REE 5865 Real Estate Construction Principles

Prepare a schedule of construction activities. I am less concerned about the accuracy of your durations and more interested in your logic and how events and tasks are tied together.

There are lots of free on-line tools for this, and both Microsoft Word and Excel have templates you can download or access. The schedule does not have to include every single task or be incredibly complicated. Just something to use as a starting point to understand how long things will take, when different tasks can start, and how it all ties together.

Liquidated Damage Calculation:

Owners and Contractors are likely best to agree to a daily liquidated damage amount for every day that the project is late. The amount should be a reasonable estimate of the Owner’s carrying cost. This would include interest expense and, perhaps, any administrative or other time-related expenses associated with the project. This does not include any amounts to be paid to your contractor, as LDs would only kick in if the contractor was late. It could, however, include fees to your design team for project administration, inspections, etc.

Please think through and provide what your variable time-based costs of carrying your project will be. Please also calculate the daily rate to propose as LDs in your contract. Provide an explanation of how you calculated your costs.

agreeing to daily rates with your contractor for their daily costs associated with your project, so that if the owner delays construction, the amount a contractor is entitled to will also be established. You should be keeping that in mind as you calculate your LD amount because the contractor will also want a daily rate inserted. It is in everyone’s best interest to be reasonable.

Construction Components:

What changes would you make?
What risk mitigation protocols would you implement during construction to avoid defective and non-conforming construction?
Would that include retention of outside experts/inspectors?
If so, who would you hire? Please identify the type of experts/inspectors and do some investigation (on-line or otherwise) to identify specific firms of people who could be a resource.