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Why Your Community Development Corporation Project Needs Preconstruction

Why Your Community Development Corporation Project Needs Preconstruction

Community Development Corporation (CDC) operates like other development entities, but with some key differences. Because CDCs depend on grants and government programs for funding, there is very little wiggle room with budget and time constraints. CDC project managers need to deliver results on time and on budget. However, anyone with construction experience knows the possibility of delays is very real.

When change orders disrupt the flow of progress, deadlines might be missed and costs may exceed a project’s budget. Other construction ventures may be able to compensate for lost time, but successful CDC projects hinge on efficient use of resources and sound execution. One of the best tactics CDC construction directors can use to ensure successful results is a thorough preconstruction phase.

Preconstruction Makes a Difference

Most CDC construction focuses on affordable housing developments and multi-family residences. Since these projects depend on strictly managed funding, it is absolutely vital to approach each new project with a firm grasp of the project’s feasibility, scheduling, procurement practices, and cost estimates.

Preconstruction helps ensure that all parties involved in the project share the same end goal and understand the steps needed to reach it. When a Community Development Corporation works closely with their general contractors for preconstruction, everyone knows their obligations and deadlines before the first steps of the build begin. This way, the project is far more likely to proceed to finalization unimpeded.

In the design-bid-build method, the project leaders will send a finished design to contractors and seek the lowest bid. This method aims to produce the most functional result at the lowest cost. Once a bid is accepted, the project leaders will procure building materials and begin work.

By creating a comprehensive preconstruction plan that includes a general contractor from the start, all parties will know what to expect. Additionally, preconstruction helps avoid the common missteps that typically lead to delays, budget issues, and safety concerns.

A Protection Plan for Your Community Development Corporation

Preconstruction-servicesWhen done properly, preconstruction is viable as a means of accounting for the many different variables throughout a project. Preconstruction ensures that the building site is safe, sustainable for future use, and properly weatherized for years to come.

Before work begins on a construction project, a site-tailored set of safety precautions should be drafted with the owner in compliance with Occupational Safety and Health Administration regulations. Selected vendors and suppliers should be familiar with protocols and regulations applied for the project.

Construction efforts in Rhode Island face some specific challenges as well, making preconstruction ideal for CDCs operating in the Ocean State. The cost of land is extremely high compared to other states, with finished lots accounting for as much as 45% of the total house prices. Additionally, wait times for permits and approvals are notoriously slow in Rhode Island.

Aside from land and permitting restraints, there is also the growing concern of simply being able to provide enough affordable housing for those Rhode Islanders in need.

Assuming a minimum wage worker puts in 52 weeks of labor a year, they would have to work 80 hours a week to earn the $39,892 annual salary needed to afford a two bedroom apartment in the Providence Metro. A thoroughly developed preconstruction phase helps ensure affordable housing can be made available to the people who need it – on time and on budget.

Finding the Right Partner

As a Community Development Corporation in Rhode Island, you should seek to recruit a reliable general contractor who can bring your projects to successful completion within all known constraints. Heroica Construction is a general contractor that self-performs a wide variety of finishing work guaranteed to take your project to the next level. We can develop a sound preconstruction strategy for your next Rhode Island affordable housing project.

Ready to start a project? Give us some background on your requirements and a member of our team will be in touch!

Rhode Island Affordable Housing Facts eBook


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