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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.

Bush Announces 4 Employee Promotions

Studies show employees look for new employment opportunities when they become concerned about their career growth. As a result, career advancement paths are critical to employee retention and overall job satisfaction. At Bush, we offer career tracks across departments and continuously look for ways to grow and challenge every team member. Chris, Ryan, Patrick and Richard’s performance met every expectation, and we’re pleased to announce their promotions.

Bush Construction Employee Promotions

Chris Porter, Bush Construction SuperintendentChris Porter | Superintendent II

Chris has been promoted from Project Superintendent I to Project Superintendent II. Since joining the team, Chris spent a brief stint assisting in estimating where he reviewed his project’s information before moving on-site at the Wilson Building in Clinton. Chris has played a key role in successful job site management and his ability to facilitate solutions to challenges that pop up in historic restoration projects is impressive. We’re excited to have Chris take the next step in his career at Bush.

 

 

Ryan DeanRyan Dean | Preconstruction Manager II

Ryan began his career at Bush as a Project Engineer Intern. Since then, he’s risen from Project Engineer to Project Manager and most recently Preconstruction Manager I. Ryan has flourished in his role as Preconstruction Manager thus his promotion to Preconstruction Manager II. Ryan exemplifies Bush’s commitment to providing clients with a great construction experience and embodies what it means to be a great team player. Ryan’s career progression has been through his own willingness to grow and learn. Keep up the good work, Ryan!

 

 

Patrick TurnerPatrick Turner | Project Manager II

Patrick re-joined our Team in May 2021 and jumped right into running successful projects. His keen eye for detail and ability to listen before acting has provided the opportunity to improve internal processes and strengthen relationships with owners and sub-contractors. Patrick’s drive, commitment to grow and ability to clearly communicate are just a few reasons why he’s been promoted from Project Manager I to Project Manager II. Patrick’s efforts will continue to make our construction team stronger and more efficient. Congratulations on a well-deserved promotion, Patrick!

 

 

Richard HenningRichard Henning | Project Manager I

Richard joined Bush Construction as a Project Engineer, and we’re delighted to announce his promotion to Project Manager I! Richard has taken the reigns and successfully been running a very large historic development project, the Clinton Culinary project and many others. He’s shown great drive and initiative in learning the ropes, and we couldn’t be more excited for Richard’s future at Bush.

Self-Perform vs Sub-Contracting for Small Construction Projects

When a commercial general contractor is hired to “self-perform” work it means the project is completed directly by the contractor’s own skilled labor force. Typically, a contractor will self-perform activities such as demolition, carpentry, casework, doors, and hardware, framing drywall, masonry, and other specialty tasks.

When to Consider Self-Perform over Sub-Contracting

Self-perform works well for projects that are smaller in scope or those that require a fast turnaround. For example, a facility upgrade, a backlog of maintenance projects, or when the contractor is already on-site and asked to assist with an additional project.

While self-performing doesn’t work for every construction project, selecting a contractor with these capabilities brings many benefits to business owners, including:

  • Cost efficiencies – results in a more efficient and streamlined construction process, saves time, money and eliminates additional service fees.
  • Increased control – relies on the contractor’s thorough experience to create and maintain schedules and ensures the project is completed on time and on budget.
  • Faster project starts – takes advantage of the contractor’s speed and flexibility to directly assign its team to a job site.
  • Quality assurance – benefits from the contractor’s talented team of high-skilled laborers that have a history of working together on multiple project types across many industries.

Bush Construction’s Self-Perform Capabilities

With years of hands-on experience and training, our skilled workforce will deliver an exceptional outcome no matter how big or small your project is. Whether you need help installing new doors or cabinetry, replacing baseboard trim, changing the flow of your entryway or common area, our trained carpenters are dedicated to working with you, and with little disruption to your business.

If you’d like to learn more about Bush Construction’s self-perform capabilities or with assistance budgeting future projects, fill out the Contact Us form below.

 

Meet the Team: Ryan Welborn

Ryan pictured with his wife and three little girls

Continuing our “Meet the Team” series, we’re kicking off this week profiling Ryan Welborn, Director of Construction. Ryan is a highly respected problem-solving machine with a sense of humor and a genuine love for his family.

Where do you live?

Orion, IL

What do you do at Bush Construction? 

I manage projects under construction and provide guidance/support to fellow associates who are managing projects of their own.

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

My father.  If you work hard, more often than not, good things will happen.

How do you prefer to start your day? 

I like to start really early in the morning before the family gets up with a cup of coffee organizing for the day to come.  By the time they are awake, I have typically caught up on the random things from the previous day and can spend time focusing on getting them ready for school and daycare.

How do you prefer to end your day? 

Hanging out with my wife and three little girls.

Meet the Team | Leslie Wells, Senior Project Coordinator

Leslie pictured with her husband, Mike, and son, Graham.

If you’ve worked with Leslie you know that one of her many strengths is providing clear and concise communication. Her high-energy, organized, and go-getter personality makes her a valuable asset to all of her project teams.

Leslie has been one of Bush Construction’s biggest cheerleaders, from leading our daily stretch and flex to assisting in any number of our philanthropic efforts. She joined the team in 2016 as a project coordinator and was recently promoted to a senior project coordinator.

What do you do at Bush Construction? 

I am the Senior Project Coordinator and am responsible for:

  • issuing and tracking contracts.
  • spinning up projects in our project management software.
  • leading the closeout process for projects that I am the PC on.
  • managing team members’ schedules.
  • assisting with cost tracking (create/issue/track sub and owner change orders).
  • managing our project coordinator/preconstruction coordinator department.
  • collaborating across multiple project teams to ensure successful project outcomes.

What’s one professional skill you’re currently working on?

I am currently working on studying for the Construction Industry Technician course through NAWIC.

What’s your go-to productivity trick?

I first prioritize my day then knock out tasks that will take the least amount of time first, and go from there.  Headphones – they are also necessary some days!

What’s a work-related accomplishment that you’re proud of?

I am proud to say that before coming to work for Bush Construction I had minimal knowledge of the construction industry. I have been able to be successful and gain so much knowledge working here thanks to a team that welcomes diverse opinions and provides opportunities for growth.

What do you enjoy doing in your spare time?

I don’t have a lot of spare time, but when I do I enjoy being outside and anything that involves being with our friends, family, and their kids.

Where do you live?

My husband, Mike, and our son, Graham, currently live in Davenport where we are both from. We recently purchased a property in Blue Grass, Iowa, and are in the beginning stages of building our forever home!

 

Foundational Principles for Quality Construction

At Bush Construction, our experience over the years and across industries continues to demonstrate the importance of quality construction played out each day on actual projects. In fact, we manage each project from inception to completion on the principle that quality comes first. We base our approach to excellence on specific foundations of quality construction.

Five Pillars of Quality Construction

1. Experienced Project Management and Support Team

Industry experience is vital for quality construction. That starts with a highly trained and knowledgeable project management team. Our leadership understands how to best build a support team designed to successfully execute the project design plan to ensure quality construction, including proper schedule management. Without the foundation of a confident and informed team, the project risks a lack of overall quality.

2. Clear and Consistent Communication

Whether we are communicating internally with our team or externally with our clients, we strive for clear and consistent communication. We allow time for questions and discussions to ensure all parties understand the direction and details for each step in the project. We encourage each team member to speak up if problems arise to avoid quality issues down the line. We also consistently communicate the standards and expectations of our entire company to instill trust that when you work with Bush Construction at any level, you can expect quality.

3. Detailed Design Plan Implemented with Job Site Quality Control

While our overarching quality standards add value on a macro level, true quality construction comes through strong detail management. We implement each detailed design plan with specific job site quality controls. For every project, each stakeholder approves the final design plan before construction starts. In addition, every person on the project knows exactly what’s required to do their job right. Quality control checks are in place for completed tasks to identify problems early in the process.

4. Established and Trusted Relationships with Suppliers

Arguably, the most important foundation for quality construction is the quality of the supplies used for the project. We value our established and trusted relationships with our subcontractors and suppliers. And because of our excellent relationships within our local subcontractor and supplier market, we are consistently able to offer competitive pricing.

5. Investment in Industry-Leading Technology

Technology matters in quality construction. From 3-D design tools to advanced scheduling applications, the right technology ensures each construction project adheres to the best design and schedule standards. In addition, technology provides added layers of protection for quality construction, including accuracy and safety.

Quality Construction Based on the Best Knowledge, Experience and Resources

At Bush Construction, we prioritize quality construction based on a foundation of integrity. Across all our companies, quality is paramount with each project and customer interaction. We employ standards for training, operations, and project management to ensure consistent quality. In addition, the breadth of our resources allows more control over the quality of component parts and processes.

Contact Bush Construction to discuss how we can apply our standards for quality construction to your next project.

 

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

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