Dear BPCWA worshipper, A question was asked at the end of the previous presentation regarding the risk if anything should happen to the builder we had shortlisted. At that point in time, we simply continued to pray as we always had done, that God would lead and make His will clear. In answer to prayers, God directed events such that the builder, CZ, eventually declined the project due to the ill health of the owner. This was truly a testimony to the fact that we serve the living God who hears prayers and watches over His church. The most recent update conducted on 15 June was to provide worshippers with the project progress after that. It is important that we are all clear about and chronicle the leading of God, so that we will continue to pray, support, and give thanks to our God as He helps us do His work.

Project/ Builder Update. After CZ confirmed that they were unable to sign the contract, they provided us with a builder to explore. This was an ex-partner of CZ. However, they too declined the project and instead provided us with another contact who also later declined. At this juncture, Elder Leong decided to approach Bill Pitt & Sons again. This builder, who had previously declined our first tender as they were busy with other projects earlier, had worked with the architect before.  They were unwilling to work on a lump-sum contract and dropped from our evaluation in the initial tender phase. With few options left to explore, we asked Bill Pitt & Sons if they would reconsider taking up our project. Their reply was positive, but only if it was a cost-plus contract. A lump-sum contract is one in which the price is fixed, based on the tender submission. The builder would come up with the cost required to meet our building specifications and drawings and tender a price based on that. On the other hand, cost-plus is a variable price contract. In cost-plus contracts, the builder submits an estimate based on the specifications and drawings. The price estimate and schedule serve as a guide, but they can change. When work commences, the builder submits monthly invoices for the work done. These invoices are based on the builder’s labour used and sub-contractor invoices incurred. The architect will then check and approve the invoices, which we will then pay. These monthly invoices are recorded against the original estimate to help us keep track of spending on the project. It enables us to know if we are on budget or if we are exceeding the original estimate. A cost-plus project was not our first approach of choice, as we preferred working based on a fixed budget. This means that there is a risk of spending beyond the budget and projected schedule of work. In this risk, if the cost of materials increases, BPCWA will bear the cost increase. More supervision and a closer working relationship with the architect will be required to track the labour progress as well. On the other hand, a good builder can make suggestions to improve the design and reduce the cost of the project since he isn’t tied to a fixed budget and locked in specifications. An experienced builder can offer good suggestions to improve the quality of the build. This is what we experienced with Pitt & Sons during the time we worked with them. We will also have better visibility and control over the work and choice of subcontractors used. Since payments are based on actual work done, the builder may have a smaller margin. At the same time, if the builder secures better pricing or deals, such savings will be passed on to us. With a cost-plus project, the risk of the builder losing money and closing down is significantly reduced. After weighing all the advantages and disadvantages, we met with Ben Pitt (the son of Bill Pitt) to discuss our project specifications and get detailed estimates from them. While he was working on the estimate, we concurrently conducted reference checks with their previous clients. These past clients came back with glowing reviews of their work and assurances that they would use Pitt & Sons again if there were future projects. We also reached out to other tenderers in the first 2 tenders to see if any of them were willing to quote at this point. They were still not interested in a lump sum contract, but some were willing to consider it if it was cost-plus instead. However, with a cost-plus contract, a builder with whom we and the architect can work, and trust is crucial. That is more important than the estimate submitted, since the price is not fixed. The architect had not previously worked with all the other builders, which poses a higher risk in a Cost-Plus model. Bill Pitt & Sons submitted a finalised, detailed price estimate on 12 June. This estimate was a 6.4% increase over CZ, but was 22.3% below the engaged Quantity Surveyor’s independent estimate that we had previously received. This assured us that their estimate was reasonable. In addition, our experience working with Pitt & Sons over the past 3 months showed them to be open, honest, and technically proficient. Having almost completed their projects, BPCWA’s extension project will make up 70% of their workload. To ensure their financial stability, we have also confirmed their financial status with their accountant. He uses direct contractors and engages tested and trustworthy subcontractors for electrical and other such work. Furthermore, he has built churches and has experience with renovations and modifications. With the ongoing prayers of the church, due diligence done, and since there were no further hindrances that God showed us, the contract was signed on 19^th June.

Financial Update and Schedule. In revising the total budget, it was reworked based on Pitt & Sons’ Cost-Plus estimate, the other costs required (such as AV, chairs, piano relocation, and other miscellaneous items), and an additional contingency of 5% for potential variability in the final cost.  Based on this revised budget and the building fund collected, the new gap was $1,582,763.90, as reflected in our bulletin on 22 June. The revised budget will then be used to compute the gap in future bulletins. The builder estimates that the renovation will take 2 years to complete, with about 3 months before work begins. Once work begins, we will need to work closely with the builder to minimize disruptions. Any changes or disruptions anticipated will be communicated to worshippers, so we know what to expect and do.

At each step of the way, we have committed our ways to the Lord. At the same time, we have performed the due diligence in making the checks deemed necessary, such as engaging a quantity surveyor. This turned out to be helpful not only for CZ’s quote but also in helping us to ascertain the fairness of Pitt & Sons’ estimate. God has led us thus far, and after more prayer on this matter during our prayer meetings, the contract with Pitt & Sons has since been signed. This journey has taken several years, but it has been a demonstration of a God who answers prayers and watches over His church, particularly in the choice of the architect and in preventing us from signing with CZ. The prayer must not stop even when the work starts. We live in a volatile world situation that can suddenly change drastically. To proceed with the extension, the current industry environment necessitates a cost-plus approach. This is a project that must be approached with faith, prayer, and great dependence on God. In the building of God’s church, this is how He would have us do it so that we learn to depend on our Heavenly Father all the way. It is a test of our faith, a building up of our trust in God, and a constant reminder that as we do all these for His Name’s sake and according to His will, He will lead and provide for His work. The true reality is this – God does not need us to build His work. As we build the brick and mortar of God’s church extension, He is instead building us up spiritually. Let us not forget this spiritual truth.

“A Song of degrees for Solomon. Except the LORD build the house, they labour in vain that build it: except the LORD keep the city, the watchman waketh but in vain.” Ps 127:1

Yours in our Lord’s service,
Pastor