On Monday, January 13th, CARW packed the conference room of Two-Fifty to learn about what to do as construction costs rise, delays occur and skilled trades are spread thin. Understanding how to handle this can mean the difference between a successful deal and bust. Roy Wagner, Partner and Leader of Construction Law Group with Michael Best and Friedrich LLP, lead the discussion along with our panelists:
Joe Jursenas, Briohn Building Corporation
Glenn Roby, Kahler Slater
Steven Chamberlin, Chamberlin Group
Mitchell Starczynski, NEWMARK KNIGHT FRANK
Click here to view the video of the panel in its entirety.
Difficulties in the current state of construction include: rising costs, difficulty getting bids, labor shortage, the project development cycle is elongated, harder to manage the development phase then it used to be, construction costs up 5% – inflation only 2%, discrepancies between cost and appraisals, scheduling delays, difficulty with municipalities to get permitting (are they pro-business) and increased legal documentation.
Key takeaways to combat these difficulties:
- Bring together the BEST team
- Give full capability to your customers and give them options
- Stay flexible
- Don’t overreach, keep expectations aligned and put out realistic dates so there are no surprises
- Develop a TOTAL project budget including soft costs and technology
- Understand your municipality and how long it takes for permitting, approvals and rezoning
- Recognize the experience level of the people you are working with
- Pay more for good quality construction management