Like any other industry, the construction business has its own particularities.
Professionally, I have had the opportunity to participate in different segments of the construction industry, which allowed me to be exposed to and learn multiple key components that carved who I am today.
My first professional experience after obtaining my bachelor’s degree in civil engineering was working with a mechanical and electrical contractor. I need to admit that working with a group of tradesmen was one of my priceless professional experiences, and I have learned a lot about real life.
Only when I shifted carriers working with a general contractor company it opened my horizon of experiences. Among all, I have to admit that learning how to deal with people is the most valuable life experience, which, unfortunately, the only school that teaches you is the ‘life school.’
Full cost control is only achievable if the previously mentioned project steps are respected
It was also clear to me in my early professional career that cost control is the most important element in the entire construction process. Cost control starts with conscious cost estimation, understanding the scope, the process of how the goals could be achieved, and, of course, taking into consideration unforeseen conditions that will certainly happen.
The Master’s degree obtained in Project Management was a valuable, refreshing experience while back in the education environment after many years of professional experience.
In 2007, another career shift, always related to the construction business, emerged in the retail business. It is dynamic, fascinating, and demanding, with the constant need for change that has exposed me to a fast-paced approach experience.
The construction duration of a retail business is very short compared to traditional infrastructure and building projects. It demands good planning to be able to mobilize, execute, and turn over a space in such a short period (less than three months). Transformation occurs most of the time inside an existing commercial space (Mall), within an environment full of regulations and constraints. Very often, buildings require upgrades as far as building code, making the project even more of a challenge.
Once more, the overall cost to perform this leasehold improvement becomes crucial in the Profit and Loss (P&L) analysis. Time is of the essence to turn over the premises from an ‘expenditure’ phase into a ‘lucrative/profitable’ phase. As we all know, cost is directly affected by project duration and scope. So, to succeed in the retail construction industry, with such a fast pace, a conscious and detailed design is required, followed by good planning and partnership with suppliers. All these affect the overall financial results and consequent return on investment (ROI).
A strong follow-up is required during the entire process. Desiccating all the tasks, understanding all the components (building particularities, finishes, MEP, etc.) Exchanging information among stakeholders, evaluating the roadblocks and risks, and always looking for possible options to mitigate the risks. Once more, a strong follow-up is required on a daily basis at the beginning weeks of the project, followed by weekly follow-ups as the project progresses. Full cost control is only achievable if the previously mentioned project steps are respected.
We have developed an in-house tool to estimate and control construction costs. It also allows us to plan resources and time control. In the past 17 years, we have managed more than 350 retail projects with an average yearly capex of CDN $35 million. The tool has provided us with amazing cost control, allowing us to achieve cost variance within + or – 5 percent within projects across the USA and Canada. This is an incredible achievement, with such diverse regions, cultures, local regulations, and unpredictable markets across both countries, especially after the pandemic.
