Turn-Over from Construction to Operations
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You, as the owner/developer of a brand new senior living community, just finished the grueling construction effort, and now it's time to hand the building over to your senior living operator and sit back and make some rent money! But wait a second, your job as owner is not over yet. You'll be involved with the project for months to come as the operator (specifically the executive director and facility manager) take over the facility.
As with any new and complex building, there are going to be problems that will arise that were not caught and corrected during the construction punch list. HVAC units are not going to cool sufficiently, doors are not going to close properly, leaks will be discovered, etc. Your general contractor (GC) was also likely under significant pressure from the owner to just get the building to pass the certificate of occupancy (CO) inspection so that the owner could start moving in residents and generate revenue ASAP. When the GC is under pressure to just get the CO ASAP, there is usually going to be a lot of fine construction work yet to do well after the CO.
There will likely be tension and ill will between your GC and your operator's facility manager. The facilities manager will wonder why, and be upset that, he is not getting a completed and fully operational building. He might view any problems with the building as shoddy workmanship and be critical of the GC. The facilities manager is also under pressure to make sure the building is in good working order because residents are moving in.
Your GC, who just spent 18 - 24 difficult months building a tough project, doesn't take kindly to a facilities manager, who just got hired a few months ago, being overly critical of the quality of the construction. This new building is certainly expected to have some problems that will only be flushed out and discovered after residents start moving in.
It is your job as development manager to manage the relationship between your GC and your operator. Set expectations early with the facilities manager and executive director that the punch list will likely take months to complete. And that there are going to be a lot more problems that weren't on the punch list that will be discovered after residents start moving in. Have a good attitude toward and support the executive director. Remember that she is the one responsible for brining in the rent money, so do what you can to help make her successful.
Finish the Punch List Work ASAP
Your GC is likely going to be exhausted from the project after getting his certificate of occupancy. But the owner has to stay on the GC to finish the work on the punch list ASAP. Residents are moving in, and even though the building is 99.9% complete, that fraction of 1% of the outstanding punch list items are usually the visible finishes that everyone sees.
Work Order System for Warrantee Items
There has to be a formal and written work order system so that as problems arise with the building that the GC has to fix under his warrantee, the system can notify the GC and track the status of the fix.
Instead of having the GC continue to be a middle man, the work order system may involve the facilities manager contacting a subcontractor directly to make a repair. If a light fixture burns out, no need for the facilities manager to involve the GC, he should be able to reach out to the electrician subcontractor directly to fix the problem.
Operator Training
Ensure you get this scheduled between your facilities manager and the GC well before the building opens to residents. This training should be on all major systems, to include: HVAC, electrical, hot water heaters, boilers, water softeners, fire alarm, fire sprinkler, landscaping irrigation, pool equipment, etc.
Operations & Maintenance Manuals
Complementary to operator training, operations and maintenance manuals will be a reference source for the facility manager to trouble shoot a piece of equipment to try to get it operational. Ensure your GC provides O&M manuals on all equipment when he delivers his project closeout documents to you and the facilities manager.
As-Built Plans
As-built plans are building plan sheets that document and reflect how the building was actually built. These as-built plans may deviate a little from the plans your architect and engineers created, and it is best for your facilities manager to have the as-built plans. Your GC should email the owner and facilities manager a digital version of as-built plans, but you might also consider having the GC provide the facilities manager a full sized hard copy set of the as-built plans. It's sometimes easier and faster for a facilities manager to unroll a hard copy set of as-built plans then trying to look up a detail digitally on a computer screen. The GC will usually provide as-builts for: structural, fire sprinkler, fire alarm, plumbing, electrical, HVAC, and utilities.
Attic Stock
Attic stock is extra material left over from construction that your GC provides to the facility manager so that he can replace items as they become worn or damaged. Typical attic stock items are: all the different types of flooring, ceiling tiles, paint, wall paper, wall tiles, light bulbs (sometimes fixtures), door hardware, millwork hardware, plumbing fixtures, and window treatments. Your architect should list the attic stock requirements the GC has to furnish to the owner in the specifications. Typically your GC will leave you plenty of attic stock, but check to make sure it happens.
Paint Color List
Extra paint is usually an attic stock item, but can get used up, dried out, or thrown out easily. If the facilities manager knows the brand and color name of all the paint colors in the facility, he can easily go to a home improvement store to get a matching color.
In conclusion, set expectations early with your operator that the building won't be perfect at turn-over, and it will take months to finally finish with all of the construction effort. Enforce that your GC finish his punch list quickly and establish a work order system for warrantee problems. Support the executive director with her facility concerns so that she can focus on getting residents signed up to lease a unit.
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Next Page: Preparing for Resident Move-In