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