The Integration of Engineering, Design & Construction

[Mike Hendren]

For commercial construction projects I finance there is typically an engineering firm, architectural firm and general contractor.  The engineering firm and architectural firm typically get paid up front, with the architect retained to certify the contractor's monthly applications for payment (both with respect to amount of work in place and compliance with plans and specs) and ultimate sign off at completion.  The general contract calls for monthly payments based upon work in place less 5% to 10% retainage withheld until completion of the job.  Title work varies by state, but often requires lien waivers and a title search as a condition to each draw by the contractor as well as a the filing of a notice of completion to cut off potential lien rights from sub-contractors and materials providers. 

How does this work in the context of a golf course project?  I know there are construction companies specializing in golf courses, but it seems that they are engaged on a quasi sub-contract basis with the architect providing engineering, architectural and construction management services. 

Since I've never financed development of a golf course (so I've got that going for me) what are the common practices?

Mike

[Ally Mcintosh]

For commercial construction projects I finance there is typically an engineering firm, architectural firm and general contractor.  The engineering firm and architectural firm typically get paid up front, with the architect retained to certify the contractor's monthly applications for payment (both with respect to amount of work in place and compliance with plans and specs) and ultimate sign off at completion.  The general contract calls for monthly payments based upon work in place less 5% to 10% retainage withheld until completion of the job.  Title work varies by state, but often requires lien waivers and a title search as a condition to each draw by the contractor as well as a the filing of a notice of completion to cut off potential lien rights from sub-contractors and materials providers. 

How does this work in the context of a golf course project?  I know there are construction companies specializing in golf courses, but it seems that they are engaged on a quasi sub-contract basis with the architect providing engineering, architectural and construction management services. 

Since I've never financed development of a golf course (so I've got that going for me) what are the common practices?

Mike

Mike,

In essence the traditional model with golf courses is similar to the commercial model you highlight above... The construction company is usually contracted to the client, not sub-contracted by the designer.... As with your example above, the architect would provide the design and design supervision services on site (i.e. signing off the construction work)... The engineering (e.g. irrigation, drainage) would either be done by the architect himself, sub-contracted by the architect or serve as separate contracts again in to the client....

With multiple direct contracts in to the client, there is usually a client PM coordinating things... Payment terms for the architect vary but would usually be set at various milestones through the lifespan of the project.

The other end of the scale to the traditional model is the full design-build model where there is one main contract between client and design-build firm to deliver the golf course...

[Jeff_Brauer]

Michael,

Pretty much the same.  We get 80% of our fee for plans, 5% for bidding and 20% for site inspections and CA, which seems a bit back loaded compared to engineers, but then, we spend more field time in golf design and construction.  We also get paid monthly in proportion to work done, with 10% up front, 10% for concepts, 20% for Design Development (70% completed CD) and 40% for Construction Dox.

There are other consultants required for the EIA, wetlands survey, etc. as well as surveyors to stake property and golf centerlines for the contractor.  Engineers are usually on the team for flood studies, comp storage calcs, soil testing, bridge and footing designs, etc.  

Most of us now hire out irrigation design and staking and require some supplier design - notably pump stations and bridges.

I personally do all my own drainage plans, except when they tie into housing and flood control projects, and an engineer has to handle those, usually by law.

where possible, most gca's try to stay out of those other contracts, but sometimes, some or all are lumped into our agreement with the owner and we then "manage" the design team.  Whether we get paid to manage it is another story.....

The contractor is usually under a separate contract to the owner, and not under the gca.  However, many gca's require their own shapers to be "nominated" or required personell of sub contractors to the general golf course contractor.  And, some projects do get built on a design build basis, where the large general, like Landscapes Unlimited hires the gca.  More common now, but still not standard.

[Tom_Doak]

Michael:

The title of your thread is the subtitle of my company.  Golf architecture comes out best when all three aspects are thought through at the same time, and that's what we generally try to accomplish in our work.

There are many sites which require substantial engineering work, and I am wary of taking jobs on some of those because then the "engineering" function gets its own separate agenda, and many engineers have so many rules (self-imposed and government-issued) that it's almost impossible to keep the finished product looking natural.

On a renovation we're doing now, changing the routing of a hole required that a bridge across the creek be re-located ... but with all the government regulations for crossing a flood plain, combined with poor soils in the specific location, that bridge has mushroomed into a $400,000 line item which has to sit several feet above the natural grade AND have 42-inch railings ... even though there are 7 or 8 bridges just upstream from it that aren't like that, because they are grandfathered in.  In the end, I wish I'd never redesigned the hole to begin with, but it's too late to go back!