For small companies, designing or building out a stellar office space can be challenging, and sometimes these companies aren't equipped to handle to project. One key mistakes small firms make: holding an open bid process for designers and architects. We recently sat down with Adam Felson, founder of officemorph, to talk about the challenges of small companies designing or renovating their office space, and he told us why he advises against the open-bid option.
GlobeSt.com: What are the challenges for small businesses designing or renovating their office space?
Adam Felson: Ask anyone involved in managing an office renovation or re-design, and they'll likely tell you the project was a frustrating and costly experience. They may have encountered some nasty surprises or made an expensive miscalculation. Maybe the schedule was blown, employees were irritated with a compromised workspace, and management was overwhelmed. It likely took a long time for the dust to settle and for employee productivity to resume. Unlike other projects, office improvements are often delegated to employees of the company who lack the time and experience to tackle these tasks properly. I've even heard about companies asking their receptionists to manage an entire office renovation, from design to move-in! Office improvements are often delegated to employees who lack the time and experience to tackle them properly. Some companies burden their office managers with leading the effort of an entire office renovation, which can be completely out of
their scope of expertise.
GlobeSt.com: How do typically start the design process?
Felson: At the beginning of the design process, you create goals for the budget, schedule,
quality, and functionality. In the end, if those goals are not met, your company stands to lose time, money, and productivity—all precious resources for startups and small businesses. You could fail to deliver for your clients and damage your company's reputation. A corporate office build-out should be overseen just as carefully as a software upgrade, public relations campaign, financial audit, or any other large project for your organization. The stakes are just as high if things go wrong.
GlobeSt.com: Why do you think that small companies should avoid the open bid process?
Felson: One common approach that can be improved upon is known as “design-bid- build.” This is when you work with an architect to develop drawings, which are sent out to several contractors for bids. This approach is thought to get the best pricing available. But there are good reasons to rethink this approach. First, time is not on your side. Seeking competitive bids can easily add four to six weeks to your project. Consider all the steps required: you must prepare a well-defined Request for Proposal; you must ensure that all your drawings are clear and complete; you must walk contractors through your site; contractors must get pricing from their subcontractors; you must carefully compare all bids, and select one you think is best. Every step takes time. And if you're working against the clock to meet a move in or move out date, any costs you save can easily be lost in the rush, later on. Second, beware of the numbers. Ask any three contractors to bid on your project, and you'll probably get three very different proposals/quotes. The contractor you select may not fully understand the scope of work, or have bid the project exactly as you've requested, or be the best fit. Third, prepare for change orders. Contractors will naturally price only what's on the drawings. This is because including additional work will make their quote higher than their competitors. So, if anything is vague on the drawings, you face a high-risk of future change orders.
GlobeSt.com: What are some benefits of forming an early partnership with a design firm instead?
Felson: When a project manager is brought on during the design process, they can provide
a huge value in helping your team craft an economical project that's easy to construct On the other hand, when your design team works in a bubble with no input from a project manager, the project may eventually need to be scaled back to meet a more modest budget. Having to re-scope the project can blow through your move-in date. Onboarding a project manager before your design is complete, ideally even before you sign a lease, may sound like asking for higher costs. In reality, an early partnership with your construction team will usually lead to smarter, more cost-effective designs with fewer surprises for your budget and schedule.
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Kelsi Maree Borland
