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Signs It’s Time to Expand: When to Upgrade or Relocate Your Private Practice 

Your patient list is growing. Appointments are booking out weeks in advance. Staff are squeezing into shared workspaces. Sound familiar? These are just a few signs that your current facility may be holding your practice back. 

At Bush Construction, we specialize in helping private healthcare providers expand with confidence. Through our integrated development, design, and construction services, we make it easier to grow—strategically, efficiently, and with long-term value in mind. 

Here are five signs it might be time to make your next move—and how we can help guide you through it: 

  1. You’re Out of Room—Literally

Exam rooms are always full. Waiting areas are overflowing. Your current space simply can’t keep up with demand. We can help assess your growth trajectory, identify right-sized solutions, and deliver a facility designed to support your future. 

🔗See how we helped Mississippi Valley Surgery Center  expand their practice to better meet patient demand.  

  1. Your Facility No Longer Reflects Your Brand

Outdated design and cramped conditions can send the wrong message to patients. Our in-house design team collaborates with providers to modernize their environment—creating welcoming, efficient spaces that align with the care they deliver. 

🔗 Explore how Midwest Medical Clinic reimagined their space to reflect their growth and reputation. 

  1. You’re Turning Away Patients or Staff

Limited space can bottleneck operations and stall growth. Bush’s development consulting team steps in early to support everything from site selection and acquisition to incentive sourcing, development modeling, and financing—so your next step is smart, sustainable, and financially sound. 

  1. Technology Has Outgrown Your Space

As care evolves, so should your infrastructure. Whether you’re adding imaging equipment, upgrading exam room layouts, or integrating telehealth, we ensure your space is designed and constructed to support cutting-edge technology. 

🔗 See how we delivered a first-of-it’s-kind tech integration for Cardiovascular Medicine.

  1. Your Lease is Ending—or Changing

A lease renewal can be the ideal time to reassess your space strategy. Should you expand where you are, relocate, or consider owning your own building? We’ll help you evaluate the options, run development models, and coordinate the entire process from approvals through project management. 

 

Why Bush? 

At Bush Construction, we deliver more than buildings—we deliver fully integrated solutions. Our approach brings development, design, and construction under one roof, giving you a single, strategic partner from day one – and leaving time to do what you do best: run your business and take care of your patients.  

Whether you’re ready to relocate, expand, or build—we’re dedicated to being your partner every step of the way.  

 

Let’s talk!

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Case Study: Enhancing Patient Care Through Thoughtful Construction at Mississippi Valley Surgery Center

Client: Mississippi Valley Surgery Center & Endoscopy Center 

Location: Davenport, Iowa 

Scope: 15,566 SF expansion + 9,482 SF renovation 

Project Type: Healthcare renovation and addition in an active medical environment 

Overview 

When the Mississippi Valley Surgery Center set out to expand and modernize its outpatient facility, Bush Construction was trusted to deliver this complex renovation. With a partnership spanning six years, Bush brought the expertise needed to manage a highly sensitive, occupied-space project. 

The result: A 15,566-square-foot addition and 9,482-square-foot renovation that improved patient care, workflow, and overall comfort. 

Project Highlights 

New Construction Features

  • 10 overnight recovery rooms 
  • 3 state-of-the-art operating rooms (ORs) 
  • 6 PACU (Post-Anesthesia Care Unit) bays 
  • Nurses' stations, offices, and support areas 

Renovated Spaces   

  • 21 expanded pre-op/post-op rooms 
  • A centralized processing department 
  • Updated nurse stations, physician break room, sterile storage, and offices

Built Around Patient Safety 

A key challenge was executing the work in a fully operational surgical facility. Bush Construction prioritized safety and cleanliness, using: 

  • Customized phasing plans to allow construction during ongoing operations 
  • Special working hours and life safety measures to reduce disruption 
  • Negative air pressure systems and temporary walls to protect patients 
  • Daily coordination with medical staff and building owners 

A Trusted Healthcare Partner 

Over the course of six years, Bush Construction partnered with MVSC on numerous interior and exterior improvements, including: 

  • Build-outs for ENT Professional Services, Iowa Women’s Health, and the Plastic Surgery Center 
  • Vascular Suite improvements, including a new sterile storage room and physician break room 
  • Renovations for Orthopedic Specialists in Davenport and Clinton, Iowa 

These phased, occupied-space projects succeeded because of detailed planning, open communication, and strong collaboration with MVSC. 

 

Results: Mississippi Valley Surgery Center’s investment in this expansion reflects its commitment to providing top-tier surgical care. Bush Construction’s work ensured a smooth, safe, and efficient transformation—delivered with the expertise and care healthcare projects demand.

Planning a Healthcare Renovation?

Let's talk about how Bush Construction safely delivers complex projects in active medical environments.
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RENOVATING WITHOUT DISRUPTING: Smart construction strategies to minimize downtime

Running an Occupied Facility During Construction: It’s Possible…with the Right Team 

When it comes to healthcare construction, the stakes are high. You can’t afford to shut down for renovations – patients need care, staff need functional spaces, and operations must continue seamlessly. So how do you upgrade a facility without disrupting critical services?  

Unlike traditional multi-firm projects, Bush Construction integrates development, design and construction under one roof. This means a streamlined approach, smarter planning and fewer disruptions – keeping your practice running and your patients happy.  

Phased Renovations: Keeping Your Practice Running  

Renovating in phases allows your facility to remain open while construction happens in designated areas. 

  • Minimizing Impact: We carefully plan each phase to keep patient care uninterrupted. 
  • Temporary Solutions: Swing spaces and temporary treatment areas keep services operational. 
  • Off-Hours Work: Night and weekend construction limits disruptions during peak hours. 

 

Planning and Communication: Staying One Step Ahead 

Our pre-construction, design and project teams will work closely with your staff to ensure seamless coordination and transparency.  

Preconstruction Planning: We align work with your least busy times to reduce impact. 

Early and Reoccurring Design Walkthroughs: Our designers will walk through phased design plans early and often with your doctors, nurses and office managers integrating workflow needs.  

Supply Chain Management: With a fully integrated team, we can sync up early to pre-order materials, preventing delays and avoiding unexpected costs.  

 

Single-Source Contact: One point of communication eliminates misalignment between teams. 

ICRA-Certified Teams: Clean and Safe Construction 

Healthcare construction requires strict infection control. Our ICRA-certified professionals ensure: 

  • Blocked-Off Work Zones: Minimizing dust, debris, and airborne particles.  
  • Clean Air & Spaces: Proper airflow management to prevent contamination. 
  • Safety First: Strict protocols to protect patients and staff. 

A Smarter Approach to Healthcare Construction 

Renovations don’t have to be a headache. With Bush Construction, you get a single-source partner that keeps your facility running smoothly. We handle everything—so you can focus on what matters most: your patients. 

Start your seamless renovation now!

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Top Questions Clients Ask About Our Full-Service Delivery Model

 

At Bush Construction, we offer a full-service Develop, Design, Build delivery model that brings every aspect of a project—from creative financing expertise to final construction—under one roof. This approach simplifies the process, improves communication, and creates better outcomes for our clients.

Development

Female accountant calculations, audit and analyzing financial graph data with calculator and laptop Business, Financing, Accounting, Doing finance, Economy, Savings Banking Concept.

Design

Build

If you’re new to this model, you likely have a few questions. Here are the top questions we hear from clients—and how we answer them: 

  1. What does “Develop, Design, Build” actually mean?

It means we handle it all—from helping you evaluate and secure a site, to designing your space, to building it. Instead of juggling multiple vendors or managing several contracts, you work with one experienced partner who brings it all together. We guide you through the entire journey, providing seamless coordination and expert insight every step of the way. 

  1. How is this different from a traditional construction process?

In a traditional approach, the developer, architect, and contractor are separate entities with separate agendas. That often leads to miscommunication, delays, and finger-pointing. In our model, we’re all one team working toward the same goal—your success. It results in fewer surprises, faster timelines, and tighter cost control.  

  1. Is it more expensive to use a full-service firm?

Not at all—in fact, it’s often more cost-effective. By integrating development, design, and construction, we reduce costly rework and speed up decision-making. You also get more accurate budget projections early on, which helps you make better financial decisions from the start. 

  1. Can I still be involved in the process?

Absolutely. We believe in a collaborative approach, and your input is vital. Our team will guide you through each phase, providing options, recommendations, and clear communication to keep you informed and involved—without overwhelming you with every detail. 

  1. What kinds of projects are best suited for this model?

Just about any project can benefit from a full-service approach—especially those with tight timelines, fixed budgets, or complex site or zoning challenges. We’ve used this model successfully in historic redevelopment, multi-family housing, healthcare, education, commerical and mixed-use developments. 

  1. What if I already have a site or an architect?

No problem. We can plug in wherever you need us. If you already own a site or have an architect in mind, we’re happy to collaborate. Our goal is to complement the team and keep your project moving forward efficiently. 

  1. Why should I choose Bush Construction for my project?

Because we don’t just build buildings—we build confidence. With decades of experience, a proven process, and a team of development, design, and construction experts, we make complex projects simple. And we do it with integrity, transparency, and a focus on relationships that last long after the project is done. 

 

Have a question we didn’t answer?

Let’s talk. We’re always happy to walk through how our approach can work for you. 

Book a Discovery Call



 

Building for Better Care: The Stress-Free Way to Expand Your Practice

An Integrated Approach to Construction for Busy Healthcare Professionals 

For medical professionals, time is everything. Whether you’re running a private practice, managing an outpatient center, or expanding a specialty clinic, your focus is on patient care—not on juggling architects, contractors, and project timelines. That’s why the way you approach your facility’s construction matters just as much as the final result. 

A design-build approach simplifies healthcare facility development by integrating planning, design, and construction under one team. This means fewer headaches, a faster timeline, and a smoother experience from start to finish.

 

Why an Integrated Approach Works

Traditional construction projects involve separate firms for development/planning, design and construction, which can lead to miscommunication, budget overruns, and timeline delays. A fully integrated experience, like the approach offered at Bush Construction, eliminates those headaches by offering:  

Site Selection & Development Guidance – Expert insight into location analysis, zoning, and infrastructure to ensure your facility is built in the right place for success.  

A Single Point of Contact – No need to juggle multiple firms – Communication is streamlined through one trusted partner. 

Faster Project Timelines | Minimal downtime – With development, design and construction teams working in sync, we can easily phase construction, allowing you to keep operating as efficiently as possible.  

Cost Predictability – Early collaboration between architects and builders ensures budgets are set and surprises are avoided. 

A Facility Designed for Your Needs – From patient flow to compliance standards, every aspect is planned with your practice in mind. 

 

Keeping Your Focus Where It Belongs 

Your expertise is in healthcare—not in navigating real estate and construction. With the right development and design-build partner, you get a smarter, more efficient process allowing you the peace of mind knowing your facility is evolving without unnecessary disruptions.  

At Bush Construction, we specialize in helping healthcare professionals find the right site, plan for long-term growth, and build state-of-the-art facilities—all while keeping the process as simple and stress-free as possible. 

 

Planning a new facility or ready to expand? Let’s build something great together.

 

Reach out to Amy Simler 📩 to get the conversation started!



5 Benefits of Collaborating with a Design-Build Firm for Your Project

Considering a construction or renovation project? Your choice of approach can significantly impact the process and outcome. At Bush Construction, we simplify it all with our integrated design-build method—bringing design, development, and construction together under one roof.

Here are five key advantages of partnering with a design-build firm like Bush Construction:

1. Seamless Integration of Design and Construction:

Design-Build project by Bush: Cardiovascular Medicine located in Moline, IL.

The hallmark of design-build is the seamless connection between design, development, and construction. Traditional methods often involve separate contracts for each, creating inefficiencies.

At Bush, our in-house licensed architects, development experts, and full-service construction team ensure everything aligns from the start. This integrated approach reduces delays and fosters a smoother overall process.

 

The Wild Carrot event center – St. Louis – a project developed, designed and construction by Bush.

2. Enhanced Communication and Collaboration:

Clear communication between all project stakeholders is vital for project success. Our team fosters open lines of communication from day one. Think of it this way…when our design and construction teams need to talk, we walk across the aisle, instead of drive across town or play a game of phone tag with another company. This collaborative environment encourages shared insights, early identification of potential issues, and joint decision-making. As a result, you’re less likely to encounter misunderstandings, delays, or cost overruns due to miscommunication.

3. Accelerated Project Timelines:

We know time is of the essence when it comes to your project which is why we so firmly believe in our design-build method. Traditional project delivery methods, such as design-bid-build, can result in elongated timelines as each phase relies on the completion of the previous one. Design-build firms, on the other hand, can significantly expedite the process. Since the design and construction teams work concurrently, construction can often begin before the entire design is finalized. This overlap translates to quicker project completion and earlier occupancy.

Lafayette Preparatory Academy a project developed, designed and constructed by Bush in St. Louis.

4. Cost-Effective Solutions:

Design-build firms are well-positioned to deliver cost-effective solutions. With a shared understanding of the project’s budget and constraints, designers and builders collaborate to find innovative ways to meet aesthetic, functional, and financial goals.

At Bush, we are big believers in function-first. We work together to ensure the design isn’t over the top or vice versa, too restrained. Early collaboration between our design and construction teams, and a shared understanding of the owner’s needs, allows us to perform real-time cost assessments, reducing the likelihood of expensive design changes later in the project.

5. Single Point of Accountability:

One of the most significant advantages of working with a design-build firm is having a single point of accountability. Instead of juggling multiple contracts and responsibilities, you have one entity responsible for the entire project. This simplifies project management, reduces administrative burdens, and makes it easier to address any concerns or changes that may arise during construction. Ultimately, this single point of contact provides you with peace of mind and confidence throughout the project. At Bush, we have one team and one mission – you.

Let’s Build Together
By integrating development, design, and construction, Bush Construction delivers streamlined, cost-effective solutions tailored to your needs. Ready to get started? Explore some of our successful projects:

Let’s Chat

 

Get started with a no-obligation discovery meeting with Amy Simler, Vice President. 

Telephone receiver 563-441-2121

Email Asimler@bushconstruct.com

LinkedIn

 

Book a Discovery Call

 

 

 

 

 



Bush Construction and Urban Improvement Conglomerate (UIC) announce strategic merger 

Bush Construction Announces Acquisition of Urban Improvement Conglomerate (UIC)

Joining forces expands Bush Construction’s expertise in architectural design and real estate development services, entry to the St. Louis market

Bush Construction, a leading construction company in the Quad Cities Area announced today their acquisition of Urban Improvement Conglomerate (UIC), a St. Louis-based architectural and real estate development firm, marking a significant milestone for two companies in the design-build industry.

This acquisition, which expands Bush Construction’s services to the St. Louis market, brings together two industry leaders with a shared vision of delivering exceptional projects that seamlessly integrate innovative design, creative development, and a proven general construction process.

Unifying Strengths 

UIC, founded by Brent Crittenden and Sarah Gibson, has a strong reputation for architectural design and development projects. Their expertise in historic real estate developments and capital structure aligns seamlessly with Bush Construction’s strengths in construction.

“This powerful alliance will enhance our ability to deliver comprehensive, high-quality solutions to our clients, ensuring every project benefits from the best in both design and construction,” said AJ Loss, President and CEO of Bush Construction. “Our clients are the center of everything we do. Being invested in clients’ success means digging deeper into how to provide a vertically integrated model. UIC’s team was an excellent fit to expand our offerings.”

Leadership and Vision 

Under the new structure, Crittenden will serve as Director of Development at Bush Construction, while Gibson will assume the role of Director of Design, St. Louis. Additionally, several other key members of the UIC team will be joining Bush Construction, further strengthening the company’s talent and expertise.

Ryan Welborn, a longtime Bush employee, has been promoted to Vice President of Construction, overseeing all construction operations in both markets. Their combined leadership and vision will be instrumental in steering the merged entity toward new opportunities and market expansion.

“At UIC, we saw the purpose and value of joining forces with Bush Construction. Our team is design-focused with a deep understanding of how an integrated approach solves challenges at every phase for our clients. By integrating our services with that of Bush Construction, we’re deepening the bench of services in the St. Louis and Quad Cities markets,” said Crittenden.

Commitment to What’s Possible 

Bush Construction and UIC share a common commitment to community building and development. This acquisition will enable both companies to continue delivering high-quality projects across the Midwest that positively impact the communities they serve.

“This expansion signifies a commitment to delivering a better construction experience. By uniting our strengths, we are poised to set new standards of excellence and drive innovation in every project we undertake,” said Loss.

To learn more about our expanded team and services click here. 

Bush Construction Named Coolest Place to Work in the Quad Cities

Bush Construction Named Quad Cities Business Journal’s Coolest Place to Work

Bush Construction: ‘It’s really like a family’

Originally posted in the Quad Cities Business Journal. Article written by QCBJ Journalist, Dave Thompson. 

Stephanie Hintermeister loves her job with Bush Construction in Davenport.

As a project coordinator with the company for about four years, a big part of her job is to get all those paperwork chores – like contracts and administrative work – done so construction work can smoothly move forward. “We keep the job moving from behind the scenes,” she said.

But Ms. Hintermeister also loves the working culture created by Bush Construction. She said it’s a great, supportive place to work.

STEPHANIE HINTERMEISTER

“It’s really like a family here. Everyone here cares about each other. … It’s a very supportive place to work,” she added.

That family atmosphere created by Bush Construction is one of the big factors that has earned the company a new honor as the inaugural winner of the Quad Cities Regional Business Journal’s “Coolest Places to Work” competition.

The competition showcases employers in the Quad Cities region that are making their workplaces great. The honor, which was open to any business with at least 15 employees and a physical presence in the greater Quad Cities, was a collaboration between the QCBJ and the independent research firm Workforce Research Group, which conducted the surveys and determined the list of the “Coolest Places.”

Companies self nominated their business to be considered for one of the “Coolest Places” through a nomination process held earlier this year. This year, 10 companies met the criteria – set out by Workforce Research Group, and make up the 2023 list of winners.

“There is such a challenge to hire and retain workers. Being a ‘Coolest Places to Work’ is a great way to have a company stand out in this competitive environment,” John Lohman, CEO and president of the Corridor Media Group, owner of the QCBJ, said previously.

This marks the first “Coolest Places to Work” rankings for the QCBJ, which now is in its second year of publication. It is a sister publication to the North Liberty, Iowa-based Corridor Business Journal (CBJ), founded 20 years ago.

“We have been hosting these awards in the Cedar Rapids/Iowa City Corridor for the past 10 years, and it is interesting to learn about the competitive edge some of these cool companies have with their emphasis on creating a great culture within their companies,” Mr. Lohman added.

A.J. LOSS

For A.J. Loss, who has been the president of Bush Construction since the company was started more than 15 years ago, being named a “Coolest Place” all comes down to the company’s culture. That culture includes inspiring teamwork, building a leadership team, as well as training and encouraging employees to take on new roles within the company.

The company’s five core values are: drive to succeed; commit to grow; inspire teamwork; do the right thing; and be humbly confident. Following those core values will help attract customers and help employees become better people, according to a message by Mr. Loss on the company’s website.

During a recent interview with the QCBJ, he detailed how these four aspects of Bush Construction help make the company a cool place to work:

  • Spending time on leadership team alignment: ‘While this may not be a typical ‘cool place’ identifier, we believe this focus significantly limits the uncool workplace conditions that would cascade to the company if indecision or mixed messages were coming from leadership,” he said.
  • Inspire teamwork: “It’s very cool when you can enjoy the people you work alongside every day,” Mr. Loss said.
  • New training program at Bush: “It goes beyond typical construction and safety training to things like personal finance. We care about our team and show it through the educational opportunities we provide,” he said.
  • Encouraging employees to take new roles at the company: “Helping people grow their careers, through non-traditional avenues, has allowed us to engage with our team in a personalized and impactful way,” he added.

One of the Bush employees to recently take on a new role is Emily Dutkiewicz of Bettendorf.

The former art teacher began working with Bush Construction as an administrative assistant about a year ago. A few weeks ago, she was promoted to assistant designer – a job that has her working on creating various building projects for the company.

Emily Dutkiewicz

“They supported me when I came to them about this. … There is a path for growth here,” she said.

Ms. Dutkiewicz adds that she loves the attitude within the company. That attitude is: “If you give 100%, we’re going to give 100% to you.”

Wayne Gordon, director of preconstruction at Bush, also likes that company attitude. He has been with the construction company for more than 14 years. In fact, he was one of the first hires when the company launched in 2009.

The company was founded with three employees. Bush Construction is part of the McCarthy-Bush Corp. family of companies. The others include: McCarthy Improvement, Clinton Engineering, Linwood Mining, AMSCO Ash Management, Oertel Metal Works, and Blackheart Slag.

Mr. Gordon appreciates the company’s open-door policy to get feedback from employees as well as how it provides a flexible work schedule to help foster a great work-life balance for workers. That’s important for Mr. Gordon because he and his wife have five children – ages 13 down to 4 – and there are always family functions, vacations and trips on the schedule.

Wayne Gordon

As for Bush Construction’s work, the schedule has been busy. Mr. Gordon believes that the schedule of work projects will continue to be busy going into the new year. He sees 2024 as being another great year with many projects to keep workers busy.

“It’s really looking like a good year for us. … There’s a lot of positives to build on next year,” he added.

Mr. Loss agrees that the workload at Bush is not going to slow down in the near future. He added that even though the hike in interest rates “has been a challenge” for the industry, he doesn’t see a decrease through the rest of this year or for much of 2024.

But at Bush Construction, it’s not all about work and projects. The company takes pride in the fact that it is involved in numerous community and volunteer projects.

In fact, the company encourages employees to take on volunteer projects.  The company’s employee engagement specialist helped create a formal volunteer program. The employees  usually volunteer 500 or more hours a year, according to information from Bush Construction.

“Our employees are able to volunteer during work hours with pay. We regularly recognize employees that model our core values,” according to information from the company.

Ms. Hintermeister, for instance, is involved with local Girl Scouts and Junior Achievement volunteer work. In March, during Women in Construction Week, she helps organize the “Build Like a Girl” workshop that has Girl Scouts building bird houses and giving them confidence and experience with a construction project. The workshop is a part of Bush’s efforts to help raise awareness and celebrate the work of women in the construction industry.

“It’s all about letting kids know how cool construction is … and letting them know about the many jobs they can do in this field,” she added.

Such events are also about helping girls get outside of their comfort zones and learn from female role models in the construction field. As one of those role models, Ms. Hintermeister said she is especially happy to show boys and girls that women can also do work in construction.

And, it seems, that work never really stops at Bush Construction. One company project that is nearing completion is the new YWCA of the Quad Cities building in downtown Rock Island. Ms. Hintermeister said that the 48,900-square-foot facility at Fifth Avenue and 17th Street is entering its final stages of construction. She added that the project faced challenges with supply chain issues “but it’s coming together really quickly.”

When that project is done, Ms. Hintermeister won’t have time to sit back and admire their work. There are always other projects in the works at Bush Construction.

“I’m never bored here. There’s always a new challenge,” she said.

At a Glance: Bush Construction

Address: 5401 Victoria Drive, Davenport.

Established: The company was founded in 2009 with three employees Bush Construction is part of the McCarthy-Bush Corp. of companies. The other companies include: McCarthy Improvement, Clinton Engineering, Linwood Mining, AMSCO Ash Management, Oertel Metal Works, and Blackheart Slag.

Leadership: A.J. Loss, president; and Michael Johnson, chief operating officer.

Number of Employees: About 50 during the peak season.

Phone: (563) 344-3791.

Website: bushconstruct.com

Services: The company provides a full-service team combining expert construction, architectural design and real estate development. The Bush Construction team has managed a wide range of commercial, industrial, government, educational, health care, office, multi-family, hospitality and historical restoration projects in the Quad Cities as well as throughout the Midwest and in Georgia.

Projects: Some of the Bush Construction’s more notable projects include:

  • Westerlin Hall at Augustana College: Renovations on the on Rock Island campus residence hall included window replacement, upgrades to the mechanical and electrical systems, plumbing and restroom upgrades, new interior finishes and flooring, installation of an elevator, roof replacement and masonry restoration.
  • Building 250 on the Rock Island Arsenal: This once vacant, deteriorating building  required extensive renovation to make it ready for industrial use. Bush Construction previously was able to work with the Rock Island Arsenal Development Group (RIADG), a group that represents a public/private partnership, whose mission is to provide civilian businesses a cost-effective option while restoring existing, under-utilized government buildings.
  • Hobbs Building: This historic four-story building was built in 1892 in Aurora, Illinois. Bush Construction’s building restoration created 15 apartment units on the second, third and fourth floors with an unfinished “white envelope” on the first floor, which is ready for a future tenant build-out.
  • Genesis Health Birth Center, Davenport: The renovation of Genesis Health System’s East Campus’ entire fifth floor for a new Birth Center included complete flooring replacement, new millwork, paint and wall coverings in the corridors, public areas, and in 31 patient rooms.

Interested in joining our team?

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The Top 3 Sources for Construction Financing

TOP 3 FUNDING SOURCES FOR CONSTRUCTION FINANCING

 

When it comes to financing your construction project, the number of lending options can make your head spin – local lenders, government funding, savings and loan associations, grants – the list can go on and on.

Whether you work in community development, revitalize downtown areas, or are just an investor in real estate, it is important to educate yourself on utilizing unique debt options during construction and once the project stabilizes and converts to permanent financing.

Today, we’ll break down three of the most common types of financing sources and what factors to consider when determining the best fit for your project.

 

1. Work with a local lender, such as a community bank or a national lender before, during, AND after construction.

  • Under this choice, you typically pay just your monthly interest-only payment based on the outstanding balance during construction, with no principal pay-downs. Say it’s 12 months of construction – you pay interest-only for 12 months.
  • When the project achieves stabilization or is completed, you will convert to permanent financing (principal + interest.) Local lenders usually cannot exceed 30-year amortizations, so you must evaluate the cash flow using both available options.

2. Work with a local lender for the interest-only period, which would be before and during construction.

  • After construction, you use government-backed permanent financing from HUD or USDA, where they pay off the local bank and take over.

3. Use government-backed financing only – through HUD or USDA before, during AND after construction.

  • HUD and USDA offer 40-year amortized loans with fixed rates, but the application process is substantially longer than working with your local lender.

How do you choose what’s right for you?

Consider:

Community size

If your community is considered rural, (30,000 people or less) you qualify for a USDA loan.

Project type

If 30% of your project building’s square footage is allocated to commercial business, you most likely will not qualify for HUD financing.
On mixed-use projects, such as a multi-family unit plus commercial, keep in mind what percentage is commercial. HUD wants to see projects that are 20% commercial or less.

Timing

Lots of time? HUD or USDA financing from the beginning of construction has a closing period that is considerably long. It could take up to 12-24 months. With a local lender, the paperwork, reviewing, and due diligence process could be finished within 2-3 months.

Fees

A government-backed loan has higher fees, but typically a lower long-term fixed interest rate. If you’re able to wait and pay upfront, thus recouping that money over time, HUD or USDA will work for you. If not, try a more traditional route, like a local lender.

Bush Construction is here to help.

 

Our team can be on your side from the time you begin evaluating an existing structure or analyzing the bare ground you want to build on. Bring your ideas to Jon Davidshofer. He can give feedback and take you to the next level to discuss applicable funding options – starting with the top 3 mentioned here. Additional funding sources can be explored later. (State and Federal tax credits and grants.)

2023 Construction Costs

2023 CONSTRUCTION COSTS: ARE WE SEEING ANY RELIEF?

It’s hard to believe that we are three years outside of the onset of COVID-19. Even now, its effects continue to shake up the world.

In March 2020, the construction industry saw a historical spike in pricing, an overall increase of about 20-30% in a matter of 12-16 months. Owners were forced to increase budgets or consider value engineering alternatives. Contractors were potentially out dollars for projects already bid and on-site job shutdowns and quarantines created high demand and extensive backlogs. 2021 saw little relief with unprecedented rates of inflation.

It’s the beginning of 2023 and you may be asking yourself, is now the time to build? The short answer – yes. With three years under our belts, Bush Construction has established and refined processes to assist in accounting for pricing changes and supply chain delays. And even better news, we’re starting to see surging material costs plateau.

Better planning with the three Cs: Contingencies, Communication and Collaboration

By now, it’s no secret you may be paying more for a new build or renovation than three years ago. With Bush on your side, we can help you navigate these changes and complexities. Ensuring your budget and timeline are met starts with proactive planning using the three Cs: contingencies, communication, and collaboration.

 

Contingencies

In commercial construction, a contingency refers to money (often a percentage of the total project cost) reserved to cover unexpected project costs that arise after the construction starts. Contingency budgets have been a part of the Bush process, but have become even more important in recent years as we navigated unpredictable material costs and labor shortages.

So how is a contingency budget typically used?

  • Materials: Design professionals and builders must think about materials. What happens if the manufacturer changes, creates variations, or discontinues a product chosen specifically for a project? The price fluctuates! Room should be left in the budget to swap out design materials for sometimes more costly, yet available, options.
  • Changing or unpredictable conditions: During estimating, it’s often difficult to account for unforeseen or differing conditions. Not every project site is ready to build on from day one. Old foundations may be buried on site unknowingly, the weather could damage or postpone progress, and much more. Factoring in a contingency would help cover this.
  • Wish Lists: Excess funds…it happens! Owners should consider a wish list. The team may end up with an excess of money allotted to the project. This would allow for project betterments previously thought to be out of reach. For example, higher-grade flooring.

To learn more about contingency budgets, check out our blog.

Communication

Changes happen quickly in this high-cost and supply chain environment, which means efficient and clear communication with project teams and with owners is even more important.

Typically, an owner may need to engage multiple firms to take a project from concept to completion. That’s not necessary with Bush. As a full-service team, we offer integrated services in architectural design, construction, and real estate development. With open lines of communication between our departments, clear, quick, and transparent communication with owners is just part of the package. We work hard to avoid delays and miscommunication that are common issues in the construction industry.

We’ve recently enhanced our ability to more accurately and effectively communicate costs to owners with our addition of Destini, an estimating software that makes Bush more efficient. Since it is cloud-hosted, anyone on our estimating team can input and access real-time cost data at the office or at home. We are also  working to expand historical cost information in the database to more quickly and efficiently estimate future projects. With sky-high interest rates and long lead times creating higher prices and longer projects, Destini aids building owners in managing their expectations for cost.

 

Collaboration

During the construction phase, we partner with subcontractors and suppliers, which takes a high level of ongoing collaboration. Bush has worked to put an emphasis on subcontractor relationships, but we’ve honed in even deeper on those relationships to help manage the volatility of the economy.

Subs and suppliers are often the first to know about price changes and supply chain issues. Leveraging our relationships and remaining in constant contact throughout each project allows us to alert owners quickly and pivot plans to try to avoid delays and budget increases.

 

What to expect from construction pricing in 2023

The future looks bright. In the last six months, we have seen construction prices  start to plateau and even trend down in a couple scopes.

Lumber was a huge problem, and those prices have come down. HVAC rooftop units are still in high demand, and electrical switchgear maintains long lead times. However, we’re able to anticipate these patterns and plan accordingly.

Though many things have changed since 2020, one thing remains the same: the importance of selecting a construction partner that can guide you through the process.

Contact our team today to get started.

 

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