5 Key Questions to Get a Pipe Replacement Project Started
Plumbing and HVAC system leaks can jeopardize owners’ investments and disrupt residents’ quality of life.
But how do you know it’s time for a community-wide repipe? And—once you’ve figured that out—how do you set yourself up for a successful project?
Here are five key questions to get you started.
(Press the + sign for guidance to answer each question.)
1. Do you have enough information to move forward?
You’ve got lots of leaks—water, sewage, bad smells—but do you know which of the two or more major piping systems in your community is leaking? Are the leaks frequent and significant enough to drain your maintenance budget and drive up insurance costs? The more data you gather to understand the scope of the problem, the easier it is to make an informed decision based on facts.
Engage a piping systems expert like SageWater to find out. Here’s where to start:
Pull your incident history.
Your maintenance records will show when you’ve had to address past leaks. The best records will report the location of the leak and repair costs and include several pictures plus pieces of any pipes removed. The evidence you’ve collected is exactly what experts need to help you make decisions. If your records aren’t that detailed, download the SageWater Leak Log to keep more useful records moving forward. It includes instructions on what to record and where.Schedule a site walk.
Invite pipe replacement contractors to walk your community with you. Show them where you’re having leaks. They can identify or confirm which piping system is giving you problems and collect more of the information you’ll need to make decisions about repair or replacement. If any walls are open from emergency repairs, giving them a look can help significantly. Be sure to share the pictures and pieces of pipe you’ve extracted from past incidents, too.Get a forensic analysis for objective data about the condition of your pipes.
A forensic analysis uses scientific techniques—ultrasound, metallurgy, and more—to diagnose the condition of your pipes and tell you how much longer they’ll last. The detailed report is a valuable tool to help owners understand if and when to proceed with a community-wide repipe. Talk with us about a SageWater Pipe TEST (Technical Evaluation of System Threats). We put the forensic data in context and add a project estimate if pipe replacement is necessary.
2. What’s the best contracting model for your community?
You have options for engaging one or many parties to complete your pipe replacement successfully. Each has merits and drawbacks. A model like design-build is gaining traction on the islands—especially among smaller associations—but many still favor using a construction manager.
Learn about the most common contracting models and pick what makes the most sense for your community.
Competitive Bid Option with a 3rd Party Owners Rep or Construction Manager
Historically, this has been the most common approach. This is because it’s a way for the Board of Directors to delegate overall project management responsibility to a neutral 3rd party. The CM will solicit proposals from engineers to define the scope and then proposals from contractors to install the solution. While the process facilitates easy bid comparisons and 3rd party oversight, it typically takes longer and costs more than the design-build alternative. Why? You’re hiring and managing multiple parties across the life of the project.Design-Build Option
This approach provides an end-to-end, turnkey solution where a single contractor provides the design, management, and construction services all under one contract. Design-Build projects typically get off the ground more quickly and are engineered to provide precisely what you need at the best price. These benefits are especially apparent when you hire a pipe replacement specialist who is up-to-date on the latest repipe methods, expert at working in occupied communities, and fully employs—rather than sub-contracts—its trade crews. Some communities take a hybrid approach, using a CM to help select the design-build contractor and then verify their work meets contract terms before issuing payment. Read more about the benefits of design-build model over other contracting models in this SageWater blog post.
3. How do you choose the right contractor?
Not all contractors are created equal, so before inviting them into your community—and your owners' homes—learn as much as you can about a company's business practices and record of success. Begin with key questions like whether a company subcontracts the majority of its labor and how it vets workers. Or how their management, communications, and scheduling practices help minimize change orders that usually increase project costs above the bid price.
Before checking references, ask these 10 questions to help you more easily identify the right contractor for your project.
1. What Does Turnkey Mean to Them?
In a true turnkey project, one contractor completes every step in the process. Ask any contractor promising turnkey service who their employees actually work for. Are they direct employees, subcontractors, or 1099 employees working as hired help? Contractors that rely extensively on outsiders can create a risk because their workers may not be bound by your contract.2. If the contract includes engineering design, what level of in-house technical expertise does the contractor offer?
Does the company have Professional Engineers (P.E.s) on staff to provide and oversee the design services and permitting or are they outsourcing the scope and design? Does the design team have experience with the nuances of occupied residential piping projects?3. How Is Project Management Handled?
Some contractors will provide dedicated, on-site project managers who are available 24/7 in case any issues arise. Others may split their managers across two or more jobs, so they may not be as readily available. In addition to asking about your access to a project manager, ask about the project manager's experience managing your specific type of project. Those who oversee multiple kinds of projects may have less experience with yours.4. How Will They Communicate?
Ensuring property managers, condo boards, and residents know what will happen, and when, is vital for your project to run on schedule and with few complaints. Ask contractors if they have a communications program they use for each project and how they communicate (e.g., status meetings, town halls, paper or electronic notifications, etc.). Make sure you select the contractor whose communication methods meet your needs.5. Do They Conduct Employee Background Checks?
Knowing who will be working in their homes can be very important to homeowners and residents. Verify how the contractor hires and screens employees by asking questions like:- Do all your employees undergo a background check?
- Are they all legally permitted to work in the United States?
- Do you randomly test for drugs and alcohol?
6. How Do They Handle Change Orders?
Some contractors will provide a very low initial bid, knowing they will use change orders later to make up the costs. Others will supply a more thorough bid to reduce surprises down the road. When checking references, ask former clients how many change orders they had to deal with.7. How Do They Handle Requests for Information (RFIs)?
If the contractor comes across an unexpected condition, do they have a formal RFI process? Ensure they use formal documentation to detail what they found and to request input from the construction manager, engineer, or board who is overseeing the project.8. How Are They Bonded and Licensed?
Understand the contractor's bond limits. Bonding capacity is for the company as a whole, not an individual project. So, if a contractor has several other large projects going on simultaneously, they may not have enough bonding capacity for your specific job. Also, find out the credentials of the team working on your property. If the people running the company are general contractors, who has the specialty licenses for trades like plumbing, electrical, elevators, etc.? If they rely on others' licenses to get their job permitted and completed, those license holders often need to be present during inspections.9. How Do They Handle Inspections?
Formal inspections ensure your project was completed safely, correctly, and to code. Ask your contractor how they manage inspections. Will they obtain all the required permits or expect you to obtain some? Who will be on-site to meet the inspector and show them the work? What do they do if they fail an inspection?10. What Is Their Insurance Coverage?
Of course, any contractor working in your building should carry insurance; otherwise, your community runs the risk of paying out if there is an accident or problem. Look at a potential contractor's certificate of insurance, including their liability limits, to make sure they are carrying enough insurance for your project and not just the minimum required.
4. How will you afford the project?
First, obtain a rough estimate of the potential cost. Call on a good repipe contractor like SageWater for a free estimate.
With that, you can begin financial planning. Consider funding options such as:
Reserves
If you’ve been planning ahead, you may have partially funded your project through reserves. Using reserves helps lower any special assessment and/or loan amount you use to cover the remaining cost. If you’re having leaks and have haven’t started to reserve for a repipe, start right away.Special Assessments
If your owners can afford it, issuing a special assessment may be the most advantageous way to fund the repipe project. If this approach is financially out of reach for owners or still doesn’t cover the full project cost, consider taking out a loan.Loans
Taking out a loan is a common way AOAOs have been funding their pipe replacement projects. Banks across Hawaii are familiar with the process and offer competitive rates. They may also offer preferred terms for communities in good financial standing. Ask an accomplished pipe replacement contractor like SageWater to introduce you to bankers who are experts at supporting AOAOs with repipe loans.
5. How do you start the project?
Once you’ve selected a contractor (or contractors), make sure the project gets off to a strong start. There are many strings to weave together before any construction begins, so be sure to gain a clear understanding of the overall process and the different aspects that are needed to make it a success—like finalizing your loan, obtaining permits, ordering materials, and planning community-wide and resident-specific communications.
Discuss the timing of all these steps with your contractor so you can avoid any unexpected surprises or delays. Below is an example of a construction project production schedule. Build schedules like these before the construction begins for activities you need to complete.
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