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Progressive Pork

Winter 2001
 
Working with Builders
  Lynn Garrels

When Lynn Garrels built a new nursery and four new finishing barns a couple years back, he acted as his own general contractor. For several months he immersed himself into the projects, dealing with a lumber supplier, pouring concrete, wiring the electrical systems, hoisting walls and installing equipment. All the while, he was also taking care of a 900-sow, farrow-to-finish operation and farming 1,700 acres of row crops at his Sac City, IA, enterprise.

Things are different today surrounding several new projects at the operation. Recently, Garrels sold his sows and converted his entire operation to nurseries and finishers. And for the first time in 28 years of raising pigs, he has hired a general contractor to construct new facilities, a 2,000-head nursery and three 1,350-head finishers.

“I guess I’m getting older and smarter,” quips Garrels. He says he would rather focus his efforts on raising pigs and farming, rather than construction. Doing otherwise dilutes his time and attention. Hiring an outside party to handle the projects also appeals to Garrels’ financial institution. “They like the idea of a turn-key job and price, without any surprises,” he says.


Garrels isn’t alone in turning the reins for a building project over to another party. Mike Veenhuizen is a consulting agricultural engineer whose Greenwood, IN-based firm, Livestock Engineering Solutions, designs swine facilities in several states. He says that just five years ago, 30 to 40 percent of his clients were acting as their own general contractors. Today very few producers plunge into projects on their own. “Now most of the producers I’m working with are developing building plans and working with builders to complete their projects,” says Veenhuizen.

Farmweld’s Lanny Hulslander is seeing the same thing in his work supplying equipment into swine facilities. “Being in the hog business is a 24-7 job and producers are finding they just don’t have time or even expertise to do all it takes for a big construction effort,” Hulslander says.

Regardless of who completes the project, good design and construction are essential elements that can affect short and long term production costs, management inputs, animal health, labor requirements, maintenance and building life.

The Preliminary Work

Before you begin a project, learn what you — as a client and owner — will be required to do in order to complete the project. Often owners must handle items such as site preparation, the securing of water and power supplies, creating driveways and landscaping.


There is also the issue of permitting, which can take weeks or months and varies from county to county and state to state. According to Veenhuizen, the first step is to determine the state and local permitting and approval requirements. A trip to the county zoning or planning office or Cooperative Extension office is a good first step. The local office can also point you to the right state agency to secure a state permit. “Review what the permit requirements are so you understand what you’ll need to do,” says Veenhuizen. Often you must complete an application and provide several documents such as a structural design for the waste handling system, a nutrient management plan, a site survey, soil maps and topography surveys and a farmstead plan. Often producers find it valuable to enlist a consultant such as a licensed engineer to help develop the plans and prepare the documents.

Selecting a Builder

Selecting a reputable, reliable builder is another critical step in making sure the project goes well. “Do a little networking and talk to concrete suppliers, lumber yards — the people who do business with contractors,” says Barrie Luers, assistant sales manager with Midwest Livestock Systems, Inc. The Beatrice, NE, firm serves swine, dairy and poultry producers in ten midwestern states as a general contractor, equipment distributor and service specialist. Luers says not only do you need to check on the quality of the work, but also on how the firm does business. He recommends producers ask specific questions such as: Does the contractor provide lien waivers that release the owner from liability if a supplier isn’t paid? How does the contractor handle communications and change-orders? Are things put in writing?

Farmweld’s Hulslander advises, “Talk to other producers that have hired a particular builder to find out about the quality of their work, the timeliness of the project, whether they have enough crews to get the job done and so forth.” He also recommends producers look for firms that offer warranties or guarantees that back up the job once the work is completed. “With a large project, there is always going to be something that requires follow-up,” Hulslander says. “You want to make sure the company will follow through beyond the end of the project.”

In addition to talking to other producers, spend a few hours walking through facilities that were built by a prospective contractor. “Ask the builder to take you to a site he has just completed and also to an older facility to see how a building looks after some years of use,” suggests builder Tom Skattum, owner of Luverne, MN-based Skattum’s Confinement Systems, Inc. He urges producers to scrutinize the concrete work, the building structure, and all the components such as the feed and ventilation systems and equipment.

“Seeing is believing,” agrees Luers. “It may take a little legwork, but it is important to do some research to check the quality of the work.”

Obtain Clear-cut Specifications

When a formal contractor’s bid or proposal is presented, it should contain plenty of detail about the project. For example, Luers says it is not enough for a contractor to state, “Build a 41 x 200 finishing barn” as the description for the project. Detailed plans, specifications and contracts are needed to provide the basis for an understanding between the owner and builder. Luers says the bid should spell out the exact plans such as the grade of materials including, concrete strength (i.e. 4,000 psi concrete); rebar size, strength and spacing in the concrete; the dead load, wind load and ceiling or hang load of the roof system; location of the feed system and access; what materials are used in feeders, waterers and gating and how they are constructed; the power ventilation capacity and performance (i.e. cfm per pig space); the number and location of heaters, wiring system specifications, etc. This is just a sample to illustrate the degree of detail that must be covered, according to Luers. The bid should also spell out whether or not there are any other costs, such as any applicable taxes, included in the bid. He says not only should the specifications be discussed, they should be provided in writing.

Luers also stresses that low price isn’t always the best value. “You need to understand the durability of what you are buying,” he says. “Longevity is a huge issue in a building with hogs in it. People throw out cost per pig space figures but these figures are meaningless unless you know what you are buying.”

Skattum echoes that producers must be careful to compare apples with apples. “It’s not fair to look at a bottom line and say, ‘this is $10,000 cheaper’.” He says producers must be specific about details because even little things can significantly affect the total price. You should also indicate how you want to manage the building. For example, Skattum says a builder should be able to give clients choices about things like layout, pen design and pen size.

Be Ready to Communicate

Once the ball gets rolling, “having good communication is key” to a successful working relationship, says Luers. His firm schedules routine bi-weekly meetings between the owner, superintendent, project manager and key sub-contractors. The superintendent is assigned by Midwest to oversee each job and it is his or her job to make sure the project flows smoothly by coordinating labor, ordering supplies and keeping track of the status of all phases of the project. Luers says the bi-weekly meeting is a formal opportunity for an owner to get his or her questions answered and take care of any concerns or problems that crop up. Minutes for the meetings are prepared so that all parties can be reminded of what’s happening. “The meetings can be a great comfort for an owner because he has the opportunity to be in the loop on a regular basis,” says Luers.

Taking time to communicate with the contractor is something that shouldn’t be overlooked, regardless of how the builder handles the communications. Periodic inspections and reviews of the project during construction are essential, according to Veenhuizen. Owners who contract with Skattum are urged to be available for a few minutes first thing in the morning on work days. “Being on top of things right away is important,” says Skattum.

Learn your building

Once a project is completed, Skattum also recommends producers take time to learn how to operate the facility. “We like to take two to three hours and go over what the producer needs to know to run the building. It is kind of like buying a new vehicle. They need to take time to learn what they bought,” Skattum says. The learning curve usually continues on through the first year of operation. “You’ve got to go through four seasons to get the feel of the whole building,” he says.

By taking time to do a thorough job in preliminary work, such as securing a permit and selecting a reputable builder; having a clear understanding of what you are buying, including details about items such as concrete work, construction materials and the type and quality of the equipment going into the building; then keeping an open dialog with your contractor during construction, you greatly improve your odds of ending up with a facility that meets or exceeds your expectations.

 

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