Expert Roundtable: Breaking Down Construction Management and General Contracting Trends for Technical Projects

Expert Roundtable: Breaking Down Construction Management and General Contracting Trends for Technical Projects

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The last few years ushered in a boom for life sciences capital projects, with nearly 40 billion square feet of lab space currently under construction. Additionally, with STEM jobs accounting for nearly 6% of the fastest-growing occupations projected through 2031, higher education leaders are developing sophisticated, technical facilities to recruit and train students in engineering, life sciences, and the like.

For project owners, completing these initiatives on time and on budget is essential to their organizations’ success. But for construction teams, there have never been more factors complicating the process of building and turning over new facilities.

We sat down with three of 35 North’s construction management and general contracting experts to get their insight into how to navigate these emerging challenges, and what project owners need to know when evaluating construction partners.

Roundtable Expert Headshots - Marc Blackwelder, Jim Crews, Talie Madans

Q1:  A recent life sciences fit-out cost guide by Cushman & Wakefield states that Raleigh-Durham has the fourth-largest construction pipeline behind Boston, San Francisco, and San Diego. How can project owners ensure they are getting the best teams on their projects, rather than going with whomever is available at a specific company?

A: Marc Blackwelder – It all starts with accurately defining project requirements from the beginning. Clearly articulating scope, timeline, budget, and any specific technical or regulatory considerations will help in selecting construction teams with the right expertise.

Scope
Timeline
Budget
Technical and regulatory considerations

From there, it’s critical to get references. And ask all potential construction teams to submit their qualifications including experience, certifications, and relevant projects they have completed. Have these teams led similar projects, in the specific type of construction you’re pursuing?

Finally, it’s important to visit a recently completed or in-progress project for each construction team. This allows project owners to witness the quality of work firsthand and evaluate whether it aligns with their expectations.

Q2: Price inflation, supply chain challenges, and labor shortages were major barriers to construction in 2023. How do you foresee these trends evolving in 2024, and how can project owners adapt?

A: Jim Crews – These challenges will likely continue to be an issue for the foreseeable future. The best way for clients to mitigate price inflation and supply chain challenges is through early specifications of major equipment. Once the major equipment is specified, early release of the equipment and material will lock in your pricing and production placement. This includes equipment such as generators, electrical panels and components, switchboards, gears, air handling units, fan filter units, exhaust fans, pumps, plumbing fixtures, coolers, freezers, modular systems, and specialty finishes.

Q3: You have an impeccable history of successful, complex projects. What’s the best advice you’d give to a new superintendent on how to lead a successful project? For project owners reviewing superintendents to work on their facility, what should they look for in a candidate?

A: Talie Madans – Two of the most critical skills new superintendents need to perfect are accountability and collaboration. Set clear expectations and know how you’ll measure results. Ask questions, involve the team, and show your appreciation for other stakeholders. At the end of the day, be nice.

From a project standpoint, always prioritize the punch walk.

It’s the superintendent’s job to “leave no doubt,” and ensure the owner or tenant has all the information to love their new space — from understanding the systems to knowing who to contact for warranty issues.

The more thorough you are when turning over a facility, the more likely you are to see repeat clients and referrals.

Project owners hiring superintendents should look for candidates with a diverse background. You want someone who brings organizational skills (e.g., staff management and scheduling) and technical expertise (in areas like safety and complex MEP systems) to the table. They should also have experience working with cross-functional project stakeholders, including data, security, furniture, and branding team—not to mention local government officials and inspectors.

Q4: What are the highest and best uses of primary delivery methods such as CMAR, design-build, and design-bid-build (hard bid)?

A: Marc Blackwelder – Each delivery method has its advantages and disadvantages, so there is no right or wrong answer. The best choice depends on specific project requirements regarding project complexity, timelines, risk tolerance, and owner’s desired level of involvement.

For instance, while some clients see design-bid-build (DBB) offering the most competitive pricing, it lacks collaboration among project teams and is the slowest of all delivery methods due to the sequential nature of the process. If the scope includes any gaps or modifications, costly change orders can inflate budgets and timelines – so this approach has the highest risk for owners.

Conversely, CMAR and design-build integrated project delivery methods provide greater project team collaboration for a smooth delivery and can get started much faster than with DBB since long-lead items can be ordered early, you can bid out sooner, and similar strategic project actions. However, while owners are set up for a fast-track delivery, owners won’t have cost certainty until later in the design.

Ultimately, selecting the appropriate delivery method involves careful consideration of project goals, risks, and constraints.

Q5: Life sciences construction project management leaves little or no room for error. How do you develop a project strategy that ensures quality and attention to (countless) details while preventing delays, cost overruns, and your own burnout?  

A: Jim Crews – First, you must surround yourself with trade partners you can trust and who fully understand your project requirements. This includes having program managers, architects, and engineers who prepare a set of construction documents with precise, accurate details—no gaps. These documents will set the standards for trade partners to follow and minimize late-stage field changes.

Once the standards are set, it’s our team’s responsibility to ensure compliance through quality control inspections and real-time schedule updates, so that our trade partners use their resources efficiently. Underpinning all of this is the need for constant team communication, to ensure all concerns are addressed prior to starting a task.

Q6: According to our recent research, project owners rank cost and quality control as the top challenges when constructing new facilities. What are the best ways clients can keep both in check?

A: Talie Madans – A large part of keeping project costs and quality in check comes down to hiring the right sub-contractors. Beyond partnering with the right people, I also recommend:

  • Holding a detailed “page turn” meeting early in the process with the project owner, architect, engineers, and general contractor to set expectations and have realistic discussions about timing and pricing. Look for long-lead time items and finishes that may be nice to haves vs. need to haves for project completion. Are there alternatives that could be used?
  • Schedule frequent “monitor and control” meetings with the project manager to review actual costs against prepared estimates. This helps minimize any lag between cost incurrence and reporting, so gaps can be caught and mitigated early.

Q7: In your experience, what are the top pitfalls project owners face when embarking on construction projects?

A: Marc Blackwelder – Three main challenges immediately come to mind:

  1. Rushed planning: Failing to invest enough time in the initial planning phase can lead to problems later in the project. Incomplete or insufficiently detailed plans can result in major delays, cost overruns, and changes during construction. Similarly, failing to involve the right stakeholders early in the project can lead to disagreements and late-stage changes. There’s often a rush to get to market but I’ve always said, “Slow is smooth and smooth is fast.”
  2. Poorly defined scope: Ambiguous project scopes often lead to misunderstandings between the project owner and construction team. It’s crucial to accurately define the project scope to avoid disputes and changes during construction.
  3. Misaligned project teams: To Jim’s point earlier, communication is the key to keeping project owners, stakeholders, and the construction team in sync. Regular updates, meetings, and a clear communication plan are essential.

Q8: Over the last few years, many life sciences organizations have started prioritizing flexibility and modular building manufacturing. What implications do these trends have on the design and construction of a facility?

A: Jim Crews – These trends do not affect facility design and construction. Since these modular buildings are typically inside a finished space, the finished space will have to be constructed to allow the modular space to function. They do give the owner flexibility, but in my experience with more complex modular spaces, once they are built, they stay in place. They do reduce back-end cost as they are quicker to install and only require one trade to touch them.

A: Talie Madans – To keep up with growing client demands, life sciences construction companies should  adopt prefabrication, off-site construction, or modular systems to deliver projects quicker than traditional builds. They also need to partner with special manufacturers providing advanced energy-efficient equipment that adds value through their system designs.

For facilities with adjoining office areas, this allows the owner to have more flexibility with their tenants and reduces the cost of future renovations and additions (e.g., moving from an open floorplan to one with walls, or making changes based on company headcount fluctuations).

Modular panels and “kit style” equipment reduce installation time as the rough ins are in place and ready for install, only requiring one or two sub-contractors to build and tie in. Using modular or pre-assembled pieces also reduces the likelihood of surplus materials at the end of the job, minimizes waste from onsite build, and may arrive in one trip to the job site (creating another possible schedule efficiency).

Q9: How has the shift toward more sustainable construction and green facilities impacted the development of complex facilities?

A: Talie Madans – In the field, we are bound by the submittals and which eco-friendly materials the project owner selects, but it can extend build times if those items need to be sourced. On the job site, there are other factors that I, as the superintendent, can control to minimize our environmental impact—things like waste tracking, encouraging ride sharing, hosting virtual meetings, using materials from one site to the next, and opting for LED temporary lighting.

While sustainable building practices require high upfront investment, they can also save significant costs over time. Use durable, recycled materials that will need minimal maintenance. It’s critical to ensure clients understand the nuances of their facility’s energy efficient elements during the punch walk or turnover walk. Many eco-friendly materials offer superior insulation, reducing the need for extensive heating, cooling, and lighting. Bring in the mechanical or electrical contractor and have them explain the building’s lighting and HVAC controls so that the project owner understands their complex systems.

In the future, life sciences construction companies will face the challenge of smartly installing energy-efficient technologies such as low-energy exhaust systems, water recycling, and air quality monitoring systems to not only reduce environmental impact but also long-term operational costs.

Q10: What role do you see AI technology (including generative AI tools) playing in the future of construction management?

A: Jim Crews – There’s no doubt AI will play a big role in the future of construction. One of the main benefits of AI will be its potential to bridge the labor gap that plagues so many projects. With better tools at our disposal, it will free up the limited labor that is available to push work forward.

With the assistance of AI, autonomous construction machinery performing repetitive tasks will minimize the impact of labor shortages, reduce time required to complete certain tasks, lower the risk of human error, and free up the labor we have to perform higher-value work.

In my experience, project durations have not changed much over the last several years. A project that took six months a decade ago still takes six months to complete. It will be interesting to see how much AI, with the right oversight, can expedite the project life cycle.

Looking for more insights around trends in life sciences construction? Review our most recent report, The 2023 State of Life Sciences Capital Project Development.

In summary, when selecting partners for your capital projects, go with teams whose decisions are driven by what’s best for the project—not their individual priorities. Working as one team, integrating all key services, and using a proven and impeccable communications plan, the project is sure to exceed expectations for all.

Connect with us to hear how 35 North’s construction management and general contracting teams are overcoming current challenges unique to specific types of projects. We would be happy to share more.