Building Excellence from the Beginning: The Benefits of Construction Management at Risk

Construction Management at Risk

For over 46 years, our customers have trusted us to build excellence and find smarter solutions for all their construction needs to ensure the best possible outcome for any project. With comprehensive Construction Management at Risk (CMR) services, our strategic approach to crucial components of a construction project that include project and risk management, project cost estimate and budgeting and design and engineering services, we help our customers minimize risks, control costs and get projects completed on time and at the highest standard of excellence.

How Does Miles-McClellan Construction Approach Construction Management at Risk?

As with all of our projects, the process begins with one of our talented leaders serving as Project Executive and committing to delivering a construction project within a guaranteed maximum price (GMP). From there, the Project Executive takes on the role as consultant throughout the development and design phase, and does everything possible to ensure a project is prepared and ready to enter the next phase.

How Can Construction Management at Risk Benefit My Next Project?

In our experience, CMR with Miles-McClellan Construction provides several benefits that ensure a project is successful from beginning to end. These include:

  • Projects Completed on Time – When a construction manager is involved early in the process, they can optimize the construction schedule and plan for multiple aspects of a project, including delivery of materials, procuring labor and equipment, coordinating various timelines, etc. Ultimately, this allows for increased speed of project execution.
  • Construction Managers With Decades of Experience – Our construction managers have decades of experience, and are dedicated to client satisfaction and building excellence. They have worked with clients of all sizes in all industries, and found ways to overcome a variety of construction challenges. Learn more about their approach to construction and why they are the best in the business.
  • Enhanced Synergies Between Stakeholders- Talented construction managers have the ability to foster a culture of collaboration and transparency amongst stakeholders involved in a project, which allows stakeholders to identify areas for improvement and construction managers to adapt and plan for changing project requirements. This goes a long way in enhancing stakeholder satisfaction.
  • Cost and Pricing Transparency- As stated earlier, one of the hallmark features of CMR is the creation of a Guaranteed Maximum Price (GMP), which provides owners with cost certainty and transparency and ensures that projects remain within allocated budget constraints. This requires significant planning and cost monitoring from construction managers, and helps minimize the risk of budget overruns.

Ready for Project Success? Then Ask About Our Construction Management at Risk Services!

We believe in building excellence before construction ever begins and have the talent and expertise to provide a seamless and efficient design process that leads to exceptional results. Contact us to learn more about our CMR services and experience on time, on budget construction!

We Change the Spaces That Change Lives

Wells Barn at the Franklin Park Conservatory

“We thrive on challenges and are your go-to problem-solving partners.”

Kevin Joseph, Miles-McClellan Construction Project Executive

As defined by Merriam-Webster, renovation is the act of restoring life, vigor or activity.

As the smarter construction company on a mission to build excellence, we are proud of our renovation projects that restore and bring fresh energy into the communities where we live, work and play. Steered by our skilled leaders and a talented IMMPact team, we have witnessed firsthand how exceptional renovation construction can transform communities and change lives.

Beautifying the Community Through Renovation

One of Miles-McClellan Construction’s most noteworthy renovation projects was our work on Wells Barn at the Franklin Park Conservatory in Columbus, Ohio. Wells Barn is an existing heavy timber barn frame from the late 1800s that was renovated into a new education, community outreach and events facility on Franklin Park Conservatory’s campus. One of the most complex construction considerations faced during this renovation project was finding a way to incorporate the original timber from the barn into the modernized version that met current building codes and was structurally sound. Ultimately, our structural engineer was able to design new studs that could be fastened to the existing timber, and C-channel beams provided an additional layer of support. The updated Wells Barn has been a great addition to Franklin Park Conservatory, and now holds a variety of events that benefit the community, such as cooking demonstrations, do-it-yourself cooking classes and tastings within the kitchen space, children and youth classes, adult classes, summer camps, lectures and conferences/symposia.

Family-Friendly Renovation

It doesn’t get much more memorable than having stingrays as a client! Well, not exactly, but we loved partnering with the Columbus Zoo for numerous renovation projects that included the Freshwater Mussel Conservation & Research Center, Nocturnal Building and Aviary upgrades to create a habitat/exhibit space for the Weedy Seadragon and renovation of an existing stingray touch experience. Due to weather issues, Miles-McClellan Construction had to find resourceful ways to complete the project, including repurposing soil used in other areas of the zoo undergoing renovation and using it to cover up miles of pipework.

Renovation That Improves Safety at Schools

Some of our most important renovations have nothing to do with aesthetics, but improving critical components of a space. For our work with Columbus City Schools, we led several HVAC renovations that would make schools safer for students and staff. Under the supervision of Brad Bloomberg, Vice President, HVAC renovations at Valleyview Elementary School, Westgate Elementary School and West Broad Elementary School included replacement of the HVAC systems, new electrical service and both structural and architectural elements to support the new systems. Working strategically, these projects were completed on-time and without issues.

Changing Spaces, Changing Communities, Changing Lives

Our renovation projects transform and improve the lives of residents.  With every renovation project, we are doing our part to help our clients breathe new life into spaces that are vital to the community.

We believe in renovation that makes an impact. Contact us and let’s make a difference through excellent renovation!

2023 Q3 Economic Indicator

2023 Q3 Economic Indicator
The forecast briefing headline included in this month’s Construction Executive magazine was short and simple, “The National Economy is Weakening.”

While speaking on the magazine’s 2023 Q3 “Economic Update and Forecast” webinar, Anirban Basu, The Associated Builders and Contractors’ Chief Economist, said, “the economy has been much stronger than I would have anticipated.” But while job growth, low unemployment and increased spending on construction are positive signs, Basu remains wary of the longer-term outlook, pointing to red flags such as skyrocketing credit-card debt and other industry economic indicators. “My view,” Basu told his online audience, “is the national economy is weakening, increasingly under pressure from higher interest rates, strikes, worker shortages and loss of production; borrowing costs are higher; and excess inflation persists.”

Our attached report, is one quick and easy way to see the trends behind the headline.  The AIA Billing Index is on a four month negative trend, including the last two months below 50. The ABC and FMI backlog indicators are both on negative trends and neither has returned to pre-pandemic levels.

Quick summary: Contractor backlogs are lower right now and there will be less opportunities to pursue throughout 2024. For owners, this could ultimately result in increased competition and more competitive pricing.

A couple of examples from Q3 Miles-McClellan bidding and budgeting efforts:

  • Craig Richards, Vice President, “Our division originally bid a sizeable renovation project to a large, international CM firm. During Q3, 2021, the wall protection package was worth $6.7M and was removed from the scope of work due to being over budget. The package was rebid during Q2 of 2023 at $7.6M. This was a 13% increase in 18 months.”
  • Kevin Joseph, Project Executive, “My team is continuing to feel the effects of bad owner budgets. We recently were low bidder on a City of Columbus job that is 45% over budget. The job is unawardable and the City is now trying to figure out what they can do to value engineer the job. I’m not confident that value engineering will be able to make up such a large disconnect between the budget and the reality of local construction costs. We were also recently low bidder on a public job in Mifflin Township that is unawardable due to a blown budget.”
  • Matt Recchiuti, Vice President, “Much like Kevin, really the only trend I am seeing is that Architects are woefully underestimating public budgets to owners, and almost all of the Public Work bids are having to re-bid to due a shortage of requested funds. We are still seeing delays in HVAC equipment and Electrical gear, most of the time up to a year.”

Leader Spotlight: The Impact of Building Community Success

Franklin Park Conservatory

“There is Always a Way.” – An Interview with Miles-McClellan Construction’s Vice President, Craig Richards

Not all heroes wear capes. Sometimes they wear badges and stethoscopes, and on our team, hard hats.

But often, everyday heroes are working hard behind the scenes, striving to make a difference in the community by creating spaces that provide a safe haven for those who need a voice, an advocate and support.

Miles-McClellan Construction is honored that we have been able to help these unsung heroes and their organizations build excellence by improving the spaces in their communities. In this interview with Craig Richards, an MM Vice President, he sheds light on his experience working with non-profit organizations throughout his career, how open communication is key to a successful collaboration and why working with non-profit organizations to build excellence is incredibly rewarding.

Q: What experience do you have working with non-profits?

A: Most recent non-profit clients include the Franklin Park Conservatory, Central Ohio Community Improvement Corp., Franklin County Landbank (COCIC), The American Society for Prevention of Cruelty to Animals (ASPCA) and the Upper Arlington Lutheran Church.

Q: Is there a certain type of non-profit client you work best with?

A: We always look for a client that is team oriented. The last few years have been tough on the construction industry with the pandemic, which then led to inflation, rising interest rates, material supply chain issues and labor shortages. Despite all of the negativity and rising construction costs, our non-profit clients continued to keep a positive attitude and never lost focus of their mission to improve communities. In lieu of pointing fingers when budgets and schedules were threatened, the teams worked together to find a way to achieve the goal. That is the type of client we look for, regardless of the client’s industry.

Q: Why do you like working with non-profits?

A: Non-profit client missions align with Miles-McClellan Construction’s. Miles-McClellan Construction’s mission is building leaders and long-term relationships, and non-profits missions are typically about building/improving communities. Building relationships and communities go hand in hand in my opinion, which makes Miles-McClellan Construction a good fit.

Q: What do you and your team bring to the table – why would non-profits want to work with you?

A: Miles-McClellan Construction is flexible, collaborative, and transparent which fosters an environment of trust. You will never hear Miles-McClellan Construction place blame on other team members or deflect responsibility. We want to be their partner, and strive to be the easy button.

Q: Do you have an example of “how you saved the day” for a non-profit?

A: Unfortunately, we are not superheroes, therefore I can’t say we have ever truly saved the day. However, we recently had a project where the HVAC equipment was delayed approximately six months and was going to prevent the client from occupying their new building ahead of their current lease expiring. The design and construction team were able to come up with a temporary heating and cooling system until the HAVC equipment finally arrived, and was able to get the client in their new building two weeks ahead of schedule with a temporary occupancy. This was definitely not an ideal situation, but we saved the day by providing a temporary solution.

Q: Is there any specific advice you have for non-profits?

A: Invite your construction manager into the process as early as possible, and challenge them to think outside the box when times get tough. There is always a way!

How can we help the non-profit heroes in your community? Under the supervision of leaders such as Craig and our hardworking team, Miles-McClellan Construction has helped improve communities and make them a safer space for residents. If you are a non-profit with a building project, contact us today and let’s work together to make an impact.

Second Quarter Economic Indicator – A look back

2023 Q1 economic indicators

As we quickly pass Q2 and move into Q3, we are starting to understand better how the year will shape up. I recently had a chance to review The Conference Board’s (TCB) website for a description of what they see ahead. TCB’s mission is to be a “member-driven think tank that delivers Trusted Insights for What’s Ahead to help our members improve performance and better serve society.”  In a bullet point summary, TCB’s most recent update included:

  • Real GDP rose by 2.4% in Q2 ahead of the expected 1.8% forecasted. This resulted from a weakening demand in consumer consumption being more than offset by business investment.
  • Consumer consumption growth of both goods and services cooled in Q2. This trend is expected to continue for the remainder of 2023 due to three factors:
    • real disposable income is down;
    • pandemic excess savings are gone, and consumers are carrying historic debt levels;
    • mandatory student loan repayments are set to resume.
  • Business investment did more than offset the decrease in consumer spending in Q2, showing sizable spends in transportation equipment, facility structures and intellectual property products. However, this information came with a warning: TCB expects weakening consumer demand throughout the remainder of 2023, combined with high interest rates to reverse business spending trends.

A couple of examples from Q2 Miles-McClellan bidding and budgeting efforts:

Craig Richards, Vice President, “Our division originally bid a sizeable renovation project to a large, international CM firm. During Q3, 2021, the wall protection package was worth $6.7M and was removed from the scope of work due to being over budget. The package was rebid during Q2 of 2023 at $7.6M. This was a 13% increase in 18 months.”

Matt Recchiuti, Vice President, “Our team recently rebid a steel package. Our original steel package was quoted at $53,500 in February 2023, and after the project rebid in August 2023, the final (unchanged) steel package was purchased for $58,000. This is almost a 17% annualized increase in steel pricing.” 

Kevin Joseph, Project Executive, “One notable and frustrating reality that my team faces is the fact that more than half of the projects we bid this past quarter were so far over budget that the project could not proceed. It seems that across various industries and types of projects, owner’s budgets have not caught up with the price increases that exist in Central Ohio. Some owners mention that they plan to wait to rebid work once prices decrease, but we have not seen any indication that this is a realistic plan.”

While at times it may feel like we are spinning our wheels with all the budgets and rebidding, we would rather provide realistic, inclusive budgets and bids then submit low numbers with the hope of winning and not failing.

Self-Performing Various Trades Offers Many Project Benefits

Miles-McClellan Construction has been a part of building thriving communities since 1978. Not only do we understand how to manage construction, we know how to construct the building—and all that comes with it.

At Miles-McClellan we can handle all aspects of a project, from owner’s representation to complete project management to masonry to concrete to caulking! That’s because of the vast specialized experience our team has – including self-performing work in multiple construction trades.

There are a lot of benefits of keeping your project within the Miles-McClellan Construction team of professionals:

  • We are in control of the project schedule, so our ability to self-perform the work mitigates delays!
  • We manage the communication with our team so our clients always know the correct status of their project.
  • Our ability to control more of the trades without having to sub out work creates time and cost efficiencies!
  • Plus, we can guarantee the same Building Excellence standard that Miles-McClellan is known for!

When you work with Miles-McClellan Construction, one of our expert Vice Presidents will lead a group we call an IMMPact Team. This team works closely with clients throughout the entire project, enabling our team to work quickly, be more flexible and responsive to what our clients’ need. This is one more advantage that differentiate us from other commercial construction companies.

the Miles-McClellan Difference

Miles-McClellan Construction takes great pride in building success to grow  thriving communities. Contact us today to learn more about how our ability to self-perform various construction trades can add value to your next commercial construction project. We build success by Building Excellence!

Miles-McClellan Construction Builds Vital Retail and Dining Experiences for Charlotte, North Carolina Communities

 

No industry was affected more by the global pandemic than the restaurant and retail industries, but both industries are on the rebound. In fact, earlier this year these industries were predicted to grow between 6 and 8 percent by the end of this year. And with the remarkable population growth, the retail establishments and restaurants are thriving in Charlotte, North Carolina.

Miles-McClellan is proud to be a part of that growth with our retail and restaurant partners who are an integral part of Charlotte’s growth.

Here are some of Miles-McClellan’s commercial construction projects that help make North Carolina a great place to live, work and play.

Festive Food & Music

Loretta’s is a high-volume restaurant with private function space serving French, Creole, and southern cuisine, featuring live jazz, neo soul and gospel music.

Miles-McClellan managed the demolition of the original building to construct a 7,500-SF back-to-shell space as well as finishing the beautiful, fun space with upscale VIP areas, liquor lockers and a custom bar.

Head to Beatties Ford Road

As part of a community revitalization of an area rich in history but in need of change, Miles-McClellan was hired to help redevelop a neighborhood block to include shopping, banking, dining and more. Miles-McClellan managed the renovation of the existing retail space at 2020 Beatties Ford Road in Charlotte including renovation to the shell of the building and finishing out one of the tenant spaces for a juice bar. In addition, Miles-McClellan served as the general contractor for the renovation of an existing building for the new 1,600-SF BW Sweets and for the renovation of existing space for Mackins Bridal Boutique, both across the street from the 2020 Beatties Ford Road project.

Tacos, Anyone?

When Ohio-based Condado Tacos made its North Carolina debut in Charlotte, Miles-McClellan was there to complete a 4,600-SF interior build out for the restaurant in an existing multi-story building. The work included interior finishes, non-bearing demising walls, ceilings, lighting, food service equipment and exterior changes, including new patio railing and the addition of a new overhead door within the existing storefront opening.

Discover Charlotte’s New Man Cave and Add Some Joy to Your Home

Miles-McClellan is excited to be a part of bringing a luxury furniture design showroom and a new home décor stall retailer to Charlotte. The Miles-McClellan team managed a 7,600-SF retail interior build out for Amodernary Furniture Design at SouthPark and an 88,000-SF renovation for Southern Lion in the Carolina Place Mall, which will feature vender stalls offering furniture, home décor, accessories, art and clothing, a café, meeting spaces and a “man cave” complete with TVs and lounge chairs.

Retail and restaurants have always played vital roles in the business, social, economic and artistic soul of a thriving society. Miles-McClellan takes great pride in building success by building thriving communities. Contact us today to bring great dining and shopping experiences to your community. We build success by Building Excellence!

The IMMPortance of Having an IMMPact Team

Having an IMMPact

For over four decades, Miles-McClellan Construction has been setting the bar high for client relationships and earning client trust. We believe the people and processes of a company matter in delivering great results and that there is great IMMportance to being flexible and responsive to the needs of our customers. Every Miles-McClellan project benefits from our IMMPact Team’s passion for construction and the pride we have for our trade.

An IMMPact Team is a cross-functional team of experienced, industry-specific construction professionals formed with one IMMpressive mission — to collectively hold each other accountable for delivering building excellence and client satisfaction for each project. IMMPact Teams consist of highly qualified, intuitive problem solvers with insights and expertise based on hands-on experience and training.

The Meaning Behind Our IMMPact Teams

IMM stands for integrated management methodology and is our united management approach. The typical construction approach is departmentalized. There are many departments handling different aspects of the project like selling, estimating, project management and accounting. This approach can lead to miscommunications or mistakes that delay or negatively impact the project.

With our cohesive IMMPact approach, you will have a dedicated team, including one of our project executives, working together with you throughout the entire process — from preconstruction to ribbon-cutting — allowing us to be more flexible and responsive to your IMMediate needs.

Pact, of course stands for an agreement. It is the promise we make to each other and to our clients. That’s the Miles-McClellan IMMPact!

We strive for clear and consistent client communication throughout the life of a project. We work to hold each other accountable by having discussions centered around project goals, expectations, budgets and how to reduce risks and achieve the client’s satisfaction by keeping the same team members involved and maintaining excellence.

When both of our founders, Terry McClellan and Lonnie Miles, left a large, international construction company, it was because they IMMagined there had to be a better way to do business — one that put customer service at the center. That’s why our promise is so IMMportant and that is why our team assembles to ensure we can meet a client’s needs by discussing strategy, building trust and ensuring we develop confidence in our ability to perform through purpose-filled collaboration.

We strive to build a legacy through relationships and structures, whether it be with our incredible team members or clients. Contact Miles-McClellan Construction to learn how our teams can help you make a lasting IMMPact.