Construction Trends

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Economics of construction cost can be confounding at times.

Just when we think pricing should stabilize, it moves in the opposite direction.

Knowing the current cost for a project maybe painful, but it sure beats the alternative. This Construction Executive article summarizes the “why” behind the materials aspect. Factors impacting cost are:

*Supply/demand balance;

*The amount of speculation in futures markets;

*Changes in basic design parameters/building codes.

Depending on region and construction type, 2011 costs rose between 6% and 8%. This sounds large, I know, given the economy’s relative slow growth. While demand was still mostly slow, it’s the same thing we have heard for a few years: “global growth emerging nations.”

Specific to our market, I asked Charley Saunders, head of our estimating team, to give me his take. His thoughts:

  • There was a spike at the end of 2011 and the first 2 months of 2012, but things appear to be leveling off.
  • Steel has been particularly volatile.
  • New energy codes are coming into play and we are seeing price spikes in roofing, storefront and HVAC systems. These changes can be significant and should not to be overlooked in the pro forma.
  • Oil/gas prices are still inching upward which, if unchanged, will put upward pressure on pricing.
  • Some trades appear to be playing games with the specifications. We are paying close attention to scoping sub/vendor quotes to insure they are per plans and specs. We are not sure why, but this has been a issue recently.

How have prices changed in your area? What trends are you seeing?

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Merrill Stewart is Founder and President of the Stewart Perry Company, a commercial building contractor based in Birmingham, Ala. Contact him via email


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Last year, the carpet industry lost on innovator.

Ray Anderson was a pioneer for corporate sustainability, who changed an entire industry when he founded InterFace. Given his relatively young age, we were saddened to hear news of his passing.

Anderson showed the world that corporations can have a focus on capitalism and sustainability. Among many innovations, his company cut petroleum usage in the manufacturing of carpet by introducing modular tiles. His mission and his products inspired us enough to include Interface recycled carpet at our corporate campus.

Recently, our friends at Randall Paulson Architects shared another innovative Interface Concept: TacTiles. This installation is a glueless adhesive that allows carpet tiles to become a floating floor, installed over a hard surface or sub floor. The adhesive comes in strips that are equipped with a radio frequency identification. Data from foot traffic can be converted and measured for a variety of applications, including the following:

Retail. Track product preferences based on shopping patterns within a retail environment.

Office Buildings. Monitor areas of building offices for the proper temperature and security controls.

Senior Care. Determine traffic patterns for patient’s safety and security.

Technological advances continue to accelerate at ever-increasing speed. We’re seeing a renewed spirit to strive for greater efficiencies, consuming less energy. To us, these advances make our world a pretty good place to be living right now. Would you agree?

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Merrill Stewart is Founder and President of the Stewart Perry Company, a commercial building contractor based in Birmingham, Ala. Contact him via email

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Under the Clean Water Act, quantity and quality of storm water discharge continue to be right in the EPA’s bulls eye.

I remember years ago, the late 70s to be exact, I was involved in a project where we graded 5 acres uphill from the surrounding terrain. You guessed it: every time it rained thousands of gallons of storm water cascaded from the site with a turbidity factor so thick you could almost walk across it. Today, I would have been put in jail.

We have all learned a lot in the last 40 years. We do a better job with the BMP‘s of our sites first because it is law, but more importantly because it’s the best practice. When dealing with storm water, working smart is the best for our downhill neighbors and for the next generations.

However, some might need encouragement to do the right thing when it comes to site runoff. New laws and policies on the Federal and State level are always crafted through litigation. One of the EPA’s noteworthy pursuits is the question of turbidity.

Turbidity, or lack of water clarity, is measured in NTUs using an electronic device. With regular measurement and monitoring, a standard is being set which might require more stringent erosion control devices on projects. Turbidity units are problematic to monitor, but the EPA says more stringent enforcement is coming. At some point, unless litigation dilutes the issue, we will have to deal with it on sites.

The 2012 permit incorporates most of the effluent limitation guidelines from 2008 and 2009, but leaves open the question of maximum numeric limits of turbidity units. Right now, regulation apply to projects disturbing 20 acres or more. By February 2014 it will expand to include projects disturbing 10 acres or more.

I wish the situation was different, but as these regulations migrate through the approval channels, it will ultimately cost money for development. Do you think the benefits outweigh the cost?

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Merrill Stewart is Founder and President of the Stewart Perry Company, a commercial building contractor based in Birmingham, Ala. Contact him via email

 

 

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Electricity is the #2 operating expense for most properties. Lowering cost can be a real game changer.

We’re about to commence our second LED exterior lighting package at the Redstone Arsenal and in the process should achieve about a 70% energy savings. Here is what we are seeing across the board: 

Landlords are investing. There is less new construction, but we see landlords taking more time to investigate energy efficient designs for new projects and existing holdings as well. Smart move. They are creating value on the front end and midway by making properties not only brighter, but lower cost long term.

Lighting technologies are advancing the cause of efficiency. This includes LEDs, induction, wireless controls and more. Coupled with contributions from local utilities, long term efficiency helps offset the upfront costs of retrofitting with these products. Creating and then sustaining energy efficiency is becoming the topic of action in addition to words.

Tenants are voicing their opinion. There is more pressure on property owners and managers to become more energy efficient. In return it brings along some postive press and good will.

Savings are being monitored in real time. New management systems like netLiNK wireless controls have the ability to control individual fixtures and verify the actual savings.

LED lighting is continuing to evolve. Manufacturing is getting more efficient and technology costs continue to burn off. There are still some challenges, especially for parking field lighting. There are now LED lighting applications which provide adequate light levels on taller poles including 35 & 40’ poles.

Induction is becoming a bigger player. Induction is another excellent light source rated for a burn life of about 100,000 hours. It is akin to fluorescent, but with no internal cathodes to fail. It seems that for canopies, garages, wall mounts and lower wattage “area” applications, induction is an excellent light source and typically costs less than LED. However, induction still a new frontier.

What experience have you had with LEDs, natural white and induction? Would you recommend one system over the other? 

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Merrill Stewart is Founder and President of the Stewart Perry Company, a commercial building contractor based in Birmingham, Ala. Contact him via email

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A few weeks ago, I was showing the former President of the San Francisco AIA Chapter around our offices. He has done design work for Google and other .coms. His first comment: “Wow, you guys have big offices.” They measure 162 square feet.

A look into a Stewart Perry office

This got me thinking what future concepts in office space might look like. While the office market has shown modest signs of recovery in some major cities, vacancies still remain high in most markets. From what I can tell, this reflects employment trends and company’s views on growth. More importantly, it also reflects their attitude. Like everybody these days, we are all trying to get more done with less.

It seems companies are trimming their use of space even if they are not cutting jobs. We’re seeing smaller places.

This prompted a few questions of a colleague who designs and manages offices both in the U.S. and internationally. A few thoughts to share:

  • Densities are increasing. Space is trending from a high of 300–400 square feet per-seat to 100–175 square feet per-seat. Internationally it seems even less at 75-90 square feet per-seat.
  • Offices are more open. We’re seeing more open perimeters and natural lighting, and fewer hard walls. Stewart Perry incorporated all these elements in our design, and we have found it absolutely promotes a more friendly, relaxed work environment.
  • Modular office and office systems are popular. However, they come with challenges of privacy and price. There are more glass walls for sure, which is very open.
  • “Huddle rooms” are showing up. These have phones, seating for 2-6, flat screens and white boards. Huddle rooms are perfect for small conferences and brainstorming.
  • Furniture is becoming multi-functional. As an example, a file cabinet on wheels with a cushion top is also seat bench for someone to sit on when visiting.

To me, while some of these trends are more efficient, there are new lessons to be learned. For instance, how does one carry on phone conversation in these spaces? These new office designs will drive team members to be much more aware of others. There is a need to monitor conversations and volume. It’s not necessarily a bad thing, but a change for folks who grew up studying in a library and not at home with the television/music/distractions.

How have your offices changed in the last few years? Are you planning a re-design?

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Merrill Stewart is Founder and President of the Stewart Perry Company, a commercial building contractor based in Birmingham, Ala. Contact him via email


Since the big squeeze started four years ago, we’ve seen lots of retail companies go out of business, change locations or infill/ backfill. As survivors adjust to reality, innovative ideas continue to pop up. Two of these are on my radar at the moment: right-sizing big boxes and creative uses for excess second floor space.

Right-Sizing.

Recently, it seems healthy retailers are getting new starts and becoming healthier by “rightsizing” their current square footage. This means staying within their box, but reworking overhead in proportion to sales volume. In many cases, this plays out as a sublease of space to complimentary, non-competing retailers.

We are working with a customer right now who has a development of 90,000 sf. This single tenant will reduce their footprint by 40% as they bring in a for-profit college. This is obviously not retail, but it does solve the occupancy problem. The college will bring vitality, energy and several hundred people to the center each day.

To me, the real key is the balancing act as the economy heals. When the GDP grows, the retailer may need more space in that same location. Shorter-term leases for their new neighbor could be the answer.

Second Floor Space.

Too much big box space has a cousin: too much second floor space.

During the boom, we saw lots of good-looking proformas using upper-level open-air retail. The fact is, second floor retail works in a only few locations. Most of this space has remained vacant.

I was in Florida last week looking at a “note buy” project with some pretty good retailers below. I brainstormed with the new owner about opportunities on the second floor. Since this is a high tourist area with a heavy density of vacation condos, one idea is to create executive office space for those coming on vacation. It could provide short-term connectivity for those needing to check in on work matters for a few hours during their stay. We also discussed introducing service companies in the second floor space. While they are not retail, they bring people and life to the center.

Just like Detroit, it’s amazing what a good recession can do for us.

While it has been painful, I do believe the downturn helped get us all on the right track. Internally, we are tightening up, trying not to “waste a good recession.” We’ve gotten creative and try to help our customers do the same.

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Merrill Stewart is Founder and President of the Stewart Perry Company, a commercial building contractor based in Birmingham, Ala. Contact him via email


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About this time last year, the Birmingham Business Journal published an article titled “Frugal by Design.” They talked with local architects about something that I truly think is national in interest: the changing landscape of the building business.

Three trends were identified that I’ve seen do nothing but grow over the last year. In fact, we’ve been involved in each:

1. Sustainable buildings. How can we build with the least environmental impact, now and down the road?

(Image: Ruffner Mountain nature center, which we built to LEED specifications)

 

2. Durable building materials. What is the upfront cost vs the cost over a building’s lifecycle?

(Image: LED Light poles we installed at a Florence, Alabama shopping center currently under construction)

 
3. Transforming existing structures. How can we breath new life into existing buildings?

(Image: The Waters Building, a circa 1880s structure we reworked in downtown Birmingham)

 

We have constructed multiple LEED projects over the last few years, for the right reason: sustainability. We have taken the time to evaluate new material types and equipment, including high-efficiency mechanical systems. We have re-purposed old buildings and in the process given them new lives.

These trends seem to be interlocking. 

Recently, we were awarded a project for an environmental learning Center in the Southwest. In the process, we will transform a previous ice skating rink which is no longer in demand into an educational facility. This might be a double leverage. We will update an existing building and in turn help educate students in environmental fields.

To me, we need to start thinking long(er) term, not necessarily the way we have always done things over the past few decades. We hope to truly take advantage of what we have faced the last few years with the intent of benefiting future generations.

Did your business see a rise in the three “frugal by design” principles? What do you see ahead for 2012?

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Merrill Stewart is Founder and President of the Stewart Perry Company, a commercial building contractor based in Birmingham, Ala. Contact him via email

 

 

 

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Birmingham Mayor William Bell assists with ground breaking at ILR

There is something special about every project we build. Some bring vitality to communities. Adaptive reuse breathes new life into existing–often historical–buildings. LEED projects promote sustainability.

Last fall, we broke ground on a project that was more than special. It’s an honor.

Independent Living Resources provides community-based, non-residential services and advocacy for those living with disabilities. The new location we are building in Birmingham’s Civil Rights District seems more than fitting. As IRL Executive Director Dan Kessler, told The Birmingham News, “Human rights is a part of (the Civil Rights) mission, and disability rights is big part of that movement.”

Beyond all ILR gives the community, what most impressed us about their folks was the focus on something called Universal Design.

Universal Design centers on accessibility for as many people as possible. This can be in the form of environments, objects and systems. For followers of the concept, buildings should to be usable to the greatest extent possible by everyone, regardless of their age, ability or status in life.

Independent Living Resources is able to take universal design to a new level, because the majority of people on staff have disabilities. Involving them in the design process has been particularly enlightening.

Here are a few ways Universal Design is being used at ILR:

Door Openers. Standard accessible entrances include a push button for access, which excludes those who lack upper body mobility. ILR will be installing a version that can be activated using a wheelchair footrest. These will be placed inside and outside at the front and back doors.

Quiet Room. Individuals with stress disabilities or those prone to migraines can use this space to relax. It will be equipped with a daybed, and no cell phones or work materials are allowed inside.

Parking spaces. The 14 spaces closest to the building are divided by bollards and feature a detectable paver system for the vision-impaired. This also provides good visual separation for all drivers.

HVAC. The building has been divided into smaller HVAC zones, giving more control of the temperature in personal workspace and increasing the comfort of those people who work and visit.

Workstations. Areas such as the reception desk will have low and high transaction counters for better access for those who are doing business from a wheelchair.

Light. The lighting has been designed to minimize triggers for people who suffer seizures and other similar conditions. The open workspace features lots of windows, and glass partitions let the light flow throughout the office.

Site Selection. The building is located with convenient access to public transportation and sidewalks have been modified with ramps down to the street for access by people with disabilities.

Community Connectivity. The site is within walking distance of the power and gas utility companies, the Social Security office, and several other public buildings and community service organizations.

What we’re learning is that the principles of Universal Design make sense. Open spaces, wider halls, additional light and facilities that can be modified don’t just benefit people with disabilities. They make buildings better for us all.

What accessibility changes have you made to make your facilities better for everyone?

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Merrill Stewart is Founder and President of the Stewart Perry Company, a commercial building contractor based in Birmingham, Ala. Contact him via email

 

 

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Might be over-exposed.

That’s what the Wall Street Journal, “Indecent Exposure: The Downsides of Working in a Glass Office” says, anyway. With all the talk about the benefits of open design, no one seemed to consider the pitfalls. Here are a few the WSJ identified:

  • Privacy on personal matters, where human resources or other private meetings are made public, just because they can be seen.
  • The “fish bowl”effect, where coworkers find themselves exposed or distracted by their ability to see others.
  • The “Bird”effect, where people don’t see glass and walk right into it.
  • The noise factor, because glass walls allow 50-100% more noise to pass through.

As I’ve mentioned, when it was time for us to build our own campus, we worked hard to create the perfect workspace. After consulting with a few members of our team, my original thoughts for an entirely open workspace were overruled.

We ended up with what I believe is the perfect mix of openness and privacy. Each office has two glass walls–one to the outside and one facing inside. The interior walls have solid doors that shut, although we leave them open most of the time. We’ve dedicated lots of space to common areas. For us, it works.

Obviously, people need to work on their own many times, but a little bit of help never hurts. The mostly-open environment has been a real plus. If I had it to do all over again I would build office exactly the same way.

Here are a few images of our place under construction:

Our conference room, a mix of glass and solid walls, under construction.

Solid doors are flanked by glass.

Offices--light and bright--on either side of the hall.

Decals on our windows deflect birds...and people.

All outside walls are lined in windows.

 

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Merrill Stewart is Founder and President of the Stewart Perry Company, a commercial building contractor based in Birmingham, Ala. Contact him via email

 

 

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Recently, we completed two projects using LED lighting for the parking fields. I thought it would be helpful to share a few basic observations and thoughts:

 

PROS:

Energy Efficiency. Conventional lighting wastes a high percentage of energy through heat, while LEDs remain cool. This makes these bulbs much more energy efficient. In total, LEDs consume about 50 to 60% less energy for similar lighting levels.

ROI. Since LED energy savings are significant, this should offset higher upfront capital cost for materials. In most cases (if the CAM component recapture can be determined) a payback will be seen within the 4 to 6 year range.

Lower CAM. Common area maintenance costs are lowered by the greater efficiency of LED.

Longevity. LED bulbs will last about 15 years, compared to the standards of parking area lighting today (3-4 years). LED bulbs also contain no glass components, so they are not vulnerable to vibration or breakage like conventional bulbs.

CONS:

Cost. Even though the price of LEDs has halved in the past three years, it’s still twice as expensive as more traditional high pressure sodium lights. Meanwhile, if the parking field lighting does not work for your project, we have also found LEDs in their present cost structure are excellent for canopies, parking decks, wall-mounted fixtures and common areas in malls.

Fixturing. For existing properties, installation will mean mounting more LED fixtures on an existing pole. LED traditionally has required lower mounting heights creating a need to add additional poles to existing projects. I believe this is changing, as there are new types of LED fixtures designed for mounting heights in the 35′ tall range.

Light levels. More LED bulbs are needed to provide similar light levels, compared to metal halide fixtures, which are less expensive initially. LED Light levels are not as bright when measured by traditional photopic light meter. If light readings are taken scotopically, which is how the eye actually sees light, the whiter light of LED appears brighter.

ALTERNATIVES:

For existing properties, one may wish to consider the use of Natural White, a hybrid metal halide product which burns for 26,000+ hours and hardly depreciates in quality of light during this period. Add a sophisticated control product like netLiNK, and properties should be able to get 8+ years out of this system for less money than LED at its current capital cost.

This is certainly an education period for all of us. While LEDs are a little more work on the front end, to us, using less energy is better for our communities and for the future generations. 

What have you experience have you had with LEDs?

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Merrill Stewart is Founder and President of the Stewart Perry Company, a commercial building contractor based in Birmingham, Ala. Contact him via email

 

 

 

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