With Consigli’s pre-fabrication and self-perform experts, the project team identified a viable, cost-neutral solution for the building’s exterior wall panels to save on schedule. Upon presentation to and approval from the University, Consigli planned and executed the pre-fabricated exterior wall panels to condense a traditionally six-week building enclosure timeframe into just two weeks with its own self-perform craftspeople.

Design

Engaging the right design partners confirms accurate design details of pre-fabricated building elements and mitigates the risk of rework once materials leave the warehouse.

Consigli engaged a third-party delegated design team to review and confirm details for connections on the exterior wall panels. Excel Engineering, a specialty engineering firm with expertise in cold form steel, was hired to detail the panels and confirm all structural details. Excel converted the façade into panels that could be transported from Consigli’s pre-fabrication facility to the jobsite as they were ready to be installed.

Pre-fabrication

In addition to improved quality control and productivity, implementing pre-fabrication strategies on higher education projects takes work off campus and minimizes on-site construction activity.

Self-perform at Pre-fabrication Warehouse

At Consigli’s regionally based pre-fabrication shop, self-perform crews assembled 130 panels totaling 15,000 sq. ft. to enclose the residence hall addition. For eight weeks, five self-perform craftspeople precisely fabricated all exterior wall panels in sequence of how they would be placed on the building. This process brought approximately 1,800 hours of labor hours off of the University’s campus and into the warehouse, reducing on-site construction traffic and supporting a quieter job site in the process.

The well-lit, heated, ground-level space at the warehouse provided an ergonomic working environment—one that a construction site cannot always guarantee among the noises of intrusive trades on site, especially amid February weather in New England. When preparing the panels for load and delivery to site, the project team employed a project-specific quality assurance checklist developed and implemented by Consigli’s Quality department to safeguard the quality of every panel. All dimensions and details were reviewed on multiple occasions, and once each panel passed inspection, the panel was loaded on the flatbed to leave for the site. Panels were loaded onto four flatbed trucks for just-in-time deliveries so the panels could be picked and flown directly onto the building upon arrival to the job site.

Delivery & Installation

Parallel processing of material fabrication and installation supports faster, higher-quality construction by simultaneously managing multiple trades.

Pre-fabricated Exterior Wall Panel Install

While the crew in the pre-fabrication shop fabricated panels and loaded the trucks, six Consigli craftspeople at the jobsite received and unloaded the panels to be flown and placed on the building. Consigli’s simultaneous workflow—also known as parallel processing—maximized time both on site and in the warehouse. The Consigli field team had pre-checked the concrete foundation wall perimeter at the jobsite to ensure it was flat and level to quickly and accurately receive the first-floor panels set to rest on top of it.

The fast-tracked, two-week installation in February allowed the project team to enclose the exterior and start heating for interior tradework throughout the winter. And, because the building was enclosed and work was moved indoors, the construction site quickly quieted for the campus community, especially for the students in the adjacent dormitory.

The benefits of Consigli’s hands-on ownership of the pre-fabricated exterior wall panels went beyond the accelerated project schedule. Exterior wall system pre-fabrication ensured a quality product was fabricated and installed efficiently and with the campus’s best interest in mind—from decreased on-campus activity to the maintenance of a clean, safer and substantially quieter construction site.

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How does Consigli—which has planned and built more than fifteen projects incorporating timber solutions—coordinate and collaborate with our project partners to plan and deliver high-quality timber structures? With extensive experience analyzing, procuring and installing mass timber, Consigli’s interdisciplinary approach supports our clients—like Bowdoin—in making cost-effective, schedule-driven decisions when planning a mass timber project.

Initial Design

Rigorous pre-construction planning is a must when it comes to mitigating potential cost, schedule and quality impacts associated with a mass timber structure.

• Early Detections of Issues: The smallest details matter when it comes to achieving the desired look and function for such a specialized finish product. Incorporating design intent into early models helps guide crucial design considerations to be incorporated into fabrication documents and allow for timely timber release.
• Structural Reviews: Structural drawing reviews help analyze column spacing, spans of timber elements, choices of direction of primary girders and varying strategies for mechanical ductwork and plumbing routing. The review process can potentially result in cost saving through elements including reducing beam sizes and floor plate thickness.
• Cost Competitiveness: In today’s ever changing and challenging materials market, mass timber has remained relatively steady in pricing. This certainty allows mass timber to be priced early with greater assurance of costs as the project progress. Depending on the application, mass timber pricing can be very cost competitive when compared to steel and concrete and has additional cost benefits in terms of fit-out costs. Mass timber can also remain exposed, reducing the costs of expensive interior finishes on a project.

Selection & Sourcing

Timber species selection can affect the mass timber manufacturer. The right decision-making can support early internal estimates and analyze specific species for the best fit.

• Wood Species & Material Finish: Material selection has a significant impact on the choice of timber manufacturers. From aesthetic to strength of structural design to lengths of members, Consigli can help evaluate timber species and offer options that satisfy aesthetic and structural need.
• Deep Knowledge of Supplier/Manufacturer Market: A strong list of suppliers, both domestic and foreign, ensures competitive pricing for initial bidding during earlier phases of design. As the mass timber is fully designed and released for fabrication, a well-established market knowledge is crucial in bidding installation.

Coordination & Release

Coordination model completion ahead of Construction Documents is critical to final fabrication shop drawings for mass timber. With timber lead times ranging from 16 to 24 weeks from final drawing approvals, time is of the essence.

M/E/P coordination for a mass timber structure.

• M/E/P/FP Coordination: Mass timber penetrations for M/E/P/FP systems must be carefully planned and integrated into fabrication documents. Coordination models for these penetrations allow all pathways to be designed and manufactured in shop in lieu of in field; this is crucial as field cutting is prohibited for this level of finished product.
• Design-Assist Engagement: Engaging design-assist partners for M/E/P/FP systems and mass timber allows the project team to coordinate within the working design model. Creation of CD-level documents through design-assist, even as the rest of the design is in early stages, supports completion of building systems and architectural features for a release of timber well ahead of CDs, mitigating the challenge of timber long lead times.

Delivery & Installation

Careful attention must be paid to the handling, installation and protection of mass timber to maintain the material’s integrity. Hands-on installer experience is imperative when planning a successful mass timber project.

Mass timber logistics & installation considerations.

• Logistical Planning Handling & Installation: Development of the right logistics plans for efficient installation—accounting for any potential double handling and required special care—is paramount to creating schedule certainty through installation. The right project partners develop proper delivery, loading and sequencing unique to each site.
• Protecting your Investment through Insurance & Temporary Protections: Consigli’s in-house Job Site Insights platform allows our clients to protect their investment through floor-by-floor detection of potentially damaging elements to the timber structure, including water, fire or any other elements that may stain or mar the finished product. Additionally, temporary protection is often required and includes the use of hard walls held off the timber columns for UV and moisture protection, floor plate protection from UV, moisture and foot traffic, maintenance of humidity and temperature post close-in. The most effective timber structure protection is speedy building enclosure to reduce environmental impact on the timber itself. Once enclosed and final systems are brought online, maintaining proper humidity levels is critical to keeping the timber looking and functioning at its best.
• Self-perform Capabilities: Consigli self-performs mass timber installation and protection, giving us added control over schedule, quality and continuity of installation because we are that much closer to the product. Our 650 in-house craftspeople share our standards for quality and are a strong additional resource to call upon to get work done on time.

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Design

When planning an aggressive project schedule, utilize repetitive design details to ensure quality and efficiency as multiple elements are built simultaneously off-site.

Pre-cast Concrete Foundations

The concrete foundations at Johnson Pond Houses were designed to eliminate on-site formwork and ease transportation to site. Consigli’s Virtual Design and Construction (VDC) team developed 35 concrete panel shop drawings to be repeated for each building. Each panel included every penetration, lifting device, reinforcing detail and finishing requirement, with concealing joints between panels. Foundations Engineer of Record Trillium Engineering reinforced details and accelerated drawing approvals.

To confirm there were no conflicts between the concrete, volumetric modular structural unit models, embeds and site work, each panel type was digitally modeled and clash-detected with the structural unit models. Drain lines, HVAC system louver openings, boiler vents, sprinkler drains and electrical conduits were modeled and sleeved in the panels based on the 3D model of Mechanical, Electrical, Plumbing and Fire Protection (M/E/P/FP) systems.

Volumetric Modular Structural Units

KBS Builders Inc. (KBS) pre-fabricated structural units that allowed in-factory framing, electrical, plumbing and fire protection installation. Consigli and the Kaplan Thompson Architects design team engaged M/E/P/FP design-build subcontractors for weekly coordination meetings to advance the design with KBS. With 18 structural units per building repeated across four houses, coordination and review of KBS shop drawings were required twelve weeks prior to on-site delivery.

The design-build delivery of the four repetitive buildings allowed the team to rapidly adjust design details and apply adjusted concepts from the first building to the last in real time for schedule and quality improvements. The structural units were designed to deliver nearly complete interiors for all spaces except the corridors and pre-cast basements.

Pre-fabrication

Traditional on-site construction limits simultaneous trades on site, due to its inherent sequential nature (first comes site work, then foundation, framing and so on). Pre-fabrication supports faster, higher-quality construction by simultaneously managing multiple trades and delivering materials to site only when installation-ready.

Pre-cast Concrete Foundations

Consigli Self-perform in Pre-casting Yard

With zero flexibility on structural unit delivery, the team had only four working days to set the foundation walls for each building. Consigli turned the parking lot adjacent to the project into a near-site pre-casting yard to construct foundations during sitework, allowing the team to pre-cast and pre-kit the panels on truck beds for just-in-time (JIT) delivery once the site was ready.

From the VDC group’s detailed drawings, Consigli’s self-perform team formed and pre-casted each of the 140 panels. A heated form structure supported rapid pre-cast at ground level, reducing jobsite hazards such as weather-caused slips and potential soil/excavation collapse in the foundation holes. The Consigli carpenters’ pre-casting system formed, reinforced, casted, cured and stripped panels on a five-day cycle.

Volumetric Modular Structural Units

Structural unit pre-fabrication occurred simultaneously with site preparation, foundation and steel fabrication, all of which converged on the date units were delivered to site. Each 18-unit building took 20 working days to pre-fabricate, including the installation of M/E/P systems, insulation, operable windows, an exterior air vapor barrier and a highly insulated exterior wall system to provide a Net Zero Ready structure. The interiors of the bedroom units, bathrooms and common area rooms included the installation of drywall, light fixtures, electrical outlets, flooring and finish paint.

Delivery & Installation

Pre-fabrication reduces on-site labor density, ensures manpower consistency and decreases safety incidents. To reap the benefits of off-site prefabrication against an aggressive project schedule, extensive coordination of trades is essential. 

Pre-cast Concrete Foundations

Concrete panels were delivered just-in-time and placed with a crane with structural steel support beams. Consigli’s self-perform installers set the entire foundation wall system in less than three days—from the first panel being set to the start of wood sill plate installation.

Threaded inserts allowed clean picks off the panels’ sides. Embedded cam rotational picks rotated the panels from their flat to vertical positions for installation. Temporary bracing held the panels in place while awaiting structural unit installation, and top embeds were set to lock in the units come time for installation.

Volumetric Modular Structural Units

Structural Unit Installation

Structural units were delivered in two stages per building (left and right side, two-floors high). In typical pre-fabricated structural unit assembly, units fit with no openings to the exterior. Unique to the Johnson Pound Houses, the structural units had openings for corridor connections when set in place. Keeping each building weathertight between setting units and getting the roof tilted required careful, multi-trade coordination.

Consigli reviewed punch list items throughout construction, catching deficiencies when work was first put in place. Every item delivered was immediately quality reviewed, further accelerating the completion of each building by taking early corrective action.

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In this video series, Consigli looks at components of net zero carbon construction and implementation with our partners. Our first feature is Hotel Marcel, a certified historic renovation that repositioned a former office building into a hotel, targeting Net Zero Energy, Passive House and LEED Platinum certifications.

Sustainable Energy Production

Looking at operating costs over a five-year period, the investment in net zero operations ultimately pays for itself.

As a net zero energy building, the hotel generates 100% of its own electricity, heat and hot water with a rooftop solar array and solar parking canopies—totaling over 1,000 solar panels—with no fossil fuels used for the building’s power or heat. Hotel Marcel is its own energy island, supported by a battery-equipped solar microgrid to power the hotel, feed power to the grid during peak times and maintain power to the building during grid outages. The building’s Energy Use Intensity (EUI) rating is projected to be 34 kBtu per square foot, which is 80% less energy than median EUI for hotels in the United States.

Building Electrification

Technology, like lighting through an ethernet system, allows what was historically one of the least energy-efficient building operations to greatly reduce energy use and operational costs.

Hotel Marcel houses all-electric kitchen and laundry facilities—some of the largest energy-use areas in hotel operations—and utilizes low-voltage Power over Ethernet (PoE) technology to significantly reduce energy use across the entire building. Building-wide PoE powers and controls all lighting and window shades, enhancing operational control and reducing lighting energy use by over 30% compared to conventional lighting systems.

High-efficiency Mechanical Systems

The right mechanical systems can reduce monthly heating and cooling expenses while fostering improved indoor environments through ventilation and exhaust air heat transfer without direct air mixing.

Carefully selected mechanical systems at Hotel Marcel, specifically Variable Refrigerant Flow (VRF) air-source heat pumps and Energy Recovery Ventilation (ERV), support energy-efficient heat recovery and improved indoor air quality in the hotel. The VRF systems at Hotel Marcel can recover heat from cooled spaces for use in heated spaces and vice versa, enabling multiple indoor zones to operate on the same system from the same main compressor unit. The ERV recycles heat energy from the building’s exhaust air to pretreat outside air, reducing load on the HVAC unit and the required capacity of the mechanical equipment. ERV operations are essential for achieving great indoor air quality in high-performance, airtight buildings like Hotel Marcel.

Airtight Envelope Design & Moisture Control

Historic restorations requirements and regulations are not an end-stop for sustainable construction. Innovative building strategies can maintain a building’s historic integrity and deliver solutions for a more sustainable future.

Key to an energy efficient building is a well-insulated envelope with interior and exterior insulation, especially when targeting Passive House. However, at Hotel Marcel, the historic concrete façade could not be modified. Through interior spray foam insulation, the project team created an airtight, high-performance envelope while leaving the exterior untouched, aside from minor caulking improvements. Great care was taken in selecting an environmentally preferable spray foam with low embodied carbon and minimal off-gassing. Coupled with the installation of high-performance window, multiple layers of spray foam insulation ensure an airtight envelope protected from the impacts of outdoor moisture.

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While outpatient facilities are less expensive to build and operate than a traditional hospital and are often situated in suburban locations where real estate is more affordable, there are still significant cost factors that can easily tip the scales on your bottom line.

How does Consigli—which has built 40+ outpatient care centers—collaborate with owner and design teams to deliver high-quality, durable buildings in an efficient, cost-sensitive manner? Brian Hamilton, Consigli’s Director of Healthcare & Life Sciences, provides 3 Critical Insights to Consider When Planning Your Next Outpatient Facility.

Certainty of Cost

On any project, healthcare owners are looking for one thing—certainty. Certainty of first cost, first patient date and the long-term operational efficiency of the building they’re investing in.

Target Value Design (TVD) is one of the best ways to control costs and get early budget certainty. It directs a design and construction management team toward a budget—not a blank check—by providing cost buckets for various building elements (i.e. building enclosure, M/E/P, finishes, etc.) that drive the cost of outpatient facilities. If costs need to be moved from one bucket to another, the value and impacts of that move need to be considered.

Consigli Tip: As a rule of thumb, outpatient care facility budgets typically follow a 30/30/40 rule: 30% on finishes, 30% on the building envelope and 40% on M/E/P systems. Traditionally, outpatient facilities have been significant consumers of energy due to the specialty equipment, lighting and HVAC controls (i.e. air exchange) required in the spaces. If you can gain efficiencies in the M/E/Ps, there can be significant long-term cost savings as a result (more on this later).

Leveraging Buying Power

Pre-fabricated mechanical penthouse at Dana-Farber Cancer Institute’s Merrimack Valley Cancer Center

Standardization of building systems and finishes over a multi-facility rollout will result in a cost savings and long-term ease of maintenance. When things like HVAC, heating, elevators, finishes, flooring, ceilings, generators and façade systems are uniform across multiple sites, there are opportunities that become available that can improve cost, schedule and long-term maintenance for the facilities.

Consigli Tip: There are three strategies that we’ve seen consistently lower costs by standardizing building design across multiple sites: (1) Designing for Pre-fabrication, (2) Opening Up the Competition and (3) Bulk Buying Through Standardization. Smart owners will push design and construction teams to creatively employ one, two or all three of these strategies on their projects:

• Designing for Pre-fabrication: Pre-fabrication is a proven strategy to accelerate schedules and reduce costs, while removing labor from the jobsite and assembling building components in a controlled, off-site environment. When cost certainty and speed are driving factors in a project—particularly a project that features repetitive elements like exam rooms—pre-fabrication should be a major topic of conversation.
• Opening Up the Competition: When building off-site from your primary hospital campus, the door is opened to utilize different vendors (i.e. elevators and building controls) than those embedded in the hospital itself, which can lead to more competitive pricing.
• Bulk Buying Through Standardization: By purchasing materials in greater quantities, there is an inherent cost savings. This approach also mitigates escalation in multi-building facility rollout that can span several years. Furthermore, your facilities staff will thank you because maintenance becomes easier and more predictable (i.e. attic stock is the same for all facilities).

The Right Site

On any ROI-driven project, site selection is a major deliberation and outpatient care facilities are no different. New construction typically presents a higher acquisition, development and construction cost, but lower existing building conditions risk. Renovations, on the other hand, can require months of enabling work and costs up to $50/SF before the building is even fit-out ready. Both scenarios come with their own set of advantages and risks that need to be thoroughly evaluated.

(L) Former grocery store transformed into Caremount Medical’s Rhinebeck, NY location (R) Kingston, NY Macy’s department store repurposed into a modern multi-provider outpatient facility

The trend of capitalizing on the increased vacancy of malls and shopping centers has presented opportunities for convenient, accessible care closer to where patients live—and more cost-effective developments for healthcare organizations. While building systems will likely require upgrades (and probably an outright replacement) and the façade may call for enhancements for energy performance and aesthetics, you’re starting with an existing building and a relatively blank canvas. This is a popular alternative to new outpatient construction and will continue to be for the foreseeable future.

Consigli Tip: Whether you’re building new, renovating or repurposing, site selection can easily tip the scales on what’s feasible and what isn’t. When choosing your site or building, keep in mind these three primary cost drivers: (1) Below-grade Conditions & Infrastructure Availability, (2) Heating & Cooling Method and (3) Sound Transmission.

• Below-grade Conditions & Infrastructure Availability: On new buildings, below-grade conditions (i.e. ledge and hazardous soils) and infrastructure availability are critical considerations. Sites requiring soil abatement, significant earthwork and new utility infrastructure will pinch costs from the beginning, and on building components that won’t enhance patient services.
• Heating & Cooling Method: Remember, mechanical, electrical, plumbing and fire protection systems are going to make up approximately 40% of your budget, so decide early if you’re designing your facility to run more like a hospital or more like an outpatient facility. If it’s a 10-hour per day building, system functionality needs are different than that of a 24/7 hospital environment. As such, systems can be simplified, which also means less steel, less screen wall and therefore, less cost.
• Sound Transmission: Sound transmission is always a major concern when designing and building healthcare facilities, with a justified focus on patient confidentiality and the overall patient experience. Privacy from exam room-to-exam room and corridors-to-exam rooms is a non-negotiable, and there are multiple ways to mitigate noise transfer using different structural elements and building systems, at varying price points. The most common systems include demountable partitions, ducted returns, sound masking and walls-to-deck construction. Consider all four systems and how they can work together—not each individually—to determine the best combination for your facility.

 In-House Expertise

Project Executives Charles Canepa and Vincent Fiorillo have experience with all the major hospital systems in the New York Region. If you are planning a renovation or expansion of your outpatient facility in the five boroughs, Long Island, Westchester or New Jersey, Charles and Vincent can assist you to ensure the success of your next project.

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Market Outlook: June 2021

Peter Capone, Director of Purchasing & Jared Lachapelle, VP of Pre-construction

To access a full PDF of this information, click here: 2021 Market Outlook_06.01.21

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2021 Market Outlook: Material and Labor Supply Update

Insight from Peter Capone, Consigli’s Director of Purchasing

EVOLVING TRENDS

TECHNOLOGY ADVANCEMENT

The pandemic has motivated subcontractors and vendors to implement technological advancements into their shop and field processes. Cost saving material management software, tool upgrades and robotics are improving efficiencies which is allowing subcontractors the flexibility in managing on-site workforce restrictions.

PRE-FABRICATION

Surveyed participants are pre-fabricating 20%more than before the pandemic, assisting in managing workforce requirements in the field.

DESIGN-ASSIST

71% of our respondents noticed an increase in requests for design-assist proposals which further confirms the need for speed-to-market becoming a priority of many clients. Ensuring the construction manager has a defined process for properly implementing this approach will benefit project schedules. Vetting subcontractors for similar project experience, backlog capacity and financial wherewithal should be a focus.

WORKFORCE RESOURCES

72% of the surveyed subcontractors are not concerned with staffing projects in 2021. Based on work in the pipeline, we should continue to monitor workforce resources for 2022.

RECOMMENDATIONS

• Continue to keep a close eye on high risk materials.
• Lock in subcontractor pricing as soon as possible to avoid future price escalation.
• Hold contingencies for material escalation in estimates and budgets to avoid exposure.
• Watch for supply chain disruptions from products sourced overseas. We continue to receive delay notifications for products
  such as flooring, cabinetry, etc. so we suggest procuring from domestic vendors when possible.
• Identify long-lead materials and ask subcontractor and vendors about alternate materials and options.

To access a full PDF of this information, click here:
2021 Market Outlook_Material and Labor Supply Update

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MILFORD, MA — As organizations are making carbon reduction commitments, Consigli Construction Co., Inc. announced today the launch of its new Energy division with the addition of Kailash Viswanathan, CEM, LEED AP as Director of Energy. Arch Energy, a division of Consigli Construction Co., Inc. will help clients meet their goals in shifting towards the adoption of healthy, smart, high-performance buildings, low-carbon infrastructure and deep energy retrofits.

Arch Energy solutions will include:

• Energy Optimization – LED lighting & networked lighting controls, fault detection & diagnostics, ongoing commissioning, peak load management
• Deep Energy Retrofit – low temperature hot water conversion, air and water source heat pumps, heat recovery, building upgrades
• Building Intelligence – building automation systems, systems integration, access controls, energy metering
• Infrastructure – central heating plants, chiller plants, geothermal, distributed generation, heavy utilities and EV charging infrastructure
• Financing – P3, Lighting as a Service, Energy as a Service, lease purchase
• Resiliency –microgrids, distributed generation, battery storage
• Net Zero / WELL – road to net zero, healthy buildings

Arch Energy will provide energy and infrastructure services for a variety of clients across all geographies, including those in the academic, healthcare, life sciences and corporate markets. Consigli has previously worked with clients such as Brooks School, Holbrook Pre K-12 School, Union Theological Seminary, Cambridge Housing Authority, UMass Amherst, Boston College, Insulet Corporation and General Electric on energy and infrastructure-related projects. Services will extend beyond building new buildings to include flexible funding options to make it easier for clients to upgrade aging infrastructure with low-carbon technologies.

“Consigli has more than 115 years of experience in helping our clients discover innovative and integrated solutions; this shift toward low-carbon infrastructure & building systems reflect the next evolution of our approach to stay ahead of market needs,” said Anthony Consigli, CEO at Consigli. “Through energy-efficient building methods, we are committed to helping our clients build for the future while reducing costs, better monitoring energy usage, keeping our buildings healthy, supporting resiliency and increasing efficiency of energy consuming systems.”

To help lead this new business, Consigli has hired Kailash Viswanathan, CEM, LEED AP as Director of Energy. In this role, he is charged with building this group to meet client needs while making use of the resources, experience and financial strength Consigli brings to the industry. Viswanathan previously was GreenerU’s Vice President of Operations. He is an accomplished business leader with nearly 25 years of experience leveraging skills in sales, engineering, and finance to develop and implement complex projects to great success.

 “I was drawn to Consigli because of their leadership in construction management and their commitment of making a positive impact for the betterment of our health and environment,” said Viswanathan. “Consigli has this unique quality to listen, understand and solve client problems and that’s what matters to me.”

In addition to Viswanathan, Steven Burke has been promoted to Director of Sustainability and will work closely with Viswanathan to partner with the energy team. Burke recently earned his Certified Passive House Consultant (CPHC) certification. Coupled with his LEED & WELL Faculty designations, Burke is now one of two employees in the world to have all three certifications. There are only two other commercial builders in the US that have a CPHC on staff.

“Steven and Kailash bring decades of expertise in energy-efficient building methods and will drive Consigli to better serve clients looking to shift towards deep energy efficiency upgrades. Our new division will help clients at all different stages of their journey looking to solve systems related issues and increase energy efficiency throughout their buildings,” said Todd McCabe, LEED AP, Vice President of Project Services at Consigli. McCabe will oversee Arch Energy operations and will work closely with Kailash, Steven and Consigli’s project executives to expand this division throughout the company’s geographic regions.

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COVID-19 Cost Implications

Insight from Jared Lachapelle, Chief Estimator, Consigli

We are connecting with hundreds of subs and suppliers each week through a strong workbook of pre-construction and bidding opportunities, as well as on-going project procurement for which we are awarding 30-40 contracts per week. We expect to learn a lot in April and May and will provide updates along the way.

  EXPECTATIONS

Our expectation is that the next few months will be turbulent, fueled by uncertainty at all levels of our industry. We therefore expect inconsistency related to cost, with some projects experiencing cost increases while others remain somewhat steady. We expect this pattern to continue as long as many construction sites and non-essential businesses are closed.

We expect stabilization relatively soon after construction broadly resumes. We expect costs to increase related to COVID-19 protocols as further described below but anticipate some or all those costs to be offset by de-escalation related to bidder aggression. We believe it unlikely that costs will rise as much as recent years where we saw as much as 7-8% escalation in some areas, comparing future costs to pre-COVID. We therefore expect, on average, to see zero to moderate per annum increases in the near-term, depending of depth and duration of a recession.

  EVIDENCE OF PRICING STABILITY

CURRENT PROCUREMENT

Procurement of subcontracts and materials purchases had revealed no trend change from recent awards through Friday April 3rd. The variance from budgets set by GMP’s remains typical. However, the COVID-19 safety protocols now being implemented industry wide and formalized into job specific plans have been deployed to subcontractors for inclusion in bids moving forward. We have some early impressions discussed below.

MATERIALS/EQUIPMENT PRICING

Supply chain issues do not appear to impact costs at this time, but this could change rapidly and meaningfully based on each manufacturer’s supply logistics, and whether or not and to what extent their workers and partners are directly affected by positive tests for COVID-19.

Subs and suppliers continue to consistently report minimal to no lead time impacts and no cost impacts. Most manufacturers/fabricators have reported operating at or near capacity and generally keeping up with demand. Subcontractors are consistently reporting that supply chains have been altered where needed mitigating any potential impacts. Cox Engineering CEO Jon Desmond reported in an industry roundtable hosted by Vermeulens, that supply chains are in-tact, with some Chinese supplies currently being procured elsewhere due to on-going trade tensions pre-dating COVID-19. Additionally, one manufacturer reported canceling a planned Spring price increase.

We anticipate a greater level of flexibility in material specification and selection, provided we do our part to source and present appropriate alternatives.

  POTENTIAL FOR VOLATILITY

BIDDING BEHAVIOR

In spite of general stability at this moment, things are evolving daily, and stability could begin to erode quickly, pending further economic news, COVID-19 surge and regulations. We expect at least some near-term volatility in bidding behavior as subs/suppliers scramble to determine and implement procedure and protocols, adjust to remote working conditions, react to evolving supply chain conditions, manage cash flow and book new work reacting to stoppages and economic news.

A greater level of vigilance will be required in evaluating proposals for completeness. As subs/suppliers’ anxiety rises they may feel compelled to bid more work but may not posses the resources to do so effectively, resulting in pricing that is artificially high or low. We will continue to scrutinize proposals to ensure that no undue risk is taken.

We could begin to see discounts offered, which may present risk as it could be a sign of cash flow problems. Discounts can be attractive and may well benefit the buyer, but with some potential cost increasing forces (described below), extra care must be taken to ensure viability of the offer and offeror’s financial stability.

QUALITY OF INFORMATION

We are concerned that apparent supply stability portrayed by suppliers may be overly optimistic. We do not have direct evidence of misinformation and we believe what we are being told (directly) is sincere. However, a race to book work could lead to artificially optimistic views of manufacturing capacity and lead times, requiring additional scrutiny and further verification if possible.

  SOURCES OF INCREASED COST

LABOR PRODUCTIVITY HINDERED BY COVID-19 PROTOCOLS

Productivity is being impacted by working restrictions and COVID-19 protocols, though it is not yet quantifiable. Currently we are not yet seeing this translate into increased pricing for sub/supplier bids, but this may change. It is unclear to what extent productivity for individual tradespeople has been compromised in terms of output per worker-hour.

As protocols become more widely understood and implemented, we expect trade productivity loss to cause some cost increases. Some sources of productivity loss are: additional non-working time for COVID specific tool box talks and temperature testing; more frequent cleaning of elevators/hoists and similarly constrained spaces; daily cleaning of tools and equipment; staggered trade workday starts; and 6’ distancing requirements. The distance requirements will undoubtedly affect some operations more so than others. For example, many siding panels are installed with two workers closer than six feet, with alternatives in some cases not immediately obvious. For projects still in design, alternative materials and sizing may offer effective solutions. On the other hand, operations such as installing light fixtures, setting tile and painting that can be accomplished with a single worker may not be impacted. Other operations performed by crews, such as utilities, concrete forming and steel erection so far seem generally productive while maintaining proper distance.

This week, with site specific safety COVID plans in place, we’re starting to see bidders reacting with cost premiums. Albeit a small sample size, we are seeing premiums ranging from 2%-3.5%, with one outlier at 6.8%. These range across multiple trades, multiple jobs and a broad range of trade dollar values. One bidder reported a cost range resulting in 2.9-8.6%, which highlights the uncertainty and challenges with quantifying lost productivity.

In future updates we will expand on the productivity loss more precisely and report on trends with broader information.

EXTENDED SCHEDULES/GENERAL CONDITIONS

Although individual worker output is not compromised in some cases, there is an overall project-wide daily output reduction due to fewer workers on site. Many activities on site that were previously scheduled with start-to-start lags are now start-to-finish operations. This will have an impact on schedules, requiring longer days, 6- or 7-day work weeks, or longer durations, which will increase Division 01 costs for staffing and temp facilities rentals, etc.

INCREASED PROJECT REQUIREMENTS

Other Division 01 costs will increase due to sanitation, monitoring and reporting protocols, such as additional cleaning of common areas, job trailers, more frequent emptying of trash receptables, hourly cleaning of high touch surfaces, hand wash stations with warm water, sanitation/hygiene signage, additional PPE, technology to support greater remote collaboration and job office size/configuration to facilitate distancing.

  SOURCES OF DECREASED COST

BIDDER AGGRESSION

Work stoppages and the prospect of further project postponements and/or cancellations represent a disruption to the cost model for many trade partners. Since the financial crisis recovery, we have seen sustained growth which came with higher margins for many subs/suppliers. We expect many of them to demonstrate aggression based on fewer opportunities, or at least a near term fear of few opportunities. One open shop electrical subcontractor conveyed that what had been 150 bid invites received per week has turned into 20 / week.

We expect this to result in greater subcontractor participation and therefore competition. If this occurs it will act as a counterbalance to the forces increasing cost, but as noted above, it is not clear what the net effect will be and will depend heavily on the duration businesses and jobs are closed and the speed of subsequent economic recovery.

CURRENT EVIDENCE OF FOCUS SHIFT

While we don’t yet have direct evidence of cost reductions relating to a strategic shift from margin to volume some subs are noticeably anxious. Some have specifically referenced holes in their schedules, and we’ve seen a broad increase in post-bid follow up from subs/suppliers.

To access a full PDF of this information, click here:
Material-Cost-Update_041420

The post COVID-19: Cost Implications first appeared on Consigli Construction.

The post COVID-19: Cost Implications appeared first on Consigli Construction.

Market Watch as COVID-19 Evolves

Insight from Peter Capone, Consigli’s Director of Purchasing

GLOBAL

As time goes on, it’s becoming apparent that although we will see a lag in supply, China is in the process of recovery, therefore manufacturing has started to return to full capacity.

Constrained logistics, travel restrictions and a shortage of labor in China will most certainly cause some delay, although the slow-down in the construction industry in the United States (U.S.) will provide time for this major supplier of product to recoup.

According to a report from Construction Dive, Chief Economist for Dodge Data & Analytics Richard Branch estimated that 30% of building products in the U.S. are imported from China. While China seems to be slightly rebounding from the disease, its decreased manufacturing output is still expected to impact construction in the United States.

NATIONAL

• The differing State mandates from local governing authorities continue to make tracking the reliability of domestic supply chain a day to day challenge.
• The enforcement of mandatory protocols has caused drops in efficiencies in the manufacturing work force as well as the on-site installation work force. We expect to see these protocols become more stringent “IF” cases of the virus continue to increase. Receipt of Steel and Pre-cast Concrete from Quebec and other parts of Canada is also changing daily as fabricators apply for dispensation. Currently most fabricators are being allowed to deliver to the U.S. That being said, there is rumor that deliveries may be delayed due to driver quarantines.
• Many domestic fabricators in Pennsylvania, New York, Georgia and other states are shutting down and reducing fabrication plant activity, which will delay deliveries of millwork, aluminum windows, brick and now potentially flooring products. As the virus flows through each state, knowing where your materials are coming from, remains exceedingly important.
• Owner’s/Architects should prepare to be more flexible with material/equipment choices depending on schedule and cost risks and priorities.
• Electrical fixtures and Mechanical equipment – although parts and pieces may shortly be available, domestic fabricators will be required to assemble.
• According to analysis done by S&P Global Platt, China’s output of finished steel, a key export in American building projects, was expected to fall by up to 43 million metric tons year-over-year last month due to the Coronavirus outbreak.
• According to an article from Construction Dive on April 2, 2020:
  • COVID-19 exposed inefficiencies in the way the U.S. sources materials/merchandise/etc.
  • As a result there will be more focus on U.S. manufactured materials
  • This could be an opportunity to look at local or U.S.-based pre-fabrication to cut out the international supply chain for materials

REGIONAL

Concerns are rising about near term volatility and erratic pricing as subs scramble to work from home and figure out COVID impacts.

PRECAUTIONARY MEASURES

• Consigli has maintained focus on tracking products. Domestic fabrication is now under the microscope. Communicating with Vendors and understanding “What’s left on the shelf” is of vast importance, as fabrication plants reduce output due to labor reductions.
• We’ve continued to keep a close eye on “over saturation” of Subcontractors and Vendors. Spreading the work to minimize risk while at the same time keeping as many of our partners working, has become a very high priority.
• Early buyout of high dollar, long lead-time packages has remained a priority.
• Awarding packages with an initial commitment for payment of shop drawings and design services, prior to fully committing to material procurement has lessened the risk for all parties.

To access a full PDF of this information, click here:
Material Supply Update_040720

The post COVID-19 Impact: Material Supply Update first appeared on Consigli Construction.

The post COVID-19 Impact: Material Supply Update appeared first on Consigli Construction.