5 Strategies for Managing Capital Improvements
Capital improvement projects that involve major renovation or construction to private clubs or hotels call for significant cooperation and coordination among property decision-makers, owners, outside professionals and management. These projects demand time, thorough financial oversight, and hands-on involvement to ensure that they are done properly, in accordance with local and regional codes and regulations, and with the least possible disruption to day-to-day operations. With that in mind, we've outlined a few key strategies for managing capital improvements.
Strategies for Managing Capital Improvements
Identify the results your project should deliver.
The project should advance your club or hotel's mission and business objectives, whether you're upgrading a pool area to meet members' expectations, or building a new clubhouse to host larger, more profitable events.
Clearly define roles, responsibilities and lines of communication.
Ensure smooth workflow from the start by identifying all stakeholders who'll be impacted and establishing the level at which certain decisions will be made. Which responsibilities will the General Manager, the owner or the governing board handle?
Save on costs by creating your design/construction team at the early conceptual stage.
As you visualize the project, choose an experienced Architect and a veteran General Contractor with deep pre-construction capabilities. You'll gain accurate estimates and reliable advice on structural and mechanical systems, and you'll learn up front how adding space, changing layouts and improving finishes will impact cost. Prevent re-design by making design and pricing/systems analysis part of the team exercise.
Establish a realistic budget to avoid going back to membership for more funds.
Define your expectations for project scope and schedule, and look to the team's General Contractor to present the most buildable, cost effective approach. If you expect to provide your guests with the highest-quality facilities, hire the best vendors, suppliers and contractors.
Prevent or minimize any inconvenience to members and guests.
Precise phasing is the key to keeping high-end facilities fully operational during construction. An experienced General Contractor will plan and supervise the process, and timely completion of each phase will minimize disruption of services and reduce impact to popular areas.