FACILITIES SIZE, LOCATION, AND LAYOUT:MOVING FROM SITE SELECTION TO CONSTRUCTION

MOVING FROM SITE SELECTION TO CONSTRUCTION

As if site selection is not difﬁcult enough, then comes the actual construction of the facility. On a blueprint, the requirements have little more than conceptual meaning; once brought into reality with bricks and mortar, the structure will either prove immensely effective and efﬁcient or be a capitally intensive reminder of an organization not fully comprehending its strategy.

Building an industrial facility such as a manufacturing plant or distribution center is an arduous undertaking, taking up to two years from start to ﬁnish. There should not be a question about why something is being done, who is doing it, or how much more efﬁcient it will make your operations. Unfortunately, many projects are overwrought with conﬂict, unexpected changes and delays, and ultimately a realization that the building doesn’t reﬂect, much less satisfy, the needs of the company: today, tomorrow, or next year.

The following will provide an overview of project methodologies and make suggestions on how to choose the right architect / engineering ﬁrm and contractors. Construction is not a ‘‘let your ﬁngers do the walking through the Yellow Pages’’ type of endeavor. In order to make a concept a reality, careful planning and implementation of the four major elements of construction, as illustrated in Figure 6, must be in order. Know what you want out of your manufacturing plant, warehouse, or DC and stick to the plan.

The construction or expansion of a DC or manufacturing facility is a complex undertaking that, if not properly managed, can overwhelm an organization, delay the occupancy of a much-needed facility, and adversely affect a corporation’s bottom line. Effective facilities construction requires a balancing act among expectations, cost, scope, schedule, quality, and ongoing operations.

A typical distribution facility can cost over 10 million dollars, take six months to plan, nine months to build, three months for ﬁt-up, and two months to bring on line. It can include the partic- ipation of consultants, architects, engineers, realtors, bankers, lawyers, economic developers, state, local, and federal ofﬁcials, general contractors, subcontractors, and suppliers. During design, con- struction and start-up, many employees are called on to assume additional responsibilities related to the new facility while continuing to perform their normal jobs. Day-to-day operations must continue, and customer service must not suffer.

No wonder the building process is often viewed by participants as a painful interruption of business as usual rather than as a celebration of growth and ﬁnancial success for the corporate team.

With proper planning and with use of internal and external resources, the building process can be managed. Projects can be brought in on time, budgets can be maintained, and quality can be achieved. The process will not be painless, but the pain can be reduced if the following steps are taken:

• Establish realistic criteria for site selection.

• Select the contracting or project delivery method that best ﬁts your needs.

• Select the best construction team for your project.

• Vigorously manage the project.

As the site-selection process proceeds, it is easy to lose sight of the ultimate goal: to locate and build a facility in accordance with your strategic master plan. This is the only way that strategic master plan forecast results can be achieved. Resist the temptation to make compromises to the site criteria that will change the building’s functionality. Your objective should be to build around the process, from the inside out. Stick to your plan.

4.1. Methods of Project Delivery

With the conceptual design in hand and with a suitable site selected, it is time to decide what contracting method you will use to turn concepts into detail design and detail design into concrete and steel.

There are several methods of project delivery commonly used in today’s market. Each method has advantages and disadvantages. Before deciding which method to use for your project, answer the following questions:

• How involved in the details do you want to be? Different methods of project delivery require different degrees of owner involvement. You must be clear about what your role and respon- sibilities will be. After the project starts, delays caused by the owner can be costly.

• What schedule requirements and constraints do you have? Different contracting methods support different schedule requirements. Make sure that you understand the typical time line for each project delivery method.

• What budget constraints do you have? What contracting method best ﬁts your budget?

• What resources do you have in-house to devote to the project? Do you have qualiﬁed people on staff that can act as your representative, or should you assign this role to a consultant?

• What are your priorities—scope, schedule, budget, aesthetics, quality? Each project-delivery method has advantages and disadvantages in these areas. Only through a thorough understanding of the methods can the correct selection be made.

The success of a project is often directly related to the delivery method used. The following section outlines four commonly used methods of project delivery. Once the above questions are answered, the appropriate method for your project can be selected.

4.1.1. Design-Bid-Build (Traditional Method )

The conventional ﬁxed bid method of delivery project approach is characterized by a clear separation between the design phase and the construction phase. The owner hires an architect / engineering ﬁrm (A&E) that turns the functional requirements of the building into a detailed set of construction drawings and speciﬁcations. These drawings and speciﬁcations, as well as schedule requirements and special conditions, become the basis of a request for proposal (RFP) that is issued to general con- tractors (GC) for bids. Bids are received and evaluated and a ﬁxed price or lump sum contract is awarded to a GC. The GC purchases materials and awards subcontracts as required to satisfy his obligations as detailed in the contract documents.

The GC assumes the entrepreneurial risk of completing the work in accordance with the plans and speciﬁcations for the lump sum amount agreed to in the contract. The owner’s liability in theory is limited because he has a ﬁrm price to do the work. The key thing to remember here is that the contractor has given a lump sum price to perform the scope of work that is detailed in the bid documents; he has not given a lump sum price to do ‘‘whatever it takes.’’

As in any method of project delivery, changes in the scope are grounds for additional compen- sation. Likewise, changes in the schedule (e.g., delays caused by someone other than the GC or their subcontractor) can be grounds for requesting an extension time and additional compensation. Gen- erally, delays caused by weather are covered under an excusable delay clause in the contract. In this case, the contractor would not be eligible for additional compensation to cover his extended presence on the job but would receive an extension of time equal to the time lost.

This is still the most common method of contracting in today’s commercial market. Most public projects, both state and federal, use this traditional method. It is well suited to projects where aes- thetics are important and elaborate or very specialized design is required. Examples would be churches, government buildings, schools, hospitals, and multistory ofﬁce buildings. Figure 8 is a typical organizational chart for a design–bid–build project.

• Advantages of design–bid–build:

• Construction drawings and speciﬁcations are very complete and depict in detail how the project is to be constructed prior to breaking ground.

• The A&E is retained directly by the owner and represents his interest throughout the project.

• Owner has a good estimate of the ﬁnal project cost before construction begins.

• A&E and GC are retained separately by the owner with clear divisions of responsibility.

• Disadvantages of design–bid–build:

• The entire process takes longer than other methods.

• It generally costs more than other methods.

• The A&E and GC may develop an adversarial relationship, with the owner caught in the middle.

• It requires extensive owner involvement on an ongoing basis throughout the project.

4.1.2. Construction Management (CM method )

In the past 20 years, the technique known as construction management (CM) has evolved, ﬂourished, and to some degree lost favor. It was touted as a method of speeding the construction process through fast tracking while giving the owner additional control of the project by eliminating the general contractor. Instead of awarding the project to a GC through a competitive bidding process or through negotiations, the owner hires a construction manager just as he hires an architect. The GC system is eliminated in favor of a system designed to have the architect and CM both work for the owner on a fee basis. A typical organizational chart for a CM project is shown in Figure 9.

The CM provides managerial services and acts as the owner’s agent in construction matters. Rather than the owner contracting with a single GC, he contracts directly with multiple prime contractors and specialty subcontractors. The construction manager schedules, coordinates, and directs the day- to-day activities of these contractors. He generally does not perform any work himself, but he may provide essential services normally included in a GC’s overhead cost, such as temporary facilities, utilities, cleanup, and security. These services are provided on a cost-reimbursement basis and are not part of the CM’s fee.

The construction management system, which is depicted in Figure 10, is best suited to large, complex projects requiring substantial full-time, on-site support staffs. A typical CM staff for a major industrial or public works project might include engineers, accountants, purchasing agents, safety representatives, inspectors, and construction specialist. Extensive owner representation is also re- quired.

In theory, the overall schedule is reduced by maximizing the fast-track approach. As drawings are completed, contracts are awarded and work begins. There is no doubt that the project duration can be reduced by overlapping design and construction. However, in a case where multiple contractors are proceeding simultaneously at breakneck speeds, disputes between contractors and the CM / owner are common. This gives rise to an unnecessarily formal, and often adversarial, project climate. The owner becomes an arbitrator of disputes in a no-win situation. No matter what he does, it will ultimately cost him money. This type of project is typically characterized by disgruntled contractors, continuous change order requests, claims for additional compensation, and sometimes litigation.

Because the construction manager is retained on a fee basis, he does not warrant or guarantee results, and may have little incentive to keep the cost down. In contrast to a ﬁxed price contract with a GC, here the owner must assume ultimate liability for the ﬁnal cost of the project no matter what the circumstances.

• Advantages of a CM system:

• Total project duration is reduced by fast tracking.

• Reduces owner’s stafﬁng requirements for large or complicated projects.

• Architect and construction manager both work directly for the owner.

• Disadvantages of a CM system:

• Often leads to disputes between multiple prime contractors.

• Final cost of the project is not known until late in the process.

• Owner’s exposure is increased since CM is retained on a fee basis.

4.1.3. Design–Build

The design–build method of project delivery, which is illustrated in Figure 11, has become increas- ingly popular as an alternative to the traditional (design–bid–build) process. Here the owner contracts with a single source for both the design and construction of the facility. The single source is usually a contractor who specializes in this type of construction. He may have design capabilities in-house or may subcontract this phase to an A&E ﬁrm. In either case, the design–build contractor assumes full responsibility for the adequacy of the design and its constructability.

The design–build project begins with the owner (or owner’s agent) developing a RFP, including a functional bid speciﬁcation. This document will include:

• Layout drawings

• Project overview

• Summary of key building characteristics

• Construction completion date requirements

The RFP package is issued to a group of prequaliﬁed design–build contractors. Bids are received and evaluated by the owner / agent, and a contract is issued to the successful contractor.

The design–build contractor begins the development of detailed building speciﬁcations that are submitted to the owner for approval. The detailed building speciﬁcations are completed in sequential packages, phased with the construction sequence. This allows construction to begin prior to comple- tion of the total design process, reducing the total project lead time. A typical design-build project organizational chart is shown in Figure 12.

The most important advantage of design–build is that it can signiﬁcantly shorten the total project duration by overlapping or fast-tracking design and construction without exposing the owner to change order requests, claims and litigation due to errors, omissions, or ambiguities in the plans or

speciﬁcations. Likewise, the owner will not have to referee disputes between his architect and general contractor.

Design–build gives the owner a single source of responsibility and a single point of communi- cations for all project-related issues, including schedule, budget, quality, and warranties.

A disadvantage of the system is that the owner loses the beneﬁts of having an independent architect working directly for him. The designer now works for the contractor. His selection may have been based on price rather than qualiﬁcations and experience, and his primary objective may be to turn out a generic design quickly rather than interpret the owners needs and expectations. Drawings prepared by design–build contractors are typically intended for ﬁeld use rather than owner review and are characterized by a lack of detail and much standardization. It can be difﬁcult for an owner to visualize the details of the ﬁnished facility based on these drawings. It can also be difﬁcult to coordinate the purchase, detail design, and installation of owner-furnished equipment and materials, using the information provided by the design–build contractor.

Since the owner does not communicate directly with the designer on a regular basis, his inﬂuence is diminished and his control of the details is lost. He also loses the advantages of having the architect act as an unbiased quality control auditor who inspects the work for compliance with plans and speciﬁcations.

• Advantages of design–build:

• Gives the owner a single point of responsibility.

• Minimizes change order request.

• Promotes continuity between design and construction.

• Disadvamtages of design–build:

• Less owner control—designer is working for contractor.

• Loss of checks and balances.

• Drawings may lack details.

4.1.4. Team Design / Construct

The team design / construct project approach, as depicted in Figure 13, is set up with separate contracts between the owner and the A&E and GC, like the design–bid–build process, but the detail design is completed in sequential steps like the design–build process.

The process begins with the owner / agent developing an A&E RFP that is submitted to qualiﬁed ﬁrms. The RFP can request either a ﬁxed cost bid throughout the project or a fee for time plus expenses. After evaluating the bids and interviewing candidates, an A&E ﬁrm is selected and a contract is signed.

Next, the owner / agent and the A&E develop an RFP for the selection of a GC. The request for propsal includes:

• Layout drawings

• Project overview

• Summary of key building characteristics

• Construction completion date requirements

• The general conditions governing the project

• The general requirement speciﬁcations

• The project bid form

The bid form requests the GC to state the fee to cover the project’s general conditions and requirements (this is essentially the project overhead) and a ﬁxed proﬁt percentage for the cost of the work. This essentially creates a cost structure of time and materials with an agreed-upon proﬁt margin for the contractor.

Once all bids are received, the owner / agent and A&E evaluate the bids and select a GC to become a member of the project team. While the selection process is taking place for the GC, the A&E is concurrently developing the building construction documents. Six different performance speciﬁcation bid packages are developed and released at different points in time in order to expedite construction of the project. Each of the packages is reviewed by the entire project team, including the GC. Once all parties agree on a performance speciﬁcation bid package, the GC solicits ﬁxed bids from appro- priate subcontractors.

All subcontractor bids are evaluated and summarized by the GC and reviewed with the owner / agent and A&E. The team mutually selects the subcontractor that will be used. With this process, the owner still receives the cost advantage of a competitive bid and is directly passed all project costs. Once contracts have been awarded for all six packages, a guaranteed maximum price (GMP) is established. Generally, the contract with the GC is structured such that any savings between the GMP and the actual ﬁnal cost is shared, 75% returned to the owner and 25% to the GC. This keeps the GC aggressively seeking ways to save the owner money. A typical project organizational chart for the team design construct process is presented in Figure 14.

• Advantages of team design / construct:

• All primary team members are on board from the outset of the project.

• The GC is involved in the design process, allowing valuable cost savings input early on.

• Reduces project lead time by facilitating a fast-track approach.

• All project costs are available to owner.

• Disadvantages of team design / construct:

• Total project costs are not established at start of construction.

• Advantages of the competitive bidding process are lost.

Owners must familiarize themselves with the pros and cons of the various methods of project delivery. Ultimately, he should choose the method that best meets his needs and that he feels the most comfortable with. After contracts are signed and long-term commitments are made, is not the time to discover that you have selected the wrong contracting method for your project. In summary, the four methods are listed in Table 1.

4.2. Selecting an Architect

A&E ﬁrms come in all sizes with varying areas of specialties. One may concentrate on retail facilities like shopping centers and department stores; others may specialize in low-rise ofﬁce complexes, public school facilities, or industrial complexes. Staffs can range from 2 or 3, to more than 100. Large ﬁrms typically have in-house engineering specialty capabilities such as civil / site, structural,

mechanical, electrical, and so on, while smaller ﬁrms usually subcontract these phases to an outside consulting ﬁrm.

It is important that you ﬁnd the right size and type of ﬁrm for your project. A very small ﬁrm is not capable of delivering the kind of service that a large or complex project requires. While the quality of the design work may be comparable, small ﬁrms just can’t be as responsive as ﬁrms that keep the majority of the work in-house and have a large enough staff to work on multiple tasks at

the same time. When the project gets started, any delay in completing design drawings on time, reviewing and returning contractor and supplier submittals, or responding to questions by any of the project participants can delay the progress of the work and have ﬁnancial consequences for the owner. Likewise, if a ﬁrm has never designed a modern manufacturing or distribution center, it is unlikely that it will have the expertise that your project needs. Large ﬁrms may have the advantages of big staffs, but because of their size, workload, and number of clients, they may be unable to give your project the personal attention that a smaller ﬁrm can.

Start your selection process by compiling a list of potential candidates. Contact your local branch of the American Institute of Architects (AIA) to obtain a list of ﬁrms in your area who specialize in industrial facility design. Ask friends and business associates who have been through the process for their recommendations. Visit facilities in your area that you admire and ﬁnd out who designed them. If there are ﬁrms in your area that specialize in the type of structure that you are planning, add them to your list.

From this initial list, interview only those ﬁrms that you think might be able to meet your needs. Consider the following when selecting ﬁnalists:

• Experience with similar projects (size, site conditions, functional complexity)

• Size of ﬁrm (is it the appropriate size for your project?)

• In-house capabilities (are they sufﬁcient for your project?)

• Length of time in business (ﬁnancial stability—will they be around next year?)

• Staff experience (experience of those assigned to your project)

• References (check references thoroughly)

Consider Company X: they’re hoping to build a new, 1 million ft2 facility to accommodate their distribution needs. Current management has never contracted out for an A&E ﬁrm, so they choose N Enterprises, basically out of the phone book. They’re an A&E ﬁrm after all! Unfortunately, they have two architects and one structural engineer, each with three years of experience. They’re working on two 2000 ft2 residences currently. Company X fails to call but one reference: the engineer’s mother, for whom they built an addition on her home. What’s wrong with this picture?

Consider Company Y: they’re hoping to expand their existing facility by 50,000 ft2 to accom- modate new manufacturing equipment. Their management wants ‘‘only the best,’’ so they hire the leading architect in the country. Although the ﬁrm is large and well known throughout the world, its reputation was built on design of large, high-proﬁle ofﬁce complexes, not industrial facilities. This ﬁrm will essentially have to start from scratch. With little previous experience in designing industrial facilities to draw from, the process is likely to take longer and be more costly. The ﬁnal design is adequate but lacks imagination and shows that the ﬁrm really didn’t have an understanding of com- pany Y’s operation and requirements. The ﬁrm is so large and has so many projects going on that company Y’s project doesn’t get the attention it deserves.

These are extreme examples of poor A&E selection. Keep in mind, though, that it is better to err on the side of caution and do your homework slowly. RFPs and selection matrices will help this process.

From the information gathered, develop a short list of three to ﬁve ﬁrms to send RFPs. In order to be able to compare responses, the RFP must clearly deﬁne the scope of services that the architect is to provide. Basic services include information gathering, preparation of preliminary schematics designs, detailed design development, construction document preparation, assistance in awarding contracts, and contract administrative services during the construction phase.

The RFP should also include:

• A description of the project approach (organization, methods and procedures)

• An overview of the project’s objectives (why the facility is being built)

• Design criteria and constraints (what must be included to achieve objectives)

• Schedule requirements and constraints (must start and / or must complete dates)

• Budget parameters (accurate estimate of the intended budget)

Generally, the more relevant and detailed information you can include in your RFP, the more responsive the A&E proposals will be.

The RFP can request either a ﬁxed cost bid, an hourly rate plus reimbursable expenses, or a combination of the two. Whatever method of compensation you choose, make sure you clearly understand the agreement and have an accurate estimate of the ﬁnal cost of services.

The ﬁnal selection of an architect should be based not only on technical competence, experience, organization, cost, and schedule, but also on your personal conﬁdence in the ﬁrm’s ability to meet your expectations. An example of an A&E selection matrix is included in Table 2; each ﬁrm is ranked

on a 1 (poor) to 5 (excellent) scale on a predetermined set of criteria. Results of interviews and written proposals are considered in these assessments. Based on the numbers below, Company A and Company D were in a dead heat for the project. In the end, however, Company A was chosen due to its stronger showing in services, deliverables, and stafﬁng. Price alone should never be the moti- vating factor in an A&E selection.

Make sure that you have met and feel comfortable with the people who will actually be working on your project. Finally, select a ﬁrm whose style, personality, and project approach are compatible with yours.

4.3. Selecting a Contractor

The traditional way of selecting contractors is through the competitive bidding process. This may result in an initial low price, but it does not necessarily result in selection of the best contractor for the project. Price is an important consideration, but other factors, such as experience with similar projects, ﬁnancial stability and strength, number of years in business, reputation, annual volume, and safety record, must be considered before entering into a long-term binding agreement with a con- tractor.

For this reason, RFPs should only be issued to a short list of prequaliﬁed contractors that meet acceptable standards in all categories, any of which you would be willing to award the project to. Below is an example of a prequaliﬁcation form that can be used to screen prospective contractors. Here again, we are using a rating system of from 1 to 5, with 5 being the highest possible score. This is only an example; you will need to evaluate what categories to include on your form and what weights to assign to each factor. However, at this stage in the selection process, emphasis should be placed on ﬁnancial strength, experience, and reputation.

The role of the GC has changed signiﬁcantly over the years. Where once the GC employed his own tradesmen to perform the work, today most work is done by specialty subcontractors: electrical, plumbing, rooﬁng, and so on. The GC is predominantly a supervisor. He assembles a group of specialists, generally through the competitive bidding process, and then has the responsibility of scheduling and coordinating their activities to ensure that the work is performed correctly and com- pleted on time. Subcontractor administration is the GC’s primary concern once construction begins. GCs may subcontract more than 98% of the work to be performed on a project. For this reason, the owner must reserve the right of ﬁnal approval of all major subcontractor and material suppliers. During ﬁnal negotiations with GCs, the owner should review the credentials of all proposed subcon- tractors (e.g., electrical, HVAC, ﬁre protection, etc.) and critical material suppliers such as structural steel fabricators. If there is any question about the ability of any of these participants to perform, the owner should insist that they be replaced.

Obviously, selecting the right contractor is essential to the success of your building project. The right contractor is the one that has the appropriate balance between stability, technical competence, experience, organization, cost and that intangible element: your personal conﬁdence.

4.4. Project Management

Having decided what to build, where to build it and who will do the work, you might be ready to wash your hands of the whole thing and let the process run its natural course. This approach can be disastrous. Construction projects are dynamic creatures requiring constant monitoring and guidance. If left to its own device, the project can take a wrong turn before you realize what has happened.

Whether or not a bond is required from the successful bidder, requiring all potential contractors to furnish letters from a surety that they are bondable ensures that only ﬁnancially sound companies will participate in the process.

Lost time or money spent is rarely fully recoverable. To avoid surprises, cost, schedule, and quality must be constantly monitored.

The nature of the construction process leads to natural differences of opinion among the partic- ipants. Everyday issues must be identiﬁed and resolved before they develop into problems. Timely decisions must be made so that the project can move forward as scheduled. Placing an activity on hold because approval drawings have not been returned or because the person who needs to make a decision is on vacation can disrupt the ﬂow of a project and prove to be costly to the owner.

The secret to a successful project is effective project management. The individual who has the responsibility to represent the owner has more at stake than meets the eye. He must coordinate, facilitate and take responsibility for the successful completion of the project. No matter which method of project delivery has been chosen, the owner will have ongoing responsibilities, and must assume an active role throughout the building process. The owner must:

• Be represented at all planning and progress meetings

• Develop and maintain a master project milestone schedule

• Provide timely information to the A&E, contractor, or suppliers

• Develop and implement procedures for budget tracking and cost control

• Review payment requests and make recommendation for disposition

• Coordinate and expedite delivery and installation of owner-furnished materials and equipment

• Review drawings, submittals, and product samples as required

• Maintain documents, records, and logs as required to protect the owners interest

• Prepare and submit progress reports and schedule updates to top management

• Review and approve all change order requests

Completing a major project on time and within budget requires an extraordinary amount of time and effort on the part of the owner. Those with limited resources, who do not have experienced construction professionals on staff who can be assigned to the project, should consider securing the services of an outside consultant to act as their agent. An experienced consultant who is familiar with the strategic master plan and understands the role of the facility as a production tool rather than a structural box can be invaluable to the owner. Working as the owner’s designated representative, he can move the project along smoothly from one phase to the next without interruption or delay while protecting the integrity of the functional design at each step. This ensures that contractors, suppliers, or other project participants do not make changes to the structure that will affect the process that the building has been designed to house.

For example, the placement of light ﬁxtures, conduits, ductwork, or ﬁre-protection lines below the designated clear height of the building can dramatically affect the designed manufacturing or warehousing process by restricting the travel of material handling equipment. Relocating utilities or other obstructions after the fact can be costly to the owner. Having a qualiﬁed representative on site during critical construction phases is a case of spending a penny to save a dollar.

The planning, design, site selection, construction, and start-up of a new or expanded distribution center or manufacturing facility is a linear process that follows logical steps from concept to com- pletion. It is easy to understand the steps; it is not easy to manage the process effectively.

Do not underestimate the difﬁculties that will arise between concept and completion. Typically, millions of dollars of construction money are at stake, as well as the potential loss of revenues should the facility not be operational as scheduled, not perform as anticipated, or prove to be in the wrong location.

4.5. Summary Points for Construction

Let’s review the steps to project success:

• Establish realistic criteria for site selection: When we say ‘‘realistic,’’ we mean according to the needs identiﬁed in a strategic master plan (SMP). The SMP will identify and prioritize facility requirements for a given planning horizon, based on historical data and objective ana- lytical projections. Establish needs and stick to the plan.

• Select the contracting or project-delivery method that best ﬁts your needs: The generalized deﬁnitions of the four methods described in this monograph are intended only to introduce the reader to the process. Before committing to any method, the owner should have a clear under- standing of the rules of the game and the roles and responsibilities of each player. Knowledge is power. Do research. Have unbiased consultants or third parties help you.

• Select the best construction team for your project: Your project is only as great as the skills and dedication of its team members. Do not get involved with unnecessary conﬂict and politics. Be careful; use quantitative and qualitative evaluations. Weight each criterion based on its unique importance to you. Your cautious diligence will pay off.

• Vigorously manage the project: You’ve done a lot of work up to this point; Do not let success slip away by neglecting the bricks-and-mortar phase. Allocate qualiﬁed staff to oversee the process, or select third-party agents or consultants to represent your interest during this critical stage. Wiping your hands of the construction process now is guaranteed to create difﬁculties down the road.

5. CONCLUSION

Developing a comprehensive plan that encompasses site selection and construction ensures that the organizational mission and goals will be addressed in the concept to reality process. Through a combination of awareness, research, reﬂection, and leadership, organizations can be assured that the property they choose and facility they ultimately build will increase return on assets, enhance com- petitive advantage, and provide the supply chain with the resources, processes, and methodologies that provide a true competitive advantage.

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