What to Expect When You're Expecting...A Construction Project

What to Expect When You’re Expecting…A Construction Project

Change is pain, and nowhere is that more easily articulated than through a construction project. The process by which dealers must navigate their OEM, third-party compliance reviewers and local municipalities just to get their vision for their facility made a reality can be a headache.

Change is pain, and nowhere is that more easily articulated than through a construction project. The process by which dealers must navigate their OEM, third-party compliance reviewers and local municipalities just to get their vision for their facility made a reality can be a headache. If you’re considering an update or a new facility — or if your OEM has finally said it’s time — hopefully this very brief guide can at least give you a starting point and highlight some dealer benefits.

This might be biased but first and foremost is your general contractor (GC). These are the only people working directly for you. They help you represent your interests to the OEM, execute your vision and are with you every step of the way to the finish line. References matter here, as this isn’t a standard commercial construction project. An inexperienced GC may inefficiently organize space for a cohesively operated dealership, or unintentionally miss OEM compliance requirements.

After selecting the GC to help you through this project, the process starts by obtaining your OEM-specific image package. If you are doing a remodel, this involves presenting a set of what are called “as-built” plans, which reflect your current facility as it exists today. If you are doing a new ground-up building, some basic floor plans and a site plan will jump start the process.

Next will be the negotiations. The OEM representatives and third-party reviewers will be on one side, with you and your general contractor at the other. Everyone should be working to find the building look and process that upholds OEM standards for a compliant facility as well as the goals you have for operating your business.

This process can be difficult — especially during your first time — as your OEM’s national goals could potentially not line up with your local market. This is where it is key that your team understands the OEM approval process. With the benefit of more automotive construction experience, negotiations can be streamlined to deal with the national perspective of industry standards and OEM compliance allowances. Compliant items could include items such as floor tile, lighting and paint colors all the way to exterior look and entry elements.

Once the building plan is settled, you or your GC will get with architects to detail the actual building plans based off your agreed upon compliant project layout. With full plans in hand then construction is set to begin!

While this is an extremely abbreviated version of what to expect, on average we see that dealers who undertake a remodel utilizing this process planning see 12 to 14 percent increase in revenue while their facility is under construction. For new facilities, on average, we see a sustained increase of 12 percent annual recurring revenue because everyone loves to check out the new building!

Good luck, and have fun — it’s well worth it.

For more information about what to look for when planning a construction project, feel free to contact me at the address above.

Chip Walker

You May Also Like

Top 3 Ways to Avoid Warranty Audit Headaches in 2024

Avoiding warranty claim debits can be a daunting task, fraught with complicated processes and procedures.

warranty audit headaches

As we move into 2024, one of the most important things that fixed operations managers can do is to ensure that every precious dollar is collected from a dealership’s warranty claims for credit.

When considering the job of avoiding warranty claim debits, it can be a daunting task, fraught with many different and sometimes complicated processes and procedures.

Don’t Be ‘Nice’ to Your Team — Be Caring

Here are four steps to take to lead a team that minimizes critical actions and will put our team members on the path to success.

team leadership
The Top 3 Reasons You’re Missing on Used Vehicles

As front-end profits tighten, misses on used vehicles hurt more. To tighten up acquisition and pricing, you need a different way of operating.

The Top 3 Reasons You’re Missing on Used Vehicles - AutoVision
Everyday Actions, Monumental Outcomes

It is in the quiet moments of consistent work that our skills are sharpened and our goals are realized.

True success is the product of a daily grind, forged from focus, dedication and perseverance.
Celebrating a Year’s Worth of Automotive Industry Standouts

As we bid farewell to this year, let’s extend another heartfelt shout-out to each of our remarkable 2023 honorees.

Celebrating a Year’s Worth of Automotive Industry Standouts

Other Posts

Download Dealertrack’s 2024 Compliance Guide

The guide is an essential asset for dealerships to understand their legal compliance obligations.

Cox Dealertrack Adds Synthetic ID Fraud Alert as Part of Compliance Solution

With the new offering dealers receive an alert when a customer may be using synthetic ID and get a risk level assessment score when pulling credit.

Identifying Gaps in Digital Retailing Solutions & 5 Easy Fixes

Inconsistencies slow the purchase process, erode consumer trust and eliminate the willingness to purchase.

Identifying Gaps in Digital Retailing Solutions & 5 Easy Fixes
The SMS Paradigm: Reshaping Customer Engagement in the Automotive Industry

By reaching out through SMS, we have tapped into the potential of a less invasive, yet highly effective, method of communication.

The SMS Paradigm: Reshaping Customer Engagement in the Automotive Industry