Friday, May 30, 2008

Contracting for Church Design & Construction

Which Way is the Right Way? There are a myriad of ways for a church to contract for the design and construction of a new church. Today, many churches are built by what has become traditionally known as the design-bid-build method. This is the conventional general contractor approach, where the church hires an architect to design the building, the design is sent to bid, and builders submit bids to build the building, usually at a fixed cost. This is undoubtedly the worse way for the church to contract for the design and construction of their church.

There is a growing trend towards design-build, which, while better than design-bid-build, is not the best method in terms of lowering cost and risk. In a typical design-build model the church hires a builder by who, in turn, hires an architect who does the design work for the builder. The drawback, however, is that the architect works for the builder, not the church. This can put the church at a disadvantage as the possibility exists that the builder and architect can make design decisions that benefit the builder and architect (i.e. raise their profit), and not the church. In many cases, design-build has a drawback similar to that of the conventional general contractor model, a fixed price closed book contract where the church does not know all the costs of the building program and cost savings go to the builder, not the church.

Diametrically opposed to the sequential, and somewhat disjointed, design-bid-build delivery model, is the team approach using a construction manager. The team approach integrates the church, builder and designer together at the beginning of the design process to work in parallel throughout the design and construction process. This parallel team method provides the church with a number of advantages including: time savings, less duplicated effort, a design whose cost is counted throughout the development process, and a building design that is a collaborative effort rather than the product of a somewhat disjointed and adversarial process. All of these benefits add up to significant savings in time, cost and effort while producing a superior result.

If your church is planning to build, it will greatly benefit from having an “ideal model” to emulate. In the best church construction scenario, the church will have begun preparation to build well in advance of the design and construction phases, and accomplished two very important tasks. First and foremost, it should complete a needs and feasibility in order to objectively understand what it needs to build, what it can afford to build, and how to pay for it. (A needs and feasibility study is a prerequisite step for both architectural design and raising money through a capital campaign.

The capital campaign is the second task that the church should begin as far in advance of building as possible. Among other benefits, a capital campaign will help raise money for the up-front costs of building and potentially reduce the amount of money that needs to be borrowed. It would be in the church’s best interest to get a church building consultant, either from within their denomination or an independent consultant, for both the needs and feasibility and capital campaign. Both of these important tasks will be greatly enhanced by the wise counsel and experience of an outside consultant who is both experienced and objective.

This brings us to the model that will save the church the most time and money, reduce its risk and stress, and has the highest probability of providing the best building solution. The ultimate model for church construction is one with a consultant involved early in the process to determine needs and feasibility and execute a capital campaign who is working in a team consisting of a licensed architect and a construction manager working in an open book method where all costs and accounting are open to inspection and is working for a fixed fee.

The further away the church gets from this model, the greater the potential amount of cost, risk, and time the church will experience in their church building project. It is also important to remember that there is a lot of difference between an architect (or builder) that has done some churches and a church architect (of builder).

To get the full 4-pg article that describes this in more detail, you may request a copy from the author by using this contact form.



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Wednesday, May 14, 2008

Church Building Plans - The New Paradigm

I am really exited over the relationships we have built with a number of church builders and architects. However, the relationships I am the most stoked over today are those with 3 forward looking architectural firms (who all have a heart for the church) that I believe are driving a paradigm shift in how many churches will go through the design process.

As I have previously noted, it is possible for churches to get church building plans from previous building programs for a fraction of the cost of design from scratch. Granted, these plans need to be modified for local conditions and building codes, but the church is able to save approximately half of the cost of their church design by starting with existing plans.

There are three distinct advantages, in addition to cost savings, in starting with existing church plans:

It saves time. It is much easier (read faster) to pick out an existing plan rather than try to go through the give and take process of trying to explain it to an architect. It is much like picking out a suspect from a lineup instead of trying to describe them to sketch artist.

Using existing, or stock, building plans also allows you to get an accurate construction cost early in the process from working drawings that cost as little as $2,995 - as opposed to spending 10's of thousands (or more) to get to the same point designing from scratch, especially when the vast majority of churches cannot afford to build the plans that the architect typically provides in the first pass.

Likewise, you can start the preliminary plan approval process sooner with the city or county, again, without having to invest months and tens of thousands of dollars to get this process rolling.

In addition, existing church building plans are a definitive point for identifying what changes the church would like to make. I always say "it ain't yours 'till you mess with it", and this is certainly true of church plans. By limiting changes to interior walls and not changing the fundamental structure of the building, these changes will not make a significant impact on the overall cost or invalidate the preliminary cost estimate. Once the church has made all the red-line changes they feel they need, the architect can give them a quote on turning those uncertified plans into final, sealed construction documents, usually at 40-60% less than the traditional design process.

As a church building consultant I recommend that any church should at least investigate this option as part of their due diligence. To make it even easier, we offer a church plan search service at no cost to the church. We have a close working relationship with all three of these industry changing firms and we would be please to help you find the right church building plan for your church

Next post, I will show how this fits into a larger strategy that I consider just about the best way to design and build a church.