CREJ

Page 24 — Multifamily Properties Quarterly — May 2022 www.crej.com Construction A s the nation continues returning to its daily rou- tine, can we accept that the challenges we are facing as an industry may be the “new normal”? They say, “Old habits die hard,” and in the construction world, we are confronted with this reality daily. In an ever-changing world, our industry is experiencing continuous strains on how we’ve traditionally done business. While many products and services are being streamlined, age-old con- struction practices are being forced to keep up. As a leader in the rapid- ly developing multifamily sector, we know all too well the market-driven constraints that increasingly are impacting projects. We are looking inward at our own processes and services to work effectively during this wave of changing market conditions. Mate- rial escalations, supply chain short- ages, lending requirements and a declining labor force continue to have significant impacts on every step in the building process. In this uncharted new climate, traditional preconstruction strategies will no longer suffice. Considering the current trends in this explosive market, we are working with developers and design teams to lead strategies for increased preconstruction produc- tivity and predictability. n Mitigating escalation. With supply chains extremely backed up, we are recom- mending that cli- ents expedite their financial processes to be in a position to secure materials prior to the start of construction, helping to mitigate on-site shortages, delays and cost premiums. This is a significant shift from the traditional process in which design teams complete drawings prior to contract execu- tion, construction financing being secured and construction adminis- tration. Early owner commitments grant us the ability to procure cred- ible trade partners and process sub- mittals, which tends to be one of the requirements to mitigate poten- tial cost escalation. Being prepared to quickly review and turn around these submittals can directly impact what you pay and when you receive your materials. Forethought, communication and streamlined decision making helps everyone involved keep projects on track and on budget. n Overcoming limited trade partner resources. Due to increased project start volume and current market conditions, traditional trade partner bidding strategies are less effective than they once were. Difficulties locking trades due to current mar- ket demand are at an all-time high, and the standard process of bidding at each stage of design often is not achievable. With the shift construction com- panies are experiencing in trade partner commitments being any- where from six to 12 months out, it is necessary to have the ability to make subcontractor selections earlier, which increases the security in pricing and confidence in the schedule. To do this, we are pull- ing contract negotiations forward, so we are prepared to execute an agreement, if necessary, with any key subcontractors or suppliers at any time. In this new normal, taking a tradi- tional competitive bid process with subcontractors may end up costing you in the long run, potentially cre- ating a premium for less qualified, or altogether unavailable, resources. Earlier owner involvement in the trade partner selections will equate to confidence in project teams and quality work. These recommendations are not cure-all solutions to all preconstruc- tion approaches as each project is different and the constraints at a specific point in time may vary. With a chance to reflect on tried- and-true practices that have stood the test of time, we are challenging ourselves, our clients and our trade partners to do something differ- ent, embracing change and seeking positive outcomes in a new normal process. s Reinvent ‘normal’ in the preconstruction approach Jason Vaughn Director of preconstruction, Brinkman Construction Happy Drivers Make Happier Tenants It’s the start of the electric vehicle revolution and tenants are looking for properties that offer EV charging as an amenity. Will your property be top of their list? Provide your residents with the amenity of SemaConnect premium EV charging stations. We provide a full replacement warranty, industry-best uptime, and customer service support for all users. EV charging stations are easy-to-use, interoperable with leading charging apps, and the station of choice for drivers. P: (303) 587-5449 Learn more a t SemaConnect.com