Frequently Asked Questions

Just How Much money Will This Save Me CLICK

So what does PPM Services do that’s so different than other general contractors?

The answer to that has 2 parts:

1. When general contractors price a project they determine as best they can what the reasonable expectation of what their costs will be and then add a fee for their overhead and profit. This is usually a percentage of the costs. PPM does not add a percentage to the cost.  PPM’s fees are based on an entirely different system that results in their fee for overhead and profit being about half what other contractors charge.
   
2. Owners and lenders face very real risk factors with most GC’s. However, we have developed a system that virtually removes those risk factors.

So what’s the catch? There must be something that your company is not doing that others are doing.

There is no catch. PPM will do everything that any commercial GC will do.

What if my project is not in Tampa but is in some other part of Florida?

It doesn’t matter where your project is located.  All of the subcontractors that will work on your project will be from the same area as the project. The project manager that will be on site will also be local to the jobsite. Additionally, we will have a live webcam on site so that we can keep a close watch on the job and help reduce trips in the early stages. You, as the owner, along with the architect and lender, etc will also have on-line access to the webcam.

If we want to get bids from several general contractors will you submit a bid as well?

If you really feel that you need to get other bids it works better for you to go ahead and get the other bids and have them submit their bids showing each line item of cost as well as a line item for their fee for overhead and profit.  Then I will show you just how much I can save you. When you take bids from a GC and give them a contract for their bid amount, they will then go out a get many more bids from subcontractors and negotiate with them on their price. This generally results in the GC reducing the cost of construction anywhere from 3 – 8 percent all of which goes in his pocket. With PPM we do the same thing except 100% of those savings go into your pocket. We think that makes a lot more sense.

I’ve heard nightmare stories of problems other owners have had with their general contractor. How do I know that won’t happen with PPM?

This is another area where PPM’s CM system really shines. The relationship between most owners and their GC tends to be very adversarial from beginning to end. The contractor’s goal is to maximize profits and collect as much money from the owner as early in the project as possible. The owner’s goal is to keep cost to a minimum and avoid paying the contractor too much too soon. PPM’s system totally eliminates this battle of the wills. We are literally on your side of the table looking out for your interests.

Can you help me with the design of the building?

Absolutely, In fact, tremendous savings can be realized by PPM being involved in the design process. If you have not hired an architect yet we can generally save you a ton of money on the architectural and engineering fees alone. Before hiring and architect  we will solicit fee proposals from civil engineers near the project and get them started on the site plan first. The site plan approvals for the various government agencies is what takes the longest and in many cases determines what size building you’ll be able to build on your property. Then, depending on the type of proposed building we may solicit fee proposals from architects to prepare the architectural building plans needed for permitting. In some cases, such as a warehouse or other simple building we may just hire a structural engineer and in addition to the structural components we would have him include the minor architectural portions of the plans required for permitting. We would then hire an electrical and mechanical engineer for those portions of the plans. PPM would then act as the one coordinating the engineers to make sure everything works together to give you exactly what you want.

What if I already have an architect on board?

That’s fine as well. PPM will work with your architect as a team working toward the common goal of achieving your goals for the project at the least reasonable cost. Your architect can also be reassured by speaking with other architects with which we have worked. They’ll tell them what a valuable asset PPM can be through the design process.

Can PPM help arrange financing for my project?

Yes, we can help you find lenders that are eager to fund your project. In fact, your lender is going to love PPM’s CM system. Most lenders have serious concerns about general contractors and rightly so. However, PPM’s system eliminates those risks entirely. Sometimes lenders will insist on the GC providing a performance and payment bond to protect them from potential losses should the GC desert the project or misuse the funds and not pay the subs or suppliers. Our system eliminates those risks and saves you the cost of the bond which generally runs about 1% of the project cost. On a 5 million dollar project that would save you $50,000 on that item alone.

I’m concerned about the economy, is this a bad time to build?

No, it is a great time to build. One thing is certain; the cost of construction is down due to the slumped residential market. All the subs and suppliers that were in that market are now virtually out of work and as a result prices across the board have come down considerably. It’s a great time to take advantage of that. Two years ago the cost to build your building would have been considerably higher. It also depends on what type of project you have in mind. Lenders are eager to lend to established business that are expanding or building a new facility. However, most lenders are not going to be interested in any speculative project where the success depends on being able to sell what you build unless you can demonstrate the ability to pay back the loan regardless of whether it sells or not.  There are many retail store projects going up right now and they can be very viable as long as you have substantial leases in place so the lender is comfortable knowing you’ll be able to make the payments. Additionally, it’s also a great time to purchase land on which to build. As any Realtor can tell you, real estate prices are down and people are, in some cases, desperate to sell to help them get out of the situation they are in.

I don’t really understand what construction management (CM) is. Can you shed some light on that?

CONSTRUCTION MANAGEMENT EXPLAINED