Construction Headaches
Multifamily Development is rife with problems that have to be solved. Many developers are great at acquisitions, finance, and asset management but seem to really struggle with construction – both renovations and new construction.
Chase believes in operating with General Contractors viewed as partners – not enemies. It is possible to do so and still hold them to account to finish on time and on budget.
Here are some of the construction headaches Chase has dealt with:
Contractor Default
Chase solicited bids from General Contractors and received 5. Given the project’s tight budget, the lowest contractor was selected by GCHP. The contractor completed site work and was preparing to pour foundations when the company received notice that the contractor had defaulted on the project and his bonding company would be stepping in.
Chase prepped the second highest bidder and connected them with the bonding company and they were ultimately selected to complete the project – a much preferred outcome to other scenarios.
Now the contractor had to quickly be brought up to speed on the project and to engage with existing subcontractors in order to complete the project with as little of a schedule delay as possible.
Gypcrete Deficiencies
The development team requested to meet with any major subcontractor in advance of their commencing work. The contractor was reluctant to do so, and it backfired on several occasions. The gypcrete contractor installing on the second floor was one of those. The manufacturers specifications are quite clear on required thickness for the product to be warrantied. Upon walking the site after completion, the architect and construction manager were concerned that there were several locations where the minimum thickness did not appear to be correct.
The development team checked the thickness with a digital micrometer and found that the thickness was indeed insufficient. Portions found to be lacking were cut, removed, and repoured and construction was able to proceed.
HVAC Installation Error
When the HVAC subcontractor shows up to complete their rough in and finds that the entire first floor has been framed incorrectly, there are huge problems. Fingers point in every direction. Everyone goes into CYA mode. Meanwhile, the developer still needs everyone to work together to get the job done.
This required relentlessly pushing the architect to draw a new design for the corridor and common area ductwork. The contractor consistently came back with reasons why new ideas wouldn’t work, shirking their own responsibility for where we were. Finally, after bringing together all parties on site for the 5th time, we came up with a plan that was workable for the GC and that the architect was willing to draw.
Punch and Punch again
On a 98 unit, 10 story historic rehab, the contractor couldn’t get their supervision in order to complete the project. Manpower was insufficient, HVAC was left disconnected, some units were incomplete or had some scope not yet performed.
Chase conducted daily site walks of every floor, counting workers, and revisiting the punch list for months. Eventually, the major issues were completed and we were able to get a certificate of occupancy by floor. The developer and contractor managed to walk away frustrated but without suing each other – a major success!
The list goes on – from accidental issues to intentional misses. Completing multifamily projects well requires someone who knows construction and conflict resolution to get a job done.
