Commercial Broker Quarterly: Summer 2003 - GWCAR, Greater Washington Commercial Association of REALTORS(R)

CBQ >> Summer 2003 Issue

GUEST COLUMN
For Regency, Attention to Detail Equals Bendable Budgets

Commercial interior contractors have a relationship with commercial brokers that works well for both parties.

The broker's job is to bring in new tenants and to motivate existing tenants to renew their leases. They are required to accomplish this in a profitable manner for the building owner, no small task for the broker, even in the best of situations. Commercial interior contractors can and do assist the broker in both of these areas.

At Regency Commercial Construction, Inc. (RCCI), we assist the broker by taking a bit of a unique approach in the information that we provide. We provide the broker, the tenant and the architect with a Scope of Work Budget for analysis.

This is a detailed, line item breakdown of scheduled scope of work, unit cost, extended cost, subtotal and grand total. With this document the tenant, architect and broker can perform a sophisticated budget analysis.

A basic example would be: The tenant and broker have allowed a $15 per sf budget for the complete build-out. The architect included brass fittings in his design that pushes the budget over the edge.

With our Scope of Work Budget, they can look at the actual cost of each brass fitting, take out some fittings or change them to another, less expensive material. The detail of the Scope of Work Budget is presented in Excel format and cost changes can be implemented easily.

We gather the information needed from two sources in developing our budget: The architectural drawings and a site visit (when possible). With tape measure, voice activated tape recorder and drawings in hand, we put together the Scope of Work Budget for analysis.

In addition, we follow-up with multiple telephone calls to the architect when necessary (almost always it's necessary) for clarification. Many times we also call the broker -- they know the building, the office space, the architect and of course the tenant.

We consider the Scope of Work Budget neccessary to successfully complete the tenant's vision of how they want their work environment to appear and still be within their financial limits.

About the author
Thomas E. Mitchell is the Director of Business Development for Regency Commercial Construction, Inc. Regency specializes in Class A office space.

Regency and SKB Architecture and Design sponsored the Aug. 21 DC Regional Breakfast Meeting, "Relationship Analysis: The Commercial Broker, the Architect and the General Contractor For Interior Construction." Register for other breakfast meetings now at www.gwcar.org.