The Return of Construction

In North Fort Worth we are seeing signs of life in the construction business.  In the last several months, projects of all types have been evident within a small radius from the Blue Leaf Realty office on FM 1709.  After completing the MSRE program at University of Texas at Arlington, I view this work with a tuned and educated eye, knowing the months of planning and effort that has gone into these projects even before they break ground. From site selection, financing, cash flow analysis, design, bidding, material procurement, and actual construction, each project has hours and hours of people's time and effort supporting it.

RESIDENTIAL:  From single family to apartment buildings, construction  is going strong in the Heritage/Alliance area.  It has been exciting to see new subdivisions started and watch homes being built on infill lots.  The construction of multi-family is a more arduous process, but the scope of the project in the N Fort Worth region is a reminder of how many people are interested in living in this vibrant area.

BUILDING: Commercial, retail, and office construction has continued over the last couple of years.  The opening of Alliance Town Center has sparked numerous projects from a multi-screen movie theater to the construction of several large grocery stores.  As is most often the case, this has encouraged smaller businesses - both local or national- to choose to open business here.  The construction of a new hospital, Texas Health Alliance, is scheduled for completion this fall and has increased the demand for office space in the area.

ENGINEERING:  While to many it seems late in coming, with the construction going on in this area the new roads are better late than never.  It is virtually impossible to drive around north Tarrant County without encountering major road construction projects.  From the expansion of Golden Triangle in front of the BLR office to the huge overpasses connecting Loop 820 and I-35W, the ability to move from place to place in this area will soon go from a virtual nightmare to a dream.

INDUSTRIAL:  The Alliance industrial area just north of our office has continued to attract businesses, but many have moved into vacated space limiting the new construction in this area.  Further north in Denton, a Target distribution center is planned and just west of the Texas Speedway on Hwy 114, General Electric is completing a huge locomotive manufacturing plant.

While it feels like real estate and construction have spent the last few years traversing the desert, North Texas is clearly the place to be today and hopefully long into the future.  The last two years Scott and I invested in the UTA MSRE program have helped us see the world of real estate with a broader understanding and through more enlightened eyes.  That, in addition to getting to know some super nice people, has made it time well spent.

Building Material

Where to build? What to build? Who to have build it?  All of these are important and traditional question regarding a project. While what to build WITH has long been a decision point, it has most often had to do with cost or aesthetics or some combination of both.  As sustainability becomes an increasing concern in all aspects of present life, what you choose to build with takes on new meaning and significance. Green building means many things to many different people, but making choices with the earth's resources, our carbon footprint, and future generations in mind is not only a good thing, it is an essential thing.  Organizations such as the USGBC (U.S. Green Building Council)  have created LEED (Leadership in Energy and Environmental Design) certifications for people and buildings to help communicate the level of sustainability represented in the project.  

WOOD: People will continue to use wood as a primary construction material, but choosing the type of wood can make a significant difference.  Wood that is local will limit the transportation needed to get it on site.  Woods, such as bamboo, grow quickly and selecting them reduces deforestation.  Minimizing of changing the glues used in the construction of plywood and particle board can reduce VOCs improving the air quality of the interior.  Using recycled wood, from old buildings or reclaimed wood can not only result in interesting material, but an earth friendly choice as well.  The TreeHouse in Austin is a hardware store that specialized in sustainable building material with a company bi line of "smart building - better living".  They also specialize in education, helping people make decisions based on personal goals and straight forward information in the areas of savings, health and ecology.

MASONRY: Masonry products such as brick and stone are more naturally sustainable because they are made from earth made material that is not a limited resource like wood.  Concrete, while it falls in to the masonry group, looses some of its sustainable "points" due to the manufacturing process.  In addition to the issue of transportation, concrete production emits VOCs into the environment.  It does remain as a good alternative, however, because it is very durable and more energy efficient that porous building materials. While it is not officially masonry, I must include in this section the use of dirt "bricks".  Made with local dirt and formed by Advanced Earthed Construction Technologies, Lawrence Jetter has created the opportunity to make building material on site, with local resources - it doesn't get any more sustainable than that!

The other materials that go into construction such as steel, glass, finish out material all have green or sustainable options.  By asking questions and making environmentally wise choices we can have a big impact on the greening of construction.

Extreme Construction

Weather conditions impact construct through the materials and the workers, but what about then the weather is extreme?  The importance of creating a timeline to try to prevent avoidable timing issues is essential.  Understanding the best time to start or way to pace a project can save not only money, but also injury and inferior workmanship.

COLD: Extremely low temperature can effect how materials perform from metals to concrete. Often the only solution is to "create" warmer temperatures in hopes of achieving typical performance.  Transportation on material can also become a challenge if the cold temperatures come with ice and snow.  Another possible issue is the use of asphalt shingles, which can crack if they become brittle.  A final challenge is the removal of snow which may not only make it hard for workers to arrive at the job site, but can also cover materials making it difficult to locate and move them.

HEAT:  Workers in Abilene continued to work on the construction of the McMurray University stadium despite the triple digit heat.  While heat has a huge impact on workers, it also impacts building material as well.  If humidity is added to the heat, the danger of moisture becoming trapped in the building material also becomes an issue.  The temperatures in Dubai can exceed 110 degrees, but add the wind and sand so common in this area and you challenge even the heartiest construction workers. (add the construction project of the tallest building in the world to that mix and you have extreme working conditions!)

While you can't always know what to expect when it comes to construction and the weather, there are some places on earth where you have to plan for the worst!

The Work of Labor

The intricacies of labor laws are complex, but some level of understanding is essential to a smooth construction project. The employment of labor forces in the United States operates under both federal and state statutes that come out of a long history of labor-management relations.From the 1932 Sherman Anti-Trust Act originally designed to prevent business monopolies came the beginnings of our current day unions.  Other acts such as Norris-LaGuardia Act and the Wagner Act have created a complex system of balance and relational structure that is evident in many fields including the construction business.  Since construction workers are often thought of as skilled workers with no permanent position due to the limited duration of a project, the formation of trade groups such as the Building and Construction Trades Department of the AFL-CIO  are important.  One of the roles of these groups is to help coordinate with both management and government entities.  While it is not essential for every general contractor or construction manager to understand all the elements and expectations of each group, it is essential that the subcontractors they hire remain current on expectations such as wages, hours, and site conditions.

Building Blocks

Most people remember building with blocks, wooden or plastic shapes that allowed us to take our ideas into 3D reality.  While it is obviously much more complex, the increasingly sophisticated modular building process is making that process work on a grand scale.  Building the components of a project - commercial or residential - off site allows not only multiple phases of construction to be completed simultaneously, it also protects the construction from the elements.  Weather is one of the number one causes of construction delay.  Rain, cold, and extreme heat can not only stop actual construction, but can also damage materials resulting in the need to re-order supplies.  Modular buildings, because they are typically built indoors, remove that element of unknown and allow progress even in poor weather conditions.  Also, because they can significantly reduce the amount of time to complete a project they are typically more cost effective.  Despite their uncertain reputation, many modular components are built to exceed building standards and often include more advanced energy efficiency systems as well.

There is also a rise in green modular homes that are often smaller than traditional homes and incorporate energy practices such as solar and wind power.  Because transportation of materials and equipment is one element of consideration when building green, many proponents of modular homes believe this is the ultimate reduction of a home's carbon foot print.  What ever you choose to believe, you must admit that today's modular home is a look into the future of cost-effective, time efficient, and in many cases beautiful, construction.

green modular building

Building 101

Many things go into the building of a project - foundation, plumbing, electrical, cladding, earthwork, and many more.  While it is obvious that you can't pour the foundation until you complete the earthwork, many other elements may not be so obvious.  Understanding the parts is important, but knowing the order they must be performed or completed is essential.  This is certainly an area where experience and planning can save time and money.  In addition to the actual work or installation, it is important to also include a timeline for the procurement of materials and equipment.  Some equipment may cost thousands of dollars a day to have on site, so careful scheduling can greatly reduce costs.

Whether building a home or a skyscraper, it is basic building 101 to think through the steps and elements of the project and create a progressive timeline to be sure they are done in timely and effective sequence. 

Time & Money

Talk to any investor and you will enter into a conversation about the time-value of money.  While this refers to the interest earned of paid in a financial relationship, there are elements that apply to the construction process as well.  Most projects are funded wither by a third party lender or investors seeking a profit.  For this reason, time and money are inexorably tied in every construction project.  If a project takes longer than expected there will not only be the increased interest change, there is also the danger of lost revenue.  If the project has a specific projected opening date, such as a first day of school for student housing, delays can end up derailing and otherwise profitable venture. 

While balancing the expenditure of time and money is important, the construction company adds the additional challenge of meeting a required level of quality.  Fast and cheap are not the only standards of expectations of an owner and therefore the project must be well planned to meet all of the developer’s goals. The use systems and models, part of basic control theory, can help manage these elements of a project.  There are many things that can impact a project such as weather, vandalism, and delay in material - sometimes referred to as "lightning bolts" due to their unexpected nature.  Despite those events, every project must start with a standard and plan for the design, budget, and schedule.  Maintaining ongoing evaluation of this schedule allows the different parties to identify changes in timing or expenditure in a timely manner, allowing for adjustments if necessary or possible.  The primary way to do this is through regular communication between parties and a comparison of actual numbers to the base plan. Turnaround documents (TAD) and regular meetings are one way to help keep everyone on the same page and, hopefully, maximizing the spending of both time and money.