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4 Trends Shaping Multifamily Construction Today

By Industry Insights

4 Trends Shaping Multifamily Construction Today

Rewind to early 2020 – Health and wellness, outdoor spaces, hybrid work environments, and technology were already trending in multifamily construction. Now, in post-pandemic 2022, these design trends have taken center stage.

Health and Wellness

As the world continues to grapple with the ever-evolving COVID-19, the need for healthy environments, both physically and mentally, is at an all-time high. Today’s multifamily residents are not only interested in swimming pools, fitness facilities, childcare services, and dog parks, but meditation rooms and yoga classes as well.

Units and communal spaces are incorporating proper air filtration, touchless fixtures, easy-to-clean surfaces, paints and materials with no/low Volatile Organic Compounds (VOCs), and circadian lighting fixtures in tune with the body’s natural cycles.  And biophilic design strategies connecting people with the natural environment are a priority. This includes large windows and open floor plans bringing in lots of daylighting, balconies, plants, and natural materials like wood and stone.

For example, the 7-story boutique condominiums for Chicago’s new 1400 Monroe property features 9-foot ceilings, oversized loft-style windows, recessed balconies, and large terraces.

Outdoor Spaces

Through lockdowns and unprecedented time spent at home, access to the outdoors essentially transformed from a want to a need.

Rooftop amenities, pergolas, gardens, and walking trails are attracting renters and homeowners. In addition, people want to gather and socialize by fire pits, BBQ grills, wine bars, and large flat-screen TVs.

On point, the Luxe on Madison in downtown Chicago incorporates a dog run and rooftop terrace with a patio, fireplaces, and grilling area.

Within individual units, 73% of those surveyed by the New Home Trends Institute desire covered outdoor rooms/open-air rooms, 68% are interested in patios, and 55% want decks. Another 58% identified connection to the outdoors/nature as an important influence on their design choices in the coming years.

Whereas these types of features were more common with luxury housing, the trend has now expanded to affordable housing as well.

Hybrid Work Spaces

One major lesson learned from the pandemic is that employees can productively work from home. While many have returned to the office, the predominant mode is a hybrid set-up where folks split their time between the home and the office. The upshot is that multifamily homes and properties must be better equipped to support work settings.

In addition to creating spaces within the units themselves for daylit, technology-equipped working nooks, developers are revamping communal areas to provide workplace amenities such as co-working spaces, meeting/conference rooms, business centers, and lounge areas.

In addition to a rooftop terrace, dog run, and a fitness center, The Clark in Chicago offers a business center and a café.

Already in late 2020, the global real estate services company Newark reported that 14% of multifamily units had been renovated to accommodate more space for working. In all likelihood, those percentages have increased.

Technology

Following the touchless trend, multifamily properties are incorporating features like keyless locks and smart elevators. Many units have automated doorbells, security and lighting systems, and Alexa or Google Home speaker integration. Buildings are outfitted with intelligent building management systems and some properties are considering electrical car charging ports.

Whereas smart technology was previously relegated to upscale single-family homes, building owners are looking for ways to differentiate their properties and these technologies are emerging as a way to achieve that.

For instance, at 1400 Monroe, the units are equipped with smart home lighting technology.

Attracting Consumers

As multifamily properties continue competing in a tough market, the incorporation of health and wellness, outdoor amenities, work spaces, and technology will be key. Aligning these offerings with strong consumer preferences in 2022 must be a fundamental aspect of these project designs.

Are you considering a Multifamily construction project?

Give our multifamily construction experts a call. We are happy to help guide you through the process, walk a prospective property or give an initial construction budget. 

Barbara Horwitz-Bennett is a seasoned architectural journalist, covering the design and construction industry for the past 20+ years. She writes for numerous industry magazines and creates content for AEC firms and product manufacturers.

2022 Construction Trends

By Industry Insights

2022 Commercial Construction Trends

Construction trends come and go shifting one year to the next, with changing sensibilities and product innovations. In addition, thanks to the ongoing pandemic and demand for greater sustainability, many of the most profound trends over the past two years have arisen out of sheer necessity. As 2021 comes to a close, it is worthwhile to look ahead and see which commercial construction trends are out, which are in, and which are here to stay in 2022 and beyond.

Glass Partitions

Open floor plans with clear lines and unobstructed views have been a hallmark of interior design over the past several years. Not only do such layouts create a more pleasant and inviting ambiance, but the increased natural light flow is a major benefit to buildings looking to cut down on energy consumption and become more environmentally friendly.

However, with the lingering pandemic, commercial facilities have been given a painful lesson on the importance of having private, socially-distanced spaces in their building, as well. Rather than construct a series of cold, gray walls to form offices and private meeting areas, commercial buildings will continue to leverage the benefits of glass curtain walls in 2022. These innovative partitions help maintain the advantages of an open floor plan while also creating the separation necessary to keep all customers, clients, and employees socially distanced. In addition, glass partitions are highly customizable, giving designers the ability to add, remove, or modify interior spaces, as necessary.

Adaptive Reuse

As sustainability becomes an increasingly popular topic as we move into 2022, many designers and contractors are looking into ways to renovate and repurpose historic buildings, as opposed to demolishing and starting fresh. Not only can this help a construction project save on building materials, but it reduces the amount of energy and resources consumed during construction, as well.

However, to achieve a quality restoration, all adaptive reuse projects must be performed in a way that ensures the aesthetics, functionality, and energy efficiency of the restored structure. To this effect, correctly implementing historical windows is one of the greatest challenges contractors face. Not only can it be difficult to use modern products to create a look consistent with a historical aspect, but poorly-performed window retrofits can be a disaster for energy efficiency. Therefore, it is critical to deal with contractors that are experienced in the field and can effectively install and seal contemporary materials into a historic substrate.

Smart Features

Smart technology is not only helping society with entertainment, leisure, and household tasks–it is set to explode in the construction industry as an increasing number of projects break ground with an eye toward creating smart neighborhoods and cities. Some of the ways that smart technology is being incorporated into construction include:

  • Window glass that can change its transparent or translucent properties based on the exterior temperature
  • Shading devices that automatically adjust themselves based on the angle of the sun
  • Smart concrete that can monitor changes in stress and alert contractors to where the trouble may arise before a major renovation is necessary

Multi-Purpose Facilities

The shift to remote work and the skyrocketing cost of rent has changed the ways in which businesses utilize their commercial spaces. For example, many businesses are trying to find ways to sublet their facilities when not in use, looking for events and functions to come in during the evenings and weekends to make use of their space. In addition, groups of restaurants are teaming up to operate under the same roof, using a central kitchen and shared dining space in the face of decreased demand for in-person dining.

Therefore, facilities must be more versatile than ever. Modular partitions are a great way to create customized spaces under one roof. Polished concrete floors can also provide durability in the face of frequent furniture shifting and reorganizing. Finally, floating ceiling panels are important for maintaining stunning aesthetics while stifling noise transfer within shared spaces.

Sanitize-able Central Hubs

Another byproduct of the pandemic is an increased focus on creating easy-to-sanitize spaces, especially in central hubs such as dining halls, recreation centers, and postal facilities for apartment mailboxes. In such high-traffic areas, materials must be nonporous, resistant to damage from tensile blows, and capable of withstanding frequent application of cleaning products. Some trendy materials that check all of these boxes include:

  • Quartz and solid surface countertops
  • Stainless steel doorknobs and fixtures
  • Terrazzo floors

Commercial Construction Trends to Watch in 2022

Each year, commercial construction trends will shift based on changing consumer sensibilities and the unveiling of innovative new products. In 2022, sustainability and the lingering, rapidly evolving pandemic are going to keep construction professionals scrambling to keep their facilities ahead of the curb. With this in mind, glass partitions, historic retrofits, smart features, multi-purpose facilities, and easy-to-sanitize central hubs are set to be 5 of the most prevailing commercial construction trends as the new year unfolds.

Natalie Akins is an editor for the Innovative Building Materials blog and a content writer for the building materials industry. She is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that save money, improve energy efficiency, and increase property value.

Summit Opens New Office in Austin Texas

By Industry Insights, News, Texas

Summit Design + Build Announces Opening of New Texas Office & Hiring of Project Executive

Chicago-based general contractor expands operations to Austin, TX

 

Summit Design + Build has announced the opening of an office in Austin, Texas. Along with several of Summit Design + Build’s key clients developing new projects in Austin and surrounding areas, the firm was inspired by the strong growth of the Austin Market. Summit Design + Build will provide general contracting, construction management, preconstruction and design/build services to Austin and its surrounding areas. The company looks forward to bringing a new level of sophistication to the Austin market and to assist in the growth of the Austin office, Summit Design + Build also welcomed Doug Hayes to the firm.

Doug Hayes will serve as a Project Executive, based out of Summit’s new Austin, TX office. In his role, Doug will serve as a project team leader, overseeing and running Austin construction projects. He will also play a crucial role in bringing in prospective projects and clients through the project pipeline and positioning Summit Design + Build as Austin’s leading general contractor and construction management firm. 

Doug joins Summit with over 26 years of industry experience, most recently serving as a Project Manager for Raymond Construction Co, Inc. Doug has extensive experience in a multitude of delivery methods in the commercial, industrial, multi-family and mixed-use markets.

Along with Illinois and Texas, Summit Design + Build is also licensed to do work in Florida, North Carolina, Tennessee and Wisconsin.

About Summit Design + Build

Summit Design + Build, LLC is a provider of full-service general contracting, construction management and design/build construction services for the commercial, industrial and residential markets. Headquartered in Chicago’s Fulton Market and with regional offices in Tampa, Florida and Austin, Texas, Summit Design + Build has been involved in the design and construction of over 330 buildings and spaces totaling more than 7 million square feet over the firm’s 17-year history.

Design-Assist Construction

By Industry Insights

What is Design-Assist Construction?

New construction materials, tools, and techniques are fairly common, but what about delivery methods? Maybe you’ve heard of design-assist but want to learn more. Or maybe you’re just looking for a new approach to keep your next project on budget and on schedule. Either way, our breakdown of the design-assist process is here to help.

What is Design-Assist Construction?

Design-assist (DA) is a relatively new construction delivery method. It stands out because its focus is on bringing subcontractors into a project earlier than usual during the design phase. The goal of design-assist is to create a more solid design plan to reduce the time and money spent on a project. By leveraging the specific expertise of subcontractors during the design process, the project is also likely to result in a higher-quality end product.

The design-assist method allows the General Contractor to bring in critical trades such as mechanical, electrical and plumbing sub-contractors to weigh in on construction plans, in an effort to establish a credible budget from the beginning. The input from these specialists can better inform the choices of architects, engineers and construction managers to, in turn, make design decisions that will help construction to run more smoothly. This approach also helps keep the project on budget and on schedule and resolves design disputes while ideas are still “on paper” before ground is broken.

DA can improve design efficiency, cost management, speed to market, and constructability for nearly any construction project. With supply chain issues in the market, DA is one of the best delivery systems because lead times of materials are contemplated all through the design process (conventional plan and spec bidding is not as affective in this market because of the long lead times of materials and the inability to procure early). Regardless of the size or type of the structure you can reap the benefits of a design-assist project in a majority of instances.

The Design-Assist Delivery Method

Now we’ve defined the goal of design-assist construction, you’re probably wondering what the delivery process looks like.

1. Start with the design

Though DA is different from traditional construction methods, both still begin with a client, a contractor and a designer. It’s up to those leading the project to determine at what point in the design process they want to bring subcontractors onboard. Some prefer to get some ideas on paper first, but it can also be a good approach for some projects to begin initial designs with specialists in place.

2. Selecting subcontractors

A common practice for the design-assist approach is to use best-value bidding when hiring subcontractors during the planning phase. In an ideal world, the subcontractors you hire to help with the designs will also take part in the construction. However, price points and relationships can shift.

By taking care to set up clear boundaries amongst the design-assist sub-trades you’ve selected, you can still entertain competitive bidding in the various categories. Perhaps offer a “last look” to the design-assist subcontractor as you evaluate their bid against the competing trade bids, this helps to maintain competition and provides the client with the best, most cost-effective solution.

3. Finishing designs and establishing cost

Once your key subcontractors are onboard, they can begin the process of sharing their expertise with the architects, engineers, and construction managers. This is a crucial step in the design-assist method. The decisions made here are best positioned to keep construction smooth, high-quality, on-budget, and on time. Pricing is derived on an iterative basis, generally defined as schematic design, design development, and construction documents. These intervals of design and pricing allow the team to monitor scope or budget creep and make required corrections to eliminate surprises generated at the final estimate.

Once the detailed designs are complete, you’re already ahead of the game compared to traditional construction projects. The costs and schedule laid out in your plans reflect the experience of each subcontractor on prior iterations to remove the guesswork and prevent future conflicts.

4. Start building

Once plans and teams are in place, construction is set up to start off on the right foot. Your subcontractors likely made suggestions and decisions in the design phase to help things move forward with minimal disruption. Maybe they suggested areas where prefabrication can save time and money. Perhaps they ironed out some complex areas of the design to prevent surprises on site. Whatever insights they were able to share, or whatever disputes they were able to resolve, you can be sure the design-assist process is likely to reward you with a better build and a high-quality structure.

Design-Assist vs. Traditional Construction

We’ve already touched on some differences between DA and traditional methods. Here are some other points to consider when comparing these approaches:

  • Better budgets and timelines: Traditional construction methods lend themselves to a bidding process where typically the lowest bidding contractor lands the project. If you’re thinking the design-assist method is more expensive since it requires hiring subcontractors earlier on to help advise, you should consider the time, resources and labor saved by having specialists weigh in on designs. Starting a project with a well-rounded design is likely to be exceptionally beneficial for everyone in the end. Don’t forget: you can still have open, competitive bidding to make sure that good pricing is still received.
  • Fewer redesigns: Subcontractors and vendors don’t get to see plans until construction is about to begin if you’re using a traditional approach. This means there’s a risk of misaligned priorities, MEP coordination or collision issues, or even oversights between the designs and the site. Design-assist is extremely likely to prevent time and money wasted by going back to the drawing board.

Design-Assist vs. Design-Build Construction

The design-build delivery method is another option. While very similar there is an important difference between it and the design-assist approach to consider.

  • Who’s in charge: In most design-build construction projects, the General Contractor holds most of the power to select architects, engineers and subcontractors. Design-assist keeps this power in the client’s hands. There isn’t necessarily a right or wrong approach it all depends on the client’s preferred involvement, comfort level and project specifications.

    • Lastly, the design-build method inherently puts liability for the project on the General Contractor. So not only does the comfort level of the client come into play, the contractor’s approach to risk can influence the project delivery as well.

Want to learn more about Design-Assist construction?

We’re ready to chat with you about the DA method and how it could work for your next project.

Important Safety Information When Constructing a Building

By Industry Insights

Important Safety Information When Constructing a Building

Commercial construction is a diverse industry. In commercial construction, there are many moving parts with various teams all working simultaneously on different components. It takes a lot of people with individualized skills to construct a beautiful building. However, with power tools, heavy materials, dangerous machinery, and so many people working in one place, safety must be the top priority to ensure that no accidents happen while on the construction site. It is important to take into consideration the below safety information while constructing a building.

Proper Procedure Depending on Building Type

The construction of every building is unique. This also means that proper safety procedures will depend on the building type. For instance, when building steel buildings, safety elements like temporary bracing, preplanning, and fall protection become vital.

Temporary bracing procedures prevent heavy steel beams from falling on crews while pre-planning procedures ensure that everyone knows where the crane will be moving those heavy beams so no one is in the path. Fall protection is important on all structures, but steel buildings are often tall making it even more essential. Always double-check you are wearing the proper fall protection equipment and using it correctly depending on the building type.

Always consider the building type when reviewing safety procedures and wear the necessary personal protection equipment.

Frequent Communication

Communication is an essential element when it comes to building construction safety. Many accidents can be prevented with extra communication. For example, when heavy materials are moving around on-site, everyone should know about it.

Details about what every team is doing every day should be shared with all crews so everyone can do their part to ensure a safe worksite. Many times, this is done with a daily meeting with leadership. Crews should pay attention and give detailed reports of their plans every day during this meeting.

Additionally, you have probably heard the term “if you see something, say something”. This applies to safety when constructing a building, too. If you see that a required inspection has not been done on a piece of equipment, it should be reported. If you see someone not following safety procedures, that should be reported as well. You may not want to get involved, but providing that communication with leadership is what keeps everyone safe.

Location of Fire Protection System

Installation of wiring, using gas and electric powered tools and machinery, and the prevalence of flammable materials pose a fire risk at every building construction site. Always ensure that you know the location of fire protection systems. The building may have a passive fire protection system already installed. If so, you should always know the location and how it works. Additionally, crews should be up to date on where fire extinguishers and evacuation routes are located.

Documentation is Your Friend

On a safe construction site, there should be a lot of documentation. Documentation helps maintain a safe worksite by proving proper inspections, meetings, and planning were done. If you happen to complete an inspection or host a meeting, you should document everything that was done and by who so that the next person and the person after that knows. 

Documentation also aids in creating new safety procedures because you can look and see what may have caused an unfortunate accident such as a missed inspection, a meeting that never happened, and more.

Always check the documentation on the machinery, equipment, and tools that you are using to ensure that they are safe to be working with as well. If your intended equipment has not had a required inspection, bring it to the attention of leadership and do not use it until it has passed the requirements. Small details like this can impede efficiency and be annoying, but safety should always come first. Paying attention to documentation, keeping up with it, and being detailed in your documentation can prevent accidents and provide insight if any occur.

Ensure Worksite Installation Codes

Not only should you be knowledgeable on safety codes, but you should also keep up with the proper installation of the elements you are working with. For instance, if you are installing industrial radiant heating systems while constructing a building, you should review the safety and installation codes of those specific industrial radiant heating systems.

The same applies to electrical work, plumbing, finishers, crane operators, and every specialized skill at the worksite. Reviewing installation procedures and product-specific safety guides is just as necessary as having a good working knowledge of general safety procedures.

The Bottom Line

Safety must always be of the utmost importance when constructing a building. Construction crews should regularly review safety information, keep in constant communication with leadership regarding safety, and uphold any and all safety precautions no matter how small. Accidents while constructing a building can be prevented by having diligent safety procedures and implementing them effectively.

Guest Blogger: Natalie Akins is an editor for the Innovative Building Materials blog and a content writer for the building materials industry. She is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that save money, improve energy efficiency, and increase property value.

Multifamily Construction Costs: An Investor Guide

By Industry Insights

Multifamily Construction Costs: An Investor Guide

Construction costs are the major expenses that investors in multifamily apartments consider. Recently, these costs have been increasing, making developers lose interest in the market. Because of this hike in construction costs, investors seek to know the expenses involved. Doing so will help them make budgets accordingly.

Despite the hike in construction costs for multifamily apartments, it is still a lucrative business for investors. That is because over one-third of all households reside in apartment buildings so the demand is high.

Whether you want to invest passively or actively in multifamily properties, it is necessary to understand the construction costs. Although it varies from one area to another, we recommend that you know the national and local average for every category. Doing so will protect you from overspending on any aspect of the construction.

What is causing the hike in construction costs?

The major reason for the hike in multifamily construction costs is regulatory compliance. According to the National Multifamily Housing Council (NMHC), this alone will consume 32% of the total cost.

Another aspect of construction costs that is also increasing is the cost of building materials. The cost of building materials has increased by over 7.4%. Tariffs for imported items and labor costs are also among the reasons for the hike in construction costs.

Where your money goes when constructing a multifamily apartment

There are three essential aspects that you need to consider when budgeting for your multifamily apartment. They include:

Land cost

The cost of land is the first large expense that you will notice. Depending on the location, it can gulp between 10 % to 20 % of the overall budget. If you want to situate your multifamily apartment in an urban area, the cost of acquiring land will be more than that of a rural area.

Hard costs

Hard costs involve expenses on labor, building materials, engineering, contractors, and subcontractors. These will account for about 50 % to 70 % of the overall budget. From this, you will notice that hard costs consume the dominant part of the budget.

Soft costs

Soft costs include legal fees, permit fees, architectural fees, construction loan interest, interior design fees, and other supplementary expenses. All these will take about 20 to 30 % of the total budget.

Most times, developers handle the construction of apartments for a fee. They do not provide the capital. However, they can partner with investors who will finance the construction. The fees for developers are about 5% of the hard and soft costs, but this may vary. Developers can charge an additional 1-2% of the purchase price as an acquisition fee if they also acquired the land.

A breakdown of the cost and the roles

Architect’s fees and contractor’s bids are the highest costs you will notice in your multifamily construction costs. Among the hard costs, the contractor’s fee is the highest. Also, the architect’s fee is the highest among all the soft costs.

The contractor’s fee is high because they play a crucial role. The duties of contractors include:

  • Assist in processing all the necessary permits
  • Source for authentic construction materials
  • Select, hire, and supervise subcontractors in different aspects
  • Execute the project according to budget and schedule
  • Clean up the site after finishing the construction

The architect’s fee is also high because they perform the following duties:

  • Help figure out the project’s scope
  • Create a schematic design of the building plans
  • Create an initial budget
  • Complete the paperwork and decide on the necessary materials needed
  • Oversee the hiring process and assist the investors in reviewing bids and select the contractor
  • Work with planning agencies and structural engineers
  • Act as a project manager for the smooth execution of the project

Additional aspects you should consider

Providing specific prices for construction costs may be difficult because the expenses will vary depending on the materials, sizes, and location. Neighborhoods with a housing boom will have higher prices.

Before constructing a multi-family apartment, study the vital statistics in the area. These include rents, vacancy rates, and competitors.

Remember the 2% rule in real estate. It means that the rent for the rental property should be equal to 2% of the entire expenses.

It is not a requirement that you must possess a real estate license before owning a multi-family apartment building. However, it is essential to have a manager that will supervise the property. It is much easier than being a DIY landlord.

The Bottom Line

It is essential to understand the construction cost of multifamily apartments. Doing so will help you to plan and execute your project effectively. Whether you want to invest passively or actively in multifamily apartments, we recommend that you always employ the services of professionals who can guide you throughout the process.

Are you considering a Multifamily construction project?

Give our multifamily construction experts a call. We are happy to help guide you through the process, walk a prospective property or give an initial construction budget. 

Guide to Cold-Form Construction

By Industry Insights

Guide to Cold-Form Construction

What is Cold-Form Construction?

Cold-form construction is a pre-engineered building system of steel wall, floor, and roof frames. Cold-formed steel (CFS) isn’t like typical structural steel, though it’s more than strong enough to be used in buildings up to 10 stories tall. It’s also easier, cheaper, and a more environmentally conscious material than wood and concrete.

How does Cold-Form Construction work?

CFS frames are pre-fabricated at a manufacturing center before being shipped to the job site. Cold-form construction is designed to be efficient to install, light enough to do so without heavy equipment, and all-around cost-effective. When working with CFS, building loads are engineered from the top-down, and the durable joists and studs require little extra training, less time, and fewer tools and materials to install correctly than other framing materials.

Why choose Cold-Formed Steel?

Let’s look at some of the overall benefits of using CFS:

  • Lightweight: CFS weighs significantly less than most construction materials, making for easy transportation and installation.
  • High Strength & Stiffness: CFS has the highest strength-to-weight ratio of any construction material.
  • A Better Design: CFS is designed for quick and efficient installation.
  • Dimensionally Stable: CFS keeps its shape, unlike materials that absorb water or expand/shrink in different temperatures.
  • No Formwork: CFS doesn’t require forming or molding like concrete.
  • CFS is: durable, non-combustible, and recyclable.
  • Proven: Significant engineering has been done with CFS to confirm all of these statements.

Triple threat: CFS for walls, floors, & roofs

Flooring systems built with CFS have higher acoustic ratings than other materials. CFS cuts down on echos and sound reverberations when compared to buildings constructed with wood joists/trusses with wood floor diaphragms (depending on code), metal decks with concrete, and Structo-Crete.

CFS load-bearing wall systems can include load-bearing studs (most commonly standard C-shaped studs with one lip stiffeners), lateral bracing, and shear walls. Interior wall studs can be designed to come with pre-drilled openings for utility pipes and wiring. Window and door frames also come pre-fabricated and ready for installation, and CFS frames are built without MEP.

Roofs built with CFS frames can last 40 to 50 years longer than roofs built with wood (which last 15 years on average). CFS roof systems also include fewer soffits than those built with other materials. This means higher ceilings are possible, leading to happier clients.

Sustainable Building Materials for New Construction

When constructing a new commercial building, such as an office space, it is important to consider sustainable building materials for several reasons. First, it is important to do our part to be kind to the environment by reducing the carbon footprint of large buildings. Additionally, sustainable materials can help businesses cut down on energy costs for their spaces.

Below, we’ve reviewed several sustainable building materials that would be great to consider when building a new commercial space.

CFS vs. Structural Steel

We’ve mentioned how CFS is a great material for buildings up to 10 stories high, so structural steel beats cold-form construction in one area: it can handle larger construction projects. However, traditional steel falls behind CFS in many other aspects like weight, design flexibility, and cost. CFS is lighter than structural steel requiring fewer people and tools to install. Its weight also opens up more design possibilities since CFS takes up less space and needs fewer bulkheads than regular steel. Lastly, CFS costs less to produce and transport than traditional steel. While you can build bigger with structural steel, you can build smarter with CFS.

CFS vs. Precast Concrete

CFS is a better option than precast concrete for many of the same reasons as mentioned above. However, there are a few others to add to the list. You already know the CFS is more lightweight than concrete, but what could that mean for a building’s design? Since it can bear larger loads while weighing less, CFS can span larger rooms unlike precast concrete (which requires drop-ceilings, bulkheads, and additional column supports to do so). CFS is also more energy-efficient than precast concrete, which lowers the final building’s operating costs.

CFS vs. Cast-in-Place Concrete

Cast-in-place concrete is strong, but CFS has a higher strength-to-weight ratio. In fact, CFS has the highest strength-to-weight ratio of any construction material. Concrete is also more expensive than CFS systems, and harder to work with. The light weight of CFS, plus its easy-to-install design, make it more efficient to work with. CFS requires less time, people, and tools to set in place. Cast-in-place concrete is relatively slow (between molding, pouring, and setting), so cold-form construction methods lead to happier clients and neighbors. It’s also easier to fix mistakes – unlike with dried concrete.

CFS vs. Wood Framing

It’s likely pretty obvious that CFS is a more fire-resistant and durable building material than wood, but did you expect it to be more sustainable too? CFS is actually more efficient to recycle than most kinds of wood, and many cold-formed frames are created with recycled steel. Common issues with wood (termites, mold, rot, and swelling/shrinking due to temperature fluctuations) are also mitigated by CFS. Also, cold-formed steel is coated in zinc – a protective barrier that can last for 700 years. Finally, CFS is more consistent: wood quality can vary based on its type and region of origin. With CFS, you know exactly what you’re getting.

Are you considering a cold-form construction project?

Reach out to our team of CFS construction experts to help you get started on your building journey.

Sustainable Building Materials

By Industry Insights, News

Sustainable Building Materials for New Construction

When constructing a new commercial building, such as an office space, it is important to consider sustainable building materials for several reasons. First, it is important to do our part to be kind to the environment by reducing the carbon footprint of large buildings. Additionally, sustainable materials can help businesses cut down on energy costs for their spaces.

Below, we’ve reviewed several sustainable building materials that would be great to consider when building a new commercial space.

Flat Roof Insulation

Many commercial buildings feature a flat roof design, as it provides more interior space as compared to a building with a slanted roof of the same height. Additionally, a flat roof provides an easy location to store HVAC equipment that doesn’t take up valuable interior space.

However, this type of roof is often one of the most vulnerable parts of the building when it comes to heat transfer as it is constantly exposed to the elements. Adding flat-roof insulation can be a great way to improve the thermal envelope of your commercial building.

Flat roof insulation is a simple addition to a building that will reduce the amount of heat escaping your building during the winter months, as well as the amount of heat entering your building during cooler months. This will greatly reduce energy use for a commercial building, as HVAC accounts for a significant portion of a building’s energy use.

Flat roof insulation is an important addition to your commercial building not only because it improves the sustainability of your building’s energy usage, but also because it is a requirement by the IECC, or International Energy Conservation Code, according to Chapter 4, Section 402. This requires that flat roof insulation provide a minimum R-value or resistance to heat transfer or conduction. The higher the R-value, the more well-insulated a building will be. According to this code, the required R-values are R-20ci to R-35ci depending on your climate zone.

Radiant Floor Heating

Radiant floor heating is a heating system that circulates electricity, water, or air beneath the flooring in space to heat objects and individuals in a space via infrared radiation.

This type of heating system is considered sustainable for several reasons. First, they can be more energy efficient than traditional heating systems. Heating from the floor upward ensures that a space will maintain a more consistent temperature in all areas, as compared to heating systems which can leave cold spots.

Ceiling-based heating systems are also prone to “short-circuiting or air stratification.” This occurs because warmer air rises within a space, so ceiling-based heating can remove warm air before it can effectively circulate throughout the space to increase the temperature. Additionally, ceiling-based heating is an inefficient system that first heats the space higher up in a room where no occupants exist, while radiant floor heating warms the most important areas of a space first.

Radiant floor heating is also viewed as a preferable heating system in light of the Covid-19 pandemic, as it does not require the circulation of air which may contain microbes that lead to illnesses.

To complete a sustainable flooring system, consider pairing radiant floor heating with sustainable flooring material such as engineered wood.

Architectural Grilles

Architectural grilles have multiple sustainable purposes: they can provide air ventilation, and also serve as a barrier against thermal conduction and noise intrusion.

First, architectural grilles or louvers can be incorporated into a building’s HVAC system, allowing for the use of more ventilation air in a building. This improves the health of occupants by bettering indoor air quality.

In light of the Covid-19 pandemic, increased ventilation rates in commercial spaces have become an important factor to preserve and protect occupant health by limiting the spread of microbes and viruses through HVAC systems. Additionally, this has become a priority for increase work performance and improving overall employee morale. Architectural grilles allow you to bring in more ventilation air without affecting the aesthetics of the building, maintaining a clean and modern look.

Additionally, some architectural grilles are not incorporated for ventilation purposes, but rather are simply an addition outside of large windows to reduce heat transfer in extreme climates. These types of structures help reduce the energy used by a heating or cooling system, without compromising the aesthetics and visual appeal of the building.

Acoustic Glass

Offices require separate meeting rooms and spaces with sound-reducing properties so that gatherings and meetings can occur without disturbing others in the office. A previous solution to this problem was partition systems, but this is an outdated style that clashes with modern office settings.

Acoustic glass is an alternative solution that offers a trendy, open concept look while also providing sound-dampening effects. It is also a more sustainable choice when compared to partitions, as it uses less material to provide a comparable sound barrier as well as improved acoustics in a space.

Not only does acoustic glass improve the privacy of meeting spaces, but it also helps to reduce the background noise caused by A/C systems and fans in a commercial building, which has been known to contribute to an uncomfortable working environment.

Acoustic glass is a sustainable building material that can be used to meet several LEED requirements. LEED, or Leadership in Energy and Environmental Design, is a certification given for sustainable building design. Depending on the manufacturer Acoustic glass helps to meet the requirements of some or all of the following:

  • design for flexibility
  • recycled content
  • material reuse
  • minimum acoustic performance
  • enhanced acoustic performance
  • views
  • daylight

If you’re not fond of the idea of using a large amount of glass in your office space, there are more private options, such as privacy glass. This type of acoustic glass can be switched to a cloudy or translucent look with the press of a button.

Acoustic glass is an excellent sustainable acoustic material to improve privacy and comfort in commercial buildings while maintaining a modern and aesthetically pleasing office design.

Guest Blogger: Natalie Akins is the Interior Design Editor at Innovative Building Materials. With over 20 years of interior design experience, Natalie has worked on many projects including commercial office design and residential spaces.

Construction Financing

By Industry Insights, News

Construction Financing: The Developers Perspective

Developing real estate takes grit, creative problem solving, and an occasional after-work drink at the local bar. And, as banking protocols have evolved over the past decade, developers need to be selective when it comes to choosing a General Contractor (GC) for each project. But what exactly should developers look for in a solid General Contractor? What qualities make a GC or an AEC (Architectural/Engineering/Construction) firm investable in a project?

To find out, we interviewed several prominent Chicago-based developers to learn about their standard criteria for what makes a GC investable. Across the board, we found that developers care most about the GC project team’s personalities as well as their resumes and portfolio of work. This likely comes as no surprise. When hiring for any job, the client wants to be sure the people hired can do the job and play well with everyone on the team.

How to tell if a GC is Investable

We wanted to dive deeper into aspects specific to developer/GC relationships. So, we asked developers for their next most important way to tell if a General Contractor is investable. The answer? The alignment of the size of the asset class in the GC’s portfolio. Put more simply: size matters. It’s important for the developer to see a completed build on the same scale as their open project in the general contractor’s portfolio.

One of our respondents said seeing large projects in a GC’s portfolio is “critical” to developers. “Large” projects were defined as those nine stories and higher, so a large build’s added complexity, longer timeline, and the need to balance a larger budget explain why work samples are so crucial. Of course, smaller projects fall under this same scrutiny. However, the bigger the project, the more selective developers become.

Financially Viable GC’s

Developers need to know a contractor or AEC firm can provide both quality construction and bookkeeping. Therefore, the next aspect our interviewees check is the construction cost proportion of the project size as compared to the contractor’s overall annual gross revenue. To check this, developers ask questions like: Has the general contractor completed a single project that is greater than 25% of their total gross revenue?

Over the last decade, there has been added scrutiny and need for proof of financial viability on development teams. These requirements are then passed down to the general contractors and AEC firms they hire, so according to our interviewees, there’s a significant emphasis on qualifying the GC’s financial viability.

Developers are feeling challenged more than ever to find investable general contractors for larger projects. With smaller projects (eight stories and under), the GC’s resume, budget, and team are the main drivers, with financial viability coming in later. However, financial viability is the tipping point for larger projects, like those nine stories and higher. Developers are placing an ever-higher demand for the GC’s balance sheet health and capabilities for providing a Completion Guarantee (which is often less expensive than bonding).

The global pandemic has also had an effect on the search for investable contractors. The equity-to-debt ratios have changed dramatically from the pre-COVID era to now. Since the onset of COVID, there has been an increase in these ratios, thus the demand to raise higher equity on the capital stack is another barrier.

The developers we talked to came to the consensus that new relationships cost a lot of time, money, and extra due diligence. That’s why it takes an extortionary effort to hire a new AEC firm.

“That’s why it’s often easier to just work with a past relationship because you know what you’re buying,” said one of our interviewees. For GC’s, understanding the capital stack demands and challenges developers face is as important as completing a construction project on time and within budget.

We’re so thankful to the developers who shared their insights with us. At Summit Design + Build, we place an emphasis on our portfolio’s wide range and our financial viability to become the kind of investable general contractor developers need.

Summit Design + Build has a well-positioned balance sheet, and financial capabilities to make it easier on developers when they’re trying to close with their equity and debt partners. From project concept, through pre-construction, Summit helps developers close their deals.

Ready to explore our portfolio and talk about your next development project? Get in touch with us.

Completing Projects Under Budget

By Industry Insights

How to Complete a Construction Project Under Budget

Summit Design + Build’s Senior Project Manager, Kevin Criner, shares his insights on how to complete a construction project under budget without sacrificing quality and project schedule.

There are three aspects that are commonly thrown around while determining the success of a construction project: quality, timeliness and within budget. Often one is sacrificed to achieve the other but, in my eyes, (and most clients’ eyes) all three are essential. With numerous years of construction project management experience under my belt, I want to share my take on how to successfully complete a project within or under budget, while keeping quality and schedule in mind. Be aware that a project within budget is the project itself and not the bottom line profit you turn into your boss at the end of the job. An owner with a blown budget can be just as detrimental.

The “Not Included” Winter Conditions

Start with a Good Number

Obtain proper subcontractor coverage and understand scope– You should always be mindful of what you are plugging into a bid estimate. During the hustle and bustle of putting a bid together this might be tough, but if you have three prices for a particular trade you should ultimately be able to understand what they have or what they may have missed. Remember, you must buy the scope from each subcontractor. Don’t plug in low numbers just to drive the number down on a piece of paper, that number isn’t real.

Confirm the client understands what you have– It is very common when getting scoped for a job to become a “yes man/women.” After all, you want the project and you’ve put in a lot of work to get to the table. It is important to remember that because you are at the table to begin with, your number is something they can live with. If it is substantial and you do not have it, let it be known. The cost of it will not go away. The same concept applies when negotiating a contract. Multiple meetings will be held over weeks/months/years in which many subjects are covered. If the owner insists on leaving something out of the budget, make sure you are very clear that it is being left out each step of the way. In some cases, if you know it is going to be a cost, fight to have it included. The project will run smoother should you not have to get a change order for it later.

Negotiate Wisely– If you must skim a little to win the job or to make the job happen, you should always know where that money is coming from. Lower your budget in areas where you can make the numbers work.

Limit Change Orders

Avoid the Big One– “The Big One” (a large change order) will more than likely come from a failure to achieve one of the items above. Sometimes a client voluntarily makes a big add to the scope of the job or a change derives from a source you have no control over (i.e., municipality, utility company). It is extremely important to go over these things during preconstruction and try to get them in the budget. You know it’s a possibility, so why not discuss it?

Buy out the details– It is your job to buy the plans from the subcontractor. Make sure every item in each plan detail has a subcontractor attached to it. Run through the schedule and make sure each sequence makes sense. Make sure you aren’t buying an ideal schedule from one subcontractor that cannot work. This results in changes and/or delays to the schedule.

Challenge each change order– When there is inevitably going to be a change in something understand the work involved. Do not be the pass-through between the subcontractor and the client. Agree with what you are presenting and have multiple solutions to present. Very commonly there is an easier way to achieve the same thing. Get creative and come up with solutions that are least detrimental to the budget, schedule and quality of construction.

Preserve the schedule (time is money)– Subcontractor schedule input should be provided as early on as possible. Your perfect schedule usually has some duration or sequence errors and the subcontractors can help you fix it. Also, in some instances, they can help you pick up time. Sub durations should also be constantly monitored. Just because it doesn’t seem like a delay at the time, it could be in the very near future. If the schedule is not maintained, it will result in an accelerated/overtime schedule that ultimately costs the project money.

The Utility Company Add

Define and Know Your Budget

Timely Buy-Out– Knowing what savings you do or do not have determines your strategy throughout the project. If you have un-bought scope then you are at risk of additional overages you are not projecting for. In budget management this can be detrimental to the bottom line.

Monitor the budget– If you know where your numbers are then you know when you do or do not have money to spend to handle an issue and push the project through. If you wait for monthly (or worse) reconciliations then you may be approving too much or spending time fighting something you could have handled prior.

The Missed Blocking Scope

It is also important to remember that the budget should be properly developed, maintained, and protected throughout the duration of a project. There should be no surprise come the end of the job. Keeping all the above points in mind, an under budget, on-time, quality construction project should be well within reach. Do you have an upcoming construction project? Reach out to our team of construction experts to get started!