Should you hire an engineer directly or through an architect

Just about every project requires the services of both an architect and an engineer.  In some rare exceptions you might be able to do a project with an architect and not need an engineer.  Such projects are generally simple alterations that don't impact any building systems, but If you are building a new house or adding a substantial addition to an existing house, it is likely that an engineer will be required.

Once the decision to hire an engineer has been made, you will need to consider how to contract the engineer.  Some might suggest the engineer should be hired directly by the owner, while others recommend contracting the Engineer as a sub-consultant of the Architect.  There are pros and cons to both options.

Acknowledging my bias as an architect, I hold a pretty strong view that the architect should always be the lead designer and the engineer should be subcontracted to the architect.  It is true that you will pay some amount of mark-up to the architect in order for them to subcontract the engineer, but for most projects the risk vs reward evaluation does not support hiring the engineer directly.

To fully appreciate this statement it is important to know that the coordination of the building systems is an essential part of the architect's responsibility. 

It may surprise some that architects are responsible for coordination of building systems, but the only licensed professional in the design team that is educated in all of the major systems of a building is the architect.  Engineers are specifically trained in their respective disciplines and tend to know their part very well, but they are generally not familiar with the other systems of the building.  It's critical that you have one central figure responsible for coordination of the design to avoid a large amount of costly coordination during construction.

If your architect does not have a contractual relationship with the engineer and the engineer does not have to answer directly to the architect, the architects authority over the engineer will be limited.  This may put the burden of coordination on to the owner and the owner could take on a needless risk and expense. 

We also need to recognize that the mark-up added to the engineer's fee will be minimal.  Also, most architects are generally willing to negotiate the markup, so if you are concerned about how much you are paying you can discuss this upfront.  Generally a 10% to 15% fee is common.  The lower the value of the engineer's fee the higher you should expect the percentage mark-up paid to the architect.

You may pay a bit more allowing the architect to hold the engineer's contract, but empowering your architect to coordinate the various parts of the project will pay dividends well into the construction phase of work.  What do you think?  Is it worth the additional mark-up for design phase coordination or would you prefer a lower design fee?

For more tips on how to manage your project, check out my articles on www.luisgile.com.

Best Practices for Managing sub-contractors

In most construction projects, sub-contractors represent the majority of the Cost of Work.  Most residential Owners spend no time considering who their sub-contractors are.  While it is not prudent to come between a General Contractor and his subcontractors, it is prudent to establish some parameters for accepting a subcontractor.

In considering the best practices for managing subcontractors, we need to keep in mind that the legal relationship is expressly between the General Contractor and the sub-contractor.  While you can and should establish parameters to govern who the General Contractor can hire, the final decision should ultimately be theirs.

Requiring that all sub-contractor's hold a minimum level of insurance is a must.  There are many trade contractors with little or no insurance and some GC insurances include provisions that could put you at risk if an insurable event occurs.  Speak with your property insurance carrier to establish what minimum insurance requirements you should require from the GC and his subs.

Request proof of licensing for sub-contractor.  This is not cut and dry, there are some trades that are not required to hold licenses.  Call your local Building Department to determine which trades require licensure and require that those trades that do, provide proof of licensure prior to award.

Request copies of the sub-contractor agreement.  The GC must have a written agreement with every sub-contractor.  The GC may be hesitant to provide you with his subcontractor agreements.  This is so because part of the way a GC makes money is by marking up the trade contracts.  The point here is not to uncover overcharges or to negotiate price.  It is important to see that a formal agreement exists between the GC and the subs and that the provisions of the the GC's agreement provide adequate protections for the Owner.  If your GC objects to sharing his agreements allow him to redact any pricing information from the agreements first.  This allows you to see the terms of the agreement without revealing too much of the GC's financials.

Establish communication protocols.  All communications should flow through the GC.  Dont ever give directives to a sub-contractor.  You must respect that the GC has to retain control over the site.  If you give a trade contractor direction to make a change without the GC's knowledge you will be compromising the GC's control over the job. There could also be gaps in the direction you gave which could impact other trades.

Its important to know just how much control is appropriate when managing sub-contractors. Too few controls could mean poor quality, unsafe working conditions, or illegally performed work. Too much control could delay your project, add cost to the work, or increase the owner's risk.  Strike a perfect balance and your project will benefit greatly.

What level of controls have you placed on your subcontractors? Do you feel you had too much or not enough?

For more tips on how to manage your project, check out my articles on www.luisgile.com.