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By Reuben Walker

The critical role of construction in property management

Image of David Seip of CAM Contracting during commercial build-out for PIne Castle Christian Academy in Orlando, FL.

Construction is more important than you think

If you own a commercial building or complex, you are either managing it yourself or have a property manager. So you know there are many responsibilities and tasks associated with managing your property. But you may have never thought about the role of construction in property management. This post takes a look and gets you up to speed on what you need to know about this important aspect of the job.

Definition of property management

According to Wikipedia, it is:

“the operation, control, and oversight of real estate as used in its most broad terms. Management indicates a need to be cared for, monitored and be held accountable for its useful life and condition.

Property management involves the processes, systems and manpower required to manage the life cycle of all acquired property as defined above including acquisition, control, accountability, responsibility, maintenance, utilization, and disposition.”

How does construction fit into property management?

Construction has several roles to play.

Repairs

Repairs are mostly self-evident. They involve fixing things that are broken through misuse. A window broken by a baseball is a good example. Simple repairs may be carried out by an onsite employee. But more extensive ones may be handled by a third-party. Say if someone drives a car through your front entrance.

Maintenance

Many times an onsite employee will provide maintenance. But it can be more efficient and less costly to contract it out in other circumstances.

Routine maintenance involves the day to day upkeep of your property to keep it functional. Replacing loose fasteners on railings, fencing, steps, or deck planks are examples. Recaulking older windows is another.

Preventive maintenance is a proactive service to avoid unnecessary repairs. Regular inspections and service prolong the useful life of your assets. It is also an important part of maintaining the safety of your property.

Capital Improvements

Capital improvements are a different thing altogether. They are almost always carried out by a third-party. According to Investopedia they are:

“the addition of a permanent structural improvement or the restoration of some aspect of a property that will either enhance the property’s overall value or increases its useful life. Although the scale of the capital improvement can vary, capital improvements can be made by both individual homeowners and large-scale property owners.”

They also have very different tax implications.

The components of your property eventually wear out and have to be replaced. Replacement is necessary even if they have been properly maintained. Technology also changes and requires upgrading or installation of new systems and components. New regulations from government also require additions to or adaptations of your property and its constituent parts. You might even have to carry out upgrades just to stay competitive.

Replacing old windows with new energy-conserving ones is an example of a capital improvement.

[Read more…]

Filed Under: Construction Management Tagged With: Capital Improvements, Maintenance, Property management, Repairs

By Reuben Walker

Understand the Standards for your Historic Building’s Rehabilitation

Photo of historic building in St. Augustine, FL

Historic preservation standards protect your community’s heritage and your building’s value

Our historic buildings are a national treasure that serves as a source of education, community pride, and economic development. Cities like St, Augustine, FL and Savannah, GA derive millions of dollars in revenue each year due to the historic buildings in their downtowns and enlightened historic preservation policies.

If you are fortunate enough to own a historic building you have a financial asset that must be maintained. To benefit from its history, a historic preservation designation is needed. Any construction work done to make the property functional in the modern age has to follow national and local standards and guidelines. Compliance will ensure you receive any tax incentives on offer.

For guidance, you need to rely on a team of professionals. It may include architects, architectural historians, historians, archeologists, general contractors, project managers, and others. These professionals specialize in the preservation, rehabilitation, and restoration of historic properties.

Today we will look at the standards and guidelines you must follow when rehabilitating your historic property. But first, let’s take a look at all the categories of historic preservation construction.

Types of historic preservation construction work

There are four approaches to construction work on historic buildings. They are defined by the U.S. Secretary of the Interior’s Standards for the Treatment of Historic Properties.

  • Preservation: places a high premium on preserving the historic fabric of the building through conservation, maintenance, and repair. It looks to preserve the property over time, and through successive users, and any respectful changes or alterations that have to be made.
  • Rehabilitation: emphasizes the retention and repair of historic materials, but more latitude is provided for replacement. It is assumed a building may be more in worse shape before work begins.
  • Restoration: focuses on keeping materials from the most historically significant time in a property’s lifespan, while permitting the removal of materials from other periods.
  • Reconstruction: establishes limited opportunities to re-create a non-surviving site, landscape, building, structure, or object with all new materials. 1

Definition of Standards for Rehabilitating Historic Buildings

The following information (grey text) comes from the U.S. Secretary of the Interior’s website with minimal editing. It is by necessity legalistic so put your concentration cap on. 😉

The Standards for Rehabilitation (codified in 36 CFR 67 for use in the Federal Historic Preservation Tax Incentives program) address the most prevalent rehabilitation treatments. “Rehabilitation” is defined as “the process of returning a property to a state of utility, through repair or alteration, which makes possible an efficient contemporary use while preserving those portions and features of the property which are significant to its historic, architectural, and cultural values.”

Initially developed to determine the appropriateness of proposed work on registered properties within the Historic Preservation Fund grant-in-aid program, the Standards for Rehabilitation have been widely used over the years–particularly to determine if a rehabilitation qualifies as a Certified Rehabilitation for Federal tax purposes.  [Read more…]

Filed Under: Commercial Building Remodeling Tagged With: Historic Building Rehabilitation

By Reuben Walker

Capital Improvements vs repairs. What’s the difference?

Image of capital improvement at Old Town Theme Park by CAM Contracting

Construction’s impact on your property’s functionality is the key

If you own a commercial property that has been productive for some years, you will need maintenance construction from time to time. The work could be considered a repair or a capital improvement.

But what is the difference between the two? It has to do with functionality, tax categories, and planning. Let’s start with some definitions.

What are the definitions?

According to Investopedia Capital Improvement is:

“the addition of a permanent structural improvement or the restoration of some aspect of a property that will either enhance the property’s overall value or increases its useful life. Although the scale of the capital improvement can vary, capital improvements can be made by both individual homeowners and large-scale property owners.”

To repair is to fix or mend something suffering from damage or a fault.

According to Wikipedia A Capital Improvement Plan (Program), or CIP is

“a short-range plan, usually four to ten years. It identifies capital projects and equipment purchases, provides a planning schedule and identifies options for financing the plan.”

They are often used for government projects but work well for commercial ones as well.

What’s the difference in the IRS’s eyes?

There is a difference between repairs and capital improvements as regards your tax filing. Consult your tax accountant for how this impacts you. This post is not advice, just a synopsis.  [Read more…]

Filed Under: Commercial Building Remodeling Tagged With: Capital Improvements, Repairs

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Recommendations

I have always appreciated his attention to detail

It is with great pleasure I am able to recommend CAM Contracting and its President, David Seip. I have had...

James Dawson, President
Colorcrete of Central Florida, Inc.

CAM Contracting
5
2014-12-14T23:41:58-05:00

James Dawson, President
Colorcrete of Central Florida, Inc.

It is with great pleasure I am able to recommend CAM Contracting and its President, David Seip. I have had the privilege to use CAM contracting on many different projects over the past five years. All the projects have been completed satisfactorily and with excellence. CAM has completed small size projects (install a new exterior doors or windows), medium size jobs (replace drywall in a home) and large commercial projects (tear down and replace the framing and concrete floors of 3-story stair towers on multiple apartment buildings) involving many subcontractors and a multi-month critical path plan. Each time I engaged Mr. Seip and CAM, they were focused on finishing the project with excellence and timeliness. Mr. Seip has always been personally involved in each project to make sure that subcontractors were completing their portion accurately. I have always appreciated his attention to detail and excellent communication of progress or issues. As a Christian business leader, it is obvious to me that Mr. Seip lives his faith daily and holds himself and his company to the highest moral standards and business practices. We will be turning to CAM Contracting in the future for any of general contracting needs. Thank you for the opportunity to share my experiences with you. With Respect,
https://camcontracting.com/testimonials/always-appreciated-attention-detail/

He and his crew go the extra mile

We have called on David Seip and his business to complete a 2nd job in our home. David is honest,...

Nancy Nieman Jones

CAM Contracting
5
2014-12-14T23:43:06-05:00

Nancy Nieman Jones

We have called on David Seip and his business to complete a 2nd job in our home. David is honest, professional, and does excellent work. He and his crew go the extra mile to make the project perfect and to make sure that I am satisfied. He listens and gets it right the first time.
https://camcontracting.com/testimonials/crew-go-extra-mile/

completed the job a day early, and cleaned up thoroughly

CAM Contracting gave us 100% satisfaction and more! They bid on target, arrived when they said they would, completed the...

Gale Young

CAM Contracting
5
2014-12-14T23:44:11-05:00

Gale Young

CAM Contracting gave us 100% satisfaction and more! They bid on target, arrived when they said they would, completed the job a day early, and cleaned up thoroughly (even a mess on the side that we had left). The "and more" was Dave Seip going to 5 different places to secure a hard-to-find item because of the age of our home. What we made a fiasco, they turned into a job VERY well done. Thanks CAM!
https://camcontracting.com/testimonials/completed-job-day-early-cleaned-thoroughly/

I have recommended CAM Contracting to my clients

I am an architect and developer in the Central Florida area and have worked with CAM Contracting on multiple projects...

Dale Parsons, Architect

CAM Contracting
5
2014-12-14T23:02:06-05:00

Dale Parsons, Architect

I am an architect and developer in the Central Florida area and have worked with CAM Contracting on multiple projects in the past.   I have found them to be dependable and cost effective. I have recommended CAM Contracting to my clients in the past and will continue to do so in the future. Sincerely,
https://camcontracting.com/testimonials/recommended-cam-contracting-clients/

CAM Contracting is a stellar organization

I have had the pleasure to know David Seip for over ten years. Initially, we worked as colleagues at the...

Michael Joiner, President
Empire Construction & Development Corp.

CAM Contracting
5
2014-12-14T23:19:36-05:00

Michael Joiner, President
Empire Construction & Development Corp.

I have had the pleasure to know David Seip for over ten years. Initially, we worked as colleagues at the same company.   As we progressed in our own respected aspects as contractors we worked as separate entities together on the same projects. Empire Construction has hired CAM Contracting for several projects and we feel that CAM Contracting is a stellar organization priding themselves on not only speed but accuracy in completing a project. I have met and worked with many types of businessmen over the years from developers and investors to sub-contractors. I have found many to be less in substance than they profess to be in words. David Seip is an honest, upstanding businessman and an excellent General Contractor. It is our belief that CAM Contracting would be a wise choice if you want your project to be completed on time and within your budgetary restrictions. Feel free to contact me personally if you have further questions. Sincerely,
https://camcontracting.com/testimonials/cam-contracting-stellar-organization/
5
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CAM Contracting

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