A Message from SVP, Barry Cutshall
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There continue to be a significant number of projects coming to market across a variety of private sector areas. Subcontractor backlog for 2022 is quickly being consumed and is one factor in rising costs. Workloads are also affecting the time it takes work to be completed. As we near the end of Q1, the supply chain for construction materials continues to be very challenging both in terms of costs and delivery schedules. For example:
- The roofing supply chain is very volatile, pricing for some membrane types and insulation generally still cannot be committed at time of bid and won’t be finalized until shipment, which for projects of any meaningful size can take 12 months.
- Lead times for RCP and precast structures for site storm drainage systems are now measured in months and are driving start dates. Some equipment such as switchgear, emergency generators, and fire pumps are on the order of 12 months.
- The impact of rising fuel prices is evident as well, as it affects deliveries, trucking costs, as well as site work and concrete pricing.
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All of these factors have affected how projects need to be managed during the preconstruction phase. Most construction schedule starts are now driven by multiple long lead items, not by the design and permitting durations. Therefore, it’s critical to develop a procurement plan by the Schematic Design Phase to tee up the release of key long lead items which will in turn likely dictate the project start.
Let me know if this in line with what you’re experiencing and other pre-con trends.
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8th Industrial Project for Childress Klein
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We are nearing completion on Velocity Park II, the 295,000 SF industrial tilt located in Greer, SC near the BMW test track, This represents our 2nd project within Velocity Park, and our 8th for Childress Klein's industrial group.
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We recently completed the shell for the new Atrium Health Medical Office Building in Birkdale Landing. This 28,000 SF two-story building, located in Huntersville, NC, will provide access to primary care, a walk-in urgent care and specialty care facilities.
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In February, we touted careers in construction by participating in college fairs at Clemson, NC State and App State. Many members of the M&C team come from these fine institutions. Next stop later this week is Western Carolina on March 17.
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ABCC Meet The NC Generals
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As an ABC Carolinas member, we participated in the NC Meet the General Event in Charlotte on February 17. These speed networking events introduce subs to GCS. We'll do the same at SC Meet the Generals in May.
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Atrium Health LifeShare Project Kicks Off
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We just kicked off a 20,000 SF renovation/addition for LifeShare of the Carolinas, the organ recovery partner to Atrium Health. This facility, located on Randolph Road, will serve as their Charlotte home and support the more than 30,000 organ transplants that take place in LifeShare facilities each year.
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