Construction Brothers

Yes, you’ve probably heard this story before. It’s one that’s worth hearing again. Here’s a link to the text in case you’re interested in following along or reading it again later.Merry Christmas, everyone. Check out the partners that make our show possible. Find Us Online: BrosPodcast.com - LinkedIn - Youtube - Instagram - Facebook - TikTok - Eddie's LinkedIn - Tyler's LinkedInIf you enjoy the podcast, please rate us on Apple Podcasts or wherever you listen to us! Thanks for listening!

We open today with a discussion about the latest epidemic in the US. Yes, we’re talking about the epidemic of pickleball-related injuries. Here’s the story in Bloomberg.   Then we move on to a topic that John Roach brought to Eddie’s attention recently. It’s all about architects and the pricing of their services.    It all goes back to the Sherman Anti-trust Act, which was enacted in 1890 to address the problem of monopolies.    In the 1860s, Richard Morris Hunt sued a client who failed to pay his 5% fee. In doing so, he unknowingly set 5% as the industry standard for architect fees.   By the 1950s, the AIA had formalized a somewhat complicated fee structure for various architectural services.      In the late 1960s, concerns arose that this fee structure was a form of price fixing. The Justice Department investigated and found that it did, indeed, violate the Sherman Anti-trust Act. In 1972, they issued a “consent decree,” which amounted to a settlement that outlined how the AIA could and could not behave going forward. (If you’d like to geek out on details, go here.).    Here’s the 2022 AIA compliance guide.    After reviewing this history, we discuss the complications of defining the scope of an architect’s work and getting clarity on that when it comes to the architect’s fees. It can become a race to the bottom. These complications have affected the way that contractors relate to owners and designers.    We compare these patterns to the patterns within fees for engineering services.    The question all of this leads to is this: “How do we argue for spending more money on design when it’s hard to know what I’m buying?”   We discuss the challenge of bank loans based on permit designs, as well as owners who don’t know how complicated the design process is.    Tyler really wants a Ford Raptor… What does that have to do with architecture fees? Well, when you buy a truck, you know what options you’re paying for and how they affect the price. Eddie explains that he’d like to see that kind of manufacturing mindset influence the designing and bidding process in construction.    We ponder the F1 price cap as an analogy for how things could play out if people were to spend more money on design.   Our Megaphone Message: Define value. Then buy value. Buy more design. Work with your lender and explain that this project can be much more successful if more money is invested in design. Slow is smooth, and smooth is fast.   Find Us Online: BrosPodcast.com - LinkedIn - Youtube - Instagram - Facebook - Eddie's LinkedIn - Tyler's LinkedIn If you enjoy the podcast, please rate us on Apple Podcasts or wherever you listen to us! Thanks for listening!See omnystudio.com/listener for privacy information.

Welcome to 5 Minute Friday! Where we tell you our best tips and tricks to help you and your team get a little bit better every single week. This week we are going over 3 Tips for Engineers!Call a subcontractor and schedule a field trip, put your hands on it and learn how to build. Be more than a button-pushing analyzer. It’s probably why you started in the industry anyway.Stop putting “See Arch” on your contract drawings. Try your dangdest before you do this to make sure you have done your due diligence and have tried to get this scope coordinated.Stay humble.Special thanks to our sponsor Trimble ProjectSight! -https://projectsight.trimble.com/See omnystudio.com/listener for privacy information.

(Note regarding intro: The film festival in France is actually pronounced “Can.” The “S” is silent, unlike Tyler.)    We start out today with Tyler’s church-league softball story and his related megaphone message: If you’re 6’2” and 260 pounds, don’t combine dehydration and intermittent fasting with an effort to prove yourself on the field.    Then, on to the substance of today’s episode. Fair warning: We’re getting into the weeds today. That’s because this stuff can profoundly affect your finances, timing, and relationships.    Delegated design is the approach to contracts in which the SEOR (structural engineer of record) limits himself or herself to elements that do not include connections and then expects those design services to be rendered by the fabricator or someone else.    Eddie explains that additional elements may also be delegated. Curtain walls, for instance, would be designed by someone with special expertise in curtain walls.    We’re talking about delegated design today so you can understand how it might impact the timeline and finances of your projects.    How do you look for delegation? Well, Eddie says that at the beginning of any project, he’ll look at the structural notes sheet and the specifications book. He’ll check for notes regarding delegation and make sure that these two documents agree.    We discuss the pros and cons of delegated design. Here are our thoughts:   Pros: -Fabricators are able to handle connections in a way that best fits their materials and design. -The need for back-and-forth communication is reduced. -Time can be saved because production teams can move according to their own well-oiled systems.   Cons:  -The SEOR’s knowledge and control is not as thorough as it is in other situations.   -There are more cooks in the kitchen, and that means more egos in the room (and we all know what that can mean). -There’s increased potential for the buck to be passed.   Eddie explains the 3 contract-structure options outlined in the AISC Code of Standard Practices:  1) The SEOR handles everything. 2) An engineer gives the basic criteria for the connections and then has a qualified engineer select from those connections. 3) The engineer fully delegates design of connections.   Over time, regional patterns have developed regarding the adoption of these three options: -Option 3 is prominent in the eastern part of the country. -Option 1 is most common on the West Coast (perhaps because of seismic concerns).  -Option 2 is generally fading from use.   It’s important that all parties be clear on which of these options is being used on a given project. The decision has additional ramifications as far as expectations about who will be doing the shop drawings and who will document various aspects of the official project record.    Eddie shares about a project his team worked on. Relatively late in the process, a concern was raised about the aesthetic effect of a large gusset. The architect wanted the gusset size reduced. The problem? The building was in a hurricane zone, where gusset size matters. He explains that tension resulted not from the need for change but from the fact that this concern hadn’t been explained in the plans from the outset.    Eddie discusses the idiosyncrasies of different parties–designers, fabricators, architects–with specific preferences. He also refers to this episode with Norine Bagate regarding risk and liability.    We ponder the impact of $50,000 paragraphs in contracts. If you’re buying design, know how much design you’re buying.     Our megaphone message: Anticipate the ripple effects of decisions you might want to change. Don’t put yourself in a situation where you place your loyalty with the wrong person. Good communication early can make a huge difference.    Find Us Online: BrosPodcast.com - LinkedIn - Youtube - Instagram - Facebook - Eddie's LinkedIn - Tyler's LinkedIn If you enjoy the podcast, please rate us on Apple Podcasts or wherever you listen to us! Thanks for listening!See omnystudio.com/listener for privacy information.