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Oct 15
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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. 

Sep 27
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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.

Aug 24
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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.

Aug 24
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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.

Feb 15
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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!

Jan 21
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Mastering Adaptive Reuse Construction

By Industry Insights

How to Master Adaptive Reuse Construction

Summit Design + Build’s Project Engineer II, Ben Cohen, shares his insights on how to master an adaptive reuse construction project.  

Adaptive reuse is the process of revitalizing old buildings for new and modern functions, other than those the building was originally designed. These projects play an extremely important role in maintaining the aesthetic of historic districts and protecting architecturally significant buildings. In order to master adaptive reuse, you must always expect the unexpected and take the following key points into consideration.

Discovered Conditions and Changes to the Plans

In order to accomplish the modern open floor plan design that is typical for today’s new structures, selective demolition and exploratory work are necessary to better understand the true existing structure of the building. It is extremely common to find undocumented adaptions to the “existing” drawings that impact layout, design, or have structural implications. In order to help flush these potential show-stopper issues out ahead of time, it is extremely important to have surveys and exploratory demolition done to confirm dimensions and assumptions before the general contractor is fully mobilized and beginning work on site. It’s not uncommon to come across conditions such as undocumented underground storage tanks, abandoned basements, structural wall footings that were narrower than the wall that was bearing on it, walls installed at all sorts of angles off of plumbing, and roofs built over other roofs! The more investigatory work you can do to give your general contractor a fuller picture the better.

Before of 210 N Green Street

Hazardous Material Abatement

When working in old buildings, hazardous construction materials such as asbestos, lead, mold and refrigerant are common to encounter. Dealing with, or at the very least surveying and identifying these materials before construction commences on site is extremely important, as discovering any of these during the selective demolition process could trigger work to stop until the materials are properly abated.

Water Intrusion

According to Architect Magazine’s article: When it Leaks it Pours, water intrusion makes up more than 70 percent of construction litigation. In order to avoid a lot of headaches down the road make sure to have a 3rd party expert review the architectural drawings and/or the site conditions to make sure the designs proposed apply to, and will work well with, the existing structure. The specialists we’ve had the most success with in the past have been Wiss, Janney, Elstner Associates, Inc. Having a separate pair of eyes on the drawings to ensure the building envelope design is robust and detailed to be fully water tight is money well spent.

Before and After of 210 N Green Street

MEP’s

Depending on the age of the building, and of the mechanical, electrical and plumbing elements therein, you may choose to re-use, abandon in place, or fully remove and re-do these components. If the plan is to keep these elements in a workable condition, make sure the existing equipment meets the current code. If so, a plan must be made to protect them from water, dust and damage during the construction process. If the plan is to demolish and start fresh, make sure that all assumptions and dimensions are verified on-site. Are the existing shafts sufficiently sized for the new ductwork, plumbing risers and electrical homeruns?  Do the duct sizes and light placements work with the given floor to ceiling heights? Is there sufficient water pressure for any additions being made to the existing structure? The more of these types of questions you can answer before work starts on site the better off you’ll be.

In conclusion, the way to master adaptive re-use projects is to do your due diligence. Surveying and exploratory work are upfront costs that are well worth the expense and will help reduce headaches and costly change orders while the full gears of construction are in motion. Additionally, make sure to work with general contractors who have done this type of work before. When it comes to working in older buildings, experience plays a major role. Check out your GC’s previous projects, ask for references and walk the space with them to see how comfortable they feel with your vision. You can check out Summit Design + Build’s extensive adaptive reuse work here. Adaptive reuse is an incredible way to breathe new life into an old building while preserving the historic value and local resources and will be an undertaking worth pursuing if you follow these guidelines!

Dec 31
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The SDB Intern Experience

By Industry Insights

What it’s Like to be an Intern at Summit

Tanmay Malpani (Ms. Construction Engineering & Management – University of Illinois at Urbana-Champaign) shares his experience as an Engineering Intern for Summit Design + Build during the summer of 2020.

My enriching internship journey with Summit Design + Build proved to be an extremely valuable experience. During my time at Summit, I worked on the 1400 W. Monroe project, a new seven-story boutique condominium building containing 42, two and three-bedroom units.

It was great to experience the work culture at Summit Design + Build. I was encouraged to speak up and ask questions; Senior Superintendent, Kevin, as well as the Project Manager’s Chris and Andrew, would patiently and thoughtfully explain concepts that I was unfamiliar with. Regular feedback and advice helped me to grow as an individual. I appreciate the team spirit and friendly atmosphere at SDB. Though I was only an intern, I was introduced and included in all team meetings and email exchanges. All the interns bonded well and interacted with the team during intern walk-throughs, Friday get-togethers, etc.

Working as a Project Engineer Intern gave me the opportunity to learn something new, improve my technical skills, communication skills, time management, pushed me out of my comfort zone and knowledge area, built up my confidence, and helped me develop long-lasting connections. The company’s COVID-19 conscious policy also made me feel at ease. My initial reluctance was greatly reduced due to the company’s strict adherence to precautionary measures in the office and on the project site.  I am grateful to have interned for a company that ingrains dedication to diversity and inclusion into the company culture.

Huge thanks to Adam Miller and Ken Swartz for selecting me, Santiago Martinez & Gopal Pareek for the easy onboarding process, and the entire SDB Team for the invaluable experience this summer. I would also like to thank my mentors Kevin Milenkoff, Andrew Mejia, Christopher Bridgman & Ari Killian for their exceptional guidance, patience, and support.

Are you interested in interning for Summit Design + Build? Visit our careers page to learn more!

Jul 15
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How to Successfully Cut a PT Slab Opening

By Industry Insights, Project Stories

Chicago General Contractor Discusses How to Successfully Cut a PT Slab Opening

A common misconception leads some to believe that the creation of an opening in an existing post-tension (PT) slab is either extremely complex or nearly impossible. In fact, the penetrations of PT slabs are possible when observing proper methods.

PT Slab Opening for Springhill Suites

SpringHill Suites, in Chicago’s Chinatown neighborhood, is an explicitly unique project that required PT slab openings. The 4-story hotel is being constructed over a 2-story existing garage with the second story garage being a PT slab. Due to the uniqueness of the project, Summit had to construct one elevator shaft and two stairwell shafts without affecting the structural integrity.

The process involved quite a bit of research, value engineering, and expert feedback. With the help of our extremely skilled concrete subcontractors, the slab opening was a success. Below are the steps we took.

Steps Taken to Complete the PT Slab Openings

1. The surveyor marked the location of the stair and elevator shaft’s openings.

2. Concrete Scanning Company, with the help of ground-penetrating radiation (GPR), a geophysical method that uses electromagnetic radiations to image the subsurface, located/approximated the location of PT cables.

3. Catch decks were built at the location of the opening to ensure safety prior to the cutting of the slabs. We demolished a patch of the 2nd-floor concrete to check the existence of the PT cable and fortunately, the scannings were accurate.

4. The slabs were unbounded post-tension (PT) slab which means the post-tension systems are fixed to the structure at the end anchorage but are otherwise free to move independently of concrete being greased and encased in plastic sheathing.

5. We then proceeded towards making the cut, leaving some extra length of PT cable from the edge of the opening. This extra length will be helpful to grab onto later in the procedure and restress the cable. This releases the tension in the existing cable causing it to deflect less than 1 inch (imagine holding a string at both ends and cutting the center).

6. Next, we placed the encapsulated anchor and wedge through the PT cable, drilled holes into the outside edge of the slab, placed reinforcement in the perpendicular direction of the cables, and poured the concrete, leaving us with a cleaned finished edge.

7. Stressing equipment is introduced in the anchor and the PT cable is restressed to the desired tension.

8. The above steps are performed on both ends of the opening where the main PT cables run.

9. The inside of the opening is now completely free of any stress and can be cut like any other slab opening.

10. Normally the grease inside the sheaths slows the release of energy when strands are cut and the wedges do not disengage from the wedge. Nevertheless, the former cannot be guaranteed and necessary precautionary measure needs to be considered so as not to cause any snapping of the PT cables at its ends.

Thanks to Jose and Miguel of Tor Construction, both were the superheroes who executed this job with the highest precision, safety, and most cost-effectively.

Do you have an upcoming construction project that might involve cutting openings in PT Slabs? Let our team of construction experts help!

Mar 06
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What it’s like to be a Woman in Construction

By Industry Insights

An Interview with the Women of Summit Design + Build

Women in Construction Week is a great way to highlight women as a viable component of the industry and to emphasize the growing role of women in construction. In honor of this week, we sat down with some of the women of Summit Design + Build, Alekhya Pujari- Project Engineer I, Amber Autumn- Business Development, Carrie Wagner- Project Engineer II and Deanna Pegoraro– Vice President, to ask them firsthand about their experiences as women in construction.

Despite only compromising 10.3 percent of the construction work force, women continue to build their career paths within the industry. We asked the women of Summit, “Why is it important to create equal opportunities for women in construction?”

Deanna

Deanna: “I think it’s important to create equal opportunities for women in construction because it’s a relationship-based industry and women bring a wide variety of skills and strengths to the table. Today you see more and more young women pursuing degrees in engineering and construction management. As a leader in my company, I hope to foster a culture that is attractive for women and make sure that we identify and remove any roadblocks that they may face.”

Amber: “The AEC market is missing out when there isn’t inclusion. The best teams I have been on are the ones that have diversity. Diversity brings more creative problem solving and strengthens teamwork.”

Alekhya: “Good project management isn’t gender specific, if we can see beyond the gender of any opportunity/job seeker we can build stronger organizations.”

Carrie: “I think it is important to create equal opportunities in construction to create another example in a largely male dominated industry that women can be a part of it and really succeed at it.”

Carrie

Amber

Alekhya

Although only a small percentage of the construction industry is made up of women, the number is on the raise. As efforts continue to diversify the industry, we asked the women, “What opportunities do you see opening up for women in the AEC industry?”

Deanna: “The AEC industry as a whole has done a much better job of encouraging and embracing women who have identified construction as their passion and chosen to make a career of it but I feel like there is still a lot to be done to ensure that we are attracting, recruiting and retaining talented women in ALL roles and at ALL levels in our industry.”

Amber: “From the general contractor perspective, I see the project Superintendent position opening up more for women in the commercial space. As a 14-year veteran superintendent, it was a fun and dynamic profession. Building hotels around the country, industrial buildings, and then tenant interiors towards the end of my career, there were always problems to solve. As a superintendent, you are never bored or unchallenged. Plus, planning your outfits for the week is refreshingly easy! Just grab jeans, construction boots, a collared shirt, and you are all set. The superintendent’s wardrobe added simplicity to my life.”

There is no doubt that being a women in a male dominated industry comes along with its own set of obstacles. The women of Summit have each overcome their own set of obstacles and have taken different paths to get to their current positions. As we had them reflect back on their careers, we asked “What are you most proud of in your career?”

Deanna: “I have always tried to keep the big picture in mind. To listen to people, to learn as much as I can, to take advice and be informed so that I can make decisions confidently. Although I may have had to work a little harder to gain trust and respect that was given more freely to men in my industry, I am very proud that I never gave up. This industry is constantly changing and evolving. Every day I learn something new. The more you are open to learning and understanding about the business, the more career growth you will have.”

Carrie: “Thus far, I am the most proud of the work I did at the Golden State Foods project in the West Loop. I am proud that I led that job majorly on my own, with a very important client. It makes it worthwhile to see a project go from an empty space to a finished office.”

As we wrapped up our discussion, we asked the ladies to share any advice they would give women who want to pursue a career in the construction industry-

Deanna: “Being a woman in construction is not for the faint of heart. You really need to have ambition, resilience, determination and confidence to succeed. There were many times, especially earlier on in my career, when I was the only woman at the table or the only woman at a construction job site. It is important in those situations to be confident but I had to work hard to build up that confidence.”

Amber: “It’s easy to be overwhelmed when working on substantial projects. Managing stress better would have been more helpful. The knowledge I did appreciate when I started my career was good leadership and management skills. I led with the belief that you can manage your way through any tough task or situation by being an organized project manager. Create your plan and then work your plan tenaciously. It’s essential to embody your position fully; know and feel confident you can trust your skills and instincts.”

Alekhya: “Trust that you are well prepared with what is necessary and your skills will help you overcome any challenges along the way. Just because this is not a women dominated field doesn’t mean a women can’t excel here.”

Carrie: “I wish I knew how much communication skills I would need. I think I do communicate well but there are so many different types of people that you communicate with and also that communication has to be very well documented in this industry. It is another level of detail that I was not aware of.”

To be a women in construction is something to be proud of and the women of Summit Design + Build are of no exception. It is important to celebrate the contributions that women bring to the construction industry and Women in Construction Week is a great way to do just that. Happy Women in Construction Week to all of the women in construction from Summit Design + Build!

Sources: 

Big Rentz | ENR

Dec 30
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WeWork Tampa Common area

Benefits of Design-Build

By Industry Insights

The Benefits of Design-Build and How Summit Excels 

As the industry’s fastest growing project delivery method, design-build is gaining traction as a cost and time-efficient way to build sustainable, high-performance buildings.

With design-build construction spending anticipated to grow 18% annually, reaching more than $320 billion by 2021, design-build is on track to represent up to 44% of total U.S. construction spending within two years, reports FMI in its “Design-Build Utilization Combine Market Study.”

Unlike traditional approaches where the facility is first designed by the architect who then hands the plans over to the contractor, design-build brings the full project team together at the onset to simultaneously design and build the facility in an integrated fashion. This enables the architects to benefit from the contractor’s expertise and more efficiently deliver the final product.

“Contractors are able to provide insights into costs, permitting, materials and constructability from the get go which helps eliminate unforeseen costs and delays,” explains Adam Miller, President, Summit Design + Build.

For example, by engaging the subcontractors early on, long-lead materials can be identified and purchased directly from suppliers, thereby shortening the project schedule.

“I think more and more developers are realizing that they get single-source responsibility, minimized costs and streamlined schedules utilizing a design-build approach,” he adds.

In fact, 58% of owners surveyed in FMI’s study anticipate using design-build in the next five years and 67% predict that design-build will continue to increase.

Design-Build Advantages

A typical design-build project begins with the building owner, general contractor/construction manager, architect, engineers, subcontractors and suppliers collaborating together at one table. Working as a full integrated team, there are no adversarial conditions as the group shares responsibility for the project. In this manner, any complexities and challenges can be more efficiently addressed as the expertise of each party is optimally leveraged.

With overlapping design and construction tracks, projects are typically expedited and the collaborative process results in few, if any change orders, and much less litigation.

“When you employ a design-build approach, you get rapid delivery, out of the box solutions, more transparency, reduced project and opportunity costs, and total collaboration,” reiterates Miller.

More Statistics

Offering additional insights into design-build performance levels, the Construction Industry Institute and Charles Pankow Foundation funded researchers at the University of Boulder Colorado and the University of Florida to revisit a CII Comparison of U.S. Project Delivery System report from 1998. Utilizing a sample of 212 contemporary projects, the results confirmed that 20 years later, design-build that continues to deliver projects in a timely, cost-effective manner.

In the updated report, design-build was found to deliver projects 61% faster than construction manager at risk (CMR) and 102% faster than design-bid-build (DBB). In addition, design-build projects experience 2.4% less cost growth than CMR and 3.8% less than DBB.

Schedule Performance Comparison

The Selection

As design-build projects gain momentum in a variety of building types and regions, the selection of project delivery methods is ultimately determined by a number of variables. Offering some insight here, in FMI’s survey of building owners, 48% named the delivery schedule as having the greatest influence, 46% identify owner’s goals and objectives, 45% listed contractor experience and 41 percent believe that initial cost is the most influential factor.