By Marc Goodin, CEO of Storage Authority www.StorageAuthorityFranchise.com
How Costly?
1 Month Delay = $54,000 lost income
3 Month Delay = $162,000 lost income
6 Month Delay = $324,000 lost income
The Math for 1 month
20 Rentals Missed, Average rental rate $150/unit, Average stay = 18 months
20 units x $150/unit x 18months = $54,000 lost a month.
And this does not include the extra lost carrying cost due to the delay.
Four Ways Guaranteed to Reduce Construction Delays.
1 Get change orders resolved and signed fast. Often, Construction completion is delayed by double the time it takes to get a change order. This is due to “subcontractor stacking.” If a contractor can’t proceed, he moves on to the next job and subsequent subcontractors also reschedule, causing a waterfall of delays
2. Mandatory weekly Job site meeting attendance by the owner and or his rep. Better and regular Communications & Scheduling make a huge difference. You are better off having one 1 focused job site meeting vs daily meetings. Owners or their rep must be part of the weekly meeting. Even if there is no open issue, a weekly meeting should be automatic. Updated written completion schedule should be provided at least every 2 weeks.
3. Checking the work as it is being done and never after a subcontractor is done! I have seen jobs where the final inspection is being done a week before opening and only half the screws were used on 600 doors. I have seen roofs put on backwards and not caught until it rained and water soaked the inside, causing a multiple month opening delay.
4. Having complete plans, specs, and clear bidding directions, including a page or two of items, often overlooked or often not included in contractors’ bids even if they are on the plans. ( Examples: signage, unit numbering, access controls, video surveillance systems, final building cleaning, gate details & specs, etc. Of course, this can also significantly reduce change orders and associated extra costs.
Cheers
Marc
Are you ready to consider the best real estate investment?
Are you ready to save time, money and make more profits?
Let’s set a time to talk this week. Marc@storageauthority.com
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