Ohio Archives - Miles-McClellan Construction

We Change the Spaces That Change Lives

mmcrebuildstg on November 22, 2023

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

mmcrebuildstg on November 15, 2023

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

mmcrebuildstg on November 7, 2023

“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

mmcrebuildstg on August 23, 2023

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.

CCS, PrimaryOne Health Celebrate Opening of School-Based Health Center

mmcrebuildstg on August 18, 2023

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!

Fourth Quarter Economic Indicator – Looking Ahead

mmcrebuildstg on March 7, 2023

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.

Self-Performing Various Trades Offers Many Project Benefits

mmcrebuildstg on February 11, 2023

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.

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!

Q3 2022 Economic Indicators

mmcrebuildstg on November 3, 2022

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

mmcrebuildstg on November 2, 2022

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.