During the Discovery Phase of a new project, the developer wishes to minimize his or her at risk expenditures and not engage a lot of consultants until they are fairly confident in the viability of the project.
Initially, developers will utilize the B.O.W.A.G. method or “big ole wild a–– guess” to plug rough sitework costs into the proforma. However, an example of how dangerous it is to use this method to make decisions to move forward on developing a piece of land estimating $100K per acre versus $200K per acre on say a 50 acre site. The risk of not doing the required due diligence can be costly.
Paris Projects initiates the Conceptual Sitework Budget Process by attempting to confirm or further clarify issues identified in the summary of findings and address cost concerns previously discussed in our Discovery Phase of involvement.
An amazing amount of information can be gathered by research based on experience and knowing the right people to call and asking the right questions.
If existing or the lack of public electric, gas, telephone or fiber optic utilities are a concern, Paris Projects identifies the specific engineer(s) responsible for the area where the project is located and discusses anticipated costs and schedules for specific issues. As an example, a previous project required the relocation of high voltage electrical transmission towers to accommodate the proposed new development. A cost $1M and nine months of delay to the project, impacted the developer because new towers had to be ordered delivered and installed. Another incident involved the rerouting of a 36 inch high pressure gas transmission pipelines was required on another project costing the developer $1M and took over a year to work through legal easements and deliver pipe to the site.
Paris Projects will contact geotechnical firms to discuss typical regional practices and concerns that affect grading costs. As a few examples, Virginia has CARSC geology or caves that may require bridging with concrete slabs. The mountains of North Carolina consist of very dense rock that almost always requires rock blasting similar to mining operations. Expansive soils in Oklahoma and Texas require lime stabilization operations for both paving and building slabs. In Florida, where the water table is very near to the surface of the ground, it requires the development to dig a utility trench for de-watering with temporary pumps and pipes. This added requirement can cost twice as much as the grading of the entire site. These are just a few examples of untold risks a developer may face on their project without expert advice from a company like Paris Projects.
Paris Projects works with Civil Engineers to quickly confirm if water or sewer is available near the site. We also provide insight on the local municipality projects and their official’s hot buttons and concerns. On one of our projects, a city would not allow pump stations, as they wanted no maintenance responsibilities, requiring the developer to install several miles of off site sewer lines. This necessitated the need for both Federal and State DOT permits to bore under a four lane Interstate Highway.
Site work contractors can help with current and local unit pricing costs for paving, utilities and grading.
Utilizing the developer’s “concept” plan or layout, Paris Projects will rough out utility layouts, paving fields, dirt quantities, etc. We apply rough unit prices to the proforma to develop an onsite and offsite conceptual site final cost.
The Conceptual Budget is continually refined as more and more definitive information is confirmed with the hiring of design consultants. We recommend that early in the process an environmental assessment be performed, which can cost up to $3,500 per execution. Records are searched and issues such as the existence of endangered species, Indian or slave burial grounds, petroleum plume migrations, etc. are identified early. Uncovering contaminated ground water and verifying the existence of asbestos in existing structures can reduce costs and risks to the developer.
Additionally, these studies of geotechnical borings can confirm subsurface rock on the property and grading quantities which may be needed.
Armed with years of experience and overcoming a vast variety of site specific issues and obstacles, Paris Projects can develop a Program Schedule and initiate the assemblage of a qualified site design team with the knowledge and depth needed to handle the requirements of each specific job.
Keith Paris
President
Paris Projects, Ltd.
