Since the pandemic hit, it seems like construction materials and costs have been the number one topic of conversation for anyone involved in our business. Is what we need going to be available? If so, how much have prices gone up? We’ve talked about several headaches it’s caused our team, including parts shortages for electrical …
Recently, one of our project managers priced a rather small, straight forward project. We negotiate a lot of our work, but on this particular project, the prospect had asked another couple of contractors to estimate it as well. The prospect selected another contractor who was about 25% below our cost, coming in about $125,000 low …
In our business, there are times when the tendency is to quantify by the unit. “Price per square foot” is used to measure all kinds of things, from the average property value, all the way to building cost. While it can be a quick and easy reference at times, a summary is just that. A …
In commercial construction, we have found it’s easy to get in a rut. Sure, we build different types of structures, but we are often dealing with a similar set of trade contractors—structural steel, MEP, masons, paint, etc. After years of working in the industry, most of us have a list of folks we trust. We …
This week, we were finalizing a contract with a new customer. The process of the last few days did not go as I had expected. Confusion from too many details had gotten in the way, and our customer did not understand the final proposal. In short, he was somewhat frustrated. While all of the facts …
I’ve recently been working on a project with one of our customers. Everyone is in a hurry to complete the submittal before a real estate committee meeting. All parties are doing their best with limited time, trying to meet the deadline. There has been a lot of stress in the process. Sound familiar? Last week, …
Price? Transaction experience? A combination of the two? Judging from a few meetings I’ve had recently, seems like it depends on who you talk to. Investors. Last week, I was talking with the vice president of a publicly traded real estate REIT. He said that when considering all parts, pricing should theoretically be the same. …
On construction jobs, the unexpected is…well…expected. Circumstances inevitably change. In our case, codes are updated, conditions in earthwork shift or we encounter any other variety of circumstances that affect the outcome of our work. To me, when considering a construction contract–or for that matter any written agreement–good communication and change management are essential to success …
A while back, I mentioned our desire to explore Building Information Modeling (BIM), a database which catalogs a structure throughout its life cycle in real time 3D. We felt the system would provide a value-add large enough to merit hiring someone to manage our efforts. I’m pleased to say we found the right fit. William …
We recently made a presentation to a prospective customer who had an adaptive reuse project that seemed perfect for us. It involved revitalizing an area of the city, which is exactly the type of project we enjoy. We confidently answered all the questions in the RFI, and the presentation seemed to go flawlessly. As we …
Last week, I was having a conversation about pricing on an HVAC system with Heath Cather in our office. Why had the mechanical engineer chosen hot gas reheat? It’s more expensive and sometimes unnecessary, I offered. He mentioned a trend he’s noticed. With all the mold law suits lately, we are seeing recommendations for a …
The short answer: To me, nobody knows. If we compare the normal demand for commercial projects in the United States to our current climate, the market is down 30-50 percent. The laws of supply and demand tell us commodities prices should decrease in order to level things out. The opposite is happening. On average, we …