Q1 2022 Economic Indicators
In our last issue of the Economic Indicator Report, I cited several issues that will dramatically impact the economy in 2022. Specifically, 4 issues were noted by Anirban Basu, Chief Economist for the Associated Builders and Contractors Association:
- less growth in federal spending,
- ongoing global supply chain disruptions,
- rampant worker shortages, and
- an increasing cost of capital.
Implied but missing from the list above is inflation. Because our clients will face inflation challenges, we plan to present specific job cost data throughout 2022 and 2023. Every chance we get to reprice a project, we will share our findings.
This quarter’s case study today is a hotel – the same hotel brand; basically, the same building – built between March 2019 and March 2020 and then repriced in May 2022 (2 years apart). The costs exclude all site work costs to keep the percentage increases as close to apples-to-apples as possible. Over those two years, we experienced and shared with our repeat client a 38% increase in total project cost
Here are few key components of that increase:
I started by looking at structural elements:
- Concrete +95%
- Masonry +74%
- Structural steel +49%
- Carpentry and Framing +117%
Then I immediately jumped to the MEP trades:
- Fire Protection +140%
- Plumbing +19%
- Electrical +4% (we eliminated the structured cabling)
- Mechanical +75%
We have achieved an overall increase of 38% by finding other ways to reduce scope and find additional efficiencies. It is important to note that this is the same hotel brand; however, design changes were made with the final budget in mind. I am afraid that a true building to building comparison would have resulted in some factor much greater than 38%.
In preparation for our next EI issue, we will rebid a set of drawings for a project that we bid and built 1 year ago. I look forward to learning and sharing these results.
Miles-McClellan Construction Helps Charlotte-Mecklenburg Police Department Advance City’s Sustainability Goals with New LEED-Certified Station
When the city of Charlotte, NC set out to replace its leased University City Division Police Department building with a permanent facility, they did so with a goal to enhance the quality of life for Charlotte residents and department employees and to meet the city’s ambitious sustainability goals.
Reducing environmental stress and improving employee safety and wellbeing were priorities for CMPD. The CMPD University City Division relied on the experts at Miles-McClellan Construction to deliver sustainable solutions that would help them earn LEED certification at their new space.
LEED certification is a globally recognized symbol of sustainability, achievement and leadership, and LEED-certified buildings save money, improve efficiency, lower carbon emissions and create healthier places for people. To achieve LEED certification, a project earns points by adhering to prerequisites and credits that address carbon, energy, water, waste, transportation, materials, health and indoor environmental quality.
Miles-McClellan got to work building the 16,000-square-foot, two-story police station implementing green construction processes and sustainable features including UV solar panels, underground rainwater management, high efficiency geothermal heating and cooling systems, advanced thermal and moisture protection on the building envelope, construction waste diversion from landfills and the use of recycled materials for construction.
In addition, the new police station encourages green initiatives with access to transit, bicycle facilities, green vehicle parking, electric vehicle charging stations, a green cleaning and integrated pest management policy, an optimized mechanical system for energy performance, low emitting materials, interior lighting controls and low-flow water fixtures.
The health and safety of CMPD employees was crucial in the design of the police station as well. Not only does the building provide enhanced indoor air quality and access to health and fitness, but reinforced concrete walls, insulating concrete forms, structural steel, steel joists and metal deck roof framing offer a solid, efficient and safe structure for the Charlotte-Mecklenburg Police Department. “The place is literally bulletproof,” said Steve Parsons, Miles-McClellan’s director of field operations.
The project received LEED Gold certification and is projected to have total energy cost savings that will be greater than 59%, resulting in an economic benefit to the city and a reduction in greenhouse gas emissions — and the Miles-McClellan Construction project came in on budget with zero safety violations.
“Our newly certified LEED facilities will accommodate the current and future needs of CMPD and further advance the city’s sustainability goals,” said Charlotte Mayor Vi Lyles. “These achievements mean we truly are setting the example for a low-carbon and resilient future while increasing the quality of life for all Charlotte residents.”
Miles-McClellan is proud of our work leading this environmentally friendly initiative. With every project, we are on a mission to improve communities and the lives of the residents that reside in them.
How can we help you protect the environment and the residents in your community? Contact Miles-McClellan Construction to learn more about LEED-approved design features and let’s work together to build excellence on your next project!
