PART 3: SCOPE OF WORK CONFIRMATION FOR TURN KEY BUILD-OUT
One area of our services is to act as turn-key developers for lessors who respond to ITNs submitted through the tenant broker for public bids for lease space. We are second generation architects and building contractors sub-tectum so we have a lot of resources that most single function parties do not have in house.
Omissions in a turn-key lease buildout has put many developers out of business. The scope of work contained in the estimator’s checklist below is typically contained in only a few pages of text in the ITN. Often the items listed in the estimator’s checklist below will compose 50% or more of the total cost of commercial renovation.
Clarity of scope for a turnkey project often evolves as special functions in support area are clarified. Sometimes the items which appear in the ITN as “the nugget” are in real life negotiable, or perhaps existing elements thought to be demolished can be made to be reusable. It is important to methodically move through the checklist, with possible cost reduction and pre lease negotiations in mind.
BASELINE BUILD OUT COST FOR TURN-KEY & ability to negotiate
The agencies often prepared the ITN | RFP relying on “boilerplate” yes or no decisions.
These items are often the negotiation points for lessors who are willing to study the ITN, engage dialogue with the tenant brokers for the agency, learn their unique needs and offer their properties at a rate that fits the goals of the agency and the needs of the lessor.