12 BUILDING OR REFRESHING YOUR DENTAL PRACTICE Beware of the contractor trickery that involves allowances. Let’s assume that the architect has called for specific lighting fixtures for your new office in the construction documents. Two of the bidding contractors quote you a similar cost for these light fixtures. The third quotes you an “allowance” for these fixtures of a much lower dollar amount. What the allowance indicates is that the contractor will only cover the costs of these fixtures up to a maximum of this lower dollar figure. The remaining costs will be added onto your final construction costs. This is a ploy to gain an edge on competitors by appearing to have a lower bid. Any time allowances are involved, the total cost quoted for your project ends up being a mirage. Completing the Design Phase for Your New Office The interior design phase of your construction documents is typically done by the architect during the time that the engineers are working on their piece. Occasionally a contractor, rather than an architect, does this for a client after the bidding process, which can present several disadvantages. First, the bids you receive from the contractors will probably contain multiple allowances because no firm design decisions have been made in your construction documents. The other disadvantage to having a contractor do the design phase after tenant improvements have begun is the risk of delays. Often the design items you choose after construction begins have a long lead time or are on back order, forcing the contractor to put your project on hold until the items arrive. This time constraint may force you to accept less desirable alternatives. Contractor Tenant improvement costs will likely be the single biggest expense you will incur when opening your new dental office. They are also the expense that can fluctuate the most from the beginning to the end of your project, often wreaking havoc on your budget. Hire a contractor who has experience building dental offices. An inexperienced company may underbid the project, not fully understanding its complexities and underestimating the time necessary to complete your project. If you live where experienced contractors are unavailable, it becomes even more important for you to get everything on paper to avoid expensive change orders. Ask contractors for a bid that includes a full-time superintendent. A salaried employee of the construction company that you hire, the superintendent is the most important person involved with the construction of your project. He or she is responsible for ensuring that all the tenant improvements are built according to your plans and making sure that none of the subcontractors Hire a contractor who has experience building dental offices. An inexperienced company may underbid the project, not fully understanding its complexities and underestimating the time necessary to complete your project.