Choosing Subcontractors

Most design/build firms are at the top of the building "food chain." That puts us in a position to choose and work with a variety of subcontractors to get a job done. 

Some of those subcontractors could include:

• Electricians
• Plumbers
• Inspectors
• Dry wall specialists
• Concrete providers
• Interior designers
• Glass specialists
• Door and door frame professionals
• Painters

Many of these trades are unionized and most are licensed or regulated in some way by the state or municipalities.  Knowing what to look for and then matching the partner to the job is a critical process.  Things to look for and consider as you choose a partner:

• Are they licensed or trained?
• How financially stable are they?
• Have you seen any of their work?
• Do you have any references for them for whom they have done work?
• How long have they been in business?

These basic questions will get you started.  If you need further help in choosing a subcontractor or need help with a recommendation, please contact us at www.sykesconstruction.com.

The Sykes Team

Build Out Timeline

When you choose the design/build team for your enxt project, consider the processes they use.  Here is a simple guide of what to look for in the way of steps in a process:

1. Do they have a preliminary agreement that spells out the details of who does what by when and for how much? How much of a deposit do they require?
2. Is there a step for approval of the design and preliminary construction  budget?
3. When will the architectural and engineering documents be complete? What are they comprised of and who signs off on them?
4. Have they established a construction budget and schedule? Have you approved any contracts?
5. When will the project be 100% complete?

These are five basic steps--obvious, there are more.  However, these are the basics and a framework on which you can build your agreement, plan and finished project.

The Sykes Team



www.sykesconstruction.com

Renovation

A great bottom-line solution to your need for retail space is renovation rahter than new build.

In today's economy, renovating your existing property is one of the most cost-effective ways of drawing the attention of both tenants and customers.

Renovating your property can bring new financial strength to your bottom line.  With ground-up development opportunities limited in today's economy, and small shop tenants struggling with limited access to credit and weak sales, a great renovation can help:

• Fill empty space.
• Bring in tenants with stronger financials, limiting your financial exposure

Increased cash flow is vital.  By enhancing your existing property, with its proven market and established neiughborhood, you are achieving that goal in a direct way.

In a market where competition for tenants is intense, putting a new face on your property may be the difference maker in getting retailers to sign on the bottom line and turn them into tenants.

Consider renovation over new build.  Visit www.sykesconstruction.com.

The Sykes Team

The Finished Product: Northern Tool & Equipment's Plano, Texas, Store

After months of planning and hard work the Plano, Texas, Northern Tool and Equipment store opened.  Here are some photos of the finished store.

The front entrance is typical of their stores. wide, welcoming front power doors and large, prominent logo signage.

Lot planning assures adequate and comfortable parking.

Once you come in the front door, gondolas and cash wraps are place strategically to take advantage of the space.

The aisles are wide and accessible, meeting all local and national code requirements.  Floor coverings are uniform and to the specifications of Northern Tool.

Lighting is uniform and meets both company and code requirements.Power and communications cable routing is convenient and compliant.

On the exterior, dock areas are open and accessible for deliveries and carefully placed so as to not inconvenience customers.

Exterior power requirements take advantage of the shape and location of the building and are compliant.

Come visit this store on North Central Expressway (US 75) in Plano, Texas.  We're proud of our partnership with Northern Tool and Equipment.

The Sykes Team

Construction Costs: Price Increases are Already Here

The much ballyhooed threats of price increases for construction materials are finally arriving. We’ve seen two price increases on steel in the last 4 weeks – and we’re being told to expect at least one more within a short period.

For example, steel studs for light gauge framing has gone up 10% in the last 30 days.

Other costs are going up as well:

• Copper pipe and wiring, rental equipment, diesel fuel and gasoline. 
• Lumber is up 3.4%.
• Ceramic tile 2.3%.
• Diesel 2.3%.
• Structural steel 2.1%. 
• Concrete, on the other hand, seems to be holding.

What’s happening? Well, several things appear to be finally coming home to roost:

• Steel prices are going up due to increase costs of iron ore as well as coking coal (affected by the floods in Australia of all things.)
• Crude oil is approaching $100 per barrel is affecting everything. From the cost of production to the cost of delivery. Get ready: $4.00 per gallon gasoline is going to be here before you know it, and some are predicting $5.00 per gallon sometime within the next 12 months.
• Rapid inflation is an ongoing and now an ever-looming threat. According to Reed Construction Data, the Construction Materials Price Index jumped by 9% in December. This represented a 5.4% increase from a year ago. It appears that everyone is predicting this for the near and foreseeable future. This inflation is being driven by (1) higher world demand, (2) raw materials costing more (see above); (3) delayed response by the suppliers to this stronger demand. We’ve talked about inventories being depleted – this is a reflection of that.

• Shrinking contractor margins which have pretty much absorbed construction cost increases for the last year are now coming to an end. The contractors (that remain) are now beginning to raise margins and demand better payment terms.

All this being said – now what? We’re not seeing many inquiries to look at new construction. We are beginning to see an increased interest for remodels and reconstruction. Older retail centers and commercial buildings in established neighborhoods are starting to get more interest. The cost of gasoline is going to start putting a lot of pressure on the cost to commute – from the far, far new neighborhoods (which there are fewer of currently) back to the established business centers.

While this may give you a negative impression, the reality is that even with these cost increases coming, we’re seeing an increase in interest from developers and property owners. We’re hearing optimism from the leasing agents. There is money and interest in rebuild/remodel projects. Interest and money for the newest center out in the newest mega neighborhood is out there but not at the feverish pitch we all grew to love. A fresh face on an older center in a close-in neighborhood to attract those cherished new tenants seems to be the focus right now.

Well, that’s what we’re seeing. How about you? I’d like to hear your opinion on this. Call me or email me. Let me know what you think.

Be Blessed.

Dave and the Sykes Team

The People Who Work Here: Dominic Crespo, Project Manager

Dominic Crespo is one of Sykes’ “go-to” guys. Dominic has a decade of wide-ranging construction and real estate experience. He has established a reputation as a problem solver and one of those special people that bring the project in on time and on budget.

At Sykes, Dominic’s management efforts are crucial to the on-going success of the Toys R Us and Northern Tool and Equipment projects. His continued application of Sykes’ project management principles has allowed Dominic to routinely start more projects like two most recent ones located in Austin, Texas. These two projects are Texas Bright Ideas and ITT Technical Institute. While these projects are underway, he has also successfully completed a Toys R Us located in San Antonio, Texas.

A graduate of Michigan State University with a degree in Building Construction Management, Dominic was President of the Student Builders and Contractors Association (SBCA) . Dominic loved the time he spent in East Lansing, Michigan, while studying at MSU, and is an avid Spartan fan.

His experience ranges from single-family housing, office, retail, industrial and beyond. Dominic’s sales and field management positions with Ryland Homes and Centex Homes prepared him for his commercial career with CASCO as an architectural project manager. Dominic came on board with Sykes right after his time with CASCO, and has brought to the table a special skill set that allows him to effectively communicate with subcontractors, inspectors, owners and architects alike.


The Sykes Team

Examples of Our Work: Toys R Us

We here at DSKW & Associates are proud of the work we do and the people who work here getting that work done.

As one of the few true design/build firms in the nation, we are very fortunate to have worked on and completed a number of projects.  Our partners and clients in the big box retail segment included Toys R Us.

This national retailer is using a strategy of pairing their flagship Toys R Us brand with the Babies R Us offering.  In the case of the Texas stores, we are reworking existing structures, ranging from housewares stores (Northpark, Dallas) to supermarkets (Las Colinas).

Timeframes and schedules were clearly adhered to. Budget discussions were regular and project management meetings top of mind.

For more details on how this project was managed and accomplished on time and within budget, please contact us at DSKW & Associates.

The DSKW Team