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Discover the key players, sectors, and processes involved in constructing our built environment projects, ranging from housing and office buildings to transportation infrastructure and education facilities.
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Who, What, How and Why of BuildingPerry Gross Parsons Brinckerhoff
Projects – Who “Builds” What Private Sector (Companies, Developers, and Individuals) • Most housing – houses, apartments, condos • Shopping centers, malls • Multi-tenant office buildings • Manufacturing buildings • Some Colleges, Universities • Some Hospitals Public Sector (Governments) • Government office buildings • Transportation (Roads, Bridges, Tunnels, Transit, Airports) • Civil projects (water treatment, sewage) • Education buildings (Schools, Colleges, State Universities) • Most hospitals
How / Why Do Projects Get Built? Public Sector Private Sector • Obligation to public • Sees an opportunity Need • Is it planned? In budget? • Will it produce revenue? Approval • Tax revenues from public • Borrow $$ from bank Funding • In-house staff or Consult- ants design, produce plans • Same - Use in-house or hire consultants Design • Takes bids from all contract- ors. Selects lowest bidder. • Pre-qualify contractors- negotiate $$ Construction • Services to the public- schools, utilities, roads, public buildings • Owner/Developer rents to tenants, sells after X years Use
Project Organiztion Project Owner Construction Manager Project Developer Construction Contractor Lead Design Firm Architect Subcontractors • Civil/Foundations • Structural Steel • Concrete • Electrical/Lighting • Mechanical • Environmental • Finishes/Metals Consultants • Civil Engineers • Structural • Mechanical • Electrical • Environmental • Exteriors • Specialties • Exterior Skin • Roofing • Elevators • Communications • Landscaping • Painting • Furnishings +++
Various Fees The Public Budget Property Taxes Income Taxes Sales Taxes
The Public Budget Taxes, Fees In Public Works Health and Welfare Schools Public Safety Administration
Private Funding for Private Projects Developer / Owner Borrows Funds From: Private Lending Firm, e.g. • Mortgage Company; • Development Bank; • Investor Group; • Pension Fund, etc. Hires and Pays: Repays Loan with Revenue from Building’s Use Land Owners, Architects, Engineers, Contractors, Suppliers, Others