CREJ

16 / BUILDING DIALOGUE / December 2021 Making Place U nless you’ve been living under- ground for some time, you’ve sure- ly heard, read or experienced the challenges impacting our local market and overall construction industry related to ev- erything from commodity pricing, lead times and supply chains to wage pressure, permit- ting back-ups and diminishing labor resources. Is the end in sight? The short answer is: proba- bly not. Some of the headwinds presented them- selves prior to the pandemic and have only become more evident since. As an example, according to the Associated General Contrac- tors of America, construction employment in August remained below the levels reached be- fore the pre-pandemic peak in February 2020 in 39 states. Some suppliers have tried to reduce demand by increasing pricing, but largely this has been an ineffective strategy. The pending govern- ment infrastructure bill will only apply further pressure to commodity supply and labor resourc- es. In addition to increases in materials and labor costs, transportation and fuel costs spiked year over year, further adding to the budgeting chal- lenges for our industry. As a tightknit real estate, design and construc- tion community, what should we do? How can we proactively improve this unpredictable climate, keep our people passionate and engaged, while delivering exceptional spaces and environments for our clients on time and – ideally – on budget? • More modular and off-site solutions on the horizon. One approach that could alleviate a por- tion of our collective challenges is an increase in off-site/modular/prefabricated/manufactured construction solutions. This method is not new to our industry but only has been adopted in pockets, most frequently in health care and pub- lic-sector projects. These solutions lessen the re- quired coordination between multiple trades on a construction site, offer increased predictability of lead times and greater price certainty. At times, there is a premium price compared to convention- al construction practices from a material-to-mate- rial comparison. However, when considered more holistically while incorporating aspects such as construction timelines and ability to meet project milestones, there is a larger return on investment proposition to consider. • Harnessing the power of the design-build model. We often find ourselves in a design-bid- build model, but we see a lot of potential in a design-build approach that combines construc- tion, architecture and engineering under the same contract – as essentially one entity – from the beginning, unifying workflow and ensuring alignment from concept to completion. Bringing a knowledgeable team with specific expertise on board at the beginning of the design phase will streamline coordination of all trades, allowing the project team to hit the ground running after the permit is in hand and construction can begin. A Eric Holt Owner &Busi- ness Develop- ment Lead, elements Construction Industry Challenges: What Should We Do Now? Cody Roberdeau Owner & Manufactured Construc- tion Lead, elements Customized prefab health care solutions improve safety and speed up construction.