IMPROVE YOUR COMPETITIVE ADVANTAGE
IMPROVE YOUR COMPETITIVE advantage
Replace Uncertainty with Risk
This issue of Solutions analyzes how to improve your competitive position and the return on your investment by changing uncertainty into risk. While most of us use the terms uncertainty and risk interchangeably, uncertainty is a lack of information, while risk implies probabilities we know or can measure. While risk doesn’t necessarily protect us from adverse outcomes, converting uncertainty to risk does improve our ability to make better decisions. So the move from uncertainty to risk can represent a vast improvement in the probability that the return on your investment will materialize as you intended.
By taking seriously the possibility that some damaging economic outcomes are possible, you can more adequately prepare to avoid them. For example, the many unknown costs of purchasing and operating a large building lead to an increase in uncertainty. By using FINFROCK as a single source business partner, we can help you turn uncertainty into manageable risk by giving you the information you need to evaluate initial and many life-cycle costs. Or, as we like to say – by purchasing a building as a product rather than as a series of services.
Inside, we examine how knowing and controlling initial and life-cycle costs can reduce uncertainty and deliver the information you need to calculate the risk you are willing to take on your next project.
You can eliminate uncertainty in your next project by purchasing your building as a product rather than a series of services. With our fully integrated business model, the expertise necessary to deliver your building is contained in one organization. That means our team works together on every project we complete, and have immediate access to other team members, which facilitates communications and speeds answers that might otherwise impede workflow.
Controlling Your Initial Costs
Elimination of Change Orders
Single source responsibility by FINFROCK guarantees our performance. Every building is designed virtually using Building Information Modeling (BIM). Analyzing each building’s structural and other subsystems, before construction begins, eliminates time-consuming and costly complications during construction.
You can have an added measure of protection with the option of a lump sum contract that prevents us from charging you for errors or omissions. With a lump sum contract, you are guaranteed that unless you change the scope of the agreed upon work, the cost of your building will not increase. There is no better way than this to remove the uncertainty of the final price.
With a two-hour fire rating, enormous column free areas, and superior sound attenuation, the DualDeck Building System allows ultimate flexibility in combining different occupancy uses - including mixing parking and other functions without the need for costly transfer beams. The DualDeck Building System gives you great flexibility in functional layout, increasing your ability to respond to market demands. Our building system eliminates the doubt that your building will be able to accommodate any combination of uses, now and in the future.
Our in-house developed technologies allow extreme accuracy in the manufacturing of the structural components. These components arrive at the jobsite with many subsystems already installed, further speeding project completion. Your building is designed with the end in mind so the phases of construction which take the longest to complete erect early. Once assembled, the structure’s interior walls are put in place quickly according to placement marked on the floor product under strict factory controlled conditions.
This unmatched combination of schedule accelerators to speed construction is currently unheard of in our industry, and is slated to become even faster. Our ultimate goal is to reduce on-site construction to half of what is now typical. The shorter your project schedule, the less exposure you have to the uncertainties of changes in the market.
Low Cost, Below Market Pricing
By properly utilizing all products and subsystems, FINFROCK has demonstrated a unique ability to reduce overall project costs through superior design. Through a combination of in-house design expertise, manufacturing experience, construction knowledge, and an outstanding database of cost information, FINFROCK can develop accurate, below market pricing for your building, even with minimally developed plans.
Like much of the construction industry, FINFROCK capitalizes on manufactured products to reduce costs. Produced with precise dimensional accuracy, the structural components of the building reduce costs in several ways. One is when dimensional accuracy leads to cost reduction of labor and materials in subtrades. Others are by the elimination of trades, such as suspended ceilings, or when redundant elements, solely for the purpose of improving aesthetics, are no longer necessary.
REDUCING YOUR LIFE CYCLE COSTS
The industry most practiced at turning uncertainty into calculated risk is the insurance industry. Depending on the insurance market, permanent rates for a wood structure can increase by as much as $0.20 to $0.50 per $100 of insured value over a concrete structure. On a $40 million project, this can be as much as an additional $200,000 annually. Also, builders risk insurance is typically less expensive for an all concrete project. For the same $40,000,000 project, builders risk insurance expense can be $100,000 less.
If insurance for a non-combustible, all concrete building is less expensive than insurance for a combustible structure this would indicate a concrete structure is a choice you can make to manage uncertainty. Especially since, once capitalized, savings for insurance costs can be worth millions of dollars.
Major subsystems in every FINFROCK building are designed and installed by contractors who are familiar with the best practices and equipment in their specialty. Those most in the know of current and downstream costs guide choices for the structure and subsystems. Moreover, rather than placing all subsystems inside poured concrete, behind drywall, or above suspended ceilings, many are placed in easily accessible interstitial space of the DualDeck product for trouble-free accessibility. By choosing the best subsystems available and improving accessibility, you reduce uncertainty and the cost of maintenance and repairs for the life of your building.
Long, clear spans - optimally 65 feet or longer – and interstitial space afford exceptional flexibility for cost effectively changing building layout and uses. The DualDeck Building System is more responsive to long-term functional changes than any other structural type – reducing the likelihood that your building may become obsolete.
The high degree of quality and craftsmanship in manufactured components is not possible to replicate on a job site. The exceptionally durable, high-performance concrete used in manufactured components lends itself to the reduction in long-term maintenance issues. Cast-in-place projects typically use lower quality concrete, and wood forms made on site, often with unskilled labor, for casting the structure – producing a distorted, dimensionally less accurate, lower quality product. The higher quality manufactured product reduces or eliminates the need for treatments that are purely of a cosmetic nature and adds one more source of maintenance issues.
REMOVING THE UNCERTAINTY
By Purchasing Your Building as a Product
The idea of purchasing a building as a product rather than a series of services is comparable to buying an existing building where the purchase price, operating and maintenance costs are known. With a DualDeck Building, you can define the purchase price early, without the uncertainty of typical construction cost escalations, and limit the unknowns of life-cycle costs. Without unpredictable costs, increased risk of market changes and uncontrolled life cycle costs, you will navigate uncertainties, manage your risk and obtain a greater return on your investment.