Construction Process necessary elements to take into account, of general categories and specific items Residential development is whether you contract the work or do it that you will need to consider for your complex and costly, whether it in-house. capital budget: is high-end condos or affordable Land: Purchase price; taxes, fees, legal rental housing for low income Project Costing costs related to acquisition of the property; households. Skilled and diligent Project costing is the process of Servicing:The costs of bringing power, management and coordination assembling and confirming the capital telephone, water and sewer service, are necessary to ensure accurate costs, from project conception to project roads or sidewalks to the site; completion. As the concept develops into costing and a timely, efficient Municipal Fees: Development and detailed plans and designs, the information construction or renovation building permits, levies, fees, provided by quantity surveyors and other development cost charges; property process. professionals becomes clearer and more taxes during construction; specific.When municipal approval costs Professional Fees: Architect, structural, are defined and contractors' prices are mechanical and electrical engineers, When pursuing a vision of providing received, the project costing process geotechnical engineer, landscape good quality affordable housing in your becomes more precise. It is essential to architect; quantity surveyor; community, you may consider either new have reliable financial information to development consultant; legal counsel construction or renovation or successfully finance the project and for land transfer, contract advice; conversion of an existing building.There market your units.Your development Construction Financing: Interest on is an array of specialists in costing, consultant, quantity surveyor, architect, monies borrowed during the planning, managing, and building involved and funding agencies can help you to get construction period only, mortgage in the many aspects of multi-unit up-to-date figures. insurance premium; lender fee; development and it is rare to find one Organizational Expenses: Marketing; person who can do it all. If your Capital Costs utilities to the site; liability and organization does not have an builder's risk insurance premiums Capital costs are directly related to experienced staff person dedicated to during construction; property development including 'hard' the project, consider engaging a qualified Construction, Renovation, or costs like land and construction and 'soft' development consultant to guide the Conversion Costs: All construction or costs such as consulting and legal fees, process.This fact sheet outlines the renovation materials and labour; permits, and financing costs. Here is a list P ro j e c t C o s t i n g a n d t h e C o n s t r u c t i o n P ro c e s s
in-suite appliances; common laundry,
kitchen, and office equipment; amenity Suggested Activities and dining furniture; landscaping; new home warranty fees; Use a spreadsheet software program to calculate your budget and keep track of Contingencies: An allowance to cover each version as the information changes. unexpected expenditures; Before you have professional consultants on board, you can still develop a GST: If the Goods and Services Tax preliminary budget:Talk to other groups that have recently developed housing to applies to your project, build this find out about their costs. Research local and project-specific information, and expense into your capital budget. then compile the results. Have a professional quantity surveyor on your development team to track The Construction construction costs based on the architect's design as it evolves from concept to Process final working drawings. Knowing what to expect during the Consult with a qualified tax accountant to determine if you are required to construction phase will guide you and remit Goods and Services Tax on the project upon completion your group in planning to monitor the Get in touch with local non-profit housing providers to find out about typical process and conduct organizational operating expenses for similar buildings to your planned project. activities so that the project is ready to Check out the CMHC Affordable Housing Project Viability Assessment Tool for occupy when the construction is rental projects at www.cmhc-schl.gc.ca. complete.The actual schedule of a construction project will vary based upon many factors such as size and complexity Construction Procurement Construction Stage of the proposed development, site and Models Construction projects work through the weather conditions, material and The two most common construction following steps: foundation; framing; contractor availability, the knowledge and contracts used to construct or renovate roofing; installation of windows and experience of those managing the affordable housing are stipulated price doors; siding; mechanicals including project, and the changes made to the contract and design-build or turnkey plumbing, electrical, heating, ventilation original contract after construction has contract. and air conditioning; insulation; drywall; begun. Most construction and renovation painting; interior trim and other finish projects will involve the following In the stipulated price contract, the work; flooring; cabinets, and countertops. elements: sponsor first awards an architect/ engineer contract to design the project. The architect administers the Design, Site Development, and After detailed project plans and drawings construction contract for their client Municipal Approvals are completed, a contractor is selected, (either the design-build/turnkey developer The architect will provide design usually based on competitive bidding, to or the sponsor in a stipulated price drawings to conform to the housing and perform the construction work.The project).The contractor submits regular service program for the future residents contractor then takes full responsibility monthly requests for payment for and comply with building code and for completing the project on time and at approval by the architect. In most municipal planning bylaws. Once planning the tendered price, under the terms of contracts there will be a 10% holdback approval is secured and funding/financing the construction contract.With the on monthly payments in case the in place, the project is ready to proceed design-build contract, the sponsor contractor fails to pay for materials or to full working drawings, tendering and contracts with a general contractor or contracts and a lien is placed against the the building permit process. These areas developer to both design and build the project.These funds are held in trust and are covered in separate fact sheets. project at a fixed price. only paid to the contractor the day the holdback period expires by provincial law.
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Project Costing and the Construction Process
As the owner, your group will be called
upon to make certain decisions during Suggested Activities the course of the construction such as changes to the design or materials, Learn more about construction procurement models and construction sometimes related to budget issues.Your contracts at the website of the Canadian Construction Documents Committee, architect and development consultant www.ccdc.org should be providing progress reports on Ensure that you have adequate insurance on the property during construction, the construction and guiding the renovation, or conversion, as well as builder's risk insurance and construction decisions you may face. performance bonds on the contractor. Prepare for management during the construction or renovation phase by: Renovation/Conversion Stage - Marketing the units and/or developing a waiting list; Renovation may involve simple repairs or - Developing management policies, systems and structures; extensive retrofit of structural or - Planning amenity and recreational programs; and mechanical systems to a building you own or plan to purchase. An existing - Preparing for move-in. apartment building may retain the unit Become familiar with the general scheduling path in order to work in layouts but require an elevator or dining coordination with the construction or renovation phases. room to meet the needs of more frail Be sure to arrange with funders and lenders for timely payment to the general residents. Municipal and provincial contractor. building codes and regulations may Hold regular meetings with existing tenants in a residential renovation project, require upgrades of electrical or keeping them informed of the plans and the progress, and addressing their mechanical systems to meet modern concerns about the impacts of the changes. standards. Making the building more energy efficient may actually pay for the upgrades over time with the money Always get a written contract with the deficiencies is provided to the contractor saved on heat, light, and water. An renovation company, describing the work and a holdback value is assessed, to be existing residential building that is to be done and what it will cost. No paid upon final project completion.When occupied requires a plan for relocating matter how small or large the scope of the architect declares that construction is tenants while renovations are underway the renovation or conversion project, be substantially completed, the municipality in their individual units. sure that the renovator is licensed, hires will inspect the building to ensure it If you are converting a non-residential skilled workers, and is properly insured. conforms to basic safety standards and building, such as an office building or then issue an Occupancy Permit. warehouse, there are other considerations. Building Turnover/Rent-Up Depending on the type of housing tenure Conversion to residential from office and target population, the building rent- As the project nears completion, the space would entail significant revisions to up could take a few days or several architect identifies the construction the building layout to create dwelling months. deficiencies and ensures that the units with bathrooms, kitchens, and contractor has provided all of the bedrooms as well as mechanical and necessary documentation specified in the electrical upgrades.There may also be construction contract. A list of environmental hazards in older industrial buildings, requiring significant upgrades to residential standards.
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Project Costing and the Construction Process
windows will have a longer warranty Conclusion
Suggested Activities period.The contractor must correct Once you know that your project is deficiencies during this period. At the end Have the architect arrange for viable the wheels can be set in motion to of one year from turnover, there will be your group to have a tour of the build, renovate, or convert it.This is an inspection to correct any new project for a demonstration of perhaps the most intense time period, deficiencies and to ensure the building how all the systems work. with critical deadlines and decisions that systems are still operating correctly. will have a serious impact on the end Develop a detailed plan for move- result. It is important to make good use in that takes into account the use of the elevator(s) when scheduling Suggested Activities of the professional consultants in your development team to ensure accurate residents based on the floor they Pay careful attention to the cost estimates, a cost-effective design, and will occupy. warranties and guarantees when a smooth building process that completes creating your property on time. Warranty Period/ maintenance policies, systems and First Year Inspection procedures. Some warranties are not valid if recommended Most construction contracts call for a scheduled maintenance routines one-year warranty period.The warranty are not carried out. period is for all of the building elements. Some elements such as the roof and
Further Resources Affordable Housing Project Viability Assessment, and the Affordable Housing Project Viability Assessment Tool for rental projects, CMHC: www.cmhc-schl.gc.ca