March - 2010 By Gennaro Di Nola, Principal and Director of Operations/Pre-Construction

These days it seems that the entire country is feeling squeezed from clients that still need their construction and renovation needs met but have smaller and smaller budgets to work with, to builders and contractors that are feeling the pinch of tough competition.

While lowest bid, best value and best return on investment are everyone's goals, the squeeze strategy carries a real danger that may place clients in dire situations. It is important to understand the ramifications of the bidding process, in the interest of general contractors, subcontractors, and most importantly, clients. Clients financial health can be put at risk and liens put on their property in a domino effect.

We have seen various general contractors in the industry cutting subcontractor bid numbers by as much as 10%. Recently, Heart Construction happened to be given a buy tabulation issued to a subcontractor from a competing GC. This was in the form of a congratulations letter to the subcontractor and simply stated that they were one of a group of potentially low bidders being considered for the project and proceeded to publish a budget number targeted for their trade. This GC was approximately 9 % lower than Heart's bid, who was 2nd low bidder. When evaluating the buy tabulation, each of the trades listed was consistently lower than our (Heart's) lowest responsive subcontractor bid by 10 %.

These practices seem to be prevalent in the industry and are undeniably a sign of the current tough economic conditions. However, while negotiating is common and a reasonable, and buy out percentage is achieved between 1 and 3%, 10% will most certainly put subcontractors in financial woe and have far reaching consequences. This can adversely affect the property owner when vendors and suppliers of those trades place liens on the project for unpaid invoices. The financial impact of poorly negotiated buy outs on projects can have far reaching implications for everyone involved in the project.

Heart Construction works hard to strike a balance between what is taking place in the market and meeting our clients needs. Heart values its relationship with its clients and subcontractors, which is why cutting corners is never an option.

Download the complete March 2010 Newsletter

March - 2010 Town of Lady Lake Public Library expansion

Heart is excited to present this current project: This 44,000 SF two-story addition project is scheduled to be completed in February 2011 and will quadruple the library capacity.

44,000 SF two story addition project utilizing the comingling of complex structural elements to include mat foundations, steel structure with concrete topped hollow core plank for first story/second floor, pre-engineered steel second story/roof and masonry bearing with wood trusses for connection points to the existing structure. The existing spaces are to remain occupied during construction.

The project includes a clock tower, exterior enclosed courtyard with canvas canopies, and extensive site work, parking and landscaping. More information at www.ladylakelibrary.com

Download the complete March 2010 Newsletter

March - 2010 City issues four building permits
Subway restaurant is lone commercial recipient in February

NORTH PORT -- Three residential new construction permits and one for commercial new construction of a Subway restaurant were issued in February by the North Port Building Department.

The commercial permit was issued to property owner Jack and Paul Inc. and contractor Heart Construction, LLC, of St. Petersburg, for a commercial buildout, valued at $100,000 and located at 1020 Plantation Blvd.

The Subway sandwich shop is part of Lakeside Marketplace, a 9,000-square-foot shopping center at the entrance of Lakeside Plantation that also includes a Mobil gas station, a Mobil on the Run convenience store and other undetermined tenants. The center is being built on 1.5 acres and will have 49 parking spaces. It is expected to open in April.

Heart also remodeled a 7-Eleven store with a Mobil gas station at 1050 Bobcat Trail. That 2,000-square-foot, $265,000 project was completed in January 2009 for owner Paul and Nina Enterprises.

The homes are from three different property owners/contractors:
* Property at 6429 Abdella Lane. The property owner is Tomas Cruz and the contractor is DM Dean Inc., for this $183,908 single-family home.
* Property at 1998 Coconut Palm Circle. The property owner is Charlie Michaels Inc. The contractor is Medallion Home Gulf Coast Inc., for this $207,753 home.
* Property at 13200 Ipolita St. The property owner is Divosta Homes LP and the contractor is Pulte Home Corp., for this $246,672 home.

The city's Building Department has issued four residential and five commercial permits during the first two months of the year.

 ED SCOTT
Staff Writer
Copyright (c) 2010, North Port Sun

March - 2010 Heart Construction is pleased to announce that they were ranked as one of the top 40 contractors in the Gulf Coast Region by Gulf Coast Business Review. In an article, "Capitalism Finds a Way", editor Rod Thomson noted that despite this difficult economy, there are well run firms that are surviving and Heart is honored to be considered among this distinguished group.

Introducing Heart Construction, LLC new look and new site! Welcome to our new site and our new look! We are excited about our new look and would like to thank Malcolm Out Loud www.MalcolmOutLoud.com for all their help and assistance in making this a reality. Please share with us your thoughts and comments. Thank you and again welcome!