Design & Construction

The Bend Chamber of Commerce has a list of vetted architects* on their website through the ‘Find A Business’ link.

*Not all the architects listed are the right choice for an ADU on your property. We recommend reaching out to them or looking at their websites and the services and scope they typically provide.

The Bend Chamber of Commerce has a list of vetted contractors* on their website through the ‘Find A Business’ link under Real Estate and Construction.

*Not all the contractors listed are the right choice for an ADU on your property. We recommend reaching out to them or looking at their websites and the services and scope they typically provide.

Leadership Bend Class of 2022 researched some of the many builders who are Bend Chamber Business Members and found the following to be companies that specialize in or have experience in building ADUs. This is by no means a comprehensive list.

• • • 121 Tiny Homes — Bend, OR
    • Design and Build an ADU — Charles Sack Architect, Bend, OR
    • Hiatus Homes — Bend, OR
    • Neil Kelly — Bend, OR
    • Simplicity by Hayden Homes — Redmond, OR
    • Tiny SMART House — Albany, OR
    • Willis Built Construction — Bend, OR
    • Lasting Traditions — Bend, OR
    • Linnius Construction — Bend, OR

If you are a contractor or builder and would like to be added to this list, contact the Bend Chamber of Commerce.

The design or construction professional may have their standard form of agreement. It is recommended that an Owner compare this agreement to industry standard forms. Standard forms for small projects can be reviewed and purchased through the AIA link.

• AIA Short Form Agreement between Owner and Architect
• AIA Short Form Agreement between Owner and Contractor

Architects and contractors often include or attach their own qualifications, clarification and exclusions. Owners should be comfortable with the overall project expectations.

While payment procedures are often detailed in the agreement, it is not unusual for both design and construction to expect an initial down payment or mobilization. Additional payments are typically made when project milestones are achieved. This may include the conclusion of a specific design phase or reflect a percent of completed construction on a monthly basis.

For construction, it is not uncommon to hold back 5-10% of the monthly payments in retainage that is held until the project is completed. Where the retainage funds are held is something that should be determined prior to signing the agreement. If you have a lender, they may also have input on the payment procedures and retainage.

The State or Oregon requires a contractor to provide a notice to inform Owners about construction lien laws. This form is provided here and includes general information along with common questions and answers. It is important for Owners to familiarize themselves with construction liens as it may stall a project under construction or affect project financing.

While having the scope clearly and completely documented in both agreements and construction documents is critical to minimize unexpected costs, there are often conditions that arise during both design and the course of construction that result in additional fees or costs. For these events, a contingency should be set aside to cover the cost increases. A contingency can cover late Owner-initiated design changes, unexpected field conditions, or even Owner requested changes during construction. Depending on project size and complexity, the contingency could be anywhere from 5-10% of the total project cost and should be accounted for in the project financing.

If there is a change during design that is beyond the original scope of work, the architect may charge for additional services. If the change occurs during construction it is known as a change order. A construction change order may include either a change in the contract time, an increase or decrease in the contract sum, or both.

The best way to protect a project from additional costs or changes is to have clear and complete documents from design to construction. If there is a scope item that is expected, but not clearly defined, the project team may decide to track the item as an allowance. Allowances are different from contingencies in that they are included in the project sum as a placeholder for a known amount. An allowance is for anticipated work rather than unforeseen work.

The construction market is impacted by national and global events. Whether it is a hurricane in the gulf, unrest in other parts of the world or a health crisis that affects us all, the cost of material and labor can fluctuate. To account for the volatility, a project cost may also include escalation. Similar to contingency, escalation is often accounted for as a percentage of the project total.

Depending on the schedule, escalation may be higher if the project is a few years out or lower if construction is expected in the next several months. These same external events may also affect product procurement or the ability to secure materials and equipment for the project. Contractors should order materials with long lead times early in the project to ensure timely project completion.

All projects should have a schedule for both design and construction. A schedule is used to track progress, payments and other interfaces with the project. Changes to the schedule should be documented through additional services or the change order process noted above. If the Owner hires a consultant directly or purchases material, these efforts should be accounted for in the schedule to coordinate with the architect or contractor. A schedule is often included as part of the contract or form of agreements to establish clear expectations and responsibilities during design and construction.