Case Study

Overview

A doctor chose to build his practice on his own. He retained a firm to perform architectural services at a reduced rate for the new facility. The architectural firm created a conceptual design and construction drawings for review. Upon receipt, the doctor reviewed the construction drawings and determined they “looked complete”. He used the drawings that only he reviewed, to obtain construction bids from local general contractors. Once construction bids were submitted, the medical professional chose the general contractor with the lowest price and entered into a contract for construction. The medical professional did not retain any industry professionals for architectural planning or construction review.

Problem

As construction progressed, it was apparent that the building did not have the specifications the doctor had envisioned. Room layouts were accurate, but seemed smaller than expected and the cathedral ceiling in the lobby was much lower than expected.

And it wasn’t realized until during the construction, phone lines, a security system, flooring and landscaping were not included in the construction bid as these items were not specified in the construction drawings. These costs turned out to be significant, and the doctor didn’t budget enough for these unforeseen costs, nor did he budget for furniture, equipment and moving costs.

Discovery

The doctor consulted with the general contractor as to why the building was missing standard mechanics and details. The general contractor advised that they built exactly what was in the architectural drawings and in their construction contract retained by winning the lowest bid.

The doctor then consulted with his architect about the same said issues. The architect said he provided exactly what was in their contract plus he gave the doctor the opportunity to review the drawings for final sign-off and prior to making final payment. The doctor realized that he was completely responsible for these missing costs.

Final Outcome

Once construction was complete, the doctor had to purchase and install inexpensive finishes just to finalize the building for open.

In addition, due to the lack of knowledge in construction, the electrical that was installed was basic and did not allow for enough power outlets, nor were they in locations for his equipment. All costly mistakes for a professional practice.

TC2 Opinion

This story is based on actual events that happen all the time in the construction industry. Ask anyone that has built or renovated a building for the first time and you’ll get more stories like this. Even after the fact, many building owners are completely unaware of most of the unnecessary costs and inefficiencies they paid for in their construction.

Saving money initially by hiring the cheapest, is a sure bet that you’ll spend more money in the long run. Having a consultant who knows the industry and hired specifically to represent your needs, is a small investment to protect the value of your business, reputation and your real estate. TC2 Consulting discovers, maintains and protects that value.