Miles-McClellan Construction Project Manager Grey London Discusses How Construction Management at Risk Benefits Private Owners and First-Time Entrepreneurs

mmcrebuildstg on November 19, 2024

For private owners, first-time entrepreneurs and less savvy real estate developers, exploring those initial construction projects can be especially challenging. From balancing different teams, budgets and schedules, it is important to choose a project delivery method that streamlines the process and allows it to go smoothly.

In this interview with Miles-McClellan Construction’s project manager Grey London, learn what advice he has for working with less experienced property owners on construction projects, the benefits of construction management at risk (CMR) and his experience using CMR project delivery for 90,000 sq.ft. retail venue Southern Lion.

Let’s Hear Insight from Grey London:

Grey London
Q: What was your favorite CMR project and why?

A: Southern Lion – Not only was the project cool and unique but so was our client. Sonja Nichols is the most charismatic and energetic owner I have ever personally worked with. She did not always understand the construction processes and schedules but she put faith in the team she hired to deliver the project she had envisioned and it turned into a one-of-a-kind project.

Q: What experience do you have working with entrepreneurs and/or first-time real estate investors, and why do you love working with them?

A: I enjoy working with first-time investors and entrepreneurs because you get to be part of bringing their dreams to life.

Q: What are the top three most important aspects of working with less experienced property owners on construction projects?

A: Get the general contractor team and design team together as early as possible. This is best achieved through CMR or design-build.

Spend extra time in the early design phases to understand as much of your client’s vision and goals as possible.

Sit with your owner and thoroughly explain the design/bid/permit.

Review construction/permit/inspection processes ahead of time to ensure they are not surprised by activities they may not be accustomed to. Take the time to review drawings and budgets with them so they clearly understand the scope of what is being contracted to ensure everyone is on the same page with the deliverable. During pre-construction there will be many discussions and changes but if that information does not get transferred onto the contract documents, then it is not included in the project.

Q: Why is CMR a good strategy for first-time or less experienced owners?

A: As I have said previously CMR/design-build is great for less experienced owners because it gets their design team and general contractor team collaborating early. This allows the experience of the project team to lead the process while implementing the client’s vision. This leads to more accurate budgets, schedules and drawings but also builds a unified team aspect between the general contractor and designers that sometimes is not present in a traditional design/bid/build delivery method.

Q: What do you bring to the table – why would a client want to work with you?

A: Our team prides itself on our intuitive “think forward” attitude. When we bring problems or issues up in the construction process, we also bring solutions. We don’t sit back and wait for someone else to figure it out, we actively engage with our project partners to achieve an effective and efficient solution. We focus on the client’s needs and by understanding their end goals we can make more informed decisions to benefit our client’s best interests.

Q: Do you have any specific advice for those in the construction industry managing costs and expectations for owners undertaking their first construction project?

A: Include the owner in your conversations, be open and honest about the project and changes. Build a reasonable contingency into the guaranteed maximum price (GMP)/lump sum to cover unexpected costs or changes that occur because they will occur.

Q: What is your project management philosophy?

A: We cannot always control or stop project problems/challenges from arising. What we can control is how quickly and effectively we respond to those changes to minimize the disruption.

Ready to learn more about CMR and work with talented project managers like Grey London? Then contact us today and we’ll provide you with all of the information you need!

Q3 2024 Economic Indicators

mmcrebuildstg on November 7, 2024

2024 Q3 Economic Indicators

Architecture Firm Billings and Reconstruction Trends: A significant portion of architecture firms report steady or increased work on reconstruction projects, focusing on modernization, adaptive reuse, and upgrades in building systems. However, challenges loom as billings have declined for 12 straight months, including securing agreements for larger projects, partly due to high interest rates.

ABC Construction Backlog and Confidence: The Construction Backlog Indicator showed a slight increase in September 2024, reflecting moderate confidence in future sales and profit margins despite economic headwinds. Contractors are optimistic about the easing of interest rates and material costs.

Dodge Momentum Index: The index, a leading indicator of nonresidential construction, declined by 4.2% in September due to a slowdown in data center projects, though institutional projects in education and healthcare saw growth. The index remains high, driven by institutional, education, healthcare, and recreational projects entering the planning queue.

Sector-Specific Forecasts:

  • Nonresidential Construction: Expected to slow, with key drivers including economic factors like high office vacancy rates and reduced warehouse construction.
  • Healthcare and Education: Stable investment levels are anticipated, with growth expected in late 2025. Education sector growth is projected due to bond measures and continued support for higher-education projects.
  • Residential: Multifamily residential construction is forecasted to decline due to inventory surpluses and stable rental rates, while single-family residential shows signs of recovery.
  • Manufacturing: Federal funding initiatives are expected to fuel a significant increase in construction investment in semiconductors, electric vehicles, and biomanufacturing sectors. However, talent shortages and supply chain issues pose challenges.

Outlook: The construction industry expects moderate growth through 2024, with slower expansion in sectors sensitive to interest rates. Anticipated federal rate cuts in 2025 may stimulate new projects, particularly in public safety, manufacturing, and amusement/recreation. Our report reflects a cautiously optimistic outlook, tempered by ongoing challenges related to high interest rates, supply chain constraints, and sector-specific issues like high office vacancies and the multifamily housing slowdown.

 

Construction Management at Risk: The Smart Choice for Private Owners, New Developers and First Time Entrepreneurs

mmcrebuildstg on November 5, 2024

southern lion

Since being founded over 46 years ago, the team at Miles-McClellan Construction have become experts in a variety of project delivery methods. While every project is different and comes with a unique set of circumstances, we have found that construction management at risk (CMR) is not only an ideal option for experienced construction teams and developers, but beneficial to those with less experience or handling a unique situation, such as private owners, first-time entrepreneurs, less savvy real estate developers and those facing uncertain renovation challenges.

In this blog, let’s dive into the advantages of CMR for these types of clients.

Expert Guidance and Support

The complexities involved in construction projects can be overwhelming for those with less experience, where understanding regulations, managing subcontractors and overseeing schedules are key to a successful project. Miles-McClellan handles the project from start to finish, including pre-design, project and risk management, project cost estimate, budgeting and engineering services. This takes the pressure off of the client and reduces the likelihood of costly mistakes.

Cost Control

Construction, when not carefully planned with all involved in the project, can have many unforeseen costs. CMR is a process in which a construction manager commits to deliver a construction project within a guaranteed maximum price (GMP). This is particularly valuable for private owners and first-time entrepreneurs who may not have experience managing large budgets or understanding how quickly costs can escalate during construction. In a situation where the scope of a renovation is not clear, a construction manager’s early, in-depth involvement makes way for more accurate budget assessment.

Transparency

Transparency is a crucial aspect of any construction project, and with CMR, a sense of collaboration is established from the very beginning and includes the owner, designer, architect, stakeholders, etc., which leads to better communication and problem-solving. For those with less experience in construction, transparency ensures that they can stay informed and make necessary adjustments to the project as it progresses, without feeling overwhelmed by technical jargon or unknown costs.

Southern Lion

When Miles-McClellan Construction was hired for a 90,000 SF retail renovation of an existing Sears building, it was agreed that CMR was the best project delivery method for the renovation. We were able to transform the space into Southern Lion, a retail venue hosting 300 booths for local merchants to display merchandise, and amenities include conference spaces, showroom design houses, a café, along with in-house storage locations and loading docks.

CMR Services Provided for This Client Include:

  • Project management and administration through project leadership and overall team coordination
  • Identify opportunities for economy of scale
  • Value analysis services, value engineering, cost savings suggestions and best value recommendations
  • Constructability studies and reviews
  • Logistics planning
  • Development of GMP, owner’s contingency and CMR contingency
  • Project planning and scheduling
  • And much more

Southern Lion was completed on time and on budget. In fact, the owner was able to receive $398,586 in savings! Learn more about how we used CMR project delivery to ensure the development of Southern Lion was a success.

CMR project delivery is a great solution for any client – regardless of size, industry or experience level! To speak with our CMR experts, contact us today!

The Heart Behind Healthcare Construction

mmcrebuildstg on November 4, 2024

Whitehall Heart of Ohio Family Health Center

As expanding healthcare capacity becomes more and more in demand, commercial construction in healthcare facilities has increased. Our construction experts have a vast amount of experience in the health and medical field and have worked on some of the largest projects in the regions we operate within. We understand the unique complexities of healthcare construction, which include building spaces that accommodate complex medical equipment, align with strict sanitation guidelines and improve patient comfort.

Keep reading to learn about rising trends and things to consider when working on healthcare construction projects.

Focus on Patient-Centered Design

When working on construction in the healthcare space, finding ways to keep patients comfortable and safe is of the utmost importance. To provide patients with more comfort, healthcare facilities are incorporating more natural light, calming environments and flexible layouts that accommodate both patients and families. After the COVID-19 pandemic, hospitals also began building more flexible, adaptable spaces that can be easily converted during crisis situations and surges in patient numbers. It is also important to ensure that existing patients in the hospital aren’t disturbed by construction taking place at the facility. Miles-McClellan Construction always plans thoroughly before any healthcare project to ensure that patients, visitors and employees will not be negatively impacted by our construction team, even if that means performing work at non-typical hours of the day.

Technological Integration

Hospitals need to be able to accommodate the advanced medical equipment, telemedicine rooms, digital health monitoring tools and more, and many are incorporating smart technology into their systems as well. We always work with our healthcare clients to better understand the purpose and potential equipment that will be needed in a space, and come up with ways to make spaces scalable to accommodate future expansions. To date, we have created spaces and incorporated equipment for rooms that include medical and behavioral exam rooms, obstetrical and prenatal rooms, nursing stations, in-house print shop, sleep labs and MRI suites.

Sustainable Building Practices

Building sustainable spaces has become an important goal for many entities, including healthcare facilities. Sustainability in healthcare facilities is not only done for environmental reasons but also to reduce operational costs. At Miles-McClellan Construction, we are experts at constructing energy-efficient healthcare facilities that use sustainable materials and reduce waste, and work with clients to help them achieve green building certifications such as LEED (Leadership in Energy and Environmental Design). This can help hospitals and medical centers lower their carbon footprint and improve the overall environment.

Have a Healthcare Construction Project Coming Up? You’ve Reached the Right Construction Team.

Our healthcare construction experience includes:

  • Hospital construction
  • Outpatient clinic construction
  • Medical office building construction
  • Surgery center construction services
  • And more

Check Out Some of Our Healthcare Construction Projects:

Healthcare construction done right means healthier patients and communities. Contact us for more information about our healthcare projects and experience.

Miles-McClellan Construction Senior Project Manager Dillon Overman Discusses Why CMR Project Delivery Is a Good Fit for Non-Profit Construction

mmcrebuildstg on October 23, 2024

Upper Arlington Lutheran Church

At Miles-McClellan Construction, we know that the work we do makes an IMMPact in the community. As a company that has integrated giving back as part of our culture, non-profit construction projects hold a special place in our hearts.

In this interview with Senior Project Manager Dillon Overman, he discusses his background, the most rewarding aspects of non-profit construction and why he believes that construction management at risk (CMR) is the ideal project delivery solution for non-profits.

Let’s Learn About Dillon’s Experience With Nonprofit Construction!

Q: What experience do you have working with non-profit organizations, and why do you love working with them?

I have had the pleasure of working with numerous non-profits in my 10 years in the industry. Everything from churches, hospitals and community improvement facilities. I like working with these entities because they seem to have a strong “what we do matters” mentality. They are not just focused on the bottom dollar, they truly care about the work being put into place.

Q: What was your favorite non-profit project and why?

My favorite non-profit to work with has been the Upper Arlington Lutheran Church. Most bigger non-profits have a team to oversee construction, but this client relied heavily on our expertise and trusted us to do what’s right for them. That’s an awesome feeling, knowing that someone trusts our team to have their best interest in mind. 

Q: What do you bring to the table – why would a client want to work with you?

Our approach at Miles-McClellan is different from any other. We call it the “Tee to Green” method, which means that the team involved with your project takes the project from design all the way through completion. That is much different than most other companies. This approach allows for the team to be a part of the project from start to finish which we believe is crucial.

Q: Why is Construction Management at Risk a viable option for non-profit projects?

Construction management at risk is quite arguably the best option for non-profits. Here are a few reasons why:

  • It locks in a set percentage of fee long before any construction is put into place. This allows for owners to see up front the construction management fee. It allows for a great deal of transparency.
  • The CMR delivery method brings a firm on early in the process, allowing for a few stages of budgeting before construction documents are issued. It allows for the owner to get a sense of where costs will land, and where costs can be cut to meet a desired budget.
  • In a typical CMR delivery method, the construction manager normally picks the team of architects and engineers that they would like to work with on a project. When a team is well-oiled and has worked together before, it makes for a much smoother project.

Q: Can you name an example of “how you saved the day” for a client?

We were doing a multifamily project in Franklinton, Ohio, which had a phased turnover. This means that tenants were living on the 1st floor while we were still working on the upper floors. Late one night, a sanitary line was backed up with a bunch of rags that somehow made their way into the pipe. Water was backing up into the 1st floor common area which was just finished. My team got the call and quickly made our way down to the project to rectify the situation before it flooded the whole floor. At Miles-McClellan, the “do whatever it takes” mentality of our team, makes us stand out from others like us.

Q: Do you have any specific advice for those in the construction industry managing a construction management at risk project?

A good project using the CMR delivery method starts with clear scopes and open communication with the subcontractors on that job. Having that clear communication up front and laying out responsibilities for each task makes projects run much smoother.

Q: What is your project management philosophy?

It’s kind of a cheesy one, but the saying “you attract more bees with honey than you do with vinegar” holds true in almost everything. Being calm and collected as a leader will allow for solutions that both parties can benefit from. Set an example for those around you as to what a good leader does on a project.

Do you have a non-profit construction project on the horizon? Would you like to learn more about construction management at risk project delivery? Then contact us today, get the answers that you need and let’s start building excellence.

2024 Q2 Economic Indicators

mmcrebuildstg on October 3, 2024

2024 Q2 Economic Indicators High interest rates are causing ongoing uncertainty across various market segments for the rest of 2024. Projects that depend on financing are facing significant challenges, limiting substantial growth. Despite these hurdles, the broader industry is showing resilience against economic pressures, positioning us for steady, incremental growth throughout the year.

Projects most impacted by financing include multifamily, lodging, and commercial construction. According to the AIA, one-third of delays are due to financing and economic concerns, with billings falling for the 11th consecutive month. Despite these challenges, the FMI report forecasts that engineering and construction spending will finish 6% higher than in 2023. Manufacturing and public safety are up 20%, supporting the industry alongside education and healthcare, which are expected to show sustained growth. Dodge reports that data centers account for a significant portion of the backlog in the commercial market.

Quick facts:

  • AIA: 11th consecutive month of declining billings.
  • ABC: Backlog is down to 8.4 months from 9.3 in 2023.
  • FMI: Spending is forecasted to be up 6% YOY.
  • Dodge: Data centers are accounting for a significant portion of commercial growth.

The Fed began cutting rates in Q3 and is expected to continue doing so in a slow, methodical manner. If rates keep dropping, delayed projects may gain momentum in 2025. For more insights on how interest rates impact backlog and project planning, read our report.

MM Market Experience:

Much of our pipeline in Columbus and Charlotte aligns with the segments reporting growth. Year-to-date, we have responded to 130 RFPs, with 45% being public projects that are not affected by interest rates. While we have seen some activity from clients in the multifamily, hotel, and office sectors, these projects have generally been slower to secure financing and move forward.

MM Market Breakdown YTD:

  • 45% Public / Higher Ed. / Government
  • 20% Commercial / Warehouses / Data Centers
  • 13% Healthcare
  • 16% Industrial / Manufacturing
  • 6% other (religious, recreation, etc.)

Kannapolis approves money for realignment of city hall to accommodate growth

mmcrebuildstg on August 28, 2024

KANNAPOLIS — As part of the implementation of the Imagine Kannapolis Strategic Plan, the city council Monday night approved several budget amendments, including one that will allow for “upfits” or adjustments in space to accommodate growth in city hall.

Read more at: https://www.salisburypost.com/2024/08/14/kannapolis-approves-money-for-realignment-of-city-hall-to-accommodate-growth/

Miles-McClellan Construction Helps North Carolina Community Beat the Heat With Historic Community Pool Renovations

mmcrebuildstg on August 18, 2024

North Park Pool

As cities nationwide continue to experience record-breaking summer temperatures, the importance of community spaces that allow residents to find relief, socially engage and promote safe physical activity becomes that much clearer. In Burlington, North Carolina, one of those spaces is the historic North Park Pool. Originally built in the 1950s, it was one of the first places black families could gather for special events, celebrations and summer pool days in a still segregated country. It continues to hold special importance to the community today, so when it was time for the space to receive some serious upgrades, the City of Burlington reached out to the experts at Miles-McClellan Construction.

The city opted for a design-build construction plan, which is when our experts take a project from conception to finish, delivering a finished product that meets the desired needs and budget. The North Park Pool project was significant, not only because of its deep historic roots, but also because it is the City of Burlington Aquatics’ largest outdoor aquatic recreation facility. While the city originally planned to tear down the existing building and build a new facility, Miles-McClellan Construction determined that revising the plans to utilize the existing building would allow the city to complete the project within budget.

Renovations for this project included:

  • New zero-entry pool with a tiled walking path
  • Competition race lanes
  • Splash pad with water features
  • Diving well
  • 13,000 SF deck
  • Shade pavilion
  • Revitalizing the outdated support building by adding a pump room and concession area in conjunction with updated changing areas and a meeting room

Design-build services provided by Miles-McClellan Construction included:

  • Project management and administration through project leadership and overall team coordination
  • Interdisciplinary coordination
  • Review of codes and standards
  • Identifying opportunities for economy of scale
  • Project planning and scheduling
  • Coordination of contract documents
  • Providing documents and drawings

The North Park Pool

“The North Park Pool is an important part of our community’s history. We are honoring that history by preserving the mural dedicated to the members of North Park’s late 1950s swim team. [This] modern outdoor recreation facility provides new ways patrons can stay active and have fun during the hot summer months.”
Rachel Kelly
Assistant City Manager for Administrative Services
City of Burlington, NC

Ultimately the North Park Pool project was completed on time and under budget. The community was grateful to have this historic gem restored to its former glory, and the city even decided to commemorate its unique past by preserving one of the original murals.

Are you ready to discover how our design-build services can build excellence in your community? Then contact us today and learn more about our superior design-build services and solutions!

Building a Brighter Future Through Nonprofit Construction

mmcrebuildstg on August 5, 2024

Grove City Library is one of many non-profit construction projects completed by Miles-McClellan

One of the most satisfying aspects of our work in the construction industry is getting to see firsthand how our projects improve communities and make an IMMPact. Nonprofit construction is especially rewarding for our team, as nonprofit construction is driven by the mission to create spaces that empower residents, improve quality of life and improve safety, which aligns with the values our company has held for over 46 years.

Our work in nonprofit construction covers a wide variety of different structures, including community centers, parks and healthcare centers. While nonprofit construction is incredibly rewarding, at times it can present a variety of unique challenges. Proper planning and strategy are key.

In this blog we outline our top tips to help your next nonprofit construction project go smoothly and be successful.

Make Sure the Vision is Clear

Before ever breaking ground, make sure all goals, objectives and uses for this space are clearly defined. Will the space have multiple uses? What purpose will it ultimately serve? What budget constraints could arise? Making sure everyone is on the same page as far as vision is incredibly important, and when it comes to nonprofit construction, that vision must remain agreed upon and consistent amongst multiple people, including nonprofit staff, board members, community leaders and stakeholders.

Secure Funding Early and Develop a Realistic Budget

Funding is a crucial part of construction in any industry, but it can be especially complex for nonprofit projects. Nonprofit funding usually comes from a combination of grants, donations and loans, and all of that should be secured before construction begins. All involved with funding should receive full transparency about the project’s goals, timeline and financial needs, and project teams need to develop a detailed and realistic budget that accounts for all aspects of the project, including permits, materials, labor, contingency funds and potential delays.

Document Everything

Because nonprofit organizations have a variety of different stakeholders they must answer to, keeping detailed records of all communications, contracts, permits, change orders and financial transactions is essential. This documentation will be invaluable for accountability, and reporting to funders, the board and government agencies.

Stay Transparent

We’ve said this before, and we’ll say it again – transparency should be a priority on any construction project!  Establish a communication plan from the very beginning that includes regular updates and open lines of communication for the key players involved. This builds trust, ensures everyone is on the same page, reduces mistakes and builds excellence.

Keep the Community Involved

Don’t forget that the end goal of nonprofit structures is to support the community, so let the community know of important updates! Showcase on your website, newsletters, emails and social media platform all of the milestones of the project. The community will love hearing about the progess of the project, and may have valuable feedback that could be useful!

We Are Doing Our Part to Make a Difference!

Nonprofit construction has a special place in our hearts, because making an IMMPact in the community is an important part of our values. In fact, as a company we support 58 non-profit organizations, provide paid internships, offer apprenticeships and mentoring, support our employees’ causes monetarily and allow them to volunteer during work hours.

How can we help ensure your next nonprofit construction project lives up to your vision? Contact us and let’s discover how working together, we can change lives!