Month: September 2019

Ways to Finance Commercial Construction Project

The Mechanism Behind Construction Loans

Taking into consideration the strictness behind credit and income requirements, it becomes increasingly crucial to find a lender for your new build.

In order to secure a construction loan, you may experience a more stringent policy in terms of credit scores and income guidelines, than you would for a home loan. So, it’s rather important to go through an evaluation as a borrower.

Construction-To-Permanent Loans

Apart from other options, a construction-to-permanent loan suits the needs of many as in the case of solid construction deadlines it proves to be reliable and efficient. If you have a contractor who has a history of completing each task on time, taking upon the option of construction-to-permanent loans is preferred. The mechanism runs smoothly where the lender pays the builder once the work is completed.

Finding Land to Build Your Commercial Building

If you plan on building a commercial building from the ground up, it’s best to find lots that are in established areas. In other situations, you may not have to start from scratch. Whether you’re looking to start a completely new commercial building or just need a retail renovation, keep in mind that location is everything.

Design-Build for New Construction

The decision made by you to hire an architect will largely depend on the area where you choose to materialize your commercial property. In commercial communities that are planned, there are contracts that are signed with a number of local builders. Hiring an architect, however, may be helpful if you have a large number of preferences and specifications. A completed drawing by your architect can help you achieve the permit to build as well.

Is There a Need for Title Insurance for a New Construction?

In order to avoid disputes in terms of legal transfers, getting title insurance shall be your safest bet. If a purchase is made in a tract of land in a suburb that is developing, then the property is most likely to have been covered legally. To get more insight on whether or not you need title insurance, you may need a real estate attorney who can guide you along the way.

Get a New Commerical Construction Inspection

After your commercial building has been built, it is still highly recommended to undergo the procedure of professional inspections. It’s always best to be safe than sorry. An inspection will ensure that the entire process goes smoother.

In a nutshell, be sure to find an agent that keeps your financing in check, have your credit in order so you can successfully finance your construction venture. In order to avoid any delays, get documents and plans pre-approved as certain fines may increase your cost. Be sure to research skilled builders that will provide value. Financing your project can be a challenging process, but strategic planning and an organized outline can help you in the long run. At Headwaters Construction Inc., we understand that commercial construction is not an easy process. Don’t worry, our team is here to make the process go smoother. If you’re interested in our commercial construction services, contact our office today.

Why You Need a Project Manager for Your Construction Project

A construction project involves numerous tasks, including multiple stakeholders, and this reality creates the necessity for a project manager. Here are some of the key tasks that a project manager will perform at your construction site:

Planning

The project manager is the glue that holds the entire construction team together. This individual has to be a very good planner so that the work progresses seamlessly. Experts at Headwaters Construction Inc. point out that the key planning tasks that a project manager performs include:

Preparing the work that each team member will perform.
Estimating the cost of each aspect of the work to be done.
Developing a schedule and timelines for the different deliverables of the construction project.
Reviewing the project to ensure that everything was executed in accordance with the specifications provided.

Make Hiring Decisions and Supervise Workers

At the construction site, the project manager is the boss. According to an Oregon construction company, the task of hiring different people needed to construct the building falls on the project manager. Along with this, he or she will also fire those who fail to deliver as expected. This implies that the project manager is actively involved in supervising the site workers. Those who aren’t doing the work in an expected way are either reminded about what is expected or ultimately fired.

Keeping the Project on Schedule

The value of a great project manager is portrayed through timely, completed projects. Many times, a lot is riding on the project timelines. For example, you may have given notice that you are terminating your lease at the premises you have been renting. If the construction delays, your business will be left with no premises.

Equally damaging is the risk pointed out by a Sacramento construction company that project delays often inflate the cost of the construction work. This is because the prices of different materials may experience inflationary pressures. So, the longer the project takes, the higher the exposure to these price hikes. Therefore, a project manager is crucial in ensuring that everything is done on schedule to avoid all the problems that come with project delays.

Staying Within Budget

Your project manager will generate project estimates using various software tools and their own experience in this type of work. Once those cost estimates are approved, and you sign the project papers, it is the responsibility of the project manager to ensure that the project stays within the agreed budget.

The best project managers from Headwaters consulting and planning division can deliver cost savings by finding ways to spend less than what was budgeted without compromising quality. If unexpected problems occur, the project manager has to be creative and find ways to resolve those problems without increasing the cost of the project.

Keeping You Updated

Chances are you don’t have the time or the ability to keep an eye on every aspect of the construction project yourself. California construction company experts reveal that a project manager comes in handy because they will keep you informed about the way the project is progressing, the challenges encountered, and the plans made to address those challenges so that the project remains on course and within budget. You may receive daily or weekly reports from the project manager so that you remain informed about the project.

If you ever discover that a project manager is withholding information from you, especially about the problems being encountered in the project, you should fire that person immediately.

Conflict Resolution

As already mentioned, a construction project has many stakeholders. This may include the project owner, the general contractor, the subcontractors, and other people involved with the project. Where there are many parties, conflicts are likely to arise.

A project manager from Headwaters Construction Inc., a general contracting construction company in Sacramento, will plan ahead and place safeguards to prevent sources of conflict at the site. If conflicts occur, the project manager should involve himself or herself to resolve the dispute as soon as it arises so that the project isn’t affected.

Drafting Contracts

A construction project is a complex undertaking that can quickly run into serious problems if proper documentation of what is expected of each party isn’t done. The project manager performs the task of drafting the different contracts required for the project to proceed. These include contracts with the client, all subcontractors, materials suppliers, and any other third-parties involved.

As mentioned earlier, the roles of a project manager will change depending on the specifics of the project. Therefore, the list above should not be regarded as exhaustive. However, it serves as a pointer to the importance of a project manager to the successful completion of the project. If you need help selecting the best project manager or you aren’t sure which company you should hire for your construction project, contact Headwaters Construction. We have a presence in California, Oregon, Washington, and other locations across the country. We will execute your project efficiently and cost-effectively.

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Why Tilt-Up Is More Cost-Effective

why tilt-up construction is more cost effective - Head Waters Building

Benjamin Franklin is credited with saying that an ounce of prevention is better than a pound of cure. As you are considering which construction method to use for your project, you might want to reflect on what Benjamin Franklin said and then select tilt-up construction. Tilt-up is a more cost-effective alternative not just at the time of putting up the structure but also throughout its expected service life. Construction experts at Headwaters Construction Inc., a Sacramento construction company, explain that the construction cost of a building accounts for approximately 11 percent of the total cost of owning that building. Therefore, your planning should factor in the long-term costs as you select a building method. Here are some of the ways through which tilt-up delivers cost-effectiveness.

It Collapses Project Timelines

During a time when the cost of major construction materials like steel experience double-digit inflation, it can get very difficult to predict what project expenses will be several months down the road.

This is where tilt construction can help bring some sanity to the construction process. This method collapses the construction timeline and makes it possible for the project to be completed much faster than it would have been possible with the traditional construction methods used.

The California construction company explains that this time collapse is possible because the work of various skilled professionals can be done simultaneously. For example, the plumbing work can be done at the same time as the electrical work since the runs for these different building systems will have been created within the tilt-up walls. Consequently, the project could even be delivered ahead of schedule and this timely completion saves you from price increases that could arise from price fluctuations when a project drags on.

Tilt-Up Delivers Energy Savings

Arizona construction company experts also assert that tilt-up construction delivers energy savings throughout the service life of the building. This is because the concrete panels form a tight building envelop, which prevents the leakage of heat.

How is this tight envelop achieved? With conventional construction services, numerous layers of the exterior structure have to be tied together. These layers include a waterproofing membrane and the exterior cladding.

Tilt-up construction reduces the approximate five layers of exterior skin on your structure to just two (the tilt-up panels and the insulation layer), making it less likely that gaps will appear where these layers of the building’s skin meet. The tighter envelop reduces the energy needed within the building. Headwaters Construction Inc. executives point out that a 55,000 square-foot school built using tilt-up technology used 23 percent less electricity on a daily basis than a 49,000 square-foot school that was built using the traditional building method. Thermal imaging studies also confirmed the better performance of the tilt-up building in comparison to other building methods. Therefore, you can be assured that you will enjoy energy savings over the life of the tilt-up building when compared to a building without tilt-up technology.

You can check out our projects using tilt construction

Reduced Lifecycle Maintenance Costs

Ask any Oregon construction company professional and they will tell you that unlike other construction materials, concrete becomes stronger the more it ages. This is another attribute that makes tilt-up more cost-effective in the long-term.

Headwaters Construction Inc. can give the concrete exterior surface of the tilt-up walls nearly maintenance-free finishes, like cast-in brick. These finishes are part of the concrete structure and will, therefore, become stronger as the building ages. In addition, the paint or other coatings used on tilt-up panels can be repaired easily or altered if you want to give the building a new look. These changes come at a minimal cost, unlike the costs that one would incur if the building had been constructed using a different method.

You can also remove windows or create others within the wall panels without creating an eyesore. This is because the sections where existing windows are removed can be closed up with concrete and painted to leave a uniform appearance with the rest of the wall. This isn’t easy to attain with other building methods and if it is attainted, there often remains a visible “patch.”

As you can see, the initial cost of constructing a building shouldn’t be the primary reason upon which you select the building method that will be used. Work with the experts at Headwaters Construction Inc. to assess different simulations of the lifetime cost of the building so that the final decision you make is the right one both in the moment and in the long-term.

You can check out our projects using tilt construction in Sacramento, CA.

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What Does a General Contractor Do?

You may be considering hiring a general contractor if you are planning a major renovation of your home or commercial property. If you are in doubt regarding how to go about the process of selecting a general contractor, or you are even doubtful about the necessity of this professional, this article will help you get some answers to your questions.

Who Is a General Contractor?

A general contractor is a professional who takes full control of a construction project. A general contractor could be a company, such as Headwaters Construction Inc., or it can be an individual.

If your project is a major one and you are unable to take on some of the tasks, it may be worthwhile to hire a local contractor. Whether you hire a professional or a company, they will be responsible for hiring labor, ensuring that the necessary approved plans are in place, and every other aspect of the project is in order.

What Are the Roles of a General Contractor?

While the specific roles or tasks of a general contractor could vary from one project to another, Sacramento construction company experts reveal that those tasks normally include many of the following;

Procures all the materials that are required for the execution of the project.
Provides or hires all the labor required to complete the project.
Provides all the tools, vehicles, and equipment needed for the construction project.
Hires all the subcontractors that are deemed necessary for the work of the project.
Makes sure that all the work done is of the required quality and it is done within the timelines set for the project.
Monitors project cash flows, timelines, and payments.
Keeps all the records of the project.
Takes responsibility for ensuring that safety protocols and systems are upheld during the execution of the construction project.

How Does One Become a General Contractor?

There may be no specific education requirements that one must have to become a general contractor, but professionals at a leading Sacramento construction company explain that one needs to have a combination of experience, training, and education for them to execute their duties competently.

Some jurisdiction has requirements that general contractors must meet to be licensed. For example, some states may require these professionals to pass a written exam before they are allowed to work as general contractors. It is therefore advisable for you to cross-check and find out whether your area has any formal requirements that general contractors must meet.

Can I Manage My Own Project?

You can act as a general contractor during the execution of your renovation or construction project. However, you must meet all the requirements expected for one to become a general contractor in your area.

Being a general contractor yourself will allow you to save some money on the project. To benefit, you’ll need to plan the project and hire subcontractors where necessary. Headwaters Construction Inc. suggests that you hire a professional to manage your project because it can save you from paying for your mistakes down the road.

What Are the Advantages of Hiring a General Contractor?

When you hire a general contractor, you don’t have to worry about anything since this professional will be in charge of every aspect of your construction or renovation project.

You also have the liberty to negotiate with the general contractor on the details of the project as well as the costs associated with the project.

Headwaters Construction Inc. experts also say that you are safer if you hire a general contractor because they are insured, licensed and has lots of experience. This works in your favor because you have some recourse if anything goes wrong.

What Are the Cons of Working With a General Contractor?

One of the biggest drawbacks of working with a general contractor is that they could be expensive if your renovation or construction project is small.

The general contractor doesn’t have the expertise to execute all the aspects of the project, so this individual or company will end up hiring subcontractors, and you will foot the tab.

When you hire a general contractor, you have no say regarding the details of how the work is done if you provided specifications and handed over authority to the general contractor.

How Does a General Contractor Differ from a Subcontractor?

While you directly hire the general contractor, the subcontractor is hired by and reports directly to the general contractor. This means that you, the project owner, has no say regarding who is hired as a subcontractor.

Additionally, a subcontractor’s competence is in a narrow field, and this individual or company only execute that aspect of the work. For example, one subcontractor may be hired by a general contractor in Sacramento to do the plumbing while another subcontractor will come in to do all the electrical work on the project. The general contractor will oversee all these subcontractors.

However, since subcontractors are generally more affordable than general contractors, it is less costly for you to hire and work with them directly instead of going through a general contractor.

The options are for you to either hire a local contractor or opt for subcontractors to work directly under you during the execution of your construction or renovation project. Assess your needs and abilities and then make an appropriate decision regarding which of these professionals is most suitable for your needs.

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