Chapter 2 Introduction to Construction Procedures Introduction Architect

Chapter 2 Introduction to Construction Procedures

Introduction • Architect or designer – Involved with several phases of preparation • • Plan preparation Zone changes Permit applications Bonding requirements Client’s financial statement and lender’s approval Contractor’s estimates Bid procurement

Loan Application • Vary depending on lender requirements – Plot plan – Prints – Specifications – Heat loss calculation – Proposed sale price – Copy of earnest money agreement

Individual Appraisal Requirements • Required to obtain financing to purchase or build a home or other building – Subdivision (i. e. , plat) • • Can be FHA approved Divides land into plots or lots Easier to develop or see When used for housing is called housing subdivision, development, or community

Individual Appraisal Requirements (cont’d. ) • Subdivisions not FHA approved – Information submitted to lender • Total number of lots • Evidence of street and utility acceptance by local authorities for maintenance • Covenants (i. e. , deed restrictions), conditions, and restrictions (CC&R)

Master Appraisal Requirements • Required to obtain financing for a subdivision including several homes – Five lot minimum – FHA or VA approved

Master Appraisal Requirements (cont’d. ) • Contains: – Location map – Copy of recorded plat and covenants – Letter from builder including: • Number of builder owned lots and number of lots proposed to be built on • Number of homes under construction and number completed and unsold

Change Orders • Any change in plans or specifications should be submitted to FHA or lender – Change orders • Notes if the described change increases or decreases value and dollar amount • Must be signed by lender, builder, and purchaser if structure is sold

Building Permits • Responsibility of application can fall to the architect, designer, or builder • Basic form identifying: – Major characteristics of structure – Legal description – Property location – Applicant information

Building Permits (cont’d. ) • Application usually includes two sets of plans and up to five sets of plot plans • Fee depends on construction cost – Determined by local building official – Based on a standard schedule – Divided into: • Plan-check fee paid upon application • Building-permit fee paid when permit is received

Contracts • May be complex documents or short forms – Agreement between client, general contractor, and architect • Main concern is that all parties understand: – Project to be completed – Period of time – Cost

Contracts (cont’d. ) • Completion date – Stages and payments • Surveys – Determine boundaries, area, elevations of land, structures, and other features • Insurance – Liability and performance bond – Workers’ compensation

Contracts (cont’d. ) • Conditions under which contract can be ended – Party fails to comply with requirements, becomes disabled, dies, or several other reasons • Contracts most commonly used: – Fixed-sum (i. e. , lump-sum) – Cost-plus

Completion Notices • Notifies all parties that the work has been substantially completed – Posted in a noticeable place on or near the structure – Must be recorded in the local jurisdiction

Completion Notices (cont’d. ) • Functions: – Given time period to file a claim or lien – Lenders may hold a percentage of funds for a given time period – Contractor posts so final payment may be made • Often posted with final inspection

Construction Estimates • Statement of probable construction cost – Prepared by architect or designer during design process – Gives approximation of expected construction cost

Construction Estimates (cont’d. ) • Construction estimating – Analysis of construction cost – Based on a detailed examination of materials and labor for all work – Estimate elements are referred to as a takeoff • Carefully identifies materials for specific aspects (e. g. , lumber takeoff)

Construction Estimates (cont’d. ) • Construction bids – Architect, designer, or general contractor seeks estimates from subcontractors • Subcontractors complete specific aspects – Become part of legal documents • Plans, specifications, contracts, and bids

Construction Inspections • Regularly scheduled code inspections – Required during specific phases of construction • Ensures methods and materials meet code requirements

Construction Inspections (cont’d. ) • Lender inspections – Conducted by the lender during certain phases of construction • Ensures materials and methods described in plans and specifications are being used – Disbursement inspections • Ensures work to be satisfactory before funds are released