Leading by Example: On and Off the Jobsite

Posted on | by Savannah Sokol

 

With three kids in tow, I’m not nearly as productive as I’d like to be when working around the house. There’s only so many hours in a day and while slowing down to involve them is 100% necessary, it can also be very challenging. For the past few weeks, we have been trying to install a fence to prepare for the goats we’ll be getting -- at the kid's request, of course. Kade, Kinsley, and Kam like helping, and swinging the hammer when we get a new post set is what they enjoy most. They’ve all watched me pound nails in a hundred times and love to get their own opportunity to do the same. This particular story starts with Kam’s turn -- he’s three, for those keeping track.  

Imitating me, he held the horse shoe nail up on the post to fasten the fence; he swung the hammer and...

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Making Sense of the Latest Cost Data

Posted on | by Savannah Sokol

 

A common sentiment we seem to keep hearing is, "We're holding on any new development until construction costs come down." And while we know it will be fantastic when that day comes, the question of when that will be hangs heavy. Recent data tells us… something, right?

Unfortunately, we’re not seeing much relief anywhere right now. Things don’t seem to be getting worse, but they’re not getting better either. It seems that we are all still waiting for that “bottom falls out” moment, which hasn’t happened yet and some construction economists are backing off on predicting when it will. Predictions have shifted a possibility of the “Soft Landing”, which doesn’t really help prices. Recently The Douglas Company attended National Construction Financial Management Association (CFMA) Conference where their spoke, with the sentiment "It's going to get worse before it gets better," and "Recessionary conditions will prevail at some point over the next...

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The Emerging Role of AI in Pre-Construction

Posted on | by Savannah Sokol


This year kicked off with promising developments and displays of artificial intelligence (AI) – namely programs such as ChatGPT and Remini. From software developers to photo editors to writers, there has been a question of what role this technology will play throughout their respective industries. And while the construction industry is historically slow on the uptake when it comes to technology, it’s clear that artificial intelligence is here to stay and is already making waves.

As a whole, AI is a technology that uses large amounts of data to solve problems, but where does that fit into the future of preconstruction?

Well, in reality, a form of AI has been involved in pre-construction since the mid-2000s: Building Information Modeling (BIM). The technique of clash detection is a model that combines the MEP’s structural, and architectural plans into one digital model allowing the design team to address conflicts between the various...

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How The Douglas Company Mitigates Murphy’s Law

Posted on | by Savannah Sokol

 

The call from my superintendent came in at about 7:00 am. This was a little earlier then our normal daily call, so I knew something was wrong. Upon answering the phone, I was immediately informed we had a plumbing leak. I asked where the leak was and my superintendent answered “In the model unit.” 

The model unit was fully furnished and it was where the sales staff gave daily tours to prospective residents. To make matters worse, the facility had their grand opening scheduled in just a few days.  Multiple members from the owner’s company would be at the grand opening and would be touring the model unit.

We quickly reviewed the damage and discussed what trades we would need to get scheduled to make repairs.

We would need the plumber to fix the leak, the drywaller to replace the damaged drywall, the insulator to replace the insulation that had gotten wet, the...

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What’s Happening with Material Pricing?

Posted on | by Savannah Sokol

 

Over the past few years, there have been frequent discussions with our clients related to what we are seeing in the market when it comes to material and subcontractor pricing.

Since the pandemic, material pricing has been an extremely volatile part of our industry. These changing conditions have required everyone to adopt various strategies to get deals done. These strategies range from forms of procurement to combating escalation and much more.

As you can see in the table below from US Bureau of Labor Statistics, pricing is up substantially from where it was pre-pandemic. Overall project costs are up over 34% depending on type of construction. The table also indicates that continuous inflation has had a heavy impact on construction costs. According to the US Bureau of Labor Statistics, the dollar had an average inflation rate of about 5.53% per year between 2020 and today. The result has been a...

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Adjusting Our Sails for Change in the Construction Industry

Posted on | by Savannah Sokol

 

I heard a quote recently that stuck with me: “We cannot change the direction of the wind, but we can adjust our sails.”

Whether it’s the sea breezes off the Atlantic Ocean or Gulf of Mexico, storms coming out of the Caribbean, or fronts dropping in from the north, the winds in Florida are continuously changing. Adjusting for changes in the construction industry can be a lot like adjusting your sails for the wind.

For example, on June 1, 2023, a significant number of people boycotted work, travel, shopping, school, etc. in protest of Florida Senate Bill 1718. I spoke with several contractors who work around the state and all confirmed what we were seeing on our projects as a result – manpower was down 50-75% in a single day. Situations like this affect our projects, changing rapidly without notice – just like the Florida winds.

So, the question is: What do...

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Construction Development Continues to be a Game of Whac-A-Mole

Posted on | by Savannah Sokol

When I googled Whac-A-Mole to see if there was a “definition” beyond the arcade game most of us are familiar with (and to confirm the game did not have the letter K in its spelling), the internet did not disappoint...

Here it is:

A situation in which repeated efforts to resolve a problem are frustrated by the problem reappearing in a different form

If that doesn’t illustrate the overall theme of new construction development projects over the last couple years, I challenge you to find a better analogy. 

I’m sure you’re probably thinking, “when exactly HASN’T it been a game of Whac-A-Mole when developing new projects?”  There has always typically been one hurdle or another that is slowing down or preventing projects from proceeding or at least making us (Owners, Architects, and Contractors) think a bit harder on how to get it done. Instead...

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3 Things to Consider for Long Term Planning

Posted on | by Savannah Sokol

To be honest, until recently I hadn’t given much thought to long term health care… That changed when my mom was admitted to the ICU and told she wouldn’t be able to live alone in her house anymore.

Now, I think about it a lot. 

I’ve always had this picture in my head that when my parents got older, they could just move in with me and it would be no big deal. After all, it’s just another adult in the house right?

Turns out, it’s a bit different than that. 

First, my mom doesn’t function like she did before she was admitted.  Before, she could cook on her own, do her own chores, and take care of herself. Now, she has lost a lot of strength, has difficulty walking anywhere on her own, and she should be supervised while she’s moving about.

Second, I never imagined the amount of knowledge I’d need regarding medications....

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Conventional Hold-down Hardware vs. New Tie-down Systems

Posted on | by Savannah Sokol

When it comes to anchoring building components in wood-framed structures, there are two primary options to consider: conventional hold-down hardware and new tie-down offerings from either QuickTie or CLP. While both methods have their advantages and disadvantages, the trend in the framing world seems to be pushing more toward the new tie-down systems.

Conventional hold-down hardware typically involves using screws, bolts, straps, and lots of nails to secure the hardware to the framing components.  This can be an effective method, but it can also be labor-intensive and time-consuming, especially when dealing with larger or more complex wood-framed structures.  In addition, the use of traditional hardware can sometimes lead to damage or deformation of the material being held down, especially if excessive force or nails are applied or installation is sloppy.  Also, traditional hardware has little flexibility on tolerances and does nothing to address wood shrinkage and building settlement.

Quick tie...

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Demand for Active Adult Housing Continues to Outpace Supply

Posted on | by Savannah Sokol

Active adult or age-restricted housing continues to experience strong growth, while multifamily housing development is showing signs of slowing. The active adult market hasn’t yet been flooded by national developers, leaving opportunities for real estate investors and developers who want to enter this exciting market. Active adult housing has experienced year-over-year growth every year since 2012 without any signs of slowing down, and with Baby Boomers beginning to retire and downsize, now is the perfect time to consider active adult.

Nearly all of the approximately 75 million Baby Boomers are already over age 55. As Baby Boomers begin to retire, many are looking to downsize and start a new lifestyle. However; most are not ready for assisted living or traditional senior living communities. Today’s seniors are looking for simpler lifestyles featuring single-story floor plans with little to no maintenance.  Community amenities like walking trails, clubhouses, and activities are located close to...

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What I Enjoy About Construction

Posted on | by Savannah Sokol

This year marks 10 years in the industry for me, which on one hand feels like 20 years, and on the other, it feels like just yesterday I was graduating college. I was recently asked “What do you enjoy about construction?” so this made me take a minute to reflect on the past 10 years.

Honestly, the day-to-day in construction is grueling. As general contractors, we are focused on keeping the project moving so we are always dealing with resolving issues. Once you solve the problem you are working on, it’s on to the next one. This process repeats really until the project is complete. Sometimes it feels like an uphill battle but that is just the nature of the beast.

So to answer what I enjoy about construction, I was drawn to the process it takes and the impact it has on so many different people. The most enjoyable part of...

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The Movies and Senior Living Development

Posted on | by Savannah Sokol

Twenty years ago everyone would ask me why I didn’t do development on a personal basis. Development is different from construction. I understand the risks of construction, but I don’t understand those of development very well. So I would Forest Gump my way through it, thinking “Stupid is as stupid does,” knowing I am not an expert in development. It was meant to add humility and levity, not to intimate that those who do development are stupid. A better quote would have been from Clint Eastwood, who said “A man’s got to know his limitations.” I did, and I do.

About fifteen years ago a good client and friend asked if I wanted to invest in a project he was developing and we were building, so I did on my own, not as The Douglas Company. I have since invested personally in several projects, always as a relatively small percentage, with...

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Managing Subcontractors Compared to Coaching Basketball

Posted on | by Savannah Sokol

This week basketball practice started for my son’s 1st-grade team, The Clippers, whom I get the opportunity to coach. At first glance, outside of the very dissimilar physical differences, I thought I was in one of our weekly subcontractor progress meetings. Four kids locked in and focused on having a productive practice. One kid did not want to be there, two kids wanted to complain about everything, two showed up for the snack at the end of practice and one kid showed up 10 minutes late.  Yes, this season will be the constant herding of cats but then I laughed, went home, and told my wife I do this every day. Our job as the general contractor is to take the constant chaos and charter a path for everyone to follow. Below are the eight principles The Clippers are focused on this season followed by a description of how each...

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Technology in Construction for 2023

Posted on | by Savannah Sokol

Thanks to the surge in attention to construction technology over the last few years, our once dark and analog industry has benefited from many tools that help produce higher quality projects more efficiently. Here are some of the solutions The Douglas Company is making a focus this year:

  • Scheduling Software - Supply chain issues and workforce shortages are expected to continue in 2023, and without a detailed and outstanding project schedule any project is going to suffer from inefficiency and lost time. As schedules get more complicated, tools that help understand their data and the effects of one task on another. The Douglas Company uses SmartPM, a web-based tool that tracks changes between schedule versions, availability of float, compression, and overall health of a schedule. This gives our project managers more information to help prioritize work on-site and focus on the right work areas.
  • Project Photography - Pictures tell a thousand words,...

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Effective Teamwork Makes the Dream Work

Posted on | by Savannah Sokol

Some of the best teams in sports history had some Hall of Fame individual players on them. But if you don’t have a collaborative group working toward the same goal and carrying their weight, finding success can be elusive.

The same goes for preconstruction planning and execution. Owners/developers first need to align with the best partners/teammates they can regarding design, engineering, construction, operations, etc.  Best practices dictate having as many members of the development team as possible present for O/A/C calls. When this happens everyone is up to speed on what their deliverables are and when they are due; decision-making is more efficient; brainstorming resolutions to hurdles is more productive and it also makes the next call more efficient without backtracking on items that have already been discussed.  Preconstruction coordination should not be done in a vacuum. When we see that not all the key team members are present on...

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Five Charts for Construction in 2023

Posted on | by Savannah Sokol

A recent article shared in Construction Dive contained some great information we wanted to share. Just when it seems like we are all exhausted with pricing news, more comes available that pulls us right back in. The article features five charts that give some indication of the state of construction today, and where it might head. Take the time to read it  ̶  it’s worth it  ̶  then take a look at our commentary below. 

https://www.constructiondive.com/news/5-charts-hint-at-whats-in-store-construction-economy-2023/638059/

From our standpoint, we are seeing the following on these issues:

  1. Architectural Billings - Our design partners are still quite busy in certain areas and sectors, particularly multifamily, yet we do know firms that have already incurred staff reductions. This is an index we watch closely.
  2. Construction Backlog - We have had a record backlog in 2022 like many contractors, and talk of our trade partners becoming more available hasn’t come yet - Especially the specialty trade...

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It’s Not Like It Used to Be

Posted on | by Savannah Sokol

Have you found yourself saying “It’s just not like it used to be”? I hear this a lot lately and if I am being honest, I have said it a couple of times myself. It seems like challenges just keep on coming. First, we had the Covid lockdowns, then the lumber shortage, now inflation, and as I write this we are on the brink of the next crisis…the rail line strikes. One thing is for sure, it’s NOT how it used to be.

But that is why I love construction. It’s never the same. If I wanted to do the same thing day in and day out I would find another occupation. New challenges are what make us grow and the ones who can adapt are the ones who will succeed.

No two projects are alike. It doesn’t matter if it’s senior living, multifamily, or commercial construction. It doesn’t even matter if...

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Consider The Real Cost Before Delaying Your Project

Posted on | by Savannah Sokol

Developers understand the many reasons construction projects get delayed. Financial challenges can bring a project to a standstill in the face of interest rate increases and material and equipment price volatility. There is also the ongoing challenge of finding sufficient manpower to get the job done and the weather is a factor here in the Midwest.

In the current economic environment, you may consider delaying your construction project. But before you make that decision, consider the compelling reasons to forge ahead. Being a developer is always risky and challenging. With the volatility affecting the industry today, it is important for developers to thoughtfully proceed, as opposed to delaying projects. Some perceived challenges can actually present opportunities.

Longer lead times can provide greater flexibility, which enables you to source building materials at the best possible cost. Lead times for many construction materials remain longer than normal, so think months versus weeks. Lead times...

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The Impact of Hurricane Ian on the Construction Marketplace

Posted on | by Savannah Sokol

It has been 60 days since Hurricane Ian hit Southwest Florida and left its path of destruction across the state. Ongoing surveys estimate that 20,000 homes in Lee County (Fort Myers) have been destroyed with another 2,500 in Collier County (Naples). The City of Fort Myers alone estimates their storm damage to be $600M!  Lee County has reported they have reached the milestone of 1 million cubic yards of debris removed and estimates another 3 million cubic yards of debris remains. The magnitude of these numbers is staggering and doesn’t include any after-effects from elsewhere in the state. 

The observed short-term impacts on the Florida construction market have ranged from labor and materials becoming more readily available as those resources have been diverted from stalled or destroyed construction projects to the exact opposite, a disruption in labor and materials originating from Southwest Florida. 

The question most directed to us is what will be the hurricane's...

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The Future of Senior Living

Posted on | by Savannah Sokol

Two weeks ago, I attended the National Investment Center for Seniors Housing & Care (NIC) in Washington, D.C. As always, it was good to see old friends and clients, and interesting to get a read on the industry. There were really no surprises, but it’s good to get intensive confirmation of what’s going on. 

Senior living development is really a somewhat bifurcated proposition at this point.  Though we are still building and have recently started a number of assisted living/memory care (AL/MC) projects, most of the developers are not bullish on this sector right now. Operating costs are up dramatically, interest rates and construction costs continue to rise, occupancies have not fully recovered, and rents have not yet risen to cover the increased expenses. There are some AL/MC developers that think that they just need to forge through, that it’s just a bump in the road and all will be good,...

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