AGC of California named thirteen winners as the best of the best in the construction industry on Saturday, April 14, during its 25th Annual Awards Banquet. Over 300 guests packed the Palace Hotel in San Francisco, CA to recognize AGC member achievements and celebrate their success. The awards are considered by many to be the most prestigious recognition of construction accomplishments in California. 

The following individuals were honored for their outstanding contributions to the construction industry: Construction Education Friend Award – Frank Schipper, Frank Schipper Construction Co.; Associate Achievement Award – Cathy Skeen, Excel Bonds & Insurance Services, Inc.; Contractor Achievement Award – Marshall Agee, Agee Construction Corporation; and S.I.R award – Randy Iwasaki, Contra Costa Transportation Authority.

Recognized for their skill, unique undertakings and ability to address the most difficult challenges contractors encounter, the following companies received the coveted Constructor Award for outstanding projects in: Excellence in Project Management – Projects $10 million or below, Geneva Historic Car Enclosure – San Francisco, Shimmick Construction Co., Inc.; Excellence in Project Management – Projects over $10 million, I-880/SR 92 Interchange Reconstruction – Hayward, Flatiron Construction Corp. / Granite Construction Company; Innovation in Construction Techniques or Materials, Big Tujunga Dam Seismic Modification – Sunland, Shimmick Construction Co., Inc.; Contribution to the Community, Glen Avon Heritage Park – Riverside, Marina Landscape, Inc.; Meeting the Challenges of the Difficult Job – Builder Classification, Kaiser South Sacramento Medical Center Expansion – Sacramento, Harbison-Mahony-Higgins Builders, Inc.; Meeting the Challenge of the Difficult Job – Heaving Engineering Classification, Doyle Drive, Contract 3 – San Francisco, C.C. Myers, Inc.; and Meeting the Challenge of the Difficult Job – Specialty Contractor Classification, Owens Lake Dust Mitigation, Phase VII – Olancha, Dynalectric / KDS Systems, an EMCOR Company.

In addition, the following companies were presented with an Excellence in Partnering Award for: Projects Under $50 Million, Truckee River Canyon – Floriston, Granite Construction Company and Caltrans; and Projects Over $50 Million, I-880/SR 92 Interchange – Hayward, Flatiron Construction Corp. / Granite Construction Company and Caltrans.

For more information on the finalists and winners of this year’s awards program, visit www.agc-ca.org/awards. 2012 Awards Banquet Sponsors: East West Bank, Flatiron West, Inc., Gallina LLP, Hanson Bridgett, McGraw-Hill Construction, and SKANSKA USA Civil West.

In one context or another, each of us has tried to justify a social disconnect by using the phrase: “It’s the thought that counts.” The implication is that as long as our personal objective and thought process are sound, the end result is secondary. In essence, we are saying that we can only be held responsible for our own intentions and behaviors; whether the message is received correctly or not is beyond our control.

Since our personal and professional lives consist of a series of two-fold, dyadic relationships, the reality is that the impact of our behaviors (the “message received”) is every bit as important as the intent of the message that was sent.

Traditionally, technical and hierarchical organizations have always presented a variety of leadership challenges, but never more so than in the rapidly-evolving business environment in which we are currently competing. Our industry is unique because of its geographically distributed nature, which is characterized by a wide variety of subcultures that continuously interact within the office, on the jobsite, or within a design-build team.

Success in any market largely depends on a firm’s efficiency and adaptability in relation to its competitors, which challenges leaders to not only remain on the cutting edge of their respective industries but also stay in tune with the inner workings of their organizations in terms of ethics, culture, climate, and vision. We are faced with defining not only who we are and who we need to be, but also with identifying team members, both internal and external, who share our passion and purpose.

 As we move toward more collaborative frameworks and philosophies such as Integrated Project Delivery, our team members need to understand the importance of establishing “common memory” and “common reasoning” within the strategic team. Our task is to work collaboratively toward a common objective, but we must also be efficient and precise. Given the competitive, low-margin market in which we operate, we simply cannot afford to spend our time repeating, correcting, or restating our intentions. Without clarity and purpose, we are slower to take action and the likelihood of delays, miscommunication, and costly mistakes increase.

In effect, we can say that it is definitely not “the thought” that counts, but rather the purposeful impact of our communication and behaviors with respect to other team members as we work toward the completion of a successful project.

Swinerton Builders Electronic Plans Program was originally introduced in an effort to make our projects more collaborative. The purpose is to have one set of project documents that are posted and 100% current with all ASIs, RFIs, and changes. Having that master set at the fingertips of all project team members is a sure contributor to the success of a project. To do this, combined sets of the PDF drawings are created and labeled “red line set.” For easy access, the drawings are kept small and adequately bookmarked. Callouts and slip-sheeting is performed using Bluebeam PDF Revu for its robust capabilities. All of the postings on this set are hyperlinked for easy one-click access back to the original document. Finally, the original copy of this master set resides on the project server and is automatically updated on our project FTP site every 30 minutes via a one-way upload. This allows us to make the most current master documents available to any project team member that has access to a computer, iPad, or other tablet PC via download. This also keeps our electronic plan table up-to-date. Below is a workflow of the process:

In addition to tablet PCs and iPads, our portable electronic plan table is an integral part of our Electronic Plans Program. This portable plan table provides the avenue for all of the team members on the jobsites to have access to the most current information to build the project. This puts all of the critical project information where it is most useful, right in the heart of the project. The plan table consists of a 42-inch touch-screen display monitor, portable laptop computer, printer, keyboard, and mouse, which is housed in a gang box on the jobsite. Specialty software is installed on the computer to ensure ease of use and lockdown access to the sensitive areas of the computer.

One quick touch of the screen will grant any team member access to all of the answered RFI’s, approved submittals, current drawings, safety information, BIM models, quality management program, and much more. Swinerton’s electronic plan tables are efficient and easy to use for the entire project team. Their touch panel display with pinch-to zoom feature makes navigating large files and drawings a snap. Having the most current project data readily available to the entire team, including field staff, improves project workflow and contributes to a successful project.

Sustainability Base is a highly intelligent and intuitive facility designed to anticipate and react to changes in sunlight, temperature, wind and occupancy. The building can optimize its performance automatically, in real time, in response to internal and external changes. It is designed to achieve, and is presently under consideration for, the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) Platinum status, which is the highest LEED rating.

Participants in the ceremony include:
– Director of the White House Office of Science and Technology Policy John Holdren (prerecorded message)
– U.S. Rep. Anna Eshoo, Calif.
– U.S. Rep. Zoe Lofgren, Calif.
– NASA Associate Administrator for Mission Support Woodrow Whitlow (representing Administrator Charles Bolden)
– Ames Center Director Pete Worden
– Ames Associate Center Director for Research Steven Zornetzer
– Architect William McDonough

Media interested in attending the events should contact Ruth Marlaire at 650-604-4789 or ruth.marlaire@nasa.gov by 4 p.m. on Wednesday, April 18.

Meeting the White House challenge to lead by example, NASA has repurposed its technologies and incorporated them into the new building. Sustainability Base features a Bloom Energy Box, for example, that uses fuel cell technology in a clean electrical-chemical process to produce electricity. The facility also has a water recovery system, derived from one originally designed for the International Space Station, which reduces unnecessary consumption of potable water.

Video highlights of the facility’s construction, technology and systems will air on NASA Television’s Video File beginning at 6 a.m. PDT, Friday, April 20. For NASA TV downlink information, schedules and links to streaming video, visit: http://www.nasa.gov/ntv

For a digital press kit of Sustainability Base, visit: http://www.nasa.gov/centers/ames/events/2012/sustainability-base-presskit.html

For more information about Sustainability Base, visit: http://www.nasa.gov/externalflash/sustainability-base

For more information about Ames’ green technologies, visit: http://www.nasa.gov/centers/ames/greenspace

Swinerton’s eGM – 475 Brannan Street project located in San Francisco had an institutional owner/investor who invested up-front to the greening of the building’s retrofit.

Green Incentives

There are other factors besides rent to consider when making the go/no go decision on green investments. In leasing up space, tenants often receive an allowance as part of their lease agreement for tenant improvements; the amount of this allowance varies by building product type. A biotech tenant under a triple net lease arrangement will typically get a larger TI allowance because the developer only delivers a basic shelled space, relying on the tenant to customize the space for their needs. A green building that is more efficient can therefore contribute to a reduction in the value of the TI allowance that is offered to the tenant, which is in the developer’s best interest. A green building can also contribute to higher tenant retention and longer lease durations, which means less turnover and lower operator costs for the developer.

 Lastly, the incentive for green upgrades is also driven by the motivations of the tenants and occupants, which in turn can motivate developers. Whether it’s the motivation to keep up with their peers or competitors, a genuine concern for environmental issues, or simply the image of working in a healthy building, tenants’ demand for green building stock will also drive the marketplace.

 Moreover, educated tenants realize that there are proven metrics linking green buildings to increased productivity. Using a developer’s metric, a simple savings of eight hours a year per employee in increased productivity, can result in a savings of two dollars per square foot annually. This is comparable to between a 3% and 8% savings on a tenant’s annual rent expenditures (based on an urban or suburban rental rate).

There are many nuances to speculative development and lease agreements. It continues to be very challenging to develop standardized green investment strategies that fit all geographic conditions, building product types, or even tenant demands. But the bottom line is that we have passed the tipping point on the incorporation of green into new buildings.

 This is ultimately being driven by the financial markets as a means of mitigating future risk to their investments. We are also rapidly approaching the tipping point for green upgrades to existing buildings. To get over the summit will take ongoing ingenuity and alignment between developers, tenants, and occupants to reconcile the benefits with the costs…which will come sooner rather than later.

Read Part 1 : http://www.swinertonbuildstomorrow.com/?p=1832

Swinerton’s eGM – 475 Brannan Street project located in San Francisco had an institutional owner/investor who invested up-front to the greening of the building’s retrofit.

In an urban environment, today’s reality is that it’s virtually impossible to not achieve some type of LEED certification on a new building. Moreover, there is general consensus among all stakeholders that if the decision to incorporate green features  is made upfront at the feasibility stage (assuming such a decision even needs consideration in the first place), there are virtually no added premiums (up to a LEED Silver certification level or equivalent).

 In addition, from a developer’s perspective, the capital markets now demand this as a means of protecting their investment. Lenders do not want to be put in a position where the property they have invested in winds up selling for a discounted price, eroding the investor’s anticipated return on investment (ROI). In five years or so, when the property is put up for sale, it will be competing with a huge inventory of existing buildings and it won’t be new anymore.

 Therefore, the best chance to distinguish itself from the competition of existing buildings is to ensure that it can check the sustainability box. In turn, this added competitiveness makes the investment more stable, which ultimately contributes to a higher ROI.

To Green Or Not To Green

Given this reality, the real discussion on green investments must focus on existing buildings. Again, there is no question that focused green retrofits will ultimately reduce a building’s operating costs. However, the decision on what green retrofits to invest in is driven by the reconciliation of two at times conflicting considerations – who is paying for the investment and who is benefiting. Such considerations can be evaluated based on three categories of issues: the ability of the developer and/or investor to recoup their investment via rent, the non-rental financial advantages that such an investment may result in, and the motivations of the tenant and occupants.

The ability to recoup the investment on a property is ultimately tied to the rent a landlord can command for the lease of the space. Like any specialty, the world of lease agreements has its own vocabulary. The type of lease depends generally on local market conditions and product type. Two of the most common types of lease agreements for commercial multi-tenant buildings are full service and triple net leases.

 The primary distinguishing feature between these two agreements is who pays the monthly utility bills. Under a full service lease, the tenant pays the landlord a flat monthly rent and in turn, the landlord pays all of the taxes, maintenance, insurance, and utility costs. Operating expenses included in the monthly rent are calculated on a base year’s operating costs. At the end of each year, the actual operating costs are calculated and if the actual costs are higher than those of the base year, the tenant pays the prorated difference. If the actual operating costs are lower than the base year the developer keeps the savings.

 In contrast, with a triple net lease the tenant pays all the costs associated with occupying the building, including utilities, taxes, and common area maintenance costs. In this case, the tenant receives the benefits of any reduction in these bills resulting from, for example, a new building controls system. This dis-incentivizes the landlord or developer from making such investments, unless there is an alternate means for the costs associated with such upgrades to be recovered.

 Therefore, a full service lease, common to the high-rise office buildings of San Francisco, provides a more effective mechanism to incentivize a property owner to pay for green upgrades to their existing building. A developer’s ideal situation is one where there are long-term full-service leases (in the range of 10 years) in place with high base year operating costs – the lease period allows an adequate payback period for the developer to recover its upfront costs and make a return on such an investment.

Stay tuned for Part 2 on 4/4/2012!

Say what you will about the benefits of clean energy or the costs of pollution, the jury has returned an ambiguous verdict on the greening of the commercial real-estate market.  The niche has become mainstream.  Anyone who says green buildings, which are certified by third-party verifiers as demonstrating superior environmental performance and resource efficiency, are “boutique” has not been paying attention.

The commercial buildings sector boasts the most explosive growth in green building. In 2010, a third of all new commercial construction was green, amounting to a $54 billion market for commercial green buildings. By 2015, green buildings in the commercial sector are expected to triple, accounting for $120 billion to $145 billion in new construction and $14 billion to $18 billion in major retrofit and renovation projects.

But not all commercial buildings are the same. For all practical purposes, there are three classes of commercial buildings – Class A, Class B and Class C. These classifications are commonly used as a proxy for a building’s ability to attract high-value tenants.

While there is no standard definition for what qualifies as Class A, Class B and Class C commercial buildings, the Building Owners and Managers Association suggests considering the following criteria when classifying commercial buildings:

Class A: Most prestigious buildings competing for premier office users with rents above average for the area. Buildings have high quality standard finishes, state of the art systems, exceptional accessibility and a definite market presence.

Class B: Buildings competing for a wide range of users with rents in the average range for the area. Building finishes are fair to good for the area. Building finishes are fair to good for the area and systems are adequate, but the building does not compete with Class A at the same price.

Class C: Buildings competing for tenants requiring functional space at rents below the average for the area.

In other words, Class A buildings are the most desirable and Class C buildings are the least desirable from the typical tenant’s perspective. Greater desirability means more money. It turns out Class A is where the green paradigm has achieved the deepest penetration.

“Green building is fundamentally altering real estate market dynamics – the nature of the product demanded by tenants, constructed by developers, required by governments and favored by capital providers,” according to RREEF Research. “The upshot will be a redefinition of what constitutes Class A properties and even institutional-quality real estate.”

The predicted “upshot” is rapidly becoming a reality in Manhattan‘s commercial real-estate markets, which is dominated by Class A properties. In Manhattan, Class A office buildings account for 61% of the total market. Class B buildings make up 26% of the market and Class C accounts for the remaining 13%, according to Cushman & Wakefield.

While stricter government regulation may ultimately make green buildings the de-facto standard for new and renovated buildings in the future, tenant demand is the primary reason why green buildings are becoming mainstream in today’s Class A commercial real-estate market.

“At Hines, we specialize in Class A space, and we’ve reached the point where clients don’t think it’s Class A unless it’s green,” said Jerry Lea, the Executive Vice President of the real-estate investment and management firm.

Many tenants are willing to pay a premium for space in green buildings because of the lower operating costs, higher worker productivity and reputational benefits associated with the superior environmental performance of green buildings.

If the past presages the future, today’s green buildings market is chump change compared to the opportunity likely to come down the pike over the next decade. To put the scale in perspective, in 1995, the total floorspace of U.S. commercial buildings – 58.8 billion square feet of floorspace – exceeded the total area of the State of Delaware and amounted to more than 200 square feet for every U.S. resident.

Talk about a sea of green.

(original source: Forbes Energy: http://www.forbes.com/sites/williampentland/2012/03/18/the-brilliant-economics-of-green-buildings/)

The $6-million Carlsbad Cinepolis Luxury Cinemas was completed in seven months and had the same concept as the one completed in Del Mar, with similar themes and Four-star finishes throughout. The theatre includes features such as a full service bar and kitchen, lounge areas, and service at your seat. Additionally, the same “boothless” state-of-the art digital projection sound and lighting system was also used in this theater. Our team took many of the lessons learned at Del Mar and worked with the owners and architects to implement them on this project. Structural details were reviewed and modified based on constructability and value engineering for all new stadium seating tiers; MEP systems were updated to remove most of the access panels and clutter in main lobby high ceilings; and the kitchen was completely redesigned with a streamlined layout based on input from personnel operating in the Del Mar Theater. We also performed a full renovation on the exterior to accent the property with the surrounding buildings in the mall.

The relationship that started one year ago with Cinepolis has grown immensely. We are now an integral team member and have taken it upon ourselves to constantly innovate and implement better solutions on new projects. Currently underway is a theater in Thousand Oaks, California run by our Los Angles office; another in Laguna Niguel, California; and one more in Rancho Santa Margarita, California. We look forward to these three new theaters opening in late summer, bringing the total completed to five.

Allied Real Estate is about to start construction of this 332-unit, 2-building luxury apartment community near Speer and I-25.

 Allied Realty plans to soon start the demolition of rundown buildings near Speer Boulevard and Interstate 25 to pave the way for a 332-unit, $80 million luxury apartment community.

The development, called 2785 Speer, has been almost five years in the making and is by far the largest apartment development planned in northwest Denver, said Lauren Brockman, principal of the Denver office of Allied Realty.

Now, with the hottest apartment market in memory, he is ready to move forward on the two-building development.

“We’ll probably start demolition in about two weeks,” Brockman said today. “It will take about 22 months to complete construction.”

Brockman bought the first two acres of the 4.5 acre site in 2007. The property is roughly bordered by Speer, Alcott and Bryant streets, West 26th Avenue and the property line between the site and an existing gas station.

5 years in the making

“After we bought the first two acres, the market went sidewise and we decided that it would make sense to assemble a bigger site,” Brockman said. “I then assembled another two acres from nine different property owners. Later, I bought another half-acre. It’s very unusual to have a development of this size in an area so close to downtown. Most new infill apartment buildings are on pretty tightly packed sites.”

The community, he said, “will appear to be five stories on the Speer side and four stories on the 27th (Avenue) side,” Brockman said.

He anticipates initial rent rates will be at $1.92 per square foot, With units ranging from about 600 square feet to more than 1,200 square feet, monthly rates will range from about $1,100 to $2,300. The average sized unit will be 850 square feet, or about $1,600 per month. It will be about 60 percent one-bedroom units and 40 percent two-bedroom units.

“You look at Commons Park (near Confluence Park, off 15h Street) and they are getting $1.91 per square foot,” Brockman said. “There is nothing wrong with Commons Park, but is is 12 years old and this is brand new.”

He expects that after the initial leasing effort, “rents will stabilize at $2.10 per square foot.”

The development will be as nice as any of the new luxury apartment communities underway or on the drawing table in Denver, he said.

“Really, it’s going to be kind of like bringing Clayton Lane quality to Jefferson Park,” he said, alluding to the ritzy development in the heart of Cherry Creek North.

As part of the development, Allied will vacate Alcott Street and make it a private drive, which he said will make the area more pedestrian friendly. “We’re also going to vacate a funky little area on (West) 28th Avenue. The city asked us to do that because people get on it and then make 180-degree turns to turn around, so it is kind of a traffic hazard.”

The development will include a swimming pool, a two-story, glass-enclosed exercise area, and even a bocce ball court.

“The views of downtown are simply unbelievable,” Brockman said. “That is why we are enclosing the exercise area in glass with overlooking downtown. We wanted to take advantage of these spectacular views. And while it’s kind of hard to tell, we think the south-facing units and the north-facing units, also will have nice views of the mountains.”

Meeks + Partners is the architect and Swinterton Builders is the general contractors. The building will be LEED-certified. The development will include about 500 parking spaces, some of them underground.

Swinerton on board

“This is just an amazing project and we are proud to be participating in it,”  said Scott Conrad, division manager for Swinerton. “My own view, is that this is a great time to be developing multifamily. Not only is the market unbelievably strong, but I think that we are going to be see inflation of commodities and labor in the future. And interest rates are obviously very favorable and debt and equity are available.”

Houston-based Meeks + Partners, described the development this way on its website: “Set in a redevelopment zone within easy walking distance of downtown Denver, this urban contemporary infill will create a vibrant and modern cornerstone for the transitional neighborhood. Aligned along historic North Speer Boulevard, the architectural team integrated and responded to the client’s specific needs to offer a dense, mixed-use product for this site.”

US Bank is the lender and the Amstar Group is Allied Realty’s equity partners.

Brockman said he think the primary market for 2875 Speer will be the 22- to 35-year old.

“A lot of them will work downtown,” Brockman said. “They also might work in Cherry Creek, which is a straight shot down Speer. And we might have some young couples, where one works downtown and the other works in the Tech Center.”

He said he also expects that the development also will attract some divorced people and well as empty nesters.

“The nice thing is that there is one traffic interchange at Zuni and then you are at I-25, but you are just far enough from the highway that the noise isn’t overwhelming,” he said.

The community will include 10,800 square feet of ground-floor retail space. Brockman said he could imagine locally owned restaurants, such as as a pizza parlor, as well as non-chain operated businesses such as dry cleaners and coffee shops.  “We think the area is pretty under-retailed. We don’t think we will have any problems filling the space.
”

The development is about a mile and a three-minute drive from the 147-units in 5-story one one 4-story building planned by RedPeak Properties in nearby West Highland.

“I think there is enough demand for RedPeak and for us,” Brockman said. “Plus, I think we will open enough in advance of RedPeak that we will be stabilized when they come on line.”

Indeed, he doesn’t share the fears of some observers that downtown and the areas around it, most notably Highland, are in danger of becoming overbuilt.

“If we were all going to start construction at the same time and open 90 to 120 days of each other, things would get pretty ugly,” Brockman said. “But all of these developments take a long time to move forward and not every one will be built. I’m not worried.”

(Original Source: Inside Real Estate News: http://insiderealestatenews.com/2012/03/speer-i-25-getting-luxury-apartments/)