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Construction Tip: 12 Terms to Familiarize Yourself With

As with any industry, the commercial construction industry has its own set of acronyms and key terms. What’s the difference between a contingency and an allowance? When do OAC meetings start? Having a general understanding of these key terms helps alleviate confusion between an owner and the general contractor and/or designer. We believe specificity and clear communication are keys to providing our clients with a great construction experience.

12 Common Commercial Construction Terms

  1. Contingency: Money, often a percentage of the total project cost, reserved to cover unexpected project costs that arise during a project. For example, a contractor starts excavating a site and hits bedrock. To remove it, different equipment needs to be brought in and the excavation takes longer than originally estimated. Contingency funds would be used to pay for this unexpected cost.
  2. Allowance: Funds set aside to cover a known cost of an unknown amount. For example, an owner wants to use tile flooring in their front entryway so the contractor budgets for a standard tile material that costs $5 per sq/ft.  The owner ultimately selects an $8 per sq/ft option and agrees to pay the $3 per sq/ft amount by which the actual tile exceeded the allowance.
  3. Consequential Damages: Damages to an owner’s business indirectly resulting from a breach of contract and which are generally foreseeable but not defined at the start of a project. For example, delays in the completion of a project for a manufacturing company result in the company’s inability to complete contracts for its customers.
  4. Liquidated Damages: A sum of money the contractor agrees to pay the owner, typically for each day the contractor completes the project late. For example, a contractor pays the owner of an office building $1,000 per day for every day the office building is completed after the contractual completion date.  The amount cannot be so great that it would be considered a penalty.  Liquidated Damages are typically accompanied by an equal and opposite Early Completion Bonus.
  5. Punchlist: A list of scope items that must be completed before a construction project is declared complete. Examples might include: replacing a damaged ceiling tile, touching up paint or ensuring dirt in light fixtures is cleaned.
  6. Substantial Completion Date: The date an owner can occupy the building for its intended use. For example, if there’s a long lead time on carpet that isn’t available to install in a conference room, the lack of carpet in that room doesn’t prevent the office building from being used.
  7. Final Completion: The date the project is fully and satisfactorily complete, Including the completion of all punchlist items.   The contractor can receive final payment upon final completion.
  8. OAC (Owner, Architect, Contractor) Meetings: Periodic meetings between the owner, architect and contractor to discuss the progress of a project.
  9. Change Request: A contractor’s request of the owner to compensate for something that needs to be modified on the project.  For instance, the owner may be considering adding a door to a room. This change is made to the design documents and sent to the contractor for pricing. The contractor issues a Change Request for the additional door.
  10. Change Order: A formal change in a project’s scope, often also impacting construction costs and completion dates. In the Change Request example above, when the owner approves the Change Request for the additional door, a Change Order is issued which formally adds the door to the project for the agreed price and (if applicable) a completion date extension.
  11. RFP (Request for Proposal): A document created by a property owner that announces, describes and solicits cost proposals from qualified contractors for a specified project.  It’s common for public entities like schools or other government agencies to issue RFPs.
  12. RFI (Request for Information): A means to clarify ambiguities or fill in gaps in information that appear in the plans or specifications. For example, a concrete subcontractor needs more detail on rebar placement than was shown on the plans, so they submit an RFI to the contractor who either responds to the RFI or forwards it to the architect/engineer for a response.

Jon Davidshofer Begins New Chapter at Bush Construction

Bush Construction is pleased to welcome Jon Davidshofer to its leadership team as Director of Development. In this role, Davidshofer will lead the strategy for all development and redevelopment projects.

 

“Jon has hit the ground running, and he’s an exciting addition to our team,” said AJ Loss, Bush Construction President/CEO. “Jon’s experience in the financial and economic growth industries will help deliver a personalized customer experience to our investors, commercial real-estate agents and city officials. He’s keenly aware of every step that needs to be taken throughout each phase planning, development, design and construction. We’re fortunate to have Jon lead our development efforts.”

 

“I’m excited to join the Bush Construction team and be a part of their growing organization,” said Davidshofer. “Being able to work with the internal design team, while also having the luxury of working with the whole construction department will greatly benefit my role as Director of Development. The team shares a common desire to grow the development department and I feel the quality of work that people don’t see behind the scenes will be appreciated and respected by the communities in which we serve.”

Dena Waddell-Genz Joins As Executive Assistant

Bush Construction announced Dena Waddell-Genz has joined the team as Executive Assistant to the President and COO. Waddell-Genz joins Bush Construction from MoboTrex where she spent four years as the Executive Assistant to the President/CEO and replaces Erica Sellnau-Allan who has been promoted to Head of Employee Engagement.

“Dena’s former experience at MoboTrex and John Deere World Headquarters brings a powerful combination of organizational management and decision-making skills,” said AJ Loss, Bush Construction President/CEO. “We’re committed to challenging and growing our people so that they can provide customers with a great construction experience, and we couldn’t be luckier to have Dena help us get there.”

“I’m thrilled to join Bush Construction for so many reasons,” said Waddell-Genz. “The Executive Assistant position is a role that I’ve had a very deep passion for, and I look forward to working with such a fabulous array of team players! Additionally, what I love most about Bush Construction is the work-life balance and the feeling of being appreciated by my coworkers. This is definitely the business environment I have been searching for, and I look forward to many years of dedicated service.”

Meet the Team | Wayne Gordon, Director of Preconstruction

Wayne Gordon Family
Wayne pictured with his wife, Jenny, and their beautiful children Audrina, Kinzie, Callen, Laikynn, Colson

Wayne is the perfect mix of calm and collected. He joined Bush Construction in 2009 as a Project Engineer and quickly moved up to Project Manager. He’s been an integral member of our estimating and now preconstruction department. As the new director of preconstruction, Wayne oversees our preconstruction services including estimating, budgeting, procurement, constructability reviews, business development, and coordination of the preconstruction phase. Outside of work, Wayne is an involved husband, father, and community member.

What do you do at Bush Construction?

Director of Preconstruction

Who has influenced you most when it comes to how you approach your work?

My Dad

What was your first job?

Working on the family farm, where we raised hogs, corn, and soybeans

Where do you live?

In the country, near DeWitt, Iowa

What’s your favorite holiday?

Christmas

What do you enjoy doing in your spare time?

Movie night with my family

 

Meet the Team | Chuck Geyer, Superintendent II

Chuck Geyer, Bush Construction Superintendent II
Chuck Geyer, Bush Construction Superintendent II

How many times have you said, “it’s nice to put a name with a face?” This week we’re launching a Meet the Team series so you can get to know our growing team of construction experts. From the field to the office, our team wears many hats and is dedicated to providing customers with a great construction experience.

This year Chuck Geyer was promoted to Superintendent II. Chuck has been a valued team member since 2014 and has done an excellent job of cultivating relationships with project owners. Additionally, Chuck is a leader who gets things done the right way, the first time.

What do you do at Bush Construction? 

Project Superintendent responsible for the daily coordination of trades in the execution of building construction, while working to ensure the project is completed in accordance with the project design, budget, and schedule.

What’s your go-to productivity trick?

Communication. People seem more productive when they are informed. Ensuring that every trade knows what is to be done in order for them to complete their task, and what they need to complete for the following trade to complete their task is an important key.

Who has influenced you most when it comes to how you approach your work?

I’ve tried to pick up something from everyone I meet. Sometimes it’s a positive influence, and sometimes it’s something you want to sure you don’t do. Both are important.

How do you prefer to start your day?

With coffee and silence. I like to get up early and get to the job before anyone else. Coffee is the easy part, silence is not.

What do you enjoy doing in your spare time? 

My wife, Kelly, and I like to golf as much as possible when the weather permits. We have been married for 10 years this December.

Bush Construction Selected as Varco Pruden Builder

We’re pleased to announce Varco Pruden (VP) Buildings, a world leader in steel systems construction, recognizes Bush Construction as an authorized builder. As one of only two VP builders in our region, this new partnership provides us with exclusive building opportunities and discounted pricing.

Customer Benefits

This partnership allows our team to design and price buildings in-house, speeding customer response times and increasing our cost-competitiveness of pre-engineered steel building solutions. In addition, we have exclusive access to VP Command, a proprietary design, engineering, estimating, and ordering program utilized by VP builders. VP Command reduces both estimating and design time and accurately details building structures.

About Varco Pruden

Since 1948, VP has been a world leader in pre-engineered steel building systems.

  • Specializes in pre-engineered buildings ranging in size from 1,200 –1 million sq ft.
  • Has a network of manufacturing and service centers located across the country.
  • Partners with 1,000+ independent, authorized VP builders like Bush Construction.

COVID-19 & Higher Education: Our Conversation with Mike Poster of St. Ambrose University

For college students across the country, March 2020 will forever be imprinted in their memories. Classrooms shifted from in-person to online overnight, dormitories went from bustling to vacant, and fine arts and athletic schedules were postponed indefinitely. The Coronavirus outbreak caused seismic disruptions to student life and higher education operations.

When St. Ambrose University, a private institution grounded in the liberal arts, committed to academic excellence, social justice, and service transitioned to distance learning halfway through the second semester, they fully refunded students for their room and board even though it meant losing approximately $3.3 million in revenue.

We had the privilege of sitting down with Mike Poster, Vice President of Finance at St. Ambrose, to discuss how the university has handled COVID-19 challenges. In this podcast episode, we talk to Mike about how classrooms have been configured to meet social distancing guidelines while also safely supporting personal, in-class interactions. And why, amid a global pandemic, St. Ambrose experienced a peak in recruitment and enrollment.

Listen on Apple podcasts badge.     

Tune in to our conversation and learn:

  • What student life looks like this fall.
  • How St. Ambrose has been able to differentiate themselves through COVID-19.
  • Tips for high school students evaluating higher education institutions.

For more information on St. Ambrose’s Fall 2020 plans, visit https://www.sau.edu/.

Five Ways to Increase Project Efficiency

One of the most important aspects of construction management is creating and maintaining an effective schedule. Construction operations, big and small, include troves of interconnected elements that must work cohesively and sequentially to maintain the project schedule.

From inception to completion, each of these details contributes to the overall success of the job. However, without effective schedule management, the project can easily experience delays. Avoid the chaos by implementing these five practices.

1. Develop a Complete Project Plan

A detailed and complete project plan is essential to developing a master schedule. If available to the project, use 3-D modeling technology, like BIM (Building Information Modeling) to develop a coordinated plan established to identify design conflicts, reduce waste, and eliminate problems.

Once completed, involve all decision-makers in the final approval of the project plan to reduce the need for changes later that may delay the schedule or lead to rework. The foundation of schedule management ties directly to the quality of the design and plan.

2. Create a Master Schedule

A solid and realistic master schedule provides the backbone for the total project execution. When developing the master schedule, divide out each part of the project by phase while ensuring the accurate sequence of the tasks. It is best to never have an activity that extends beyond 15 days.  Also, after finalizing the master schedule, communicate clear expectations to all parties.

3. Manage Supply and Supplier Schedules

The master schedule only works with accurate order processing and delivery of project supplies. Select trusted suppliers with a reputation for quality and reliability. Then, communicate the schedule and project expectations to each supplier. Define the roles for order management, including responsibilities for tasks and proper communication channels.

4. Identify Pitfalls and Challenges

Scheduling challenges can occur with any construction project, no matter the scale. However, the larger the project, the more likely delays, and issues become. World events, like we are experiencing now with COVID-19, lead to disruption. In addition, labor shortages continue as an issue in the industry.

Major weather events, supply chain problems, changes to the project plan and other issues may impact the project flow. Build in time for unexpected delays and develop a contingency plan from the start so that each person understands their role in the face of challenges.

5.  Monitor and Report Progress Daily

Daily reporting is vital for successful and effective schedule management. Without proper communication and reporting, issues may go unaddressed. In addition, pay attention to times where the project falls behind or moves ahead. This is accomplished by creating detailed three week look aheads for each trade contractor to better communicate the project expectations on a daily in a much more detailed fashion than the overall master schedule. Correct and update the schedule based on changes or delays. Ensure effective and consistent communication occurs with all decision-makers and managers on the progress of the project.

 

Effective Schedule Management Based on Experience and Excellence

At Bush Construction, we offer professional solutions based on years of experience in the construction industry. We prioritize relationships with our clients, our team and our suppliers. Trust and quality matter to us. Effective and accurate schedule management is a vital part of building trust. We manage each project to stay on schedule and on budget.

Contact us with questions regarding our construction schedule management solutions.

 

Author: Jerod Engler | Vice President of Construction | Bush Construction

COVID-19: A Message from Bush Construction’s CEO

COVID-19 has turned many of our lives, businesses, and local economies upside down. My heart goes out to all those who are suffering as a result of this deadly virus.

While Illinois has issued a shelter in place order and Iowa has provided guidelines on social distancing, both states have deemed the construction industry an essential service. This means Bush Construction is open for business. We are here to help you in any way we can during this unfortunate time.

Bush Construction has always been committed to providing a safe working environment for our employees. In addition to our standard safety protocols, we are taking additional measures to keep our workers safe and do our part in stopping the spread of COVID-19.

  • We, along with our affiliate, McCarthy-Bush Corporation, have established a COVID-19 Response Team that meets weekly to share information and discuss best practices.
  • We are working closely with our superintendents and foremen to follow social distancing recommendations and ensure job sites are sanitary.
  • The majority of our office personnel are working remotely and using video conferencing tools to maintain the strength and productivity of our internal teams.

During this time of uncertainty, Bush Construction will continue to follow the recommendations of local, state and U.S. leaders. With that said, if you need us, we are here. Call, email or schedule a video chat with any of our team members. We’re here to support our clients and community through this time of crisis.

Sincerely,

A.J. Loss | President & CEO | Bush Construction

 

COVID-19 Resources

Centers for Disease Control

Iowa Department of Public Health

Illinois Department of Public Health

Cement Soil Stabilization

Why Cement Stabilization?

Cement stabilization is required when the soil on a construction site needs to be amended. This process allows the installation of the building pad on-site before the cold temperatures and ground freezing of winter sets in.

At one of our new construction sites, Lujack Hiline – a high-end car dealership in Davenport, Iowa, a geotechnical engineer recommended we proceed with cement stabilization. It was no surprise – we could not drive our vehicles on the site without sinking. We were aware, after a very wet September, that we were going to be facing poor soil conditions. Unfortunately, there was no way for the soil to self-correct on this site since as we would not have been able to get the soil to compact before winter began. The ground just wasn’t hard enough.

While this predicament is fairly common for this portion of Scott County, we don’t have to use this method often. In this area, we generally hit moisture at 6-7 feet down. On many job sites, we may hit pockets of poor soil, but on the Lujack’s site, the entire 4-5 acres were moist. The site was much too large to core out and fill with rock-like we can on smaller jobs. Together with the owner, we made the decision to move forward with cement stabilization over the Thanksgiving weekend.

What is Cement Stabilization?

Soil stabilization can sometimes be done with lime, but since the temperatures were not warm enough for a long enough duration, this was not an option for this situation. Cement would need to be the cure.

Cement stabilization is the improvement of soil material through the addition of a cement binder. The goal of stabilization is to improve soil for construction purposes. The most common method involves the incorporation of small quantities of binders (cement) to the aggregate.

On the St. Vincent Athletic Complex football field project, we ran into a similar situation and were able to amend with lime. Lime is laid layer by layer and you can see the difference in color. We rototilled the lime in and then rolled it over. The process took two days for each football field. The lime was brought in from our sister company, Linwood Mining; truck after truck. Just like at Lujack’s, the ground wasn’t stable, and we couldn’t guarantee the fields without stabilizing the soil.

At Lujack’s we chose the cement process as it was recommended by the geotechnical engineer, it was weather appropriate and it was the most cost-effective option. Cement stabilization requires only one layer, but the air temperature is key. The temperature must be 40 degrees or higher for the stabilization to set appropriately.

How does Cement Stabilization Work?

Since we do not have a local company that performs cement stabilization, we hired McCleary from Decatur, Illinois. They set 200 lbs. of cement every three feet. The machine itself costs $800,000. Also, on-site was a tiller and two trucks. The two trucks each weighed over 15,000 lbs. McCleary remediated 170,000 SF in two 12-hour days. If we had decided to core out and fill the site with rock, it would have taken at least two weeks and we would have needed to find a place for 1,000 truckloads of spoils.

The cost to stabilize the soil ran approximately $200,000. If we had filled with rock, the cost would have been around $300,000. A savings of nearly 33%.

The cement stabilization was a success and construction is in full swing.

 

Location: Lujack’s HiLine – Audi, Mercedes-Benz, Porsche, Volkswagen

Kevin Mericle | Superintendent | Bush Construction

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