From Concept to Completion: The Value of Owner’s Representation Services in Commercial Construction

mmcrebuildstg on April 19, 2024

“The money spent on representation was paid for by speeding up the project and reducing unnecessary costs due to preventable delays.”
Dylan Gehrken, Founder & President Greasecycle LLC

Commercial construction projects are complex and involve multiple moving parts. Tasks such as organizing logistics, estimating costs and supervising the quality of work take time and experience. The result if not done correctly? Construction mistakes that can cost an owner millions and completely derail critical deadlines and schedules.

At Miles-McClellan Construction, we consider ourselves an extension of your team, and our owner’s representation services offer full support and service throughout the lifecycle of a construction project. We offer these services at varying levels based on your needs, and as the owner, you decide how much involvement and decision making authority we have as your representative.

Our owner’s representation services include the following:

Team Building- Creating a cohesive construction team you can trust.

Budgeting- Providing accurate and conservative budgets.

Inspections- Evaluating quality and specification conformance.

Schedules- Monitoring timelines and managing decisions.

Meetings- Meetings allow us to make client needs our focus and priority through the entirety of a project.

Discover How Our Owner’s Representation Services Allowed Greasecycle® to Save Money and Reduce Stress

Greasecycle®, a company that provides comprehensive grease services and sustainable waste solutions, partnered with Miles-McClellan Construction on a new 9,000 SF recycling facility for cooking oil and grease trap waste in Charlotte, NC. This project included the complete renovation of an existing building, site work, new process equipment and below ground storage tanks. Through our owner’s representation services, we guided them throughout the project in the following ways:

Permitting- Miles-McClellan Construction led the design team in securing permit approval from the County’s zoning, traffic, civil, architectural, mechanical and electrical departments. We also worked closely with the County Fire Marshals to secure their approval.

Team Formation- We vetted, selected and interviewed all contractors to build the best possible team. We ensured that there were industrial process professionals on-site and managed every part of the construction and the process systems to maintain timely project completion.

Change Order Review- We required all change order requests to be broken down in detail and thoroughly reviewed to ensure fair costs for additional requested work.

Contract Resolution- Miles-McClellan Construction resolved all contract disputes by leading all negotiations without the need for expensive legal actions.

The Result? Owner’s Representation That Paid for Itself

Our owner’s representation services saved Greasecycle® 7%, a total of $457,330, of the overall construction budget by dividing all work into numerous contract packages and providing thorough and detailed scope descriptions and schedules within the bid packages to the prospective contractors. Pretty impressive when you consider that our fee was $164,185!

Check out our case study to learn more about his project.

Our owner’s representation services keep our clients covered from beginning to end of a construction project, regardless of size or scope. If you’re ready to build excellence with owner’s representation services that allow you to save big and stress less, then contact our team!

2023 Q4 Economic Indicator

mmcrebuildstg on March 5, 2024

2023 Q4 Economic Indicator The follow excerpt it taken from the FMI 2024 North American Engineering and Construction Industry Overview, First Quarter Edition.

“Best case assumptions for our forecast is for a recession in 2024, likely sometime during the first half of the year. These expectations are based on a range of predictive economic indicators, but especially the inverted yield curve. The duration of the economic contraction will depend on the U.S. policy response, but as with historical cycles, the impact on the construction industry will likely be longer lasting.”

All the lead indicators presented in our Q4 2023 Economic Indicator continue to reflect a downward trend and support the statement made by FMI above. Additionally, what we are experiencing in the market only supports this story further.

  • We have watched private bidding opportunities almost completely dry-up. We attribute this to current interest rates, owners’ fear of a recession, and the sheer number of vacant office spaces available.
  • With less private bidding opportunities we have had to jump into the public bid market which makes up just over 90% of our total bid opportunities. For the first two months of 2024, in both Columbus and Charlotte, we have seen an average of 6-8 general contractors per bid list, when a year ago at this time there were only 2-3 bidders per list.
  • Our teams have also seen a wider geographic area of subcontractors bidding on projects. Previously our subcontract bidders were contained to the Columbus market. Now we are receiving bids from subcontractors we have never received bids from before, including out of state firms from West Virginia, Michigan, Indiana, and Illinois.
  • Additionally, the sheer number of bids that we are receiving per subcontractor trade has more than doubled. Previously, we would receive 2-3 bids per trade category, and now we are receiving 6-7, the only exception being mechanical, electrical and plumbing. We are still only receiving 2-3 subcontractor bids in these skilled trade categories, and we assume that is because of a shortage in skilled labor in Columbus driven by the number of large, technical projects.

Using Our Construction Experience to Build Excellence

mmcrebuildstg on August 1, 2023


Building excellence and exceeding client expectations has been our core philosophy for over 45 years, and it is our exceptional team that allows us to accomplish this mission. Throughout the years, our team members have worked on a magnitude of different complex projects for clients of all sizes in all industries. This provides our clients with many advantages. Whatever your construction project or needs, we have the skills and expertise to ensure your satisfaction!

Let’s explore how we can make our construction experience work for you.

Diverse Expertise

From residential, commercial, healthcare, higher education, manufacturing, and hotels, we have done it all!  Having this knowledge and experience allows us to handle different project complexities and requirements effectively. Wherever there is a construction challenge, we have a smarter construction solution.

We Know the Industry

Our range of experience means we know the intricacies of a variety of industries and their environments. Every industry has unique needs that must be met, best practices that must be observed and certain technology that is required to help operations run more smoothly. We have had years of experience working within these different guidelines depending on our client, which is why we are confident we are more than prepared to handle even the most complex details of your construction project.

We Build Lifelong Relationship

Being a top construction company since 1978, and having numerous team members with a vast array of broad construction experience, means we have built strong relationships with our clients, suppliers, subcontractors, architects, engineers and other industry partners. This also allows us to provide a variety of different services that other construction companies can’t offer. Whatever your dreams are for your next construction project, we know an expert that can turn that vision into a reality!

Efficient Project Management

Having broad construction experience means our project management systems and processes have been refined to be as efficient as possible. Every Miles-McClellan project is guided by some of the most respected and experienced construction professionals in the industry along with an IMMPact team that shares insights and knowledge with each other to achieve building excellence.

Client Satisfaction is Top Priority

Experienced construction firms recognize the significance of pleasing the client. This is why at Miles-McClellan Construction, we stress communication, transparency and collaboration throughout the life of a construction project. We want to know all of our clients’ needs, get their feedback and help them with tough decisions. This results in building lifelong relationships.

How can our broad construction experience make your next project a success? Contact us and let’s work together to find out!

Exceptional Design-Build Services Start With Exceptional Leadership

mmcrebuildstg on May 29, 2023

Design-Build Services

At Miles-McClellan Construction, we know that great leaders achieve great results. This is why our design-build construction projects are guided by experienced project leaders and strategically mapped out by an integrated, cohesive IMMPact team that holds each other accountable to building excellence.

With design-build construction projects, a design-build firm such as Miles-McClellan Construction works with our architect partner as they are designing the project. This approach offers several benefits, including enhanced coordination of materials, improved communication, efficient scheduling, increased project speed and better oversight and control. Let’s explore the process involved with design-build projects, and why it’s quickly becoming the top project delivery method.

Scheduling

At Miles-McClellan Construction, we always strive to complete projects on time. We make sure we understand project goals early, and always communicate risks to the whole team from the very beginning, which increases the opportunity for savings and efficient planning. Using the design-build integrated approach allows the construction schedule to be developed concurrently with the design process and identify potential bottlenecks. During design and pre-construction we also analyze the marketplace for current labor force availability, material order backlogs and current/future bidding schedules of major projects in the area. This gives us the opportunity to time our bid around the surpluses to ensure the most competitive pricing.

Coordination of Materials

For our design-build projects, our IMMPACT teams start collaborating from the early stages. This collaboration enables us to identify and select the best materials for your project, and stay on budget and within schedule. Material purchasing requires taking several different factors into consideration, such as availability, cost-effectiveness, sustainability and staying compliant with building codes and regulations. Working in sync throughout this process allows us to streamline material procurement, reduce delays and have materials delivered on time to your construction site. We also

Communication

Communicate, communicate, communicate! Effective communication is crucial in design-build projects, which is why our IMMPact team approach is incredibly effective. It promotes knowledge sharing and enables our team members to trust one another and collectively hold each other accountable to build excellence and ensure client satisfaction. This efficient communication helps address potential issues, minimize delays, resolve conflicts and keeps everyone informed throughout the project.

Completion, Oversight and Control

Our integrated design-build approach means that we are responsible for overseeing and controlling the entire project from start to finish. This provides a higher level of accountability, and also gives us the authority to make decisions promptly, resolve issues promptly and ensure that the project is completed on time and within budget. Construction is a puzzle with many solutions, some of which are more cost effective than others.

Led by talented, experienced leaders and our IMMPact teams, design-build construction projects offer enhanced coordination of materials, streamlined communication, optimized scheduling and the assurance that our clients receive a high level of excellence and customer satisfaction from pre-construction to the ribbon-cutting ceremony.

Are you ready to make an IMMPact with your next design-build project? Then contact Miles-McClellan Construction and discover how we can help you build excellence!

Fourth Quarter Economic Indicator – Looking Ahead

mmcrebuildstg on March 7, 2023

2022 Q4 economic indicators
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

mmcrebuildstg on December 14, 2022

 

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

mmcrebuildstg on November 3, 2022

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.

Q4 2018 Economic Indicators

mmcrebuildstg on February 6, 2019

We know a recession is coming, but we do not know when. In the 2019 FMI Overview, FMI reminds us that now is the time to prepare for the next downturn while the market is still good. To prepare, FMI put together a list of the top lessons learned from the last recession.

  1. Do not wait too long to make any hard decision you have been deferring.
  2. Find your sweet spot and do not just follow the herd.
  3. Work on the new, envisioned future and set the strategy for post-recession success.
  4. Get a grasp on “incremental economics” like revenue, margin, and overhead.
  5. Maintain a healthy balance sheet in the context of growth plans.
  6. Get positioned in your market early.
  7. Get more feet on the street.

We are looking ahead and cautious, and we will be ready when the recession hits. Will you be ready?

Q3 2018 Economic Indicators

mmcrebuildstg on November 6, 2018

Executive Summary

The labor shortage over the past years has caused wages to escalate. According to a report by Zillo Research, at the start of 2017, wages for construction-industry workers were growing slightly slower than wages for other workers – around 2.5% per year. But they are now growing 3.8% per year. This is happening for both skilled laborers and salaried positions. Anirban Basu, ABC’s Chief Economist, states in a Nov. 1 construction employment news release, “one potential cause for concern is growing evidence that wages have begun to rise much more rapidly of late. That, along with other sources of inflation, can be expected to push interest rates higher, which in turn would ultimately translate into more expensive financing for construction projects and fewer construction starts. But for now, it is all systems go for the U.S. nonresidential construction industry.” We’ll be keeping a close eye on how this might impact the industry.