Intelligent Interiors

Clients that are tracking the project’s costs should ask for a couple things, says Chuck Bainey, president of the Bainey Group, a contractor based in Plymouth. “One is a written, scope-of-work narrative describing the work that will be done, with a cost breakdown.” In about 75 percent of cases, it is the landlord, rather than the tenant who controls the bidding process, Bainey estimates. But even in that case, “it’s not unfair for the tenant to request a written, scope-of-work narrative and cost breakdown, so you can keep your own eye on the project.”

When beginning a project, Bainey also suggests an agreement on how the contractor will handle any cost increases caused by change orders. “Is the contractor going to have free rein to mark those up, or will there be an agreed-upon fee percentage that will be plugged in when a change is made?”

In today’s marketplace “there’s quite a bit of ‘hurry up’,” says Scott Tankenoff, a managing partner with Minneapolis-based Hillcrest Development, LLLP, which is a full-restoration developer and does selected third-party interior construction. “Our company has been called ‘the developer of last resort,’ which is a backhanded compliment. We are often a resource for companies that are in pinch. They need space very quickly and need to us to work on it immediately; there may not even be a lease signed yet.”

Often, that means starting work without the benefits of a full set of architectural drawings, and implementing changes on the fly. “The way to mitigate any of those issues is purely communication and coordination,” Tankenoff says.

Even relatively small buildouts in the under-5,000-square-foot category are a test of organizational and time-management skills and attention to detail. “Buildouts are more than just drywall, acoustic ceiling tile, and wooden doors,” Hayes says. “It’s also the details that make a space unique and that also make a project more expensive: the paneling and wall finishes, cabinetry, custom plaster, and stonework.”

Of course, the length of a lease has a major bearing on how much any landlord is willing to invest in improvements and tenant allowances, Takenoff notes. That means determining which improvements are to be considered long-term improvements, which ones are worth a substantial amount to the building tenant and owner, and which ones may not survive past the end of a three- or five-year lease. A longer lease means more time to amortize buildout costs.

The “green” building trend also has become more of a factor in finishing space, Tankenoff says. “More people want energy-efficient lighting. We have also had clients who insisted on energy-efficient mechanical systems. We have to really think about these things, to make sure we are complying with the building codes, while taking care of the clients’ desire to be energy efficient. There’s always a balancing-act that goes on.”