North Carolina Construction Archives - Miles-McClellan Construction

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:

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

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

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!

2024 Q2 Economic Indicators

mmcrebuildstg on October 3, 2024

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: 11^th 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

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 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!

Building Communities: The Importance of Exceptional Construction in the Public and Municipal Space

mmcrebuildstg on July 8, 2024

“Working with Miles-McClellan on Fire Station No. 6 has been a great team experience all the way through design and well into construction. They have demonstrated their ability to perform on previous projects and have continued to deliver. It is great working with a trustworthy contractor that wants to do what’s right for taxpayers and stakeholders.”
Christopher Wyckoff
Facilities & Construction Director
The Town of Mooresville

With every construction job, we are focused on building excellence, because we know that transforming spaces in a community can also transform lives.

Nothing drives this point home more than the work we have performed in the public and municipal sectors. This type of construction, and these structures, are critical for community development as they provide essential infrastructure and services. However, they come with a unique set of challenges that must be considered, which includes handling tight budgets, securing funding sources, obtaining the necessary permits and approvals, managing the expectations of stakeholders and staying compliant with numerous laws and regulations. At Miles-McClellan Construction, we have decades of experience managing these types of projects, and have a deep understanding of municipal codes, funding and how to work well with the municipal team.

Here are some strategies that have served us well when working with public and municipal projects:

Plan Thoroughly and Keep the End Goal in Mind:

Municipal projects usually begin with very clear goals and a firm budget. At Miles-McClellan Construction, we always ensure that we maintain open communication with all involved in a public or municipal project, including members of our team, stakeholders, any public officials involved, architects, design teams, etc., to keep everyone on the same page at all times. It’s important to establish the full scope of a project and make sure that it is realistic with the time and funds allotted. It’s also necessary for the construction team to understand current industry trends that could affect aspects of the project, for example, supply chain issues. This level of awareness gives way to foresight which allows construction project managers to communicate these potential issues to all involved and find creative solutions before it becomes a bigger problem.

Compliance is Key

Compliance with public and municipal projects is crucial for ensuring that projects are completed safely and in accordance with established standards. Construction companies need to confirm compliance with local building codes, be familiar with local laws and regulations and understand how to obtain the necessary permits. Some cities also have environmental rules and regulations that must be followed when working on a construction project.

Prepare for the Unexpected

Even the most well-planned construction projects can encounter obstacles, and that applies to public and municipal construction as well – just ask anyone who was waiting for government funds to begin a project when the pandemic hit in 2020. We highly recommend having a contingency plan that maps out potential risks and possible solutions. It could ultimately save a project thousands.

Check out two Miles-McClellan Construction municipal projects that ended up improving their respective communities:

Need assistance with your next public or municipal construction project? Then contact Miles-McClellan Construction today and we’ll do our part to help your community shine even brighter!

2024 Q1 Economic Indicator

mmcrebuildstg on June 11, 2024

Contrary to earlier predictions of a recession in early 2024, the AIA and FMI now suggest a potential slowdown in the back half of 2024. While our indicators do point to a deceleration, our internal data and anecdotal evidence consistently demonstrate the robustness of the construction industry, which does not align with the notion of a significant downturn.

To summarize the AIA and FMI reports, they expect an increase in construction spending between 2-3% in 2024, followed by a rise of 1% in 2025. Accounting for the anticipated slowdown of construction over the next two years, the AIA points to three factors that, when combined, cause banks to tighten up lending, resulting in difficulty in getting projects started:

Rising long-term interest rates.
Higher construction input costs with input prices remaining 35% to 40% higher than pre-pandemic rates.
Construction labor costs are continuing to rise at a 4% annual pace.

Despite the AIA Billing Index remaining below 50 for 9 consecutive months and the Dodge Momentum Index staying low for the past 10 months, the Charlotte and Columbus construction markets are still brimming with potential. Contractor backlogs, as measured by ABC and FMI, saw an increase at the end of Q1. This positive trend is mirrored at Miles-McClellan, where our backlog is higher today than it was at the end of Q1.

As you read the full report, you will learn more details about these numbers and trends.

Recent MM Bidding Experience

Immediately below is a summary from one recent bid effort, but it indicates what our teams are experiencing as they continue to price projects for our clients actively.

Sharing a recent bidding experience, Brad Bloomberg, MM Vice President, expressed, “Our most recent bid was for a local office remodel in downtown Columbus. The project primarily focuses on updating elevator lobbies, restrooms’ finishes, lighting, and ceilings. We had a prequalified list of limited subcontractors invited to the project. While the coverage was average on drywall and fire suppression, we received feedback from painters, electricians, and HVAC contractors that they were too busy with the existing backlog over the summer months to take on any new work.”

Painting: 2 bidders of the 7 invited.
Electrical: 2 bidders of the 10 invited.
HVAC: 1 bidder of the 10 invited.
Flooring: 2 bidders of the 6 invited.
Drywall & Demo: 4 bidders of the 5 invited.
Fire Suppression: 3 bidders of the 6 invited.

This level of bidding activity is typical for the summer months. We will monitor the trends and report on contractor backlogs in Q3.

Read the Report

Miles-McClellan Construction Director of Field Operations Steve Parsons Discusses the Benefits of Owner’s Representation in Construction

mmcrebuildstg on May 30, 2024

Construction projects are complex and require effective management of many different moving parts, such as groups of subcontractors, estimating costs and supervising work to ensure it is of the highest quality. Our owner’s representation services offer support during the planning, design and construction cycles of a project, and allow a project to meet the owner’s expectations in terms of scope, quality, schedule and budget. We customize our owner’s representation services to be flexible based on the owner’s needs, and the owner decides how much involvement and decision-making authority we receive. This leads to exceptional results with a project completed on schedule and on budget.

In this interview with Miles-McClellan Construction director of field operations Steve Parsons, learn about his experience being an owner’s representative and how it has allowed him to “save the day” for his clients.

Let’s Hear More From Steve Parsons:

Q: What experience do you have as an owner’s representative on projects?

A: Greasecycle’s Charlotte facility was my first assignment as an owner’s representative. I look forward to my next opportunity as an owner’s representative.

Q: Why do you like being an owner’s representative for clients?

A: As a contractor, it is rewarding and challenging to experience the owner’s vision and assist them with their project’s planning, financial and schedule goals.

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

A: Experience. I have fourty-four years of commercial construction experience with a diverse and long list of successful projects.

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

A: During COVID-19 and Greasecycle’s project, we were advised that the lead time for the electrical switch gear equipment would be twenty-eight months after it was approved and released due to severe supply chain issues. This was unacceptable for a project with a goal of completion within nine months. Through my electrical supply contacts, I sourced a used and refurbished switch gear from a supply house in California and finished the project by the nine month deadline.

Q: Do you have any specific advice for those in the construction industry working as an owner’s representative for clients?

A: Be a good steward. Treat concerns and your client’s money like you would your own. Think outside the box of a typical contractor and bring creative solutions to the table. Listen to the owner’s concerns and draw down on all your experience. Pride the owner with your professional advice. Advise the owner of the risks before they become a problem. Always be fair but firm with everyone.

Do you want to make sure your next construction project goes smoothly, on time and without numerous unforeseen obstacles? Then learn more about our owner’s representation services and contact us if you have any questions.