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Construction commentary
"We remain committed to our clients and partners to ensure successful project outcomes amid current economic challenges."
gordon lansford, president & ceo
JE Dunn News and Insights
Manhattan, Kansas
Feature Article
Finding Certainty in Uncertain Times
finding certainty in uncertain times
"The good news is that there are ways to get ahead of it to make informed decisions that result in successful project outcomes."
- Name, Position & company
Gordon's construction commentary
From the CEO
vol
50
economic impact
712 west peachtree
PROJECT Spotlight
greene county sheriff's office & jail
Springfield, Missouri
the advancement of live, Work, and play
"The emergence of more hybrid work environments has enhanced focus on employees."
- jason hickam, national preconstruction & estimating director
Atlanta, Georgia
"The next iteration [of live, work, play] is the 20-minute neighborhood."
"These factors ... are driving a trend in mixed-use developments— revitalization."
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the changing cost of doing business: how to get ahead in project planning
Feature ARTICLE TITLE
"These factors together have helped clients make informed decisions, thereby offering more price certainty and projected outcomes."
"It’s the application of Lens® and what it offers that is upping the ante when it comes to collaboration and getting ahead of escalation."
"One way JE Dunn teams are increasing speed, safety, and precision in construction is through our prebuild facilities."
The Advancement of Live, Work, and Play: A Look at the mixed-use market
Filter by Category
gordon's construction commentary
"Throughout the changing landscape, we remain committed to our clients and partners to ensure successful project outcomes amid current economic challenges."
Gordon Lansford, president & ceo
anschutz health sciences building
"It was a really interesting building in the fact that it didn’t repeat. We had to be familiar with every single inch of that job."
- charlie slattery, project director
The Evolution of Industrial Space
Weir's Plaza
Dallas, Texas
university of colorado anschutz health sciences building
Aurora, Colorado
tampa general rehabilitation hospital
Finding Certainty in Uncertain Times: prefabrication & lens
Greene county Sheriff's Office & Jail
712 West peachtree
The advancement of Live, work, and Play
the evolution of industrial space
Tampa, Florida
"While the emergence of more hybrid work environments initially resulted in less foot traffic at many offices, the focus is now on employees."
- Jason HIckam, national preconstruction & estmating director
Finding Certainty in uncertain times
"Ramp up on site is difficult, and the Earned Value Management (EVM) approach displays the effect of the effort as related to labor hours for each trade."
"The good news is that there are ways to get ahead of [escalation] to make informed decisions that result in successful project outcomes."
"The most visible shifts in our overall approach to procurement are the deliberate steps we take to engage operations earlier in the project planning process."
- jason Banks, procurement director
"In the wake of the changes COVID-19 brought with it, industrial workplaces are experiencing a shift."
"Focused rehabilitation with the ultimate goal of in-home recovery, all rooms are private with state-of-the-art technology."
weir's plaza
"Designed as the flagship building for the Knox Street neighborhood ... the team had a vision to bring a five-star design to the prominent retail and residential area."
"The finished product has proven to be a one-of-a-kind statement piece on campus, serving as a mixed-used, collaborative space for all."
the changing cost of doing business
"We are here to align our data, our national project experience, and our process of partnership to create the framework for a successful project."
"We advise clients to think of future escalation as a risk tolerance assessment when deciding how to fund this future unknown."
"How much does my project cost today? How much is it tomorrow? What can we do to keep moving forward?"
- sam o'connor, preconstruction services director
712 peachtree
"It’s not uncommon to construct a high-rise project on a tight site in downtown Atlanta, but coordinating six tower cranes in a small radius certainly created challenges."
"The pandemic changed how people live, work, and play, altering the trajectory for current and future projects."
"Created in 2020, project teams now have more than two years of data and a complete project life cycle to apply lessons learned to new pursuits."
- tammi bailey, DESIGN PHASE SERVICES PRINCIPAL ARCHITECT
"The solutions we provide help to mitigate supply chain disruption and price instability through a series of both tactical and strategic efforts."
"JE Dunn has developed another method that allows project teams to better plan resources (people, equipment, materials, space)."
Weir's plaza
"The modern facility proved transformational for both the detainees and the Greene County staff."
The evolution of industrial space
"The built environment sends a message to employees about how they are viewed, valued, and respected."
procurement & evm
prefabrication & lens
the advancement of live, work & play
"Perhaps the most positive indicator for future growth within the market is the current investment in multifamily."
"By considering the needs of the users at the outset, it has also improved efficiency in a time when it is needed most. "
"Beyond the visible enhancements, the layout of the facility itself can improve the employee experience."
"Now more than ever, the built environment sends a message to employees about how they are viewed, valued, and respected."
The changing cost of doing business
Finding Certainty in Uncertain Times: procurement & evm
"Some clients are choosing to be conservative in their approach and budgeting a more cautious value up front in a funding request with a hard project cap, while others are ear marking the risk with leadership and re-aligning funding when it becomes known during final procurement."
"At JE Dunn, our preconstruction teams use a national dashboard with current pricing for each project priced in today’s market – regardless of their level of design – to ensure our data is always live with today’s costs."
"Clients are asking the same three questions of JE Dunn consistently to guide them through the current staggering escalation: How much does my project cost today; How much is it tomorrow; What can we do to keep moving forward?"
"At the project level, prefabrication can help team extract a lot of uncertainty out of the project."
- stacy scopano, national prefabrication & manufacturing director
"The actual sheer quantity of the different types of spaces was a first for me. I have never built a building with this many types of spaces on top of one another. For instance, a medical simulation space was constructed right above a data center, which was in turn constructed above a pharmacy."
"On the planning side, it became a definitive challenge. It came down to having people who were very dedicated – people who eat, breathe, sleep, and live in the spaces. Adapting, making sure we pre-planned and had clear lines of communication was important."
"It was a really interesting building in the fact that it didn’t repeat. We had to be familiar with every single inch of that job; there was no repetition whatsoever."
- Charlie Slattery, project director
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Construction Commentary from the CEO
By gordon Lansford, president & ceo
REad More
Construction Commentary
As life has slowly returned to normal and construction continues to ramp up, we are now faced with a new set of challenges—inflation, escalation, and shifting economic conditions. The uncertainty of project costs, supply chain issues, and workforce availability have impacted us all, and we expect those challenges to be around for the foreseeable future. Throughout the changing landscape, we remain committed to our clients and partners to ensure successful project outcomes amid current economic challenges. From providing insight from our preconstruction professionals to guide decision-making all the way to leveraging multiple tools to get ahead of escalation and increase predictability, we recognize the best thing we can do is to remain nimble and adaptable. I am inspired every day not only by the ingenuity of our people who do just that, but also by their commitment to collaboration and creative solutions to deliver project after project with positive results. The last two and a half years have brought extreme circumstances and uncertainty that none of us could have predicted—but they’ve also presented opportunities for us to be a better partner and to find new ways to guide clients through the construction process. Thank you for trusting us during these trying times; we appreciate you and look forward to partnering on future projects.
Gordon Lansford
President & CEO
Back to the Hub
in the news
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Workforce Program Makes an impact
The new Welding Workforce program at Lansing Correctional Facility is inspiring hope for a better future by equipping residents with technical welding skills. JE Dunn Vice President Vance McMillan shared how this partnership between JE Dunn, Kansas City Kansas Community College, Kansas Department of Corrections, and like-minded companies can transform lives by providing a direct path to employment upon release.
Learn more
Correctional News article
best practices for pediatric spaces
One of the most challenging environments for construction is hospitals, specifically near newborns and infants. Healthcare Vice President Josh Meadows discussed how the team implemented a successful process when working in an occupied NICU, keeping tiny patients safe and comfortable in the recently completed Rose Medical Center in Denver, Colo.
Medical Construction & Design article
building a future without limits
With surveys steadily indicating a rise in construction opportunities for women, the impact of their talents on the industry is increasingly evident. Three distinguished women from JE Dunn’s team on the Medical City Frisco tower project discussed their unique paths to construction and steps they take to reach goals and further their careers in an article from NAWIC Today.
NAWIC Today article
prebuilding for precision
With the increased demand for speed, safety. and precision on construction sites, JE Dunn teams are utilizing offsite work in our prebuild facilities, where we can incorporate value-added steps into components that get sent to construction sites for installation. Senior Superintendent Nick Effenheim recently shared the benefits of these facilities and the predictability they offer in a recent article for Construction Superintendent.
Construction Superintendent article
Innovations in Parking Structure Sustainability
Innovations for traffic flow, navigation efficiency, and airport management are constantly improving, but what about for the construction and operation of the parking garages? Senior Project Manager Stacey Flint talked about recent innovations to increase sustainability at the Portland International Airport and the Kansas City International Airport with Airport Business magazine.
Airport Business article
Focus on Rehabilitation Drives Normative Shift
From adjusting the design to maximize function to creating more spaces for programs, correctional facilities are responding to a multitude of factors, including COVID-19 and social reform, when designing facilities that now focus on rehabilitation and behavioral health. Justice Design Manager Doug Beichley shares how simple impacts such as natural light and sound panels are crucial elements for the interior design in the trend toward normative environments.
JE Dunn repeats as a US Best Managed Company
We are to proud that JE Dunn has been selected as a 2022 US Best Manage Company—the third consecutive year for this honor. Sponsored by Deloitte Private and The Wall Street Journal, the program recognizes outstanding US private companies and the achievements of their management teams’ execution of hallmarks of excellence in four key areas: strategy, ability to execute, corporate culture, and governance/financial performance.
More About the US Best Managed Company Award
PARADE OF HEARTS A success IN KANSAS CITY
JE Dunn was a Presenting Sponsor for the recent Parade of Hearts in Kansas City, a public arts experience featuring hearts painted by local artists for causes important to many. Along with more than 70 sponsors and the KC community, the effort raised $2.6 million for nonprofits across the metro area. One of the nine hearts JE Dunn sponsored paid tribute to the American Royal, an organization supporting the local agricultural community since 1899.
More About Parade of Hearts
next article
When it comes to attracting top talent—especially with the current competition for workers in a challenging economic landscape—employee experience is a critical component.
By: Tammi Bailey, DESIGN PHASE SERVICES PRINCIPAL ARCHITECT
Though industrial work and the equipment necessary to perform it are often different than a traditional office, employers are now balancing that with “perks” such as more gathering and seating areas, comfort, and outdoor spaces. In the recently opened Southeast Toyota Distributors Processing Center in Commerce, Ga., employee experience was so paramount that the owner included employee input every step of the way.
Workspaces and Amenities
The competition for talent has not only resulted in a change in the facilities themselves, but by considering the needs of the users at the outset, it has also improved efficiency in a time when it is needed most. For Southeast Toyota, the results they saw thanks to engaging associates on design needs, pain points, and process improvement suggestions in relation to workspace and flow only underscore the impact employee experience has to overall operations.
The Results
Providing a positive culture and environment have long been a focus of employers across every market, and in the wake of the changes COVID-19 brought with it, industrial workplaces are experiencing a shift as well. Now more than ever, the built environment sends a message to employees about how they are viewed, valued, and respected, and industrial owners are not only taking notice, but they are also taking action. Industrial workspaces continue to undergo big changes, aiding in both recruiting and retention as well as efficiency and productivity for improvement in operations.
When compared to the previous facility, the custom solutions in the new space yielded: • 67% reduction in safety incidents, due largely to collaboratively thinking through the flow of vehicles through the facility before it was built • 50% reduction in vehicle touches • 12% increase in processing efficiency • Reduction in travel for training thanks to a dedicated training center on site
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No matter the industry, employees all want the same thing: connection. To be part of a community. To feel valued, respected, and trusted. The built environment sends the employee the message of how they are viewed, so its evolution is a huge part of attracting and retaining an engaged workforce. The built environment—especially in industrial plants—sets the tone for both company culture and employee experience. Often, it’s the little things that have the biggest impact—materials, colors, lighting, etc. An employee’s experience begins the moment they arrive at the site. Giving special attention to security access, landscaping, and the ambience of the path of travel from the parking area to the building can mean the difference between an employee feeling like they are entering a prison and feeling like they have privileged access to a special place. Minimizing pedestrian crossings with vehicular traffic sends a message that employee safety is a priority. When it comes to the building itself, the traditional approach of durable, hard surfaces and separate entrances for office and industrial employees sends the message that employees are divided. Instead, employers should provide one main entrance for all employees and look to materials that are durable – but provide color and texture. Natural lighting can make a huge impact on the employee experience, adding brightness to spaces and enhancing employee well-being. Beyond the visible enhancements, the layout of the facility itself can improve the employee experience. Employers who look to minimize travel time from workstations to break areas reinforce that they also value the employee’s time. Providing additional break amenities such as outdoor areas, flexible seating and marketplace type concessions enhance the feeling of engagement and value of employees.
Built Environment
Using employee input to ensure that the physical design of the facility offers a favorable experience is important to ensure engaged employees, because, at the end of the day, employees need to feel valued and supported in an environment where they can do their best work. “As a result of this feedback, our associates feel a sense of ownership of the project and trust in the company’s commitment to addressing their needs,” said Rick Jorden, Director of Construction & Real Estate, JM Family Enterprises. “We were also able to make seemingly small adjustments, which created big results in our associates’ overall experience.”
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When the client decided to build a new facility, they did so with the intention of tailoring the spaces to better suit their employees’ needs—knowing that it would improve morale as well as increase productivity. The end result was a facility that is flexible, efficient, and provides a more positive, engaging work environment.
scott bodden, project director
Greene County Sheriff's Office and Jail
Pivoting to meet project needs
Completed in April of 2022, the new Greene County Sheriff’s Office and Jail project required our team to be nimble and proactive to meet multiple changes to initial requirements and maximize tax payer value. The new facility is 360,000 square feet and doubles the capacity of the jail to 1,242 beds. The scope also included planning for another 672 cells which can be added during a future expansion.
By name, position
renovate or build new
The project was originally planned as a phased renovation and addition, consolidating four separate buildings into a single new facility, allowing for Greene County’s 400 employees to be under one roof. After hiring JE Dunn as Construction Manager-at-Risk and using an Early Contractor Involvement (ECI) process, the team, led by Greene County officials Kevin Barnes and Rob Rigdon, concluded that a new greenfield site would be more cost effective, faster, and safer to build than renovating an occupied facility.
Forms for these modules were repurposed from a previous project, which not only helped with schedule, but also provided a cost savings to Greene County taxpayers. Releasing long-lead materials, such as precast cell modules, MEP equipment, and steel as early as possible after GMP acceptance was also key to avoiding price escalation and procurement issues.
- nick tuggle, project manager
pandemic pressure
Released for procurement of cell modules in 2019 and the overall GMP (based on 80% construction documents) approved in March 2020, the COVID-19 pandemic and impending supply chain issues were the most immediate and pressing challenges this project would face. Because the cell module package was released ahead of the pandemic, the team avoided material price increases due to supply chain shutdowns of raw materials and finished furniture items within the cell modules.
a transformational facility
Facing overcrowding and limited space at the jail, the new facility features dorm style housing, a cost-effective approach to increase bed count while providing a “pod” concept that allows incarcerated individuals to perform all activities inside the designated area. The building includes 16 video court booths, a dedicated space for inmates to attend virtual court hearings, which further alleviated a budget concern of Greene County to bus inmates to their downtown courts. In short, the $150 million facility solved a range of issues ranging from operational costs all the way to efficiency and safety. The modern facility proved transformational for both the detainees and the Greene County staff. Calming colors and focus on lighting, layout, and overall use of space speak to the increasing trend of normative environments in correctional facilities, providing an atmosphere rooted in rehabilitation to ultimately reduce recidivism. The space also means increased efficiency and an improved work environment for employees.
The divisions of the Greene County Sheriff’s Office have not been in the same building the last 40 years. The new facility is finally bringing all employees together as a team and under one roof.
The new facility will not only increase the safety of the citizens of Greene County, but it will also drastically help with the overcrowding of inmates we have in our current one.
- Jim Arnott, Greene County Sheriff
The Changing Cost of Doing Business:
How to Get Ahead in Project Planning
By: Sam O'Connor, preconstruction services director
Answering this question is as difficult as it has ever been because month-to-month pricing is changing dramatically. A project that was procured even six months ago is considerably different than a new project today. At JE Dunn, our preconstruction teams use a national dashboard with current pricing for each project priced in today’s market – regardless of their level of design – to ensure our data is always live with today’s costs. This gives our clients an accurate expected range of outcomes for projects of similar size and scope in all parts of the country. Think of it as the live stock market for new construction. Once we have a high-level range of expected cost from the dashboard, our teams dive a layer deeper into the data and look at a component level range of cost to tailor to a specific client’s project parameters. A great example is mechanical systems. A client might have a specific energy star or sustainability goal for their project. We take that project parameter and adjust the benchmark accordingly to custom fit our metrics to know where the mechanical systems initial benchmark needs to be. The result is a thorough cost evaluation that aligns with a client’s programmatic goals and expectation of component level scope parameters. We have taken an expected range of national comparable project live data and calibrated it to understand where a prospective project budget lands on this range.
How Much Today?
Start the scope small and deliberately add the pieces from there. The true programmatic baseline scope of the project must be pared back to the minimum space drivers that make up the specific capital project proforma. Without defining this minimum project scope starting point, it will be hard for the design and construction team to delineate the “wish list” items that naturally come up during the evolution of design. If properly defined upfront, now we can partner at a strategic level with our clients on a project financial minimum and create a funding strategy for programmatic and design flexibility as the “wants” come to light. A common example would be provisions for vertical expansion or day one shell space. Both incur day 1 cost—but do not generate immediate revenue. Instead of muddying the waters and blending that into a baseline project, delineate this item as a shopping cart item to be funded as such by project leadership. It makes the funding/scope communication much clearer for decision makers to align their strategic initiatives of the project with the appropriate financial commitment. There also needs to be alignment on how to financially handle future risks. Establishing contingency levels for design and escalation is a team discussion. Design contingency has a direct correlation to design flexibility. The higher the fund, the more flexibility in decision making as pen goes to paper for the client. Again, escalation contingency is established by using the data we know, paired with a risk tolerance discussion of what to expect in the future. Each project needs to have the whole team on board as to how we will fund and track this risk.
So what do we need to do?
Clients are asking the same three questions of JE Dunn consistently to guide them through the current staggering escalation:
check out je dunn's economic report: the look ahead
We offer a quarterly economic report called The Look Ahead. It provides a summary of what we see in the economy, how current events are impacting construction, and strategies we employ to minimize the impact to our projects. We also offer in-depth data specific to several cities and markets across the country which is generated through close contact with local trade partners and vendors. Click here to read the most recent edition.
The truth is no one has a crystal ball to foresee the future. Current trends have increased construction costs at a scale of 1% per month. This rate is historically high as ANNUAL escalation over the previous 10 years was a steady 2-3% per YEAR. Although there are hopes that the upward slope could be slowing, the data is still coming in to see if this feeling is hitting the project financials. We advise clients to think of future escalation as a risk tolerance assessment when deciding how to fund this future unknown. The fact of the matter is we just don’t know the exact dollar amount that will be required for escalation on these projects that will not be procured in the marketplace until a year from now. Escalation could continue this pace of 1% a month, or we could see a slowdown of the increase. Project leadership needs to look at this risk as a range of possible financial impacts and determine how best to approach this risk based on project specific funding parameters. Some clients are choosing to be conservative in their approach and budgeting a more cautious value up front in a funding request with a hard project cap, while others are ear marking the risk with leadership and re-aligning funding when it becomes known during final procurement. The mitigation strategy is a project-by-project study to find the best path forward for the client.
How Much Tomorrow?
It’s all about being a strategic partner for a client. We understand there is complexity in how projects are funded, scope is developed, and financial risks are addressed. We are here to align our data, our national project experience, and our process of partnership in all phases of project development to create the framework for a successful project.
the bottom line
How much does my project cost today; How much is it tomorrow; What can we do to keep moving forward?
COMMUNITY-CONSCIOUS MEETS PROMINENT DESIGN
Designed as the flagship building for the Knox Street neighborhood, Weir’s Plaza is more than a mere office tower. The owner/client/owner’s representative team, consisting of Four Rivers Capital and Lincoln Property Company, had a vision to bring a five-star design to the prominent retail and residential area. Using high-end materials, all of which required long lead times, the designer worked closely with the JE Dunn team to order materials early and on schedule. This resulted in delivering a high-end, modern experience for both tenants and visitors. From the ground-level exterior view, the building introduces four retail/restaurant establishments as well as a re-envisioned storefront for Weir’s Furniture.
OVERCOMING CHALLENGES
The Weir’s Plaza project is located on a tight site in the urban Knox Retail District. This project included historical preservation of the beloved Highland Park Soda Fountain, which was incorporated into the new structure, along with unique masonry exterior skin to match the historic Soda Fountain façade. A six-level, below-grade garage accommodates 795 parking stalls and required a 62-foot deep excavation into rock, with a complex soil retention system to ensure the integrity of adjacent buildings, streets, and underground parking structures. Craig A. Gaussiran, VP of Construction for Lincoln Property Company said, “JE Dunn really separated themselves during the enabling work phase of the project. The JE Dunn team took charge of the utility relocation coordination, including meeting with the franchise utility providers, the City of Dallas, and the design team driving the process to completion, ensuring the project would be able to start on time.”
From the outset of construction of the cast-in-place parking structure, the team’s schedules took an aggressive approach to project completion. The team was able to complete the concrete structure on time despite over four weeks of delays incurred from excessive weather and unforeseen conditions. All of this was done while maintaining strong relationships with the Knox District neighborhood through communication of schedules.
Craig A. Gaussiran, Vice President of Construction, Lincoln Property Company
COMMUNITY COORDINATION
The neighborhood is very congested and includes various businesses as well as residential towers. The closest building is a mere two feet from the edge of Weir’s. This close proximity required the removal of the temporary soil retention on the neighbor’s property and addition of internal bracing. This unexpected cost was absorbed into the budget and eliminated that financial burden for the nearby resident. The operations team was in regular communication with residents and compliant with the city ordinances for construction times to ensure limited disruption to residents as well.
INNOVATION
The project utilized multiple hydro-mobile scaffolds. This enabled a chain effect with regard to trades. There were six trades working concurrently on the jobsite who moved along the set of scaffolds as they were complete. This was a huge time saver, as they were not having to share a single scaffold. During the weekly meetings, upcoming work and anticipated durations were discussed. Because this work was being done on the exterior, it was vital that overhead protection be provided. In areas where outside access was available, active areas were cordoned off with safety fencing, and appropriate safety signs were used to prevent any accidents, ultimately keeping both trade personnel and bystanders safe. When the time came to finalize the building design, the owner and design team determined that the partial preservation of the historic soda fountain should be considered. Built in the in early 1900s, this iconic building had been in operation for over 100 years and was a focal point of the neighborhood. The solution involved keeping the two outer walls intact, integrating the brick exterior into the new, modern design and providing a perfect blending of old and new.
University of Colorado Anschutz Medical Campus Anschutz Health Sciences Building
Painting A Bigger Picture
Research, meets education, meets community space. For the University of Colorado, the vision of the Anschutz Health Sciences Building was about more than just providing students and staff with a space to work. Project designs painted a much grander picture, pushing the limits of ingenuity while seeking the best ways to fulfill the needs of today and planning for those of the future. Standing seven stories tall at its completion and officially opening in December 2021, the finished product has proven to be a one-of-a-kind statement piece on campus, serving as a mixed-used, collaborative space for all.
uniquely inspired
No corners were cut in the design and construction of the building, said to be inspired by the mountainous and rocky Colorado landscape. In fact, the exterior building includes only one 90-degree corner. Inside, each floor is one of a kind, and none stack exactly in line with one another—each is shaped different from the floor below. Another distinctive aspect of the project are the V-columns, constructed by JE Dunn’s self-perform crews. They serve as an architectural feature as well as a main structural component. Nearly every component of the project varied wildly, making it an interesting challenge according to Project Director Charlie Slattery. “It was a really interesting building in the fact that it didn’t repeat. We had to be familiar with every single inch of that job; there was no repetition whatsoever,” said Slattery. Across a total of 394,419 square feet, functionality, breathability, and flexibility of spaces had to be top of mind. The first and second floors include a grand staircase with built-in seating to support events for over 1,000 people, now a premier gathering space on campus. The building also houses the largest conference center on the campus, facilitating cross-disciplinary research with the end goal of creating truly personalized medicine. Along with multiple floors of offices and clinical space, within can also be found a data center supporting the entire Anschutz campus. The diversity of purpose for each space was a unique aspect for many involved in the project, as each required a different thought process.
The actual sheer quantity of the different types of spaces was a first for me. I have never built a building with this many types of spaces on top of one another. For instance, a medical simulation space was constructed right above a data center, which was in turn constructed above a pharmacy.
- Charlie Slattery, Project director
lasting impact
As the first new building added on the University of Colorado Anschutz Medical Campus in over 10 years, the completion of the Anschutz Health Sciences Building brought to life a long-awaited aspiration. The building is the first LEED Version 4.0 Gold Certified facility on campus and the most energy-efficient mixed-use facility on campus with 60% energy reduction versus existing buildings. Its atrium is the largest space on campus and can hold up to 3,000 people – with a 68-foot by 17-foot 4K video wall to boot. From construction of a full vivarium laboratory to expand research capacity, to the addition of a research pharmacy and more, the building brings together all the university’s behavioral health departments, allowing all individuals to start working together holistically.
adaptive approach
Having an adaptive mindset is necessary for any project, large or small. Mix in restrictions due to the onset of COVID-19, and adaptivity becomes all the more important for a 19-month project. That meant a heightened awareness and concern of every aspect. “On the planning side, it became a definitive challenge. It came down to having people who were very dedicated – people who eat, breathe, sleep, and live in the spaces,” said Slattery. “Adapting, making sure we pre-planned and had clear lines of communication was important. We also equally spread the load across the team to help ease the burden on some people and prevent overwhelm.”
For the client, this is a very important project. It is a signature building for the University and the community.
-Charlie Slattery, Project director
Rising prices, supply chain issues, and a fluctuating economy… owners across all markets are facing the same challenges, affecting crucial decisions when it comes to their projects. From material shortages all the way to staggering escalation, the current landscape has been anything but predictable, and it is impacting projects across the country. The good news is that there are ways to get ahead of it to make informed decisions that result in successful project outcomes. Though no one can predict what the future holds for each variable, JE Dunn is employing tools and offering creative solutions to guide clients every step of the way—providing certainty of results during uncertain times.
Prefabrication: Gaining Control Off Site
One strategy to help minimize exposure to inflation is prefabrication. At the project-level, prefabrication can help team extract a lot of uncertainty out of the project. This uncertainty comes from designs that may or may not align with what is available in terms of resources or production teams. At an industry-level, the more work that is conducted offsite addresses key issues – labor and materials. Moving hours off site helps to solve challenges associated with our constrained labor supply, creating more efficiency per labor hour and getting the necessary talent to each and every project site we serve. When considered holistically, prefabrication helps to align design teams with key trade partners to optimize a project for production. This has two primary benefits: a.) design can become more efficient in terms of how it can be produced and b.) certainty in terms of quantity and availability of products can be gained earlier in the process. It’s these two benefits combined that helps lower the risks associated with pricing escalation in uncertain market conditions. To further maximize efficiency, JE Dunn recently mobilized a prebuild facility to enable our self-perform activities to directly take advantage of the benefits of moving activity off-site: product standardization and utilization of better equipment and automation, while increasing safety and capacity. This facility complements the broader efforts of prefabrication at JE Dunn that helps align our design and trade partners into a more strategic supply chain solution. “One way JE Dunn teams are increasing speed, safety, and precision in construction is through our prebuild facilities, where we can incorporate value-added steps into components that get sent to construction sites for installation,” said Senior Superintendent Nick Effenheim. “While this is very similar to prefabrication, the distinction is in the scope of components prebuild facilities offer. We do create modular assemblies most associated with prefab in our facility, but we also create individual components and component kits for trades people to install in the field. We use the term ‘prebuild’ because it encompasses prefab, giving construction teams a multitude of options, packages, components, etc. to find the best approach for each project.” Using both approaches together yields impressive results, which are only amplified in the current landscape. Along with key clients, JE Dunn continues to analyze the quantified project impacts because of prefabrication. We’ve seen schedule compression for key trades in excess of 50%, driving broader project site labor hours and safety rates down by over 20%. It’s this cause-effect promise of prefab that we’ll continue investing in to drive company improvement and benefit the industry at large.
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Lens: Providing a Clearer Vision
The evolution of technology and the utilization of 3-D modeling has changed the game in recent years, but it’s the application of Lens® and what it offers that is upping the ante when it comes to collaboration and getting ahead of escalation. Relying on the past with an extensive library of project cost histories allows clients’ design and construction teams to better predict and plan for new projects. With information that changes as quickly as the fluctuating cost of materials, the real-time information offered in Lens allows for continuous adjustments that leverage cost history to make decisions in today’s challenging market. Lens brings a database of past cost history by project and building type to inform early conceptual cost estimates. It also updates that cost information for the geographic market location and adapts costs for escalation (to current dollar value). That gives us a very accurate — and instant — baseline to then marry up to our market and escalation projections for the budget and schedule.
Escalation is the major concern for our clients, and it varies greatly by region. We are able to tailor costs by location within Lens, because that projected escalation is based on our forecasts for the geographic market informed by our in-house economist’s analysis of commodities and consumer price index.
- dan kaufman, east region president
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Lens is tied to the database of our cost histories, but it is still accessible via our Dunn Dashboard to all project stakeholders. Lens View can work directly with the design team’s REVIT model to provide continuous cost updates as design evolution occurs. This instantaeous estimating accelerates the communication around design development and the cost impacts to allow informed project decisions to be made. Our ability to communicate via the same model the design team is using eliminates discrepancies, inaccuracies, and misinterpretation, making it easy to access and utilize Lens as a design tool. On the Iowa State Student Innovation Center, (shown below) architects from KieranTimberlake regularly reached out to our estimators to help make design decisions on material selection and systems before they went down the path of documenting design. Lens helped facilitate this target value approach that helped preserve the budget goals for the project while maintaining full design expectations—all while delivering the project with a less than 1% from our cost estimate. Used in concert with other Target Value Delivery tools, such as Establishing and Validating Value, Set Based Design, and Choosing by Advantage, Lens is informing the design decisions the architect is making to deliver a project design that achieves the owner’s budget goals—even during unstable and uncertain times.
These factors together have helped clients make informed decisions based on current and projected conditions, thereby offering more price certainty and projected outcomes.
JE Dunn’s Prebuild Facility enables project teams to build common components and provides a consistent, safe work environment.
By stacy scopano, national prefabrication and manufacturing director
By chris migneron, national design director
continue article: procurement & EVM
Continue article: procurement & evm
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Procurement: Equipped for Efficiency
In a rapidly changing economic environment, clients want certainty of outcome that is becoming increasingly difficult to deliver. Labor and materials have proven difficult to forecast — directly impacting total project costs. To help alleviate this aspect and further combat the uncertainty of the market, JE Dunn’s procurement team is taking several innovative approaches to ensure projects are equipped for success from the start. The most visible shifts in our overall approach are the deliberate steps we take to engage operations earlier in the project planning process. By being “at the table” earlier, we can work alongside project teams to develop solutions covering everything from site mobilization support, daily/weekly material purchases, and identifying long-lead equipment procurement opportunities. A committee of operations leaders from across the company has helped guide these efforts since this work first began. They have provided ground level insights, process guidance, and project access for the Procurement group as we work to deliver supply chain solutions for JE Dunn and our clients. The solutions we provide help to mitigate supply chain disruption and price instability through a series of both tactical and strategic efforts. We are establishing strategic vendor relationships and negotiated pricing for commonly purchased supplies and materials. “For operators, leveraging these relationships means less time they have to spend negotiating purchases, managing vendor relationships, or running to the local hardware store for supplies,” said Senior Procurement Specialist Ben Harvel. “For clients, this translates to a higher certainty of outcome, more predictable pricing for materials/supplies, and more time on site for operators to complete projects as safely and efficiently as possible. In addition to creating efficiencies in material procurement, we are applying innovative strategies around global supply chain issues affecting Long-Lead Equipment (LLE), highly engineered, contractor furnished, contractor installed equipment. Sensing an opportunity to differentiate and generate greater value to clients, an in-house cross-functional team partnered with operators to develop a process to identify, source, procure, and track LLE such as mechanical, electrical, and plumbing based on the owner’s project specification and schedule. “This new and continually evolving process has provided procurement a repeatable and scalable way to evaluate and onboard key suppliers, execute national agreements, track and expedite submittals, ensure shipping and delivery dates, and implement customized solutions that best fit the owner’s needs – shifting from coordinating ‘just-in-time’ deliveries to a ‘get-it-early’ mentality,” said Senior Procurement Manager Chana Duncan. “As a recent example, on a confidential project in the Northeast, the procurement team was able to identify and onboard suppliers in closer proximity to the project and are working toward a stand-up warehouse where materials and equipment will be stored for later use, saving freight dollars and shortening the supply chain in advance of the project breaking ground.” To streamline the procurement process even further, JE Dunn is currently piloting a new eCommerce platform, set to launch this month. This new technology will significantly transform the way operators order supplies and materials, reducing the uncertainty that comes with sourcing the multitude of supplies, materials, and equipment needed for projects. The work to get ahead in procurement continues to evolve, and the full extent to which we can create greater value and certainty for clients is only just beginning to take shape.
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earned value management: production matters
Predicting and planning for labor is equally as challenging in the current landscape as dealing with supply chain and material issues. Traditional project planning includes a detailed P6 to dissect the schedule and plan for each trade and milestone–but there are project risks that a Gantt chart misses on. Project risks like allocating appropriate labor resources based on planned production; confirming manufacturers can produce products at a throughput that supports the project; allocating appropriate space to store or stage materials and equipment; and addressing rates of production as potential for overcommitting. JE Dunn has developed another method that takes the traditional P6 approach one step further to show visually the work + labor hours curve, allowing project teams to better plan resources (people, equipment, materials, space). Ramp up on site is difficult to do, and the Earned Value Management (EVM) approach displays the effect of the effort as related to labor hours for each trade. The curve puts a visual to labor demand and shows spikes among all the trades together, and by looking at the information at this macro level, it ensures teams aren’t planning for improbable resource levels. Planning for labor—particularly during these times when finding people is difficult—is one of the biggest advantages of EVM, but it also adds a layer of predictability to production, helping clients stay on schedule and on budget when prices and availability fluctuate daily. By getting a holistic, macro look at the labor and production curve, it helps head off potential production problems, delivery, etc.
The visual aspect of EVM is really what makes it unlike the any other approach. While a Gantt chart offers a visual of schedule and tasks, it doesn’t tell you hours or people required at a glance.
- Chris kaestner, project manager
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Created in 2020, project teams now have more than two years of data and a complete project life cycle to apply lessons learned to new pursuits. "We are now able to use historical data from previous projects we used EVM on (or measured production) to help with job pursuits," said Kaestner. "In a recent pursuit, we were able to show the client that the proposed delivery schedule would not work based on the data and visual from a similar project.” Whether it’s material or people, getting ahead of the supply chain and planning for resources are the biggest pain points for clients today—and the common thread in all of it is that production matters. The model is applicable to more than just labor; it can be applied to modular scopes as well. If we know our install rate, we are able to better show and explain it to a fabrication shop, so that they can maintain production to supply the field per the schedule. With multiple applications and more data rolling in with each project, EVM is quickly becoming a valuable tool for clients and project teams across all markets.
The curve created using EVM helps you answer a wide variety of questions: Are you allocating enough space for deliveries; how are you getting to that answer; how can vendors meet schedules; how do you know what to ask of vendors; and is everything on track?
- chris kaestner, project manager
Having the Shiraz production information/EVM was key to planning the labor and equipment for the Shiraz install. We were able to see the labor curve and how that related to deliveries, so the site team knew what to expect as well as where those deliveries need to be installed. Add to that a great self-perform team, and we were able to execute a successful first-of-a-kind install.
- kelly weirich, superintendent
By jason banks, procurement director
By joseph schultz, vice president
By chris kaestner, project manager
The new platform will provide a modern interface for operators to place orders instead of relying on multiple, individual orders to several vendors to purchase items. These efforts drive time and cost efficiencies back to project teams and, ultimately, to our clients.
- dave muster, senior superintendent
Tampa General Hospital Rehabilitation Hospital
RISE OF SPECIALTY HOSPITALS
Numerous factors are driving national demand for specialty hospitals like the 80-bed Tampa General Rehabilitation Hospital in Tampa, Florida. From an aging population requiring inpatient care to offering more cost-effective, patient-centric care, specialty hospitals are filling evolving community needs—and all signs point to the trend continuing for the foreseeable future.
filling a need
In line with the upswing of these specialty facilities, Tampa General Hospital and Kindred Healthcare/LifePoint Health formed a partnership to build a new 87,000 square feet freestanding inpatient rehabilitation facility in Tampa Bay. This specialty hospital serves patients who require rehabilitation following a stroke, traumatic brain injury, spinal cord injury, or similar medical issue. Focused rehabilitation with the ultimate goal of in-home recovery, all rooms are private with state-of-the-art technology, including a secured brain injury unit with private dining and therapy gym; large physical therapy gym with a stationary Smart Car for driving skills, model kitchen, and bathroom and bedroom areas. The facility also has an Ekso NR™ suit which is a robotic exoskeleton designed for neurorehabilitation patients recovering from neurological deficits like stroke and spinal cord injury.
We had nine 40-foot shipping containers on site for storage, which was necessary for a schedule like this in our current supply chain environment. We didn’t leave anything to chance.
- will foster, project manager
Creatively Managing Risk and An Aggressive Schedule
With no margin for delay in the aggressive schedule, constant risk identification and mitigation were essential to completing the hospital in just 13 months and two weeks. The team focused on contracting with trade partners and securing labor and materials as soon as possible to avoid delays. “We had nine 40-foot shipping containers on site for storage, which was necessary for a schedule like this in our current supply chain environment. We didn’t leave anything to chance,” said JE Dunn Project Manager Will Foster. As hospitals become more technologically advanced, construction is also becoming more complex. So, the team leveraged one strategic partner to manage everything from card readers and security cameras to the nurse call system, integrated voice, data, and Wi-Fi, among others. Consolidating all technical components with a single, trusted partner further prevented delays and eliminated risks. Constant fine-tuning and creative resequencing also allowed the team to meet the schedule. When supply chain issues caused the roof’s studs to be delayed, they found a way to pour the concrete prior to the studs’ arrival, saving delay-related expenses without compromising quality. This creative, proactive problem solving enabled the team to start the building’s interior on time, knowing rainwater would safely be captured on the roof.
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The Advancement of Live, Work, and Play:
A Look at the Mixed-use Market
By: jason hickam, National Preconstruction & Estimating Director
While the emergence of more hybrid work environments initially resulted in less foot traffic at many offices, it’s the enhanced focus on employees amid all the change that have now affected the landscape of corporate spaces. It’s now more about the usability and quality of the building than the density of workspaces. “According to a study gathered by CBRE on what executives claim to be the most sought-after building attributes in the future, most are looking for ‘Better Buildings’ in a Class A product” said Michael Walden, real estate investment director for JE Dunn Capital Partners. “These new approaches include a higher reflection of ESG standards, flexible spaces, more collaboration spaces, improved air quality with greater access to outdoor amenity spaces, and greater connectivity to building technology such as enhanced video conferencing, building occupancy, smart building sensors, employee experience apps, touchless technology, and air quality sensors.” These new demands of office design are increasing the flight of tenants from tired or outdated office environments to newer to market Class A office space. A recent Cushman & Wakefield report shows that Class A quality office space is still in demand – even delivering 1.4% higher than pre-pandemic levels. With flexible open space, shared meeting areas, and places for private phone calls and web meetings topping the list of design attributes, larger office spaces on a SF/occupant basis will continue to drive steady demand in the years to come even while accommodating for slightly reduced occupancies from hybrid work approaches.
Corporate Shift
Developers have shifted focus to high growth areas within markets that have seen strong recoveries following the pandemic. With mixed-use developments seen as anchors to invigorate urban growth—particularly in underutilized sites—demand is returning to live, work, play (LWP) developments in specific markets with high foot traffic and high LWP scores. These markets include W Raleigh, Downtown/Westend Nashville, NW Las Vegas, Midtown/South End Charlotte, Uptown/Turtle Creek Dallas/Ft Worth, Upper Buckhead Atlanta. While live, work, and play, has—and continues to be—a desirable mixed-use development model, the next iteration is the 20-minute neighborhood in which multiple amenities are offered in a variety of flexible spaces within a 20-minute walk. Work from home is still a mainstay for many companies, as are hybrid work environments, so there is greater emphasis on more outdoor spaces and amenities that support urban work environments, including proximity to all essentials without being limited to one property. According to CoStar Group, successful implementations of this approach are driving lease rates 10-15% higher than competing offerings. These factors, combined with the economic impact of inflation and high prices, are driving a trend for the future of mixed-use developments— revitalization. According to ULI’s Emerging Trends in Real Estate report, COVID-19 accelerated the ongoing shift away from enclosed malls and favors mixed-use, outdoor spaces, resulting in a surplus of empty commercial real estate. Developers are taking notice of this shift, fueling an apartment conversion trend for these assets to address a multitude of needs in the multifamily market: The need to redevelop blighted, but high value, industrial or manufacturing urban land into high-demand, high-return mixed-use and multifamily developments is also seeing renewed interest and local incentive support. This is yet another way developers are capitalizing on underutilized spaces to stimulate growth and “go big” in the live, work, and play mixed-use development market.
the new live, work, and play
In the years leading up to COVID-19, multi-family, corporate environments, and mixed-use developments were high demand, good margin projects that were a significant portion of the commercial construction market. The pandemic, however, changed how people live, work, and play, altering the trajectory—as well as the projections—for current and future projects. The way we socialize both in and out of work, a fluctuating job market, our approach to retail, and our interaction with entertainment brought these markets to a halt as everyone waited to see where the chips would fall. So, what are the trends pointing toward now?
The multifamily market has been stressed by a combination of factors with the economy, climbing rents, and housing affordability having the most influence. In contrast to the Great Recession in 2008-2009, which resulted in a crash in home prices, the pandemic has fueled a run up in residential real estate prices, primarily driven by a significant gap in housing supply. “The Brookings Institute stated that the median listing price for homes was higher in March 2022 than March 2020 in 169 of 192 metros (84%), and the median apartment rent was higher in 146 of 148 metros (99%),” said Nick Frakes, associate at JE Dunn Capital Partners. “As a result, multifamily has seen substantial growth as an alternative to buying a home, further fueling the development of new multifamily and mixed-use properties.” Perhaps the most positive indicator for future growth within the market is the current investment in multifamily. "Brookings’ research also found that investment in the multifamily sector increased by 56% year-over-year to $63 billion in Q1 2022—the strongest first quarter start on record," said Frakes.
the move back to multifamily
This increased demand, however, is putting a heavy burden on the market from increased labor costs, material escalation and delays, and approval and permitting delays. According to the National Multifamily Housing Council (NMHC), 97% of multifamily builders are experiencing significant project delays, and 83% are reporting material escalation impacts as a result of manufacturer and vendor repricing. The remainder of 2022 will be a test of balancing market demand and housing undersupply with the headwinds of delays and cost escalation.
In fact, multifamily accounted for 37% of total commercial real estate investment volume in Q1 2022. From Q121 to Q122, the multifamily market set an annual record absorption total of 695,100 units, besting the previous record by 77% which saw a net absorption of 393,000 units in 2000.
- nick frakes, associate, je dunn capital partners
the need for "20-Minute Neighborhoods" that alleviate the burden of transportation the need to redevelop underperforming assets like overbuilt retail or malls into higher demand assets
712 West Peachtree
pathway to partnership
In 2019, Portman Holdings set out to find a partner to build its 712 West Peachtree mixed-use project. The primary need was for a 580,000 square feet, 22-story, built-to-suit office building while also offering retail, parking, a loading dock, and a skywalk connecting to 740 West Peachtree to enhance the appeal of this development. After a delayed start date, JE Dunn presented an in-depth plan describing how our team would successfully coordinate the construction of 712 West Peachtree around two other adjacent construction projects and the completion of 740 West Peachtree next door. It’s not uncommon to construct a high-rise project on a tight site in downtown Atlanta, but coordinating six tower cranes in a small radius certainly created challenges.
careful coordination
The team used video logistics plans to outline how the project would be constructed month by month while maintaining walkways, pedestrian safety, and transitioning from a luffer crane to a tower crane while avoiding collisions between the five other cranes doing construction in the area. Constant communication on the 712 West Peachtree project between project stakeholders and adjacent active project teams fostered an environment where everyone supported the same goals. Daily phone calls and huddles between nearby operational project teams mitigated challenges before they occurred. Although the stakeholders were competitor firms, this communication allowed all adjacent project teams to develop mutually beneficial plans and become a unified front when addressing the City of Atlanta and keeping citizen safety as a priority—a true team-first mentality.
It’s creative solutions such as these and a willingness to collaborate between stakeholders across the board that resulted in a successful project.
- ed von roemer, project director
UNIQUE SOLUTION FOR UNCONVENTIONAL FEATURES
A unique feature of the 712 West Peachtree building is the 10-story communicating stair. The stairway was designed with the tenant in mind to conveniently allow occupants to move in-between each floor. However, the initial design would not meet the City’s fire code. JE Dunn worked with Portman Architects and trade partners to determine how to separate the staircase to meet the city fire code successfully. Through multiple meetings with the City and Fire Marshal, the team assisted in the redesign of a three-sided smoke curtain system. “The system was required on all levels of the stair. The design allowed individuals to egress the stairs while preventing the stairs from becoming a ‘chimney’ in the event of a fire,” said Project Director Ed von Roemer. “It’s creative solutions such as these and a willingness to collaborate between stakeholders across the board that resulted in a successful project.”
SCROLL TO TOP
My favorite part of working with the JE Dunn team is that every challenge is viewed as an opportunity and questions were addressed promptly.
- CHRIS WICHMANN, VICE PRESIDENT CONSTRUCTION, PORTMAN HOLDINGS
