One way to reduce construction time and get your development open as soon as possible is to focus on a common hold-up: getting utility companies to install gas, electric, and other utilities in a timely fashion.

The key is to recognize and accommodate how utility companies budget, schedule, and install their services. With this knowledge, you could shave weeks, possibly months, off your construction schedule and avoid the stress of not knowing if you will open on time. This will please your banker, your customers, and your boss.

Follow the money. To start off on the right foot, make sure that the utility company knows about your project and has budgeted for the utility work you need. Find out when their budget process begins and get your project in the pipeline at least six months before their fiscal year ends. Be proactive! While utilities do a great job in coordinating with developers on upcoming projects, don’t take their silence to mean the right person has the letter you sent them two months ago. Pick up the phone and make sure your project gets programmed.

Deregulation has changed the way utility companies address contingency funding. Some maintain a contingency fund to address unexpected projects. Others do not, which means they cannot fit in unforeseen utility work without bumping another project. If you fail to get your project on their to-do list, it could be delayed until money is found elsewhere.

Get the process started. Send design plans to your contact as soon as there is enough meaningful detail to allow them to assign a project manager and prepare an estimate. Once a designer is assigned, make their life easy. Give them plans in a CADD format they can easily use. Find out when they need to hear from you and send them timely updates. If using e-mail for an important transmittal, follow-up to make sure they received it.

Provide proof of your financial capacity. Developers that make utility companies jump through hoops, only to have their land sit dormant for months afterward, take time and resources away from projects with solid financial backing. Utility companies want to provide you with services; this is the reason they exist. So if you want to get and keep their attention, prove that you are a viable customer with a good financial record.

Avoid scope creep. Utility companies use preliminary plans that you give them to scope out their work. If you change your curb and right of way lines, even by a foot, they are often forced to modify their plans and do extra work for which they had not budgeted or scheduled. Did you change your water and sewer extensions from the rear to across the frontage of your property? If so, the time consuming relocation of service lines to other customers may be required. Did you add street lights at the last minute? Don’t forget to tell the utility company or your contractor will install poles that have no power. To keep your project on track, try to anticipate these scenarios at the start and work with your contact to address them.

Finally, if you want to develop and maintain a good relationship with utilities, be professional. Don’t try to bump someone else’s project, especially if you were the one responsible for budget, schedule, or scope creep problems. Give utilities a comfortable schedule and work with them to complete the project in a timely manner. They appreciate professionalism and a commitment to working with them as a team member.

For more information on working with utility companies, contact James Sprague, P.E. at (585) 334-1310, ext. 231 or jsprague@fisherassoc.com.

Partnering with Utilities

Many transportation agencies partner with utility companies to expedite construction. Why not developers? Utilities are receptive to partnering but will not take the lead. This means you must take the time and responsibility for initiating the concept and making it work. Partnering works best when there is work within the right of way, maintenance and protection of traffic (MPT) to set up, and trenches to be dug and backfilled.

With partnering, a utility company could agree to perform their gas and electric relocations when your contractor is doing his water and sewer work. This allows both to work in the right of way at the same time, using one MPT set-up. The parties agree in advance what portion each will pay for the MPT.

A utility will commonly agree to have your contractor excavate the trenches and dispose of any contaminated materials that may be found. The utility company might backfill the trenches and take responsibility for the quality of the compacted excavation. The owner could agree to provide the inspection for both operations. Everyone wins.