6 steps you can take to protect against scope gap in your self-storage development

Self-storage development is an exciting and sometimes lucrative endeavor, but it’s also extremely important to plan ahead for potential risks.

One of the common issues that can arise when you build a self-storage facility is a scope gap – when someone has started developing a self-storage property but then underestimated the number of resources needed or overlooked a key part of the process.

Self-storage developers know that the only thing worse than a failed development project is one with an unexpected scope gap, leading to higher-than-anticipated project costs and lower returns.

For general contractors, scope gap can be your worst nightmare. Now you are stuck having to go back to the developer or owner to ask for more money. You are at a gridlock in the project because you can't move forward without a solution. This creates delays, makes the developer or owner unhappy, and can cause you to lose sleep every night until the problem is resolved.

To avoid this costly and worrisome mistake, it’s necessary to take the necessary steps throughout construction to ensure you don’t run into any costly surprises later on.

This article will help you navigate the development process of your next self-storage facility so you can side-step the mistakes that most people make in the self-storage industry.

Here are six strategies real estate developers should consider taking in order to protect against scope gaps in their self-storage development projects.

1. Identify potential scope gaps before you start your self-storage build

While this may sound obvious, you would be surprised how often things go overlooked during the planning and estimating phases of building a self-storage facility.

The main reason this happens early in the development process is that the general contractor or developer subs out various phases of the build to multiple contractors. Each contractor takes a very narrow view of the project, assuming that another contractor will cover all required aspects of the build.

The general contractor makes a similar assumption that the subs are all considering every factor for a successful build, but this couldn't be further from the truth.

Inevitably, there is inadequate communication between all parties, and far too many assumptions are made. This ends up leaving a lot of gaps in the project that must be addressed later on.

This creates two major problems for general contractors and real estate developers.

First, it will almost certainly increase the costs of the self-storage development project because you must now pay for labor and materials that were not factored into the original project estimate.

If you are a general contractor, the last thing you want to do is keep having to go back to the owner or developer asking for more money.

There is a chance you may even have to cover the gap yourself, further reducing the profitability of the project.

Second, project scope gaps will also delay the project. As soon as a gap is discovered, work must be paused to discuss the appropriate actions to take.

You have to consider the options, present them to the developer or owner, then determine the best course of action. All of this costs time and money.

So here's how you can avoid costly scope gaps.

The best thing to do when you plan to build a self-storage facility is to have a third party that takes a comprehensive look at your self-storage project and evaluates your project plans. You will want a company that understands the entire self-storage development process end-to-end so that they know what to look for and can tell you what is missing.

This could save you a lot of pain and expenses in the long run, and best of all, some companies will do it at no charge.

That's right. For example, Storage Building Company offers a scope gap guarantee. We will review your project plans in detail to ensure that there are absolutely no scope gaps. Additionally, we guarantee our pricing so you only ever pay the price we estimate.

2. Designate a clear point of contact on-site to manage any scope changes as they arise

If you don't have the luxury of working with a company like Storage Building Company that will guarantee no scope gaps and pricing, then the next best course of action is to ensure you have excellent oversite of your project.

It’s important to have a clear point of contact on-site who can manage any necessary changes that come up during the construction process. This person should also be responsible for keeping the project on track and making sure any scope gaps are resolved quickly, efficiently, and, when possible, without added cost.

When working with subs, you will want to be sure to make sure they have dedicated project leads who will be providing adequate oversite. Unfortunately, this is also a common problem when working with sub-par contractors.

Storage Building Company assigns a dedicated project lead to every self-storage facility construction site, which ensures our clients that their self-storage facilities are being watched and managed regularly.

This alone can make your self-storage facility more cost-effective simply by reducing errors and the chance of any rework.

3. Establish contingencies to protect against unforeseen costs and delays

Because self-storage development projects involve many complex steps and costs, it’s important to plan for contingencies.

Have a plan in place to deal with any unexpected costs or delays that may arise during the course of the project.

This could include setting aside a certain amount of money in case of emergencies, having contingency plans for any potential scope gaps, or hiring an experienced contractor who can assist with any issues that come up along the way.

4. Increase communication with stakeholders to ensure everyone is on the same page throughout the build

Communication is key when it comes to self-storage construction projects. In order to ensure that everyone involved is on the same page throughout the build process, it is important to establish clear lines of communication with all stakeholders.

This includes architects, builders, and investors, as well as any local authorities or regulatory bodies that may be involved.

Regular meetings and updates are essential to keep everyone informed of progress and any changes or issues that may arise.

By maintaining open and consistent communication, you can avoid misunderstandings and ensure that your project runs smoothly from start to finish.

So, whether you are a seasoned developer or a first-time builder, be sure to prioritize communication and you'll be on your way to a successful self-storage construction project.

5. Create a detailed timeline that outlines what needs to be done when, and who is responsible for each task

Creating a detailed timeline is crucial for any project to be successful. It can help ensure that no task is forgotten or left until the last minute.

By outlining what needs to be done when and assigning responsibilities to specific team members, the project manager can effectively monitor progress and make necessary adjustments.

Each task should have a clear deadline and the person responsible for its completion clearly identified. Whether it's a large-scale project or a small-scale one, creating a timeline can make all the difference.

It allows everyone involved to have a clear understanding of what is expected of them which minimizes confusion and maximizes productivity.

So, if you want to ensure your self-storage project runs smoothly and is successful, create a detailed timeline that sets out what needs to be done when, and who is responsible for each task.

Monitor progress often and make adjustments as needed.

Finally, it’s important to monitor progress frequently so any issues can be identified and addressed quickly. This will help ensure that any potential problems are addressed in a timely manner, which can save both time and money.

It also allows the project manager to make adjustments as needed based on feedback from all stakeholders.

6. Regularly review progress and make necessary adjustments to stay on track

Self-storage builds can be a significant investment for anyone, and it is essential to ensure that the project stays on track.

Regularly reviewing the progress of a build and making necessary adjustments is crucial in achieving success.

It is essential to keep an eye on the construction progress and ensure that everything is running according to plan. Any delays or setbacks can cause increased costs and delay completion time.

By staying on track and adjusting where necessary, a self-storage build can be completed efficiently and effectively. Reviewing progress can also help in identifying any areas of improvement, leading to a better final product.

In the end, the importance of regularly reviewing progress cannot be overstated. It is an integral part of the project and can help ensure a smooth and successful self-storage build.

Avoid self-storage scope gaps at all cost

The best plan to avoid scope gap is to have your self-storage development plans reviewed thoroughly by an experienced self-storage contractor. Even if you plan to work with various contractors, you can always reach out to Storage Building Company to have to review the plans for your proposed facility. Our team will point out any potential gaps in the estimate you have received and provide a complimentary quote.

Developing self-storage facilities is always more complex than most people think, but when you have a reliable partner working with you, there are a lot fewer headaches.

We have been building self-storage facilities for over 15 years across 23 states, with over thirteen million square feet of self-storage constructed.

With experience like that, we know exactly what to look for and what contractors leave out of the estimates most often.

When building climate-controlled units, there are even more nuances to be considered within the scope, and these details can end up affecting the self-storage property itself and its profitability.

As a general contractor or real estate developer, you want to make sure that you deliver a property that is of the highest quality so that you can build more self-storage facilities in the future with the same developers and owners.

If you can help your clients avoid costly scope gaps and keep their investment profitable and cost-effective, you will have a pipeline of self-storage facilities.

The self-storage industry is hotter than ever, so carving out your piece has never been easier. Reach out to Storage Building Company today and let us work with you to ensure you have a successful self-storage build.