smart construction by leopardo

Smart Construction:Economical Building Solutions to Save Time and Money

The The Perfect StormPerfect Storm‐‐ Unstable energy pricesUnstable energy prices

‐‐ Intensified global demandIntensified global demand“W t i th G t D i ”“W t i th G t D i ”‐‐ “Worst economy since the Great Depression” “Worst economy since the Great Depression”

Today more than ever smart contractors playToday more than ever, smart contractors play an economist’s role, counseling clients on:

•Material price fluctuationsMaterial price fluctuations•Material demands•Supply shortages•Alternative methods of construction•Lifetime costsEffi i i•Efficiencies•Impact on the environment

Despite turbulent economic timeseconomic times,

companies can still find ff imany cost‐effective

ways to develop new facilities for growth

and expansion.p

10 Building Solutions to Save Time and Money

1 Avoid Scope Creep and Build Lighter1 Avoid Scope Creep and Build Lighter

• Identify wasted space and make the facility as functionally efficient as possible.p

• Instead of building for growth today, consider building a smaller, more flexible facility that can easily expand to fit the company’s needs when they change.

• On nearly every construction project, a menu of options and alternati es e ist for fo ndations framing enclos resand alternatives exist for foundations, framing, enclosures and MEP systems.

Avoid Scope Creep and Build Lighter1 Avoid Scope Creep and Build Lighter1• After competitive bidding of the original

drawings were completed for this 524,000‐sf office/warehouse building, the project was approximately $7 million over the $18approximately $7 million over the $18 million budget

• By partnering with a highly qualified team of design‐build MEP/FP subcontractors, we redesigned the HVAC plumbing electrical

Juno Lightingredesigned the HVAC, plumbing, electrical and fire protection systems

• The Result: 30% cost reduction, on budget

• Also re‐engineered the roof drainage g gsystem, altering the geometry and configuration of the building shell, and re‐engineered the grading to reduce clay requirements

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q

• Leopardo helped save the client $7 million

Avoid Scope Creep and Build Lighter1 Avoid Scope Creep and Build Lighter1

Aurora Police Headquarters Fortune 200 Industrial Client

• Developed four quick structural system case studies and priced each one.

• This project is currently in preconstruction stages and Leopardo has already changed p

• Original plans called for a pre‐cast concrete or steel/pre‐cast superstructure, the case studies proved that an entirely composite steel superstructure was the

stages a d eopa do as a eady c a gedthe parameters to a lighter roof system that will cost more but reduce the steel structure requirements and ultimately net a better cost.

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composite steel superstructure was the most cost effective for this 195,000‐sf, $70 million police headquarters.

2 Purchase Materials Smarter2 and in Bulk

• Determine if purchasing products within a 500 mile radius will result in transportation and fuel surcharge savings.

• Even if the costs are identical using local materials significantly decreases fuel consumption delivery• Even if the costs are identical, using local materials significantly decreases fuel consumption, delivery time and the carbon footprint, which makes the decision an environmental savings.

• Utilize the contractor’s well‐established purchasing channels for centralized buying and discounted bulk purchasing to save money.

• Larger contractors with preconstruction experts can assemble material and equipment packages that are more attractive to suppliers and increase their ability to negotiate the best prices and delivery dates. The economies of scale can provide sizeable pro forma savings.

• Lead times, comprehensive costs and usage figures are crucial for determining and securing bulk and wholesale pricing. By studying market trends and cost data, contractors can forecast prices and conclude the most cost‐effective purchasing solutions.

S d GC h l f ili i i h ll i d d h i li d• Seasoned GCs have close familiarity with all construction products and their suppliers, and know how to navigate cost spikes and material inflation, which saves money and time.


Poplar Creek Crossing Shopping Center

• By being brought onboard early, Leopardo worked closely with the project team on a very cost efficient design that translated to a substantial cost savings on the brick face of thecost‐efficient design that translated to a substantial cost savings on the brick face of the building. Purchasing materials smarter allowed us to fast track the project more efficiently and deliver additional savings. From the time vertical construction began, we utilized multiple sub‐contractors in the key trades and project phasing to complete shell construction for the inline and outlot buildings in just over four months

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inline and outlot buildings in just over four months.


Mount ProspectMount ProspectPublic Works and Fire StationWashington Mutual Rollout

• We built more than 80 Washington Mutual branches in two years.

• Essentially three projects in one.

• We are working closely with the project• By bulk purchasing and pre‐fabricating

materials offsite, costs were greatly reduced, quality was increased and the stores were built quicker.

We are working closely with the project team and client to rearrange the schedule and purchase all the materials together in order to save money and time from bulk purchasing.

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stores were built quicker.

• Each round of stores (8‐10 units) was completed in 8 to 12 weeks.

purchasing.

3 Know Where the Dollars Are Spent3 to Gain the Biggest Savings

• We recently analyzed every interiors project completed over the course of 12 months.

• 40 to 48 percent of the interiors budget is tied up

LEOPARDO STUDY RESULTS• 24 to 26 percent of the total• 40 to 48 percent of the interiors budget is tied up

behind the walls or above the ceiling. That leaves about 52 to 60 percent of an entire interior construction budget for the design and aesthetics of the space

24 to 26 percent of the total interior construction cost was spent on electrical

• 9 to 11 percent was spent on h ti til ti d iof the space.

• Another key finding was with the variance from low to high bid. While many components, such as ceiling tile and carpet, had an average swing of five

heating, ventilation and air condition (HVAC)

• 4 to 6 percent on plumbing and fire protection

percent, electrical bid swings pushed as high as 20 percent.

• In a $1 million electrical job, that may mean a low bid of $800,000 and a high bid of $1.2 million ‐‐ a

$

• 3 to 5 percent on communication and security

potential $400,000 savings, which can be spent on the interior design or go back in the client’s pocket.

4 Change the Palette of Materials4 Change the Palette of Materials

• Using substitute materials that are lower priced, less volatile, more sustainable or more labor‐efficient will result in significant project cost savings.

• Copper steel asphalt and aluminum are some of the materials• Copper, steel, asphalt and aluminum are some of the materials with soaring prices. Delaying a project that uses a substantial amount of these materials could have significant added costs.Pervious paving material is a relatively new and environmentally‐friendly alternative to concrete and asphalt which is less volatilefriendly alternative to concrete and asphalt, which is less volatile and more economically sound for some projects.

• Pre‐assembled or pre‐fabricated materials such as pre‐cast concrete panels used for a structure’s enclosure system can help trim a construction schedule and produce considerable savings. The reason for this is two‐fold.

• First, quicker assembly on‐site eliminates some of the man‐hours needed for installation.

• Second, pre‐engineered walls and floors are produced in a controlled indoor environment where workers can increase their overall rate of production by avoiding extreme weather conditions on site, wearing comfortable clothing, not walking through mud, etc.

4 Change the Palette of Materials4 Change the Palette of Materials

• This project originally came in over budget and had been stalled for five years.

• Leopardo was able to reduce the size of the• Leopardo was able to reduce the size of the building from 16,600‐sf to 14,400‐sf without compromising functionality or operational efficiency.

• In fact, the client felt like they were getting more space with the smaller square footage.

• By reducing scope and changing the enclosure system from all masonry to masonry and pre‐

Clarendon Hills Police Department

y y y pcast concrete, Leopardo expedited the project (finished in seven months) and saved this client $200,000.

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5 Build Green and Reap the Benefits5 Build Green and Reap the Benefits

• According to the United States Green Building Council (USGBC), green buildings typically save 30 percent in energy, reduce waste costs by 50 to 90 percent, reduce water usage by 30 to 50 y p , g ypercent, have higher rents and resale values, improve worker productivity, and reduce carbon emissions by about 35 percent.

• The myth is that sustainable construction costs a lot more, which is not always the case. Leopardo is helping one Fortune 200 industrial client pursue LEED certification for less than one dollar extra per square foot.

• For example a green roof which started as the poster child of• For example, a green roof, which started as the poster child of the green building movement, is commonly associated with high costs. However, a building can achieve many environmental benefits by using white thermoplastic polyolefin (TPO) roofing membranes that cost one‐third ofpolyolefin (TPO) roofing membranes that cost one‐third of what a standard intensive vegetative green roof typically runs. And it still benefits a LEED‐seeking building.

5 Build Green and Reap the Benefits5 Build Green and Reap the Benefits

• LEED is the national certification program by the USGBC. Four levels of LEED certification exist – Certified, Silver, Gold and Platinum – which require 26, 33, 39 and 52 points, respectively, to achieve them. In order to q , , p , p y,achieve any certification, a project must comply with seven prerequisite points.

• While seeking Leadership in Energy and Environmental Design (LEED) status carries a variety of consultant and registration fees using greenstatus carries a variety of consultant and registration fees, using green building practices, materials and systems can actually cost less than their non‐green counterparts and provide immediate and long‐term savings.

• According to construction consultancy Davis Langdon, which studies the cost of green building, many projects are achieving LEED with little or no added cost and with budgets well within the cost range of non‐green buildings with similar programs.

• In Chicago, LEED‐seeking projects benefit from a fast‐track permitting g g p j p gincentive, which can save months on the schedule.

6 Integrate More Revenue‐Generating 6 Space and Features

• Working closely together, the owner, architect and contractor team can maximize a building’s rentable square footage.

• Adding more rentable square feet or converting a non‐rent producing space, such as a rooftop terrace, into a rent‐producing area will earn the owner additional revenues to justify upfront costs.

• Other revenue‐generating considerations are incorporating cellular or communication technology on the building’s roof, or moving mechanical systems to the roof to free up valuable floor spacesystems to the roof to free up valuable floor space.

• Or, if the building is in a high‐profile location, like a central business district, with great viewership by foot, train, car or boat, then there are marketing and d ti i f i l h ill bi f i i htadvertising professionals who will pay big money for signage rights.

6 Integrate More Revenue‐Generating 6 Space and Features

PromoWorks and 300 Martingale

• By offering signage rights on this highly visible suburban office building, the development team was able to secure a long‐term lease with PromoWorks as the

• Rather than take up precious rentable space on a useable floor, move the mechanical systems to the roof (we’ve done this on many projects –especially our residential condo projects).

anchor tenant.

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7 Leverage the Contractor as a 7 Development Partner

• Seasoned construction firms like Leopardo have the resources, relationships and know‐how to be a trusted development partner on most projects.

• With decades of local and regional experience, some contractors are development savvy enough to counsel or collaborate with clients on:

• Sale‐leasebacks for freeing up precious capital• Tax‐engineering strategies for depreciating property quicker and lowering the net tax baseg g g p g p p y q g• Alternative financing methods, municipal grants, and economic development zones

• When working with a building owner who has tenant leases up for renewal, a qualified contractor can work with the landlord to help them offer more attractive renewal deals by supporting them with cost estimates to define the tenant’s wish list. In a competitive market, a good contractor is a building owner’s best friend.

• Bottom line, the domain of the real estate professional often expands into construction and a smart contractor working in concert with the developer has a variety of money trees to shake forsmart contractor working in concert with the developer has a variety of money trees to shake for incentives and savings. As the contractor in the partnership, they can also provide completion guarantees to the bank as well as performance and payment bonds, which may prove priceless.

7 Leverage the Contractor as a 7 Development Partner

Design Phase Fox Bluff Corporate Center

• Leopardo developed and built this 70,000‐SF, build‐to‐suit office/warehouse headquarters.

• Leopardo provided turnkey development services for this 37,000‐sf multi‐tenant, built‐to‐suit office/warehouse facility.

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8 Bring the Builder Onboard Early or 8 Explore Design‐Build Delivery

• Some may argue that bringing the contractor in early will add unnecessary fees to the project but the amount of money saved on material price escalations will outweigh the contractor’s fee.

• In addition to avoiding costly escalations an earlier partnership between the architect and contractor makes for more efficient value designing, addresses critical MEP system considerations and helps prevent re‐design. Plus, by having the contractor onboard early, the firm can build permitting packages to start the job earlier, build quicker and deliver faster with less changes.

• Sophisticated architects are reaching out to partner with savvy contactors earlier on large projects because they appreciate and understand the process benefits and because it reduces the amount of requests for information (RFIs) that subcontractors issue to designers while constructing the facility because something was missing from the original drawingsfacility because something was missing from the original drawings.

• If the project doesn’t budget out as anticipated, the general contractor operating as the design‐builder can redesign the facility in a way that creates value in multiple ways and gives the owner a turnkey price to still do the whole deal on budget. The design‐build method commonly produces substantial profitability and can turn seemingly unworkable projects into legitimate opportunities.


• At Leopardo, we provide even more time and cost savings and add even greater value to our design‐build projects through our proprietary PreViz, or pre‐visualization, experience.

• PreViz is a three‐pronged system that uses:

1. State‐of‐the‐art software technology to conceptually design and visually modify buildings before your eyes – in real time – while…

2. Simultaneously factoring in critical scheduling milestones and…

3. Live cost estimates.

• What normally took two to four weeks with architect and builder meetings, can now be done in theWhat normally took two to four weeks with architect and builder meetings, can now be done in the Leopardo offices – or yours – within a couple hours.

• In just one meeting, all parties involved can look at, discuss, edit and ultimately decide upon a number of key design elements and building systems based on informed cost and functionality concerns. Click here to watch our Design‐Build and PreViz video (internet connection required).

9 Fast Track the Project9 Fast Track the Project

• Never before in construction has the platitude of “time is money” been more true than it is right now. With construction materials realizing eight percent annual inflation, a project that costs $10 million today will cost $12.6 million in three , p j $ y $years. Even shrinking a 24‐month schedule to 18 months will generate considerable savings.

• Fast tracking construction, which moves away from the traditional linear building process and overlaps the design and construction, enables portions of the project to begin before the design is completed.

• For example, once the civil engineer finishes the mass grading drawings, the contractor can usually get permits to start work immediately while the rest ofcontractor can usually get permits to start work immediately while the rest of the drawings and documents are being finished.

Rome wasn’t built in a day but the Empire State Building was built in 410 days in 1931Rome wasn’t built in a day, but the Empire State Building was built in 410 days in 1931

In 1931, it took only 410 days – or just under 14 months – to complete the Empire State Building.

9 Fast Track the Project9 Fast Track the Project

• In fast‐track construction, the contractor typically orchestrates the process and coaches the design team and owner as to when it needs the documents to keep moving forward without

Leopardo Fast Track ProjectsCVS: Completed stores in nine weeks.AirCell: Completed a 30,000‐sf interior buildout in six weeksp g

hesitation.

• This creative sequencing will allow the project to start much earlier in the design phase and save both time and money,

buildout in six weeks.Rush‐Copley Medical Office Building: Completed a $2.3 million medical office building in 16 weeks.Apple: Delivered six Apple stores in a rush

especially on big projects.

• In cities like Chicago, fast tracking also gives more flexibilityfor builders to navigate the freezing winter months and keep the project on schedule

to market as part of Apple’s Midwest rollout – each store, featuring extremely high levels of finishes, was completed in nine weeks or less.RR Donnelley: 16 weeks to finish the the project on schedule.

• Aside from fast tracking, speed can be increased by other tactics ‐multiple shifts, overtime and stacking of sub trades. With material and fuel prices now escalating at such a steep

y100,000‐sf high‐end headquarters.Poplar Creek Crossing Shopping Center: From the time vertical construction began, we utilized multiple sub‐contractors in the key trades and project phasing to complete

pace, the savings from building quicker can far outweigh the additional costs of aggressive schedules and overtime.

key trades and project phasing to complete shell construction for the inline and outlotbuildings in just over four months.

10 Build Smart, Build Safe and 10 Think Progressively

• Building information modeling (BIM) is the process of generating and managing building data during its life cycle – an example of building smarter.

• Typically BIM uses real‐time 3D modeling software to increase productivity in building design and construction, thereby saving resources (dollars, time and materials), enhancing collaboration between partners, and enabling more accurate feasibility studies.

• BIM provides a shared understanding of concepts faster cycle times reduced errors and• BIM provides a shared understanding of concepts, faster cycle times, reduced errors and omissions, less waste (rework, materials, time), fewer translation losses, increased site safety, better estimates, the ability to do more “what if” scenarios, etc.


• For a 72,000‐SF industrial corporate headquarters and lab facility, Leopardo utilized BIM for the HVAC, mechanical, electrical, plumbing (MEP) and fire , , p g ( )protection (FP) systems throughout the facility.

• Leopardo was able to identify possible collisions during the coordination stages, eliminating issues and costly work‐arounds before they became problems during the construction stages.

• In addition, Leopardo was able to pre‐fabricatemany of the difficult and complicated HVAC MEPmany of the difficult and complicated HVAC, MEP and FP parts and assemblies. This greatly reduced associated labor costs and time requirements during installation, reducing overall project cost and durationand duration.

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• Leopardo is among only a handful of contractors nationwide that has experience partnering with the U.S. Department of Labor’s Occupational Safety and p p yHealth Administration (OSHA) in order to achieve the highest levels of safety on a specific project.

• Leopardo’s SafetyNet system is among the first in the Midwest to utilize the innovative DBO2 systematic approach to construction safety.

• Through handheld computer devices, SafetyNetsimplifies the collection analysis and disseminationsimplifies the collection, analysis and dissemination of job site safety information, enabling Leopardo to take preventative actions before at‐risk behaviors or conditions become incidents.

• It lowers insurance, admin and healthcare costs, which ultimately lowers project costs for our clients.

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• Take notes from world architecture, engineering and construction, including the arrival of energy positive buildings. While some examples may be excessive in comparison to your plans, the innovative and dynamic projects should serve as motivation for working closely with your architect y p j g y yand builder to think outside the box and stretch the limits of your imagination.

• In Dubai, the Dynamic Tower is being labeled as the world’s first building in motion. Designed by David Fisher, the tower uses 360 degree rotating technology to constantly change its shape. Between the 78 floors are 77 wind turbines positioned horizontally to produce enough green energy for the building itself and several other nearby buildings.


• In Abu Dhabi, the Masdar Headquarters building will feature a massive solar roof that will produce more power than it needs. Designed by Chicago architecture firm Adrian Smith + Gordon Gill, the solar roof will be constructed first in order to provide power for the remainder of the building p p gconstruction.

• France has also taken a leadership role in energy positive building by pledging all of its new housing will fit into this category by 2020.

• Around the world, dozens of new and exciting eco‐towers are being built that will eventually catch the eyes of all industry leaders and shepherd the next generation of design and construction.

• Buildings like the Urban Cactus in the Netherlands; 340 on the Park in Chicago; the CIS Tower in Manchester, England; Bank of g ; , g ;America Tower in New York City; Province restaurant in Chicago (Leopardo built); the Pearl River Tower in Guangzhou, China; the Bahrain World Trade Center Towers in the Kingdom of Bahrain.

• Asia is the biggest consumer of construction materials and fuelsAsia is the biggest consumer of construction materials and fuels, yet also the global leader in sustainable construction and energy positive building.

Leopardo built the Province restaurant in Chicago: On track to become downtown Chicago’s first LEED restaurant.

Smart Construction:Smart Construction:Economical Building Solutions to Save Time and MoneyEconomical Building Solutions to Save Time and Money

1.1. Avoid scope creep and build lighter.Avoid scope creep and build lighter.2.2. Purchase materials smarter and in bulk.Purchase materials smarter and in bulk.

3.3. Know where the dollars are spent.Know where the dollars are spent.g yg y pp4.4. Change the palette of materials.Change the palette of materials.

5.5. Build green and reap the benefits.Build green and reap the benefits.6.6. Integrate more revenueIntegrate more revenue‐‐generating space and features.generating space and features.

7.7. Leverage the contractor as a development partners.Leverage the contractor as a development partners.g p pg p p8.8. Bring the builder onboard early or explore the designBring the builder onboard early or explore the design‐‐build delivery method.build delivery method.

9.9. Fast track the project.Fast track the project.10.10. Build smart and think progressively.Build smart and think progressively.

lConclusion:• Smart builders will add tremendous value to any project.

h b ld b d l ll l• With a smart builder onboard early, you will realize countless solutions for saving time and money.

smart construction by leopardo

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