Construction Industry to see More Collaboration Next Year

Construction Industry to see more collaboration next year by Bill Olson (Senior Project Manager-Wise Construction)
Banker and Tradesman-Commercial Real Estate

December 31, 2007

(Bill Olson is Senior Project Manager at Wise Construction, one of Greater Boston’s premier construction management firms specializing in healthcare, biotechnology, education and corporate clients. For more information, visit www.wiseconstruction.com.)
 
This coming year, construction managers will bear witness to several industry standards and practices that have been gaining momentum within the construction industry over the past couple of years. Strategies concerning interdisciplinary collaboration, green materials, sustainable design, and phased construction will lead the construction industry trends in 2008. We also expect to see continued growth in the healthcare, biotechnology and related sectors, and anticipate building materials costs to stabilize.
 
In recent years, we have seen a popular practice of increased collaboration between the architect and the construction manager during all stages of pre-construction. If the architect and the construction manager work together throughout the bidding, estimating and general feedback proposals, chances are good that project vision will remain clear and that the project will stay on schedule and on budget. Having an architect involved with the checks and balances early enables you and your team to avoid many unseen issues, encourages synergy at a project’s conception, and facilitates a dynamic team through all stages of design and construction. We expect this trend to continue gaining momentum in 2008 and beyond.
 
We have also witnessed a growing emphasis on the implementation of a green approach to both design and construction. Construction managers have to be prepared take on green assignments, as there have been a growing number of projects designed to meet U.S. Green Building Council’s (USGBC) Leadership in Energy and Environmental Design (LEED) standards in recent years. Boston alone has seen more than 30 LEED projects since 2003. LEED designs are becoming the industry standard and such a trend has lead to a trickle down effect where all parties, from the architect to the subcontractor, have to educate themselves in green design. For example, there have been major advancements with fit-outs, as manufacturers are beginning to manage throughout the life of a project, placing an emphasis on the recycling of materials and same project reuse. 
 
It is clear that green, sustainable design has become increasingly important in the construction industry, and for good reason. The U.S. Department of Energy estimates that 40 percent of all energy use, as well as 38 percent of carbon dioxide emissions are the result of building operations in the U.S. As energy costs continue to rise, the diminution in energy consumption becomes an obvious financial requirement. According to the USGBC, buildings that meet LEED standards save big on many operational costs. For example, the USGBC estimates a 30 percent reduction in energy consumption and up to 50 percent in water use because of incorporating green design. The impact buildings have on the environment is a subject of great focus, and that reality is something construction managers have to take into consideration. 
 
As the industry makes a push towards sustainability and green building materials, and architects focus on LEED accredited designs, construction managers need to learn the ins and outs of sustainable design projects. Construction managers must keep pace with the progressive nature of this trend and the technologies associated with it, in order to ensure that their projects reach their potential efficiency.
 
Phased construction is another exciting trend and challenge faced by the construction industry. Now more than ever, clients expect an easy transition between all phases of construction with minimal inconvenience. Construction managers have to be able to go into an existing structure and work, all while making it possible for the client to continue to generate revenue. The construction manager must have an intelligent plan and footprint for each floor, as they all maintain different hours of operation. Smoothness in phase transition and the ability to generate revenue during a project is becoming increasingly important in commercial construction.
 
As far as the construction market is concerned, we expect to see continued growth in the healthcare, biotechnology and related sectors and educational institutions. Unlike construction in the office sector, the healthcare institutional market continues to grow across the board. Every hospital in the region is looking to improve its facilities and to keep pace in an industry based on technology, growth and innovation.
 
Despite the current sub-prime debacle and financing crunch, we expect the cost of building materials to stabilize in 2008. That is not to say that a trickle down effect should not be expected. Materials are already up a small percentage due to raising fuel prices. Though we have not witnessed an across the board increase in materials, unlike steel a couple of years ago, copper and wiring continues to fluctuate budgeting-wise. That being said, budgeting altogether is expected to remain the same for 2008 as it was in 2007. 
 
Booming markets, coupled with new trends, standards and technologies concerning interdisciplinary collaboration, green materials, sustainable design, and phased construction make for some exciting challenges this 2008. With a tightening construction labor market, construction managers remain in high demand, making 2008 a year full of growth and opportunity for the industry.