This is determined through a procedure known as a

“Phase 1 Environmental,” in which a contractor or engineer investigates the site’s history and determines if there is a risk of past

contamination. If the potential for contamination is identified from this review of the site and surrounding area’s history, a “Phase

2 Environmental” is conducted. In the second phase, the soil is actually tested for contamination to verify that contamination does

not exist.

§ How flat is the site? If the site is located on a steep slope, building on it will necessitate much more groundwork and construc-

tion expenses than it would otherwise. This requires additional time and increased expenses.

§ Are there any natural resources or environmental characteristics on the site that could prevent building there or add to expens-

es? If the site is home to endangered species or protected biomes (see Zoning/Legal Information), you may not be able to build

there. Even if a certain environment is not protected by law, it can create difficulties and add expenses to a construction project.

For example, an unpreserved wetland will have to be drained before it can be built on, which would be a pretty expensive ordeal.

Furthermore, if the site has a high density of trees, building on it will, at the very least, mandate the removal of quite a few trees.

In addition to the cost incurred from simply removing the trees, there also might be local regulations that impose fees for the re-

moval of trees (see Zoning/Legal Information).

§ Are there any obvious site issues that could detract from your investment’s success? It is often helpful to talk with people who

live or work in the area to find out if there are problems with the region (e.g. high crime rates).

Looks like this tree skipped a few site selection steps.

Zoning Information: These restrictions have direct implications on where you can and cannot build, what your building will look

like, and how much it will cost. To obtain this information, contact the local city or county government that has jurisdiction over

the site.

Zoning Information: These restrictions have direct implications on where you can and cannot build, what your building will look

like, and how much it will cost. To obtain this information, contact the local city or county government that has jurisdiction over

the site.

§ Does the current zone match up with the building’s use? If zoning policy designates the site for a purpose that does not align

with your proposed building’s purpose, you won’t be able to build there.

§ Are there aesthetic or material requirements? Building in certain areas may require the use of a certain material or external de-

sign, which could also have substantial implications on cost and functionality. In a downtown area, for example, design regulations

often require a building’s exterior to be brick.

§ Are there any landscaping requirements? Often, in order to construct a building on a piece of property, landscaping work must

be done on a certain proportion of it. Landscaping requirements can have profound repercussions on the amount of space left

available for parking and the building itself. Some examples of landscaping policies are quotas on the number of trees and plants,

financial penalties for cutting down trees, and buffer mandates, which necessitate the planting of trees or shrubbery in between

zones.

§ Are there any environmental regulations that could interfere with building here? It is important to make sure federal or state

laws do not prohibit development of the site. If it is located on a protected wetland or is the habitat for an endangered species, for

example, it will be impossible to build on the site.

§ Are there size and height restrictions? If regulations prevent buildings under or over a certain size, you might be forced to alter

the size of the proposed building or choose a new location. Meeting size and height restrictions could have major financial implica-

tions and marginalize functionality.

§ Are there signage requirements? Signage regulations sometimes mandate that a business’s signs can only be in certain loca-

tions and of a certain size. If there are strict signage guidelines, you may not be able to advertise your building as effectively as you

would otherwise. This could impact your ability to draw in customers and deter from the maximization of the building’s functional-

ity.

§ Is there a “setback” policy? Zoning codes sometimes include rules regarding how far away from the street a building has to be.

These rules may not be present in a sprawling downtown area, but they could be very significant in other areas of town.

§ Are there any traffic or parking regulations? Typically, zoning rules will place limits on the number of vehicles that can park on

the street and minimums on the amount of parking spaces that a business must provide on its property.

§ Are there any known easements, or permanent designations of property, which interfere with building on a site? If the city or

county has designated land to a specific purpose, such as electric lines or other infrastructural entities, it could hinder or prevent

construction on a site.

§ What are the requirements for stormwater treatment? Federal, state, and local regulations usually require the creation of de-

tainment ponds that hold back water temporarily to prevent erosion. This can often take up a substantial chunk of land and limit

building space.

Site Infrastructure: After determining the plausibility of building on the site, it is critical to ensure that using the property makes

sense for your business. A thorough investigation of the site’s infrastructural capabilities is essential to gauging the practicality of

building on the site.

§ Is there a suitable access point to the site? Especially if the prospective building’s functionality involves drawing in customers, it

is important to consider the surrounding roads’ locations and traffic. If you’re building a department store, for example, you will

probably want an access point stemming from a busy street so you can draw in more customers. Furthermore, your building

should be visible and easy to get to from the road. When applicable, you should also consider other nearby travel infrastructure

(e.g. interstate highways, public transportation, airports, subways, etc…) in assessing whether or not the site would be capable of

drawing in the business you need.

§ Is high speed internet available? For many 21st century businesses, this is probably the most important infrastructural ques-

tion. If your business will be dependent on high speed internet, it is essential to have access to fiber optic lines or other means of

acquiring high speed access. The absence of this could render the site incompatible with the building’s needs.

§ What is the electrical service, how much does it cost, and is it efficient? If your business will use substantial amounts of electrici-

ty, it would be worthwhile to compare the site’s electrical capabilities and price with other locations you are considering.

§ Is there a sewer available? If there is not, it will be necessary to build an expensive septic system.

§ What is the sanitary sewer capacity, what is the size of the water line, and how much water flows through the water line per

minute? These issues have huge implications on the cost of construction, particularly if they don’t match the needs of the busi-

ness. Adjusting the capabilities of these functions is a costly endeavor, so should any of these fall short of what a business needs,

it could make building on the site much more expensive and potentially impractical.

§ In the event of a fire or medical emergency, what would the response time for emergency services be? This is important for

safety, and it can also affect insurance costs.

Site Permitting: Before you can build on the site, you’ll need to obtain permits from the site’s city and/or county (and, on less fre-

quent occasions, from the site’s district as well). Acquiring these can take up to 12 months or longer at times, so it is important to

begin your efforts to attain them early in the process and ensure that you have accounted for this as you schedule the timeframe

for the project. Also, you should be prepared to pay permitting fees. These are some of the most common types of permits:

§ Site Plan Permit

§ Water and Sewer Permit(s)

§ Stormwater Permit(s)

Impact Fees: Sometimes, city and county governments charge substantial fees for connecting to services. Some of the most com-

mon impact fees are for water, sewers, stormwater treatment, and roads. Check with the site’s local government to obtain this

information.

Conceptual Site Design: In light of all of this information and what you need from this building to maximize your business’s effi-

ciency, you can use the following questions to begin plotting what the property will look like.

§ Where are the building’s boundaries?

§ What area on the site is non-buildable?

§ Where and how large will your parking lot be?

§ Where will the access point(s) be?