To Move or Not to Move?
Challenges in Living Through a Renovation Project
Introduction
To move, or not to move? That is often the question. The answer is not a simple one. Many factors affect the decision to relocate: real estate issues, the current market for space, the extent of required renovation, the investment required for infrastructure, and the long-term viability of the space to meet an organization’s goals, even after the renovation is complete.
Once an organization has made a decision to remain in place, it faces many challenges, and they are very different from the challenges of building out new space and moving. Unlike new construction, these issues affect the entire plan.
Logistics
Logistics for renovations in place are far more complex than in new construction. Often swing space is required (space to temporarily house employees or other functions) in order to clear a space for more intense construction activities. For example, in one project to upgrade HVAC in a building, employees had to be temporarily relocated while the work was performed. All employees had to pack, temporary furniture set up, telecommunications installed, with moves occurring every 2 weeks for the duration of the project.
In another project, where the result was primarily a cosmetic upgrade of carpet, paint, and new furniture, the disruption to the staff was similar. Each weekend for 4 weekends, employees packed up on Friday afternoon. Then, work crews came in, removed the old furniture and carpet, re-carpeted, painted, installed new furniture. IT then had a small window to run cable, reinstall PCs, and test; movers returned, replaced all the equipment and contents, and on Monday morning, the address was the same, but the space was refreshed.
The coordination required to work within such tight time frames is significant. Each trade and specialty vendor has a very small window to perform, and tolerance for error is next to zero. With in-place renovations, communications between team members is even more critical than in a traditional project.
Strategies:
- Establish a project manager who acts as the clearinghouse and the ultimate decision-maker for all trades and logistics decisions
- Impeccably maintain and regularly distribute the detailed schedule and project directory with all contact information
- Make sure the project manager is on-site at key times during the work period to troubleshoot in the field and avoid any downtime
- Wherever possible, build in contingencies to alleviate potential problems with the completion timeframes
Cost
Added cost is one of the biggest concerns organizations face when renovating in place. Much of the work must be performed on off-hours, with the additional burden of overtime rates. When swing space is required, additional handling and moves adds cost as well. A move of 100 people, all of whom must be moved in multiple phases and multiple times, suddenly becomes a move of 200.
Organizations must evaluate the cost against the benefits of renovating in place. Often, the costs are offset by longer-term efficiencies or cost savings.
Strategies:
- Establish a REALISTIC budget early on, and regularly refine and update as the logistics become clearer. Be sure to add a contingency of at least 10% at the outset.
- Look for opportunities to perform portions of the work during regular working hours, but be careful to assess both the efficiency of performing work during regular time, and the impact to the business. Don’t be short-sighted.
- Evaluate the long-term savings and use these to justify higher initial project costs. For example, if the renovation allows for greater density to be achieved, project costs can be justified by lower real estate costs per person for the remaining term of the lease.
Safety and Security
Special attention must be paid to safety and security in occupied space under renovation.
A good contractor will be able to advise you regarding safety procedures for employees who may need to access and/or work near the space in question. The extent of precautions depends on the scope of work and the type of facility, as well as the occupants.
Security is also more challenging, as the trades stream in and out of a facility. Doors are propped open, freight elevators are heavily trafficked. Sometimes the employee population becomes desensitized to the additional traffic and loses the general awareness of strangers that is present during normal business operations. It is important to take extra care to protect both property, contents, and employees during a renovation in place.
Strategies:
- Have good safety and security procedures in place before the project begins, and be sure that employees are aware of them
Business Continuity
Disruption to operations and productivity are byproducts of the in-place renovation. In certain kinds of environments, it is easy to calculate the cost of downtime. Often, in the corporate setting, however, the distraction or disruption to employees’ normal work days or loss of productivity due to moves are either too difficult to quantify accurately or are overlooked altogether.
Strategies:
- Develop a model for the cost of productivity and understand how a day of downtime affects your organization. Evaluate the risks, and don’t be afraid to spend money to mitigate likely circumstances which have costly implications
Renovations in place present unique challenges which are surmountable with proper planning and assessment of risk. There are good reasons why an organization should, and sometimes why they must, renovate the space they currently occupy. Early planning and strategy are essential, as well as good communications within the project team and to the affected population.