Major Projects Process

When it comes to building and

renovations, there are a lot of pieces

to the puzzle.

The Main Pieces

• Time Line – You can’t start planning too soon!

• Communication – Alert your Regional Housing

Specialist

• Architect – Greek housing is unique

• Budget Pro-Forma – Let us crunch the numbers

• Construction Bids – When the rubber hits the road

• Budget Pro-Forma Round #2 – Tough decisions

• Loans and Financing – Harder than it used to be

Time Line• From start to finish a major project typically takes 12-18

months

• If building a new house, it might take 2-4 years to be in a

position to afford it

• Everything takes longer than you expect:

– An architectural rendering about 90 days

– Permits, zoning, city requirements about 30-60 days

– Construction bids about 60-90 days

– Loan term sheets about 30-60 days

– Votes from HC board, chapter, Council about 30-60 days

– Construction about 3-12 months depending on the project

SCHEDULE FOR INITIAL ARCHITECTURAL SERVICES

• Programming / Predesign Research - 2 weeks

• Programming Meeting - 1 day

• Complete the Program Document - 1 week

• Review and Approve the Program Document - 1 week

• Schematic Design 6 weeks

• Review and Approve the Schematic Design - 1 week

• Revise the Schematic Design - 1 week

• Prepare Colored Presentation Drawings for Fundraising - 2 weeks

• Total Time – 14 weeks

Communication

• When considering a major project, contact your Regional Housing Specialist (RHS) who will alert the Office of Housing

• The sooner all the entities start working together, the smoother the process will work

• You have a lot of resources at your disposal…. use them

Approval Process

• There is a new process just passed by Council this year.

• The policy attached to it is below

Before a House Corporation proceeds with a major project (such as new

construction, major renovation, or significant changes to the house or

property), a financial feasibility study, construction or project plans, and a

financial pro-forma will be submitted to the Building Committee for Council

review. Major project is defined as any project with costs exceeding 50% of

the house corporation’s required capital reserves or any project that will use

Delta Gamma Foundation for fundraising.(Fall 2013)

Fundraising

• After alerting your RHS about a possible project, the next step is considering fundraising

• Why?

• Who?

• When?

• How it works ….

Architect

• Greek houses are unique facilities and require unique architects

• It is important to have very clear expectations

• Give the architect parameters regarding the finances

• Ask not only what the other sororities have, but what is going to be trending down the road

Budget Pro-Forma

• What is it?

• Why is it important?

• Who needs to see it?

• What information do we need?– Estimate of the project

– Estimate of the loan if applicable

– When the project will start

– Cost of comparable dorm room/apartment

– If the women will be displaced

– Changes in live-in capacity when project is complete

– Current chapter budget

Construction Bids

• Three bids are recommended

• Pros and cons of having an independent architect and general contractor

• What is in the bid and what is not?

• How they work with the HC vs. FHC

• Timing is everything

• Who is responsible for what?

It’s All in the DetailsTypical list of what is not covered by either the architect or the builder:OWNER'S COST

• Owner's Costs are in addition to the construction costs and usually range between 20 to 25% of the construction costs. Items often covered in this category include:

• Fund Raising Blinds / Mats

• Kitchen Equipment Arch / Engineering Fees

• Kitchenette / Laundry Appliance Landscape Architect

• Landscaping Interior Designer

• Exterior & Interior Signage Reimbursable Expenses

• Donor Recognition Furniture

• Soils and Materials Testing Telephone, Computer Network & Cable TV

• Special Inspections Security / Alarm system

• Building Permit, Water & Sanitary Builder's Risk Insurance

• Sewer Tap Fees Construction Loan Interest

• Payment / Performance Bond Closing Costs

• Appraisal fees / Lender's inspection Legal services

• Construction Cost Contingency

Budget Pro-Forma Round #2

• With real numbers from the construction bid, an updated pro-forma is completed

• Analysis by the regional team and building committee helps determine the viability of the project

• Tough decisions

• What about fundraising and financing?

• Remember your by-laws!

Loans and Financing

• What does a bank want to see?

• The risks from their perspective and how to prepare

• Shop around, find out who other houses on campus have used.

• Terms

– Debt Service

– Loan to Value

– Appraisals

– Balloon Payments

– Amortized

– Hire a professional

Resources

• Names we can recommend:

– Pennington

– Residential Capital

– CSL

• Names others have used:

– Hugg and Associates

– Traenor

– Krittenbrink