Major Projects Process
Major Projects Process When it comes to building and renovations, there are a lot of pieces to the puzzle.
The Main Pieces • Time Line – You can’t start planning too soon! • Communication – Alert your Regional Housing Specialist • Architect – Greek housing is unique • Budget Pro-Forma – Let us crunch the numbers • Construction Bids – When the rubber hits the road • Budget Pro-Forma Round #2 – Tough decisions • Loans and Financing – Harder than it used to be
Time Line • From start to finish a major project typically takes 12-18 months • If building a new house, it might take 2-4 years to be in a position to afford it • Everything takes longer than you expect: – – – – – –
An architectural rendering about 90 days Permits, zoning, city requirements about 30-60 days Construction bids about 60-90 days Loan term sheets about 30-60 days Votes from HC board, chapter, Council about 30-60 days Construction about 3-12 months depending on the project
SCHEDULE FOR INITIAL ARCHITECTURAL SERVICES • • • • • • • •
Programming / Predesign Research - 2 weeks Programming Meeting - 1 day Complete the Program Document - 1 week Review and Approve the Program Document - 1 week Schematic Design 6 weeks Review and Approve the Schematic Design - 1 week Revise the Schematic Design - 1 week Prepare Colored Presentation Drawings for Fundraising - 2 weeks • Total Time – 14 weeks
Communication • When considering a major project, contact your Regional Housing Specialist (RHS) who will alert the Office of Housing • The sooner all the entities start working together, the smoother the process will work • You have a lot of resources at your disposal…. use them
Approval Process • There is a new process just passed by Council this year. • The policy attached to it is below Before a House Corporation proceeds with a major project (such as new construction, major renovation, or significant changes to the house or property), a financial feasibility study, construction or project plans, and a financial pro-forma will be submitted to the Building Committee for Council review. Major project is defined as any project with costs exceeding 50% of the house corporation’s required capital reserves or any project that will use Delta Gamma Foundation for fundraising.(Fall 2013)
Fundraising • After alerting your RHS about a possible project, the next step is considering fundraising • Why? • Who? • When? • How it works ….
Architect • Greek houses are unique facilities and require unique architects • It is important to have very clear expectations • Give the architect parameters regarding the finances • Ask not only what the other sororities have, but what is going to be trending down the road
Budget Pro-Forma • • • •
What is it? Why is it important? Who needs to see it? What information do we need? – – – – – – –
Estimate of the project Estimate of the loan if applicable When the project will start Cost of comparable dorm room/apartment If the women will be displaced Changes in live-in capacity when project is complete Current chapter budget
Construction Bids • Three bids are recommended • Pros and cons of having an independent architect and general contractor • What is in the bid and what is not? • How they work with the HC vs. FHC • Timing is everything • Who is responsible for what?
It’s All in the Details Typical list of what is not covered by either the architect or the builder
:
OWNER'S COST • • • • • • • • • • • • • •
Owner's Costs are in addition to the construction costs and usually range between 20 to 25% of the construction costs. Items often covered in this category include: Fund Raising Blinds / Mats Kitchen Equipment Arch / Engineering Fees Kitchenette / Laundry Appliance Landscape Architect Landscaping Interior Designer Exterior & Interior Signage Reimbursable Expenses Donor Recognition Furniture Soils and Materials Testing Telephone, Computer Network & Cable TV Special Inspections Security / Alarm system Building Permit, Water & Sanitary Builder's Risk Insurance Sewer Tap Fees Construction Loan Interest Payment / Performance Bond Closing Costs Appraisal fees / Lender's inspection Legal services Construction Cost Contingency
Budget Pro-Forma Round #2 • With real numbers from the construction bid, an updated pro-forma is completed • Analysis by the regional team and building committee helps determine the viability of the project • Tough decisions • What about fundraising and financing? • Remember your by-laws!
Loans and Financing • What does a bank want to see? • The risks from their perspective and how to prepare • Shop around, find out who other houses on campus have used. • Terms – – – – – –
Debt Service Loan to Value Appraisals Balloon Payments Amortized Hire a professional
Resources • Names we can recommend: – Pennington – Residential Capital – CSL
• Names others have used: – Hugg and Associates – Traenor – Krittenbrink
The Main Pieces • Time Line – You can’t start planning too soon! • Communication – Alert your Regional Housing Specialist • Architect – Greek housing is unique • Budget Pro-Forma – Let us crunch the numbers • Construction Bids – When the rubber hits the road • Budget Pro-Forma Round #2 – Tough decisions • Loans and Financing – Harder than it used to be
Time Line • From start to finish a major project typically takes 12-18 months • If building a new house, it might take 2-4 years to be in a position to afford it • Everything takes longer than you expect: – – – – – –
An architectural rendering about 90 days Permits, zoning, city requirements about 30-60 days Construction bids about 60-90 days Loan term sheets about 30-60 days Votes from HC board, chapter, Council about 30-60 days Construction about 3-12 months depending on the project
SCHEDULE FOR INITIAL ARCHITECTURAL SERVICES • • • • • • • •
Programming / Predesign Research - 2 weeks Programming Meeting - 1 day Complete the Program Document - 1 week Review and Approve the Program Document - 1 week Schematic Design 6 weeks Review and Approve the Schematic Design - 1 week Revise the Schematic Design - 1 week Prepare Colored Presentation Drawings for Fundraising - 2 weeks • Total Time – 14 weeks
Communication • When considering a major project, contact your Regional Housing Specialist (RHS) who will alert the Office of Housing • The sooner all the entities start working together, the smoother the process will work • You have a lot of resources at your disposal…. use them
Approval Process • There is a new process just passed by Council this year. • The policy attached to it is below Before a House Corporation proceeds with a major project (such as new construction, major renovation, or significant changes to the house or property), a financial feasibility study, construction or project plans, and a financial pro-forma will be submitted to the Building Committee for Council review. Major project is defined as any project with costs exceeding 50% of the house corporation’s required capital reserves or any project that will use Delta Gamma Foundation for fundraising.(Fall 2013)
Fundraising • After alerting your RHS about a possible project, the next step is considering fundraising • Why? • Who? • When? • How it works ….
Architect • Greek houses are unique facilities and require unique architects • It is important to have very clear expectations • Give the architect parameters regarding the finances • Ask not only what the other sororities have, but what is going to be trending down the road
Budget Pro-Forma • • • •
What is it? Why is it important? Who needs to see it? What information do we need? – – – – – – –
Estimate of the project Estimate of the loan if applicable When the project will start Cost of comparable dorm room/apartment If the women will be displaced Changes in live-in capacity when project is complete Current chapter budget
Construction Bids • Three bids are recommended • Pros and cons of having an independent architect and general contractor • What is in the bid and what is not? • How they work with the HC vs. FHC • Timing is everything • Who is responsible for what?
It’s All in the Details Typical list of what is not covered by either the architect or the builder
:
OWNER'S COST • • • • • • • • • • • • • •
Owner's Costs are in addition to the construction costs and usually range between 20 to 25% of the construction costs. Items often covered in this category include: Fund Raising Blinds / Mats Kitchen Equipment Arch / Engineering Fees Kitchenette / Laundry Appliance Landscape Architect Landscaping Interior Designer Exterior & Interior Signage Reimbursable Expenses Donor Recognition Furniture Soils and Materials Testing Telephone, Computer Network & Cable TV Special Inspections Security / Alarm system Building Permit, Water & Sanitary Builder's Risk Insurance Sewer Tap Fees Construction Loan Interest Payment / Performance Bond Closing Costs Appraisal fees / Lender's inspection Legal services Construction Cost Contingency
Budget Pro-Forma Round #2 • With real numbers from the construction bid, an updated pro-forma is completed • Analysis by the regional team and building committee helps determine the viability of the project • Tough decisions • What about fundraising and financing? • Remember your by-laws!
Loans and Financing • What does a bank want to see? • The risks from their perspective and how to prepare • Shop around, find out who other houses on campus have used. • Terms – – – – – –
Debt Service Loan to Value Appraisals Balloon Payments Amortized Hire a professional
Resources • Names we can recommend: – Pennington – Residential Capital – CSL
• Names others have used: – Hugg and Associates – Traenor – Krittenbrink
