Scope of Work
- Based on the plans a scope of work will be drafted for your review
- Final scope of work will be given to subcontractors along with plans for their use in preparing proposals
Pricing Stage
- Copy of plans will be provided to subcontractors for their proposals
- Proposals will be scrubbed for accuracy and pricing
- Value engineering will be used to keep costs down
- Once pricing is received a preliminary budget is prepared and reviewed
- Meeting will be held with you to review budget.
- Examine areas of concern
- Provide possible alternatives
- Send out for bidding again based on changes
- Meeting will be held with you on the revised preliminary budget
- Changes made on preliminary budget until approved by you
Contract with Island Construction
- Once the preliminary budget has been agreed upon, you and Island Construction enter into a construction contract which can either be a Cost Plus or a Stipulated Sum.
- A Cost Plus Contract is when you pay the Cost of Work plus a percentage of the Cost of Work to Island Construction for its overhead and profit.
- Cost of Work includes all costs incurred by Island Construction in the performance of work on your home. Costs include but are not limited to:
- Labor
- Supervision
- Subcontract costs
- Materials and equipment
- Rental fees
- Builders risk insurance
- Permit costs
- Impact fees
- Cleanup
- Debris removal
- A Stipulated Sum Contract is when you pay an agreed upon price for the construction of your home. Any changes made after the contract is signed are handled through change orders.
Construction Stage
- Construction begins after:
- Signed contract with Island Construction
- Recording of Notice of Commencement
- Receipt of permit from the appropriate building department.
Payments to Contractor and Subcontractors
- Island Construction enters into a subcontractor agreement with all subcontractors that do work for us. The agreement outlines what we expect from the subcontractor, terms of payment and what the subcontractor can expect from Island Construction.
- Subcontractors will submit to Island Construction a Request for Payment by the 25th of each month for work they have completed for the preceding month.
- Each Request for Payment is reviewed by Island Construction to ensure that all the work has been completed to its satisfaction for that period of billing.
- An Application for Payment is then compiled by Island Construction for all the approved work completed through the 25th of the month and will be presented to you and your lender on or about the first of the month along with lien releases from those subcontractors who provided a Notice to Owner and were paid the prior period.
- Your lender will send a bank inspector to review the project and approve the draw for funds.
- On or about the 5th of each month, after receipt of the funds from your lender, Island Construction will pay the subcontractors in exchange for a lien release from those subcontractors providing us with a Notice to Owner.
- When all construction is complete, your lender will require final lien releases from all subcontractors filing a Notice to Owner, a certificate of occupancy, and a final contractor’s affidavit before final payment is made.
Client Reporting
- Island Construction uses the latest technology to provide you with quality reporting including:
- Monthly budget and variance reports
- The monthly budget and variance reports are for a Cost Plus Contract only.
- If you use a Cost Plus Contract, Island Construction will provide you with an easy to read Excel report monthly showing you the project budget along with a variance report in Word. The project budget and variance report will show the original budget, costs to date, and monthly budget variances with written explanations.
- Bi-weekly progress reports
- Progress Reports on day-to-day activities, issues, work completed and work to be completed by the next report will be sent to you bi-weekly.
- Digital photography
- Digital photos will be e-mailed to you bi-weekly. For out of town clients, the digital photo reports will allow you to follow the job progress closely.