Nick Tanner Summer 2011 Arch 6710 Construction Management Assignment #1
Guest Lecture – Richard Gordon – 16 May 2011
Mr. Richard Gordon presented on his experience of being a developer and shared a valuable list of principles that deal with developing a project from initial selection through the planning and execution phases. He also shared ideas for working with the various team members and each of their roles and capabilities. He used a charismatic presentation method that included a healthy dose of humor that captured my attention. Sometimes the best way to learn something is to fail at doing it and he said, “Good judgment comes from experience. And experience—well, that comes from poor judgment” The first subject in his presentation was Selecting your Project. A few concepts he shared were: if someone doesn’t want to sell/buy then ask for a referral, when you want to initiate a project be sure to “create something of value”, the critical nature of the location of a project, and lastly a caveat, “not everything that glimmers is gold.” The second subject Mr. Gordon shared related to Planning your Project. In this part of the discussion he spoke about the need to take a unique talent that we each have and let that determine what we choose to do for a project. A very important point related to how we learn and acquire skills. He suggested letting the rich guys teach you. This is important because it shows the value an employer sees in continuing education and training. It is easier and wiser to follow someone who knows how to do something well and successfully than to spend lots of time and money to try and figure it out on your own. When assembling a team, he suggested finding someone who can give real honest, critical and analytical feedback on your ideas. This is important because often we only see the implications from our point of view and may be missing something entirely. Other concepts that stood out were the importance of doing the right project at the right time, and the suggestion to get someone other than you to manage the day‐to‐day business needs. The third idea related to Executing your Plan. He suggested not assuming something is done right, instead asking questions to figure it out. Other points in this part of the presentation were: “if you are wrong, admit it and then adapt quickly”, expect for the project to take twice as long and cost three times as much. The final theme was Working with your Team. In this phase of his presentation he mentioned how if you don’t have a good architect you are S.O.L. He expressed this idea by saying, “You don’t want the best deal on a Brain Surgeon.” Three concepts that I found valuable from this lecture were: Let someone else teach you, get good honest feedback, and lastly ask questions!
Nick Tanner Summer 2011 Arch 6710 Construction Management Assignment #2
Guest Lecture – John Gardiner – 23 May 2011
Mr. John Gardiner visited our class and shared his knowledge and experience regarding the developer’s perspective on the process of project management. He is the sole proprietor of the 4 year old company Gardiner Properties, LLC. He holds a B.S. in Finance from the University of Utah and an MBA from Wharton School of University of Pennsylvania. Previous to his venture into development, he was the Fund Manager and Managing Director of JP Morgan Real Estate Mezzanine Fund, which focused on multifamily residential projects throughout the country. (Extended bio from Urbanaoneleventh.com) An overview of his current development, Urbana on Eleventh, is a 5+ level multi‐family high density condominium project located at 1988 East 1100 South in Sugarhouse, Utah. The lot was 63 feet by 140 feet and the project was built on 95% of the site foot print. The project consists of 29 units ranging from 620 ft² to 1450 ft² and priced at $187,000 – $472,000 respectively. The average unit square footage is 900 ft². The decision for John to pursue this opportunity came when he saw the need for living conditions in an urban core. He determined that Sugarhouse was the best location in Salt Lake City for such a project. Further, he wanted to provide a place to live in a walk able community with grocery, library, movies, parks and swimming all within a close proximity. Urbana on 11th was the first high density housing development that was constructed after the rezoning by SLC. Other influencing factors to pursue this investment included: Construction costs were down in May 2009 when construction began, Mortgage rates were also down and he believed that the economy would be on the recovery side by the time the units would be ready to sell. Three suggestions he made for anyone who wants to be an Entrepreneur were: 1. Work twice as hard for half as much money for quite a few years. 2. Real estate development …… (couldn’t write as fast as he was presenting) 3. Starting on your own takes determination and tenacity. Additionally, he shared interesting facts about the housing industry such as it is usually the first to recover in an economic upturn and currently in 2011; it is back up to the levels it was in 2007. However, housing is still very far behind retail in the economic recovery. Some principles he learned from this undertaking were: patience, the value of a high quality product, and the need to maintain his pricing despite the falling rates throughout the rest of the valley. This methodology has resulted in 30% of the units being sold so far and also being at 100% of his Proforma status. He insinuated that Architects don’t know what the market wants, so he utilized market research to determine the best floor plans. Other management decisions he made were to primarily use a website to advertise the condos. The management structure of the project was a team assembly with no staff. It included liars, designers, architects, cost estimators, investors, contractors, etc.
Critical management decisions were to have the Architect on board early, and create something other than the typical stucco box with vinyl windows that covers the rest of the valley. There was also a need to quickly assemble schematic plans. This was important because a seller usually has cold feet and wants to move quickly. Other wise choices Mr. Gardiner made were to know all the city ordinances before purchasing the land so he knew the restrictions and potential of the site. He was successful and didn’t have to ask for any variance but was able to build with a permitted use and did not require a conditional use permit. A few things I found particularly important from Mr. Gardiner’s presentation were: The need for the developer to be on site daily to make sure things progress as they should. The importance of having a talented and wise surveyor. The Floor plan makes the project sellable, do research, don’t just trust the Architect (Since I am in the Architecture program I see the need to do the research) People who support something typically don’t stand and shout about it, it’s the ones who oppose who make noise. “Don’t let the naysayers drive the bus.”
Nick Tanner Summer 2011 Arch 6710 Construction Management Assignment #3
Guest Lecture – Dave Proctor – 6 June 2011
The visit of Dave Proctor to our class was a nice presentation on “Collaboration with Contractors.” He is a licensed, practicing architect with experience throughout the world with projects in: India, Brazil, Mexico, China, Singapore, Philippines, Tahiti, Canada, and the USA. His presentation discussed the impacts of four different categories on the process of constructing a project. These categories were: Materials, Culture, Financing, and Government Agencies. Like any presentation the best way to deliver a concept or principle is with a story and Mr. Proctor had many great stories to illustrate his message. The first was a story about using a cost effective material for a hardwood application. In the U.S., this would usually be oak, but in the setting of Brazil, Rosewood is very abundant and a more cost effective material. In the U.S. rosewood would be very expensive to use. The next example related to culture and labor force in Mexico City. A low voltage contractor was one of the higher paid workers on a project and he was earning $6/day. It seemed that he should be getting more but it is important to follow local rates and not overpay. Mr. Proctor also mentioned that when people beg for money in Mexico, it is best to just casually drop money near them rather than stop and interact in giving them money. This is done to avoid a mob of people. Another example of culture was in the United Kingdom. There, a public project is not awarded to the lowest bidder, but to the closest to middle bid. They also incorporate the use of quantity surveys which is a detailed list of the quantities in the project then all contractors bidding on the project have the same quantity, and they just put a price and labor to it therefore reducing the contractor leaving out something in his bid. One downside to doing a project in the U.K. is the bureaucracy and safety requirements. They have a program that is comparable to OSHA² and it “sucks”. In Taipei Taiwan, he was doing a tenant improvement and thought the project was fine and dandy, then discovered he had made an unthinkable mistake by placing doors facing each other which allowed spirits to enter and exit freely. The doors were adjusted and it worked out. When a delegation from China came to the United States Mr. Proctor found that they were more thrilled with a dinner event at Chuck‐a‐Rama rather than a fancy formal restaurant. Further, there was an issue of how they were responding to questions by just nodding which Mr. Proctor understood as acceptance but was actually incorrect. The lesson was to get agreements in writing and doubt any verbal answers.
An issue of communication occurred with a project in Tahiti with a group of Polynesians and French. Since the French were educated they were stubborn and wanted timely deadlines. The Polynesians were more casual and preferred to ask if you wanted to go fishing with them. They also had difficulty understanding the proper way to install corrugated metal decking so that the laps of each piece would correctly lap the preceding one. The method they used was opposite so they had to lift up the edge and slip the edge of the next piece under the preceding one. Other countries have different standards of practice and default expectations. For instance, in Germany, day‐light is required in all spaces so double loaded corridors are needed and make long narrow hallways. In Sweden, everyone leaves for the entire month of August so it is important to coordinate scheduling around this month and don’t expect to have a deadline then. In Mexico, projects are not financed though loans, but paid out of pocket in cash by wealthy families. In Europe, it is required to leave the facility in the same empty shell condition that it is found when you first occupy it. Challenges that Mr. Proctor has found with construction in the United States dealt with Unions. He was working on a 500,000 ft² facility for IBM and the Electricians demanded that the wiring in the modular office furniture be hardwired with conduit. When the Union was initially told no, the next day the on the project everyone discovered that the wires had ‘mysteriously’ been cut. In Singapore, they have a rule that prevents dead‐end corridors so every room and corridor has two exits. In China, the Government owns the land and tells you where you will build your project. In Brazil there was an issue of getting furniture through customs and what needed to happen was to send and “expediter” to “compensate” the workers at the customs office. What I learned was it is critical to have a great project team that consists of: an owner with great finances, a contractor with integrity, and a designer without a big ego. Mr. Proctor suggested bringing the contractor in early to get feedback on options how to do different methods of a detail, and then reduce the risk of the unknown. This is good because it reflects the idea of Integrated Projects Development.
Nick Tanner Summer 2011 Arch 6710 Construction Management Assignment #4
Guest Lecture ‐ (Video Instead) – 13 June 2011
The video regarding the selection of an architect for the Denver Art Museum was an interesting exploration of the various communication and presentation styles that architects use to attempt to win a design competition. The architect selection committee put the potential candidates through a vigorous exercise and interview process to find out the personal as well as professional capabilities of each architect. The short list consisted of: Steven Holl, Robert Venturi, Daniel Libeskind, Thomas Mayne, and Arata Isozaki. The traits that allowed Libeskind, Mayne, and Isozaki to progress to the finals were: “Energetic and articulate”, “Gutsy & Passion” and “Elegance”. In the final analysis, Daniel Libeskind won the competition. If I was to be on the committee to select an architect, I would have chosen Thomas Mayne. My choice would be based on: How he had “done his homework” ahead of time and was familiar with the city, etc. His passionate demonstration for architecture. His willingness to reach out and be a pioneer in new projects His commitment to put the project as first priority in his firm. His direct involvement with the project and not just starting the design then passing it off to another project architect in his firm. His creativity and adaptive design nature demonstrated in the design charrette where he designed redesigned a building for the committee, in his presentation. His down‐to‐earth conversational and dedication to do an outstanding job.
Nick Tanner Summer 2011 Arch 6710 Construction Management Assignment #5
Guest Lecture – Glen Beckstead – 20 June 2011
The topic of this guest lecture was cost estimating and our guest was Glen Beckstead, American Society of Professional Estimator (ASPE). Contrary to the popular belief that cost estimators don’t have personalities, Mr. Beckstead was quite humorous. Glen spoke about how everyone is an estimator every day. People estimate their travel time to work, how long it will take to do a project, and people estimate or perceive how someone is seeing them. He talked about how the owner wants to spend all the money he/she has budgeted for a project but not more than the amount. Especially if it is a public project because if it is under budget, the money gets returned and they aren’t getting the full value. The Architect understands what a design is but generally does not know the “how & why”. However, contractors know the methods to do it more efficiently and that is why they have very detailed material takeoff and cost estimators. Construction has had the least efficiency gains in any industry in the last 100 years, and many material prices such as concrete and steel have risen significantly. So, one of the most important parts of a project is cost estimating. One thing that estimators do is estimate the cost of the project. Glen will consider the number of pages in the construction documents and then apply a calculation to it based on the number of hours (about 32) it takes to complete one page. There are two types of cost estimating: conceptual and programmatic. Conceptual is very general and similar to a napkin sketch. It is based around a general use of a space and a price per square foot. The Programmatic breaks it into more detailed pieces. In various parts of the county, the culture affects the cost of design and quality. An example he shared was about a prison that was constructed in Texas which allocated more cost to operating and staffing with guards rather than making the facility secure. Therefore, it is important to deliver what the owner needs more than what the owner wants. Glen mentioned that there are three factors that are interlinked and each affect the other, these are: quality, square footage, and price. Therefore if one changes, the other two both increase or decrease respectively. He also mentioned a list of three things that cost money: quality, quantity and complexity. Therefore it is important to properly manage and decide which takes priority in each situation.
Regarding the idea of “Value Engineering” he considers it “Quality Abatement”. By utilizing the concepts of LEED, and making a slightly higher upfront cost, operating costs over the life of the building are reduced. Some tools to make cost estimating more effective are BIM and RS Means cost works. This allows you to itemize every element in a building and then you can assign a unit cost and consider the labor to construct/install the item. With these features, Glen has been able to be as close as 0.5% to the actual cost! At the end of the day it is important to remember that cost estimating is an art form and not a science. It is another skill that gets better with experience. Three things that I learned and found valuable were: Use the free online tool to get rough estimations at www.meanscostworks.com Integrate cost considerations throughout the design process Remember that ft² and quality and price are all linked to each other
Nick Tanner Summer 2011 Arch 6710 Construction Management Assignment #6
Guest Lecture – Dave Kasteler – 27 June 2011
The visit from Dave Kasteler, a Superintendent for Oakland Construction, was a great insight into how a contractor can bring experience and be a great support to the design team. Mr. Kasteler received Superintendent of the year in August of 2006 for his management of the Cabela’s Project in Lehi, Utah. He has also been working on the LEED Silver project of City Creek Center in Salt Lake City, Utah. Dave is an avid Boy Scouter and is battling stage 4 colon cancer. Dave has found that in all things it is critical to find balance between family and work and he said to “make time to make the drive and the destination of the drive worth it.” One of the main principles I gathered from Dave’s message was to “Do it right or don’t do it at all.” He demonstrated an outstanding and unique approach to managing a project by being honest, and humble enough to meet the owner’s needs. He spoke about the importance of realizing that we don’t know everything and that is why it is important to assemble great resources of various trades who do have specialty knowledge. By creating a dynamic team and relying on their knowledge, a project goes much smoother. During the project, there must be clear communication and understanding and trust to the project schedule. Regarding an Integrated Project Delivery method, Dave suggested to bring the subcontractors on the project early. He shared an experience of a project he worked on during the dot‐com craze where an owner wanted a wall to be painted in a gradient that went from white to purple back to white. He searched over and over to find a painter and ultimately found a car painter that did it quick and with great quality. One of the best things to do while being a project manager is to have a positive attitude and work together and believe it will happen. By doing this, Dave has found that it does happen. Working with tight schedules, it is important to acquire long lead‐time items early so the rest of the project will not be delayed. Don’t neglect small or seemingly unimportant parts of the project because every part impacts another. When changes occur, make informed decisions quickly to save time and money. When construction errors occur, be honest and humble. Since human error can’t be removed from the construction equation, own up to mistakes and don’t blame others. Treat people with respect and try to come to an understanding. Don’t burn bridges. I’ve personally seen many times that I thought I wouldn’t ever see a person again after progressing to a different phases in my life and I’m glad that I didn’t get upset or ruin a relationship that I may have thought would never impact my life in the future
when I again by strange situations, cross paths with that person at a later time. So it is dealing with the owner, it is like pealing an onion. There are many surface reasons why they are making decisions on the project but there are also deeper reasons for why they are doing so. Lastly remember to be a great mentor and have the mindset that you are always in the process of training your replacement. This is a good idea to help you move up the ladder and share the knowledge and experience you have with someone else.
Nick Tanner Summer 2011 Arch 6710 Construction Management Assignment #7
Guest Lecture – Myron Willson – 11 July 2011
Myron Willson, director of the Office of Sustainability, at the University of Utah gave one of the best guest lecturers of the semester. He previously was in charge of sustainability at MTHN Architects. An old adage states “Never harvest more than what the forest yields in new growth.” This concept relates to sustainability such that we should properly manage the amount of energy and resources we use in constructing and operating a building. Building operation accounts for about one third of energy consumption, greenhouse gas emissions, raw material use and waste output. Another wise definition of sustainability came from the UN World Commission on Environment and Development, “…development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” I like this statement because it reminds us that we need to think beyond the current population and consider how decisions now will impact later generations. Myron spoke about the triple‐bottom line regarding sustainability. This was illustrated though a Venn diagram with three categories of Social, Financial, and Environmental. At the union of social and financial there is social equity. Between financial and environmental there is eco‐efficiency. Environmental and social create sustainable environments. However, true sustainability only comes through the union of all three major categories since they each impact one another. He highlighted many different sustainable rating and evaluation systems. Life Cycle Cost Assessment (LCCA) looks at the initial, operating and end of use costs of a building. Energy Star is a baseline standard that looks at efficiency of appliances and building envelope. A good standard for homes is the HERS index. In this system a lower score is better. A typical new home has an average of 100. This system uses thermal imaging along with a blower door test to determine where leaks in the building. Many homes average a two foot by two foot collective hole in them! Garget Homes is a leader in Utah that builds homes in the 25‐35 score range. Leadership in Energy and Environmental Design (LEED), was also presented. This is a popular method with multiple categories including sustainable sites, water efficiency, energy and atmosphere, material resource, indoor environmental quality, and innovation in design. LEED is intended for design professionals while the National Green Building Standard is oriented more for the construction professionals.
With restrictions on carbon emissions, a system called Cap & Trade allows companies that require higher outputs of carbon dioxide to trade credits with companies who have less than the restricted amount. Some methods for being sustainable were discussed, one of which I found interesting was seasonal heat storage methods such as a heat pump that utilized the mass and constant temperature of below‐the‐surface soil to regulate air temperature within the building. Passive methods are also important in creating an energy conserving building. Building orientation, building color, fenestration placement, and shading can all be less expensive solutions made in the design phase to create a sustainable building. From this guest lecture three things that I found most helpful were: Introduction to multiple sustainable ratings systems, and particularly some oriented towards residential construction. Someday when I buy/build a home I can know that there is other options than LEED which I feel the principles are right, but there doesn’t need to be an expensive program and fees to implement it. The multiple other factors of social and financial that influence sustainability are important to consider and not to think that only the environment is impacted. Resources to evaluate my current carbon foot print and energy use through www.carbonfootprint.com
Nick Tanner Summer 2011 Arch 6710 Construction Management Assignment #8
Guest Lecture – Peggy McDonough‐Jan & Wilf Sommerkorn – 18 July 2011
This guest lecture our class was visited by two professionals, Wilf Sommerkorn, Planning Director for Salt Lake City Planning Commission, and Peggy McDonough‐Jan, President MHTN Architects. A few highlights from their discussion from class included: The importance of researching the ordinances of a community before purchasing a plot of land and beginning the design. At a pre‐submittal, show up with ideas and find out if the project is possible or how you plan to approach the development.
Remember that ordinances change frequently, so it’s important to track changes. Changes can happen to zoning and ordinances so don’t hesitate to request changes. Salt Lake City is moving towards a form based zoning that looks at a uniformity of design rather than the use of the spaces. An example of the Davis Conference Center and how Davis county spent seven years searching for the right partner to manage the project. They almost had a good partner from Ohio, but when he demanded that he would not provide any capital for the project they dropped him like a hot rock and searched for a new partner. The Fire Marshall is the person with the greatest control in a project. This individual get the last word on approving a design. An experience was mentioned about a glass wall in the Davis Conference Center that would have vehicles in the same room. The Fire Marshall initially approved in the plan review, but when the finishes were being installed, he shut the project down until a remedy was generated.