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Monday, January 16, 2012

To Renovate, or Not to Renovate? That is the question.

To Renovate, or Not to Renovate? That is the question.
(And the subject for today’s blog)

How many of you have experienced a renovation project either at your home or place of business? Like many of you, I have experienced both. In fact, the Strauss Company cut its teeth on renovation work. Our company was established about the same time the downtown renovation began in Chattanooga. Along the way we have learned a lot about renovation work and how to make it successful for both the owner and the contractor.


Today we will explore the necessary steps for a successful renovation project and what the owner, architect and contractor can and should do to insure that the project is, in fact, a success (and that everyone is still on good speaking terms at the end of the project). In this series of posts, we’re going to parallel this renovation analysis with having a baby. Keep in mind, I’m not a doctor. But I did once stay in a Holiday Inn Express.

Renovating buildings can be exciting, exasperating and frustrating all in the same day. However, with proper pre-construction planning and accurate budgeting, it’s possible to keep headaches and financial setbacks to a minimum. All construction projects require good planning and budgeting, but none more so than renovation work. Why? Because there are more unknowns with renovation work. The goal for your design team and contractor should be to eliminate and or clearly define all the unknowns prior to the commencement of construction. As an owner, you want be able to go to the bank with a high level of confidence in the construction budget numbers provided by your building professional. So where do we start?

Building Survey – Step One

I can’t tell you how many old buildings I have been through in downtown Chattanooga, but I have been through a lot of them. I’m often asked by clients to survey a building to give my impression of the suitability of a structure for renovation. So what do I look for? Well, there are a lot of things to consider when surveying a building.

First, I look at the structural condition of a building—are the floors level, walls plumb, ceilings, roofs and walls free of cracks and sagging? All of these are indicators of settlement in a building. I will also want to understand what the owner’s intended use is for a building so I can get a feel for what structural reworking may be required.

Interestingly, some building types renovate much better than others. I have found that buildings composed mostly of masonry and concrete renovate much easier than wood framed structures. Not always the case, but most masonry and concrete structures seem to hold up better to the elements and the neglect often associated with older buildings.

While doing a structural analysis of the building, we’ll also want to identify any materials that may contain asbestos. The removal of these types of materials can add significantly to the overall renovation cost. So if you are looking at a building to purchase and renovate, it will pay to have an asbestos survey done before your due diligence period expires.

Probably the most overlooked component of a building analysis is a codes review of the existing structure. A significant renovation most often requires an update to meet present day building codes. Building codes are updated every two or three years and they are significantly more stringent today than they were just twenty to thirty years ago. The building you are considering purchasing and renovating may need a fire sprinkler system added. It may not have the required amount of emergency exits and it may need to be updated to current handicap access requirements.

Chattanooga switched to the International Building Code (IBC) several years ago. It is far more stringent regarding seismic (think earthquakes) requirements than the old Southern Standard Building Code. So if you want to open load-bearing walls for windows or storefronts, there may be more structural work required than you were expecting.

As an owner, what is the best way to ensure this building analysis is done properly? One method is to have a contractor, architect, environmental engineer and perhaps a structural engineer perform an initial inspection of your building and give you their opinions of its suitability for renovation. I have been part of this team approach many times and have seen it work quite well. After initial review, this team can recommend any further investigation that may be needed and then they will be ready to assist as you move forward to initial design and cost budgeting. There are certainly other approaches, but in my experience, this one seems to provide the most accurate and comprehensive projections for budgeting and construction.

Once you have completed the building analysis, if you’re still game for the project, what’s the next step? I’ll outline that in my next post, and also delve into the reasons a renovation project is like having a baby.

Wednesday, December 7, 2011

Fearless 2012 Construction Forecast

2011 is nearing a close and it has been another tough year for contractors, architects, engineers and anyone else trying to make a living off of real estate development. So I’d like to turn our attention to 2012 and share my thoughts on the outlook for construction in Chattanooga. We’re going to do this prediction in the style of Leonard’s Losers, a popular 1980’s radio show where, instead of picking the winner, the late Leonard Postero would predict the loser of an upcoming college football game. Leonard may or may not have been any better than you or me in predicting the outcome of college football games, but his descriptions of the upcoming contests were something to behold. So in a tribute to Leonard Postero, here we go:

Friday, November 11, 2011

Selecting a Contractor for Your Construction Project

Ok, so you have a construction project—a new building, or perhaps a renovation. You have never done this before, so selecting a contractor is new territory. The traditional scenario often starts with hiring an architect, then submitting the architect’s plans to a few contractors for bidding. The owner assumes choosing the lowest bidder ensures the lowest project price. But does it?

Thursday, November 3, 2011

Why Blog? Why Me?

Why would a commercial general contractor want to start a blog—especially a contractor in a small city like Chattanooga? And why would anyone really care to read my blog? Well, I think there is a lot to learn for anyone involved in or about to begin a commercial building project. Not only for Chattanooga contractors, but perhaps even more so for building or land owners who find themselves facing the process of selecting a contractor for what may be their one and only adventure into commercial building.