Miles-McClellan Construction vice president Brad Bloomberg LEED AP Helps Improve Safety at Columbus City Schools With HVAC Renovation
When many think of construction projects, they immediately envision work that involves creating or updating the aesthetic aspects of a facility. At Miles-McClellan Construction, however, some of our most rewarding construction projects involve renovating critical components of a space that cannot necessarily be appreciated at first glance. When performing a design build of HVAC systems, it is crucial the various HVAC components and coordination of materials are timed correctly to ensure a successful installation. For our work with Columbus City Schools, under the direction of Miles-McClellan Construction vice president and project lead Brad Bloomberg LEED AP, improving HVAC systems has been an important part of building success and creating a safer space for students and the community.
In 2021, Miles-McClellan Construction was hired by Columbus City Schools to replace the HVAC systems and make electrical upgrades at Brookhaven High School and Dominion Middle School in an effort to improve the learning environment at both buildings. In addition to HVAC system upgrades, Miles-McClellan Construction was also given the task of making interior repairs, envelope repairs and site improvements in accordance with the design criteria. With the leadership of Brad and a strong IMMPact team, this project was completed on time and under the allocated budget.
In 2022, Columbus City Schools hired Miles-McClellan Construction to make HVAC and electrical upgrades at Valleyview Elementary School, Westgate Elementary School and West Broad Elementary School. Matt and his team realized that these projects required the replacement of the HVAC systems, new electrical service and both structural and architectural elements to support the new systems. All team members worked strategically to make sure all of the design, build and necessary components were in place, resulting in this project being completed on-time and without issues. These projects also minimized environmental hazards and supported student health. Projects such as this are not only fulfilling but continue our mission of building excellence in the community.
Strong leaders such as Brad and a talented, dedicated team make Miles-McClellan Construction the construction company that can do it all. From reviving the look of physical structures to improving the behind-the-scenes systems that keep the citizens of our community safe and healthy, we build success from start to finish.
We are up to the challenge of ensuring every construction project is a success! Contact us today and meet Brad and more faces behind the spaces that make an impact in the community!
First Quarter Economic Indicator – A look forward
Now wrapping up Q1 and moving into Q2, at Miles-McClellan Construction, we continue to see a confusing assortment of trends. Below is a quick summary of what we have been seeing over the last 30 days and what we expect more of in Q2:
- The broad trend speaks to the continued rising interest rates but now with an added twist of uncertainty around the banking industry’s stability. As a result of recent bank collapses and the discussions around bank capitalization and the quality of the assets on the balance sheets, lending has started to tighten. At Miles-McClellan Construction, we are experiencing many projects that are either delayed or canceled due to financing issues.
- The private construction market continues to slow down because of rising construction costs and interest rates. As a result, we continue to bid on the plethora of public projects available this spring. Two notable trends in this bidding arena are: 1) we are starting to see a longer list of GC bidders on each project, and 2) we are also starting to see more subcontract numbers come in under each trade category of each bid. This trend will eventually lead to lower pricing, as increased competition always does.
A couple of specific examples to share are:
Craig Richards, Vice President, “In the past few years, concrete pricing held pretty steadily while other materials were escalating. However, in the last year, concrete pricing has been on the rise. For example, we paid $135.50/CY on a mid-sized project in August of 2022. We are starting a similar project this May 2023, and concrete is now $155.50/CY – a 15% increase.”
Matt Recchiuti, Vice President, “I was recently talking to a client, and she had just found out that the 1,000,000 SF warehouse project she was going to manage was being canceled. The cancellation was because the lessee agreed to lose their deposit while backing out of the lease.”
Brad Bloomberg, Vice President, “My team used to bid 1-2 public jobs a month, and now we are averaging 5-7 per month. That is a swing of 75% private bidding to 75% public bidding over the last quarter.”
Kevin Joseph, Project Executive, “We recently contacted a shower door supplier to revisit pricing we originally received in September 2022. As a result of our inquiry, the manufacturer lowered their shipping costs by 50%, giving the owner significant project savings.”
Between now and our next publication, we will closely monitor interest rate projections and construction costs as the competition increases. We will need this up-to-date information as we work to provide our clients with competitive and realistic project budgets.
Fourth Quarter Economic Indicator – Looking Ahead
Going into the first quarter of any year, we expect the bid market to pick up with the expectation of spring projects that have been in design throughout the winter. What we are seeing is a mixed bag of trends, and we hope sharing these trends with you will help you plan your pending projects.
Below is a quick summary of what we have been seeing over the last 60 days:
- The broad trend speaks to the rising interest rates and rising construction costs. The private market has slowed down. Our private clients request budgets, but only some projects are heading into construction. We have currently been bidding and working on more public projects. We don’t expect this to continue because the slowdown in demand will drive construction pricing lower, which will eventually offset the rising interest rates in proformas.
- There has been an increased sense of urgency to get formal approval for change orders on our existing projects and across all types of projects we work on. Subcontractors are hesitant to hold their pricing for over a few weeks, so we are forced to push owners and construction managers to get signed approval to lock in pricing. We support our subcontractor team in this effort, but in return and to help protect our clients, we ask for secured manpower so that our clients receive the service on time.
- Owner’s preconstruction budgets continue to underestimate the cost of future construction. This creates rebid situations for public and private projects, resulting in project delays and frustrated owners before the project starts. We recommend multiple looks at the budgets you are creating today: one by your architect and one by your contractor. Then lock the project leaders in a room until they agree on the budget.
As a recent example, we bid on a health clinic in early August 2022. It was a competitive bid and Miles-McClellan was not the lower bidder. Our bid was 94% over the owner’s budget, coming in at $1.4M. The owner and architect rebid the project after taking the time to redesign and go through value engineering. The revised budget was raised 55% over the original budget, and our revised bid in October 2023 was submitted just above the revised budget. We were awarded the project 14 months after the initial bid.
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.
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!
Q3 2022 Economic Indicators
Both our Q1 and Q2 2022 Economic Indicator reports emphasized the effect inflation is having on our industry. It continues to be my goal to share both published trends and commentary as well as local Miles-McClellan experiences.
ENR’s Economics Report on future material and labor price trends, “2022 Third Quarterly Cost Report” was just released and I’m including some information from that report here.
To kick off the report, Richard Branch, chief economist at Dodge Construction Network, is quoted as saying, “The construction sector has turned into a tale of two worlds. First, the nonresidential sector has been a solid performer as manufacturing, public works and data center construction have flourished. Conversely, single-family construction continued to trend sharply lower as rising mortgage rates have led to worsening affordability. The question, though, is how the entire construction sector will react to still higher interest rates over the coming quarters as the Federal Reserve continues its inflation battle with aggressive rate hikes.”
The report goes on to focus on both materials and labor. It details 15 different construction inputs and notes that prices vary, year-to-date, from -6.0% (copper), to +22.6% (asphalt paving). Of the 15 areas tracked, 12 were higher since January 2022 and all 12 categories were up by double digits through August 2022. The article does go on to explain why ENR anticipates soft lumber and steel to start moving downward in 2023, but acknowledges the trends really depend on how increasing interest rates affect demand.
Labor rates also continue to rise, however, now at a much faster pace. Both union and non-union wages had been averaging between 2-3% annual increases, however, the numbers jumped to 4-5% average increases in 2022. According to Ken Simonson, chief economist of the Associated General Contractors of America, “I believe we’re in a prolonged period of 5% wage increases or even more for craftworkers.”
At M-M, we will continue to work very hard for our clients to control unwanted price increases and schedule delays. Our strategy has been to maintain strong relationships with constant communications with our subcontractors and suppliers so that we have the most up-to-date information to share on each of our projects.
Building Community Excellence, One Structure at a Time
At Miles-McClellan, we recently celebrated Construction Inclusion Week, an annual event that harnesses the collective power of general contractors, specialty contractors, subcontractors and suppliers to build awareness and improve diversity and inclusion in the construction industry across the nation.
The celebration which took place between October 17–21 centered around five daily themes, including commitment & accountability, belonging, supplier diversity, workplace culture and community engagement. As we participated in these daily themes, we were reminded of why we do what we do.
We are not only Building Excellence in our structures, but we are building excellent communities — inclusive communities in which our team is proud to live, work, participate and give back.
We Build Communities We Are Proud To Live In
What makes someone proud to live in their community? Though the answer is not particularly clear and is not the same for every community, three factors stand out — safety, security and access to health care. Miles-McClellan has built safter communities through projects like the Charlotte-Mecklenburg Police Department and the Mooresville Fire Station 6 in North Carolina
It is our commitment to not only make it easier to protect communities, but also to be a part of the construction of facilities that make it easier for our community heroes to do their jobs and take care of themselves by offering gyms, kitchens, rest areas and recreation.
We have improved access to great healthcare for everyone in Columbus by being a part of projects at Nationwide Children’s Hospital, OhioHealth and Whitehall Heart of Ohio Family Health Center.
Some other important factors in community pride are arts, culture and beauty. We couldn’t be prouder of the work we have done to enhance these community assets, including projects with Franklin Park Conservatory and the Pizzuti Collection Art Gallery in Columbus, Ohio, and the Chatham County Agriculture & Civic Center in Pittsboro, NC.
We Build Communities We Are Proud To Work In
Connection, collaboration, accessibility are assets of great working communities. By building structures that make it easier to commute, park and build strong partnerships, Miles-McClellan is building community pride.
Community pride requires a thriving workforce with access to education and training. Miles-McClellan has led construction projects for all levels of education, from Isaac Dickson Elementary in Asheville, North Carolina to Marietta College’s Harrison Hall in Ohio. And we build offices and facilities anyone would be proud to work in, like the Honda Aircraft Co. World Headquarters and Research Development facility in Greensboro, North Carolina, projects for Scotts Miracle-Gro in Ohio and Proctor & Gamble production facilities in both North and South Carolina.
We Build Communities We Are Proud To Give Back To
We have witnessed how communities have been strengthened through infrastructure, but it is our goal to strengthen them even further through corporate giving, volunteerism and meaningful partnerships.
As a company we support 58 non-profit organizations, provide paid internships and donate to causes important to our employees and clients.
Over the years, we have built a variety schools, hospitals, health centers, libraries, fire and police stations, churches, museums, restaurants, hotels and more. With each project, we have left more than a building; we have left a legacy for every hand, head and heart who helped build these structures and every man, women and child who use them.
Making an IMMPact in the communities we serve is at the core of all our projects, and our commitment to our people, our clients and our communities is unwavering. Contact Miles-McClellan for more information about our projects, our team or our community support.
Miles-McClellan Construction Builds New Heart Of Ohio Family Health Facility, Enhancing and Expanding Access to Quality Health Care for All
Heart of Ohio Family Health (HOFH) has been working in communities throughout central Ohio since 2003 ensuring that all residents, regardless of their education, age, race, ethnicity or income, have access to affordable, reliable health care. In 2017, the City of Whitehall donated three acres of land to HOFH with a mission to help transform Whitehall by building a one-stop health care shop for the entire community.
In 2019, Miles-McClellan Construction joined the mission when it broke ground on the new James B. Feibel Health Center which replaced HOFH’s previous Whitehall location and doubled its capacity.
The new 21,500 SF center, HOFH’s fifth facility in central Ohio, not only allows Heart of Ohio Family Health to serve more patients but also to offer new services with a laboratory, a community room, and enhanced prenatal services, as well as an in-house pharmacy, dentistry and more.
HOFH Chief Operations Officer, Yammah Morgan, said it was a pleasure working with Miles-McClellan Construction. “Their proactive engagement with our administration assured efficient planning and execution of the onsite, project development and engineering aspects and helped the project stay on schedule during the challenges of the COVID-19 pandemic and through a difficult winter.”
The medical office building incudes nine obstetrical and prenatal rooms, 16 medical and behavioral health exam rooms, and patient care rooms allowing HOFH to provide much-needed health services to the community including family practice, pediatrics, women’s health, mental health and substance use disorder treatment, dietetics and nutrition.
“This inviting and state-of-the-art center serves as the realization of our mission to provide high-quality, holistic and compassionate care to meet the health care needs of everyone in our diverse community, one heart at a time,” said Morgan.
The center is named after James B. Feibel, a founding board member of Heart of Ohio Family Health who passed away in 2018. He was known for being an outstanding community leader and an advocate for the underserved.
HOFH recognized Miles-McClellan Construction with a 2022 Giving Hearts Award at this year’s Giving Hearts Celebration. “We were honored to recognize Miles-McClellan Construction for enhancing the access to quality healthcare for generations to come,” said HOFH CEO Dr. Buhari Mohammed, “and to acknowledge their comprehension of our aspirations and their dedication to make it become a reality.”
Miles-McClellan is proud to help this remarkable organization serve more patients and enhance the local community with affordable, reliable healthcare.
It takes a village to build a healthy community, and at Miles-McClellan, we take great pride in being part of the villages we serve. Contact us to enhance your community. We build success by Building Excellence!
Q2 2022 Economic Indicators
In continuing our theme from our 1st Quarter 2022 EI Report, inflation is every owner’s primary concern. As we continue to study trends, we came across an excellent report published by CBRE titled, 2022 US Construction Cost Trends. The newsletter offered several interesting observations and predictions:
- The CBRE new Construction Cost Index predicts a 14.1% year-over-year increase in construction costs by year-end 2022 as labor and material continue to rise in cost.
- Inflation in materials is expected to start to cool toward the end of 2022 and normalize between 2-4% during 2023-24. However, specific supply chain issues and other geo-political risks will continue to cause spikes in some products.
- Labor will continue to be a challenge as we have four significant trends colliding: a dramatically smaller talent pool resulting from the great recession, an aging industry workforce with 20% of our workers being 55+, the lowest national labor force participation rate ever experienced in the US, and a rise in competition for people from other growing industries such as logistics.
This information shared by CBRE fits precisely with what Miles-McClellan is experiencing as we continue bid projects. Below are three specific examples supporting the above analysis, where we bid either an entire project or a particular product 2 separate times in a short timeframe:
- During the first quarter of 2022, we had the opportunity to bid on a school HVAC renovation project twice. The owner experienced a 9% increase in total project cost over that short 90-day period.
- Between the fourth quarter of 2021 and the second quarter of 2022, we bid on an office building renovation/addition project two times, experiencing a 6% increase in total construction costs over 7 months.
- Lastly, we bid on an operable wall package twice during a 5-month window between December 2021 and April 2022. This owner experienced a 90% spike in price without any change to the scope or material of work.
Our goal is to inform you, our clients, of current construction trends. We will continue to monitor information being predicted industrywide and share specific cost data that Miles-McClellan experiences as we navigate our changing economy.
The IMMPortance of Having an IMMPact Team
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.