Preconstruction Budget Risks for Local Government Projects (1 of 3)
Part One: Scope
Creep
There are a few common problems we often encounter and
battle during the preconstruction process performing construction management in
the Louisville, KY and the Southern Indiana region.
Let’s talk about a major problem that has busted probably the most budgets across the country for school boards, county governments and all local leadership. The biggest challenge of keeping any construction project on budget is managing “Scope Creep.” Scope creep occurs when well-meaning architects and designers and the local government staff get carried away in the “visionary” stages and design process. Quickly the building begins to increase in square footage and cost as everyone’s wish list is fulfilled after years of working in what was oftentimes an older, small, inadequate space.
Let’s talk about a major problem that has busted probably the most budgets across the country for school boards, county governments and all local leadership. The biggest challenge of keeping any construction project on budget is managing “Scope Creep.” Scope creep occurs when well-meaning architects and designers and the local government staff get carried away in the “visionary” stages and design process. Quickly the building begins to increase in square footage and cost as everyone’s wish list is fulfilled after years of working in what was oftentimes an older, small, inadequate space.
But local government projects like schools, jails and
courthouses have a budget for a reason – usually it is all the community can
afford or all the tax revenue stream available.
It’s pretty understandable as architects have been taught
and trained to give the client exactly what they want from about the first day
in architecture school. Unfortunately in the architecture profession often the designer
that came up with the preliminary budget is different than the designer drawing
the plans. Often times Shireman will have to be the “bad guy” in
meetings with the architect or even save the local government staffers with big
dreams - from themselves.
Shireman will help control scope creep by being the
government’s voice in all design meetings, reminding the design team about cost
issues and using our latest in house real construction costs to keep the budget
on track. Value engineering of the design is also critical. We
constantly review and update the project budget and propose alternative ways to
achieve everyone’s goals. Managing scope creep keeps everyone on the right track and
leads a project to a financial success.
For more tips and tricks
on local government construction and real life examples – see our website at
ShiremanConstruction.com
Check back next Tuesday (August 19th) for part two of the series.
Tuesday, August 12, 2014
Posted by Unknown
What's Your Management Style?
The Artist The Craftsman The Technocrat
Bold Responsible Conservative
Daring Wise Methodical
Exciting Humane No-nonsense
Volatile Straightforward Controlled
Intuitive Open-minded Cerebral
Entrepreneurial Realistic Analytical
Inspiring Trustworthy Determined
Imaginative Reasonable Meticulous
Unpredictable Honest Intense
Funny Amiable Serious
The wicked leader is
he who the people despise.
The good leader is he
who the people revere.
The great leader is
he who the people say, “We did it ourselves.”
~Lau Tsu
Scott County Groundbreaking
This innovative design uses no modular steel cells and provides flexibility in its design to be able to expand.
The owner’s site was tight on space, so a lower level basement was designed to utilize the land in its most efficient way.
-Mark
Carriage Ford Renovation Underway in Clarksville
We've kicked off a major commercial renovation construction project at Carriage Ford in Clarksville, IN.
As part of Ford's nationwide dealership build outs, the traditional look of the Carriage Ford building is getting a modern facelift and the showroom is being upgraded.
Shireman is also remodeling the parts department and service bays.
The goal is to phase the work so that Carriage Ford customers in the showroom aren't disturbed and the parts and service departments can stay fully functional.
For example, right now Shireman workers are systematically remodeling the 15 service bays around four at a time.
The traditional brick and dormer front facade is being removed to make way for the modern look. Steel and concrete foundations are being installed and the dormers are being taken down.
We hope to have the project wrapped up by the end of Winter. We'll post updates as we make progress with construction.
If you'd like to see more past projects, check out the Shireman Construction homepage.
As part of Ford's nationwide dealership build outs, the traditional look of the Carriage Ford building is getting a modern facelift and the showroom is being upgraded.
![]() |
| A Rendering of the New Modern Showroom Look for Carriage Ford |
Shireman is also remodeling the parts department and service bays.
The goal is to phase the work so that Carriage Ford customers in the showroom aren't disturbed and the parts and service departments can stay fully functional.
For example, right now Shireman workers are systematically remodeling the 15 service bays around four at a time.
| Remodeled Service Bays |
The traditional brick and dormer front facade is being removed to make way for the modern look. Steel and concrete foundations are being installed and the dormers are being taken down.
| The View from Lewis and Clark Parkway of the Dormers Being Removed |
We hope to have the project wrapped up by the end of Winter. We'll post updates as we make progress with construction.
If you'd like to see more past projects, check out the Shireman Construction homepage.
Sharing Your "Lessons Learned"
This is my 40th year in construction project management. The
“old timers” such as my father used to say that the most significant lessons
learned are the ones that cost you money. It takes a certain level of courage
to list your lessons learned and relive these moments as you tour through the
daily reports.
Let’s view from a difference
perspective, a strategic perspective if you will; something to share and learn
from in the future. Let’s recognize that humans deliver construction projects
and no human can anticipate everything in an industry noted for its long,
complicated and expensive process; surrounded by huge risk and unforeseen
conditions.
Architects, Engineers,
Construction Managers and Owners should have a list of lessons learned or a “if
I had it to do over” list. One obvious
place to start is to review the last 5 years of change order logs. What
prompted the action? What could have been written in specs, noted on the plans
or expended in funds to research more in the existing conditions prior to
bidding? What field strategy could have been employed to avoid or lessen the
impact?
Another place to review is the punch list. How did each item
get onto the punch list? This allows you to now “anticipate” a problem before
it happens.
Examples:
- Conflicts in placement of lights & ductwork
- Proper slope on handicap ramps
- Erosion
- Protection of finished surfaces
- Coordination with the Owner, Vendors and separate contractors
- Owner’s staff totally understanding the plans and specifications
- Incorporation of “latest technology” verses common sense
- … and so forth.
Washington County Jail Addition
The project is running about $200,000 under budget and all the owners contingency funds are still intact.
The project consists of a new addition plus done interior renovations.
The new housing pod is 26,100 SF. The new kitchen and laundry room is 3,075 SF.
-Mark



