In the Charlotte, N.C., area alone, where my office is located, we have had more than a dozen robberies, as well as a recent homicide where an employee was found slain. The Texas Mini Storage Association just issued a warning to Austin facilities about a string of incidents in that area. More recently, in Missouri, three bodies concealed in 55-gallon drums were found at a storage facility. The scary part of this whole situation is that these are just a few incidents publicized by the media. There are probably many other crimes that have taken place, but people are apprehensive about discussing them.

Inside Jobs?

The owners of the facilities targeted in my area believe the criminals had worked from within. The intruders were very familiar with the security systems and layout of the facilities. In many cases, these intruders knew exactly which units to compromise and which to pass up.

Even a local investigator I had the opportunity to speak with said he believes this is the work of an organized gang of break-in artists. They are even preying on facilities that have extra security measures, such as surveillance, access control and the like. Disk locks were even cut in some cases and, as many of you know, this padlock is preferred in the industry specifically for its resistance against cutting. All of these signs indicate this to be the work of true professionals with a self-storage background, not just common thieves.

We have even found recent cases of criminals using the same tools that managers and owners use to compromise unit locks. These are tools that should only be in the hands of bonded trade professionals. Think about it for a moment: If you are out on your property where all eyes can see you and you are cutting, grinding or even picking a unit's padlock, you have just shown your tenants how to gain access.

The only requirement to possessing these tools in our industry is that you be a manager or owner of a storage facility. These same tools have leaked into other industries where as well. Please, don't misunderstand: I am not implying these individuals aren't trustworthy. I am simply saying that we have lost track somewhere. In the past, there were more regulations and control over tools of this kind. They weren't nearly as accessible as they are today.

What Can You Do?

A vast majority of both the newly built and retrofitted older facilities are taking their security measures to the next level. Many facility operators have grown tired of the illegal activities and theft occurring on their properties. Instead of being reliant on one particular security device, they are focusing on every possible aspect.

In addition to an increase in video surveillance and card-access systems, I personally have seen a dramatic increase in the use of cylinder lock and latch systems, especially the master-keyed versions. Facilities operating with these systems have reported little to no crime. They not only weed out the customers with illegal intentions, but also bring high security back to where it belongs. These systems, along with all of the other key elements of your facility's security system, should be evaluated. Seek the advice of experts in every part of your property's system and build a program that ties all of the elements together. Your customers not only deserve it, but they are counting on you to provide them with a safe, secure place to store their belongings.

We can overcome the rising crime rate of this industry through communication and increased security, and by taking some simple, inexpensive steps:

1. Screen your employees carefully. Check references.
2. If your facility has experienced a theft or any other crime-related incident, don't keep it to yourself. Warn others.
3. Create an Incident Report form and use it to document and report questionable activities within the facility so that both your employees and the police are aware of any suspicious acts.
4. Ask local law enforcement about different services they provide or if they patrol your area. (Some facilities have even asked private security patrol services.)

The only customers that won't appreciate your efforts will probably be the ones causing the problems. The remainder of your customer base will not only appreciate your efforts, but they will also feel more confident in the security of their property.

Chris Shope is the national sales manager for Lock America Inc. (dba L.A.I. Group) based in Garden Grove, Calif. L.A.I. Group manufactures a complete line of security locks and hardware for self-storage and other industries. For more information, Mr. Shope can be reached at the company's Southeast office at (704) 824-8363; e-mail [email protected].

Share Your Stories When it comes to battling crime at your facility, awareness is half the fight. Have you had an experience with a crime-related incident you'd like to share with other operators and managers? Any advice on crime-prevention strategies that have worked for you at your facility? Please share your insights with us via e-mail: [email protected]; fax (480) 990-0819; mail to Inside Self-Storage, P.O. Box 40079, Phoenix, AZ 85067-0079.

The construction process is similar to any other type of project management. The better prepared and informed the players are, the more likely they are to reach the final goal of a cost-effective solution that reflects the initial concept. Experience and research have revealed three components that, when provided for in the construction process, will yield a successful project:

• A clearly defined scope of work;
• A clearly defined schedule of values; and
• A clearly defined line of communication.

A Clearly Defined Scope of Work

Pre-planning is not limited to blueprints; however, construction plans are the most effective means of delivering the owner's program to the builder, local municipalities and product vendors who will be involved in the project. Poor plans can create a domino effect that leads to delays, extra costs and even a final product that doesn't reflect what the owner wants.

A fatal mistake made by many inexperienced developers is to skimp on the architectural package. This neglect of the design package has a large impact on the overall project. Figure 1 demonstrates the most common areas for extra costs and claims in the construction industry as a whole.

A complete architectural design package defines the exact scope of work expected from your builder that will yield the final product you expect. Think of contract documents in construction as an instruction manual for insuring that your vision of the facility is what gets built. They are the translation of your ideas into a universally accepted format for construction. The plans and specs are the conduit by which your facility will be built and are an important part of your business plan for success as a self-storage facility owner. How do you achieve the goal of quality construction documents?

1. Commit the funds. Architectural fees for self-storage average nationally between 2.75 percent and 4.25 percent of the overall construction costs (exclusive of land value).

2. Pick the right architect. Has he worked in the self-storage industry before? Talk to past clients and check references. Was he prompt in responding to problems? Did he incur extra costs due to shortcomings in the contract documents? Talk to the contractors who built those projects and ask about the quality and completeness of the plans and specs.

3. Instruct the architect as to your intent. Define your program and its requirements by defining what you are trying to build. Try to provide a complete description of the physical attributes of the facility. Include services to be provided, any special construction issues, amenities of the facility, aesthetic expectations and any specific ideas you have with respect to the final product.

4. Create an exit plan. If you need to walk away from the project for any reason, you need to be able to do so amicably and without undue costs. In order to achieve this, I ask the architects I work with to divide their fee into the following categories:

• Code research
• Schematic drawings
• Civil package
• Architectural and engineering drawings
• Permitting
• Site visitation and conflict resolution (usually on an hourly rate).

5. Participate in the process. Define milestones in the design process and conduct a thorough review. If you need assistance in plan interpretation, bring in help. A qualified general contractor or construction manager can often identify shortcomings in the contract plans and specs that would later turn into change orders and extra costs to you. It is important to conduct this review often enough so your designer doesn't get off on a tangent that produces the need for corrections and the re-drawing of plan sheets. A good architect should welcome this review process, as he will want to get it right the first time. Redrawing does not make money for an architectural firm.

6. Question everything. Code interpretation is difficult at best. Looking at issues from all angles allows for different interpretations. This is specifically important when dealing with a design professional without self-storage experience. Many codes are not applicable to self-storage, but are applied because no one knew to question the interpretation or do the research. There are several standard variance requests in many municipalities that are routinely required to build self-storage.

7. Contract the work. There are several pre-written contract documents that can be used for agreements with your architect and contractor that protect everyone involved. The Architect Institute of America (AIA) has been using and supplying these contract documents for many years. They have been tried and tested in the courts and, in many legal opinions, are excellent documents to define the scope of work, methods of payment, timeframe and general conditions of the project. To get a listing or more information regarding the available documents, call the AIA at (800) 365-2724.

A Clearly Defined Schedule of Values

A schedule of values is the tool utilized by the design and construction industries to breakdown the construction estimate into understandable separate items of work. The numbering system used is called the Construction Standard Index (CSI). These are globally accepted in construction and will be consistent from coast to coast. The CSI-formatted schedule of values allows for a better understanding of the costs to be incurred and allows for a more thorough bid review. Ask your potential contractors (or your architects) to supply a breakdown in the format of your choosing to assist you in the selection process. For a listing of the minimal recommended CSI breakdown for a self-storage facility, visit www.ellisconstruction.com.

There are several distinct advantages to requiring this schedule of values from potential contractors. The developer can use this schedule of values to look for potential cost savings and/or overruns in the estimate. For instance, if your foundation costs are coming in twice as high as projects previously built, you may need to re-evaluate the design. Short items should also raise a flag, since an item of work that is under bid can also lead to delays or even costs to you before the project is over. It's important to realize that the lowest bid is not always the most cost-effective. Often a bid that is substantially lower than the competition will indicate that things were missed in the estimates that still need to be performed. A contractor that runs out of money on a project can be much more costly to a project than a bid that is initially higher but complete in the scope of work.

This schedule of values is most effective for the project in a construction-management aspect. Use the schedule to determine moneys due for monthly draw requests. If your schedule of values indicates that your contractor is 80 percent complete in item 04-200 unit masonry, for example, then it is easy to verify by onsite inspection whether this is accurate. Without the breakdown, many items might get overpaid in advance, and your ability to manage the project is decreased.

Specifically, AIA forms G702 and G703 are the preferred documents for draw requests. These documents, when used together, provide for accurate billing and payment procedures utilizing your schedule of values, retainage practices and previous billings to insure you pay the right amount against the contracted sum.

A Clearly Defined Line of Communication

Construction management is the marshaling and allocation of the resources required to build the intent of the contract documents. These resources include labor, materials, equipment, architectural and engineering services, time and money. Managing construction involves organizing a wide variety of skilled workers and specialists and leading them in the implementation of the plan, monitoring progress against baseline objectives, and making adjustments to insure that the goals originally set forth are achieved--not an easy task.

But as is true in any field, the better informed the team members are, the more apt they are to succeed. It is imperative that the proper communication conduits are determined and then utilized so that all players in the project are "in the know" as to what is expected of them, when it is expected, and how they are to accomplish it.

Verbal communication doesn't work adequately for construction, especially when it is provided at field level. It is not fair to a tradesman standing five inches deep in concrete to remember that an owner told him to tell the superintendent to tell the project manager that the paint for the office walls should be tan. Issues that are important enough to be stated in the field are important enough to write down.

That is why, over the years, there have been a series of communication tools adopted by the industry to clarify issues, stipulate intent and outline costs. Your architect and contractor should be familiar with most of them. The terms differ as you cross the country, but the intent and content remain the same:

Request for information is a standard term typically representing communication between the contractor and the architect. Information regarding plan interpretation, differing site conditions and general information required for construction is addressed in this format. As an owner, you should request that you are copied on all this correspondence in order to stay informed and understand the ongoing issues that could effect your project.

Request for pricing is originated by you or your architect when you need to know what an addition to the project will cost prior to beginning the work.

Cost proposalis the reply to that request from your contractor. You can insist that these cost proposals are also broken down into a schedule of values.

Change orders are issued after these cost proposals are agreed upon and authorized for construction, and will become a legal contract document. For this reason, the AIA is an excellent source for documents. It is also important to realize that change orders can save you money in some instances. Credit or no-cost change orders are common in construction and, in some instances, are necessary to keep a project on budget. Creative construction management or value engineering can help identify these issues.

Along with understanding and using the proper method of communication, it is important to make sure you are communicating with the right people. Always define prior to the project who will be the representative and main contact for the contractor, architectural firm and owner. Make sure these people are available, prompt, authorized to make the necessary decisions, and qualified to perform their assigned tasks. For instance, the architects draftsman is not qualified to make design decisions that relate to structural issues, code requirements or life-safety issues. Figure 2 shows management categories of cost growth and reflects what effects decision-making can have on your project costs.

Construction is a complicated process that can often lead to disputes. Following the three rules outlined above does not guarantee your projects will be problem-free, but it will reduce the number of problems you have, and will greatly enhance your ability to address and resolve those issues when they arise. This simple concept of properly planning your project, organizing your costs and informing participants is critical.

Bret Ellis is the president of Ellis Construction Inc., based in New Orleans. Ellis Construction is a full-service general contractor serving the Southeastern United States. The firm offers design consultation, project management and general contracting services. For more information, visit www.ellisconstruction.com.

The Internet offers great potential for sales. Unfortunately, there are more questions than answers surrounding the actual possibilities of that arena. If we learn how to sell using the Internet, we may have tapped into the "mother lode" of marketing tools. This column offers a perspective on using this valuable mechanism to sell products and services pertinent to the records- management and self-storage industries.

The Nature of the Internet

I have been using the Internet since before Al Gore invented it, since even before Netscape offered a better way to navigate it with a graphical user interface. The Internet has been around for several years, developed by the government and academia for the primary purpose of sharing information and research. Businesses and the general public have finally tapped into it and are using it with a vengeance.

Since the beginning, the Internet has been essentially informational in nature. Computers and file servers all over the world hold content on every subject imaginable. If you want information on any topic, you can find more than you need on the World Wide Web. As a matter of fact, that is one of its biggest drawbacks: There is a plethora of information out there and much of it is inaccurate. How do we find our way through this maze of "stuff"? There is no question that information abounds, and it represents the first "wave," or function, of the Internet.

The Second Wave

If information typifies the first wave, then data collection represents the second wave. Website owners want information from you. Data-collection websites range from those of airlines that use the Internet for ticketing and reservations, to the local zoo collecting new-membership information. Privacy has become crucial in this wave, with security and other ethical questions at the heart of the issue.

If someone gives you information over the Internet, he wants two things from you: 1) assurance that only you will use the information and only for the purpose he gave it to you for; and 2) something of value in return. In the case of an airline reservation, a user logs on to a private and secured website, and the airline assures that his information is only for its use. What he gets in return is an immediate confirmation of his flight, lower fares and increased frequent-flyer points. Each individual has to determine the "value" of providing his information in this manner. In this example, the lower fares and double frequent-flyer points make it worthwhile. But each person has to determine if the payoff is of sufficient value for him to disclose private information.

The key question for you, as a business owner, is, "How do I get people to give me the information I need in order to sell them something?"

Regarding Value

Remember that "value" may be perceived differently by each individual. What you believe to be of value may be worthless to someone else. In sales, "value" refers to what is important to the prospect or customer. If I want information from the customer, I must learn what is valuable to him, what will entice him to give me the information I need.

So, the second wave in the development and usage of the Internet is data collection. Why is this important to those of us who sell products and services? In selling records-management, for example, we must determine if the "suspect" is indeed a prospect. We do this by estimating his need for our services. Once we know he has a need, the sale is easy.

The Third Wave

The third wave of Internet development is referred to as e-commerce. This implies that we transact business over the Internet. We sell something and the customer buys it. So we have migrated from information, to data collection to e-commerce over a very short period of time--in fact, just a few years. The future belongs to those who can figure out how to sell economically over the Internet.

An Internet Marketing Model

1. Select several hundred "suspects." This can be done entirely by using the Internet. If you visit a site called Prospecting for Data (www.tmisnet.com/ ~strads/search/), you'll find numerous search engines that give you free information about suspects, for example, all corporate lawyers by zip code. You can get the name, address, phone number, fax number, e-mail address, website and other key information for members of this population simply by selecting the right search engine. Some search engines will give only e-mail addresses or websites, while others can perform reverse search logic (phone-number look-up, etc.).

2. Copy the selected suspects into a Microsoft Word, Excel or Access file. I will not go into detail about this method since it is purely a Windows function and uses relatively simple "drag-and-drop" and "cut-and-paste" technology.

3. Fax the suspects an introduction message. Why fax? Fax gets more attention than either e-mail or direct mail. Only overnight mail gets more attention. Invite them to log on to your website for their "free gift." Remember the question is always, "What is valuable to this group of suspects?" The gift could be as simple as a coffee mug, or something like a free car wash or a ticket to the symphony or zoo. Our premise assumes you must give something of value to get information in return.

4. When they log on to your website, it should be secured and contain a form to gather the data.

5. Collected data is then automatically dropped into the database by the system.

6. The data then generates three results: a) a proposal letter outlining the suspect's savings delivered via fax and e-mail; b) a free gift letter to the suspect; and c) an e-mail to you to follow-up the proposal.

All of these steps can be done automatically using a combination of technologies: fax, e-mail, the Internet, snail-mail and telephone. What do you need to do this?

• A computer equipped with a modem
• Microsoft Office and Internet Explorer programs
• Internet connectivity through an Internet service provider
• An e-mail address
• A secure website
• A data-collection tool (form)
• A modicum of training and education.

Regular columnist Cary F. McGovern is a certified records manager and the principal of File Managers Inc., a records-management consulting firm specializing implementation assistance and training for new, commercial records-center start-ups, as well as marketing support for existing records centers. For more information, visit www.fileman.com. 

FileMan Records Management is developing a model for selling records-management services on the Internet. The company will soon be piloting several versions of its method. If you are interested in becoming a FileMan Pilot participant, e-mail [email protected] or call toll-free: (877) FILE-MAN.