The Commercial Construction Process – Part Three
This concludes the series on the commercial construction process. When we left off a few weeks ago, the HVAC, plumbing, electrical systems, drywall and doors had all been completed. (You can read part one here and part two here.) Now let’s turn our attention to finishing up and moving in.
After the building’s main systems have been installed, it’s time for the cosmetic details to be applied. Flooring, painting, light fixtures, plumbing fixtures, door hardware, electrical device covers, trim and cabinets are installed as the last step of the building process.
Landscaping and final site improvements are completed. HVAC, electric and water systems are turned on. All required inspections are completed to assure that construction has been performed in accordance with the plans and specifications and that the building is safe to occupy. Once all inspections have been satisfactorily completed, a Certificate of Occupancy is granted deeming the building safe to begin business.
As the building was being built, it was inspected by professionals at every step of the process. After the final inspections, most general contractors will call a meeting with their team to discuss how the project went. This provides them a chance to discuss any problems that may have occurred along the way and develop a plan for their next project. It’s also a good time to review the budget and verify that everything has been completed as budgeted.
As the contractors walk through the building, they create a punch list of any items that need immediate repair. These normally relate to defects in finishes and typically include repairing nicks in walls, repairing a crack in the floor, or changing light fixtures.
If a formal closing has not already been established by the lender, the building owner will need to complete this step before anything else can be done.
Lastly, if not already on site, curtains, blinds, cabinets, furniture, office equipment, desks, chairs, phone lines and appliances (such as microwaves and refrigerators for breakrooms) will be installed.
Depending on the size and planned use of the new building, the business owner may arrange for the press to come out for a grand opening. Often, a ribbon cutting ceremony is accompanied by a festival-like atmosphere as employees and members of the community are brought in to tour the building. A start date for operations is determined and staff are given a report date. Generally, within a few days or weeks of taking occupancy of the building, the business is ready to open its doors, and the process is complete.
-Dan Hebert
Building Strong Communities Begins with a Simple Meal
Gaughan Companies has a long-standing relationship with Sharing and Caring Hands, a non-profit organization, and with the founder Mary Jo Copeland. I have been volunteering at Sharing and Caring Hands for over two decades. I now bring my children to volunteer, too.
Located in Minneapolis, Minnesota, Sharing and Caring Hands provides assistance for those in need. It was established in 1985 by Mary Jo Copeland and provides services such as meals, clothing, showers, shelter, transportation help, rent deposits, rent help, medical assistance, dental care, furniture, school expenses, and other miscellaneous needs.
Twelve employees from Gaughan Companies (and a few of my children) volunteered at Sharing and Caring Hands on Monday, November 14 by preparing and serving the lunch meal. Before every lunch meal, Mary Jo Copeland gives a sermonette and a prayer over the meal. On this day, in the midst of thanking us, she said to those in need, “[Gaughan Companies] came here and made this food for you because they love you. I love you. God loves you.” She encouraged everyone to not lose hope and to forgive those who have wronged them.
Arriving at 9 AM, the preparation team rolled up their sleeves and began rolling utensils and napkins for those partaking in meals that day. Once the breakfast crew had moved out of the cooking space to serve the first meal, our preparation team jumped in to cook the lunch meal. On the menu was tater tot hot dish, salad, fruit and cookies.
Our serving team arrived at 11 AM while the hot dish was cooking, and they also began rolling utensils. They enthusiastically filled over two large containers full of utensils. After a tour of the kitchen and a rundown of the serving team’s duties, each volunteer donned aprons and plastic gloves and were ready to give back to the community.
At noon, those there for the meal, nearly 200 people, made an orderly line in front of the serving stations to receive the food and milk. The other volunteers and I were frequently thanked and blessed by those receiving the food. Giving back to the community in a tangible way is an important mission of Gaughan Companies.
Another mission of ours is building and supporting strong communities. This process begins by helping those who don’t have the means to help themselves currently. We at Gaughan Companies hope that the meal we prepared and served was a step in the right direction for at least one of the recipients.
To learn more about Sharing and Caring Hands, visit http://www.sharingandcaringhands.org/.
-Patrick Gaughan
Trends that will Drive Investment and Development in 2017
2017 is just around the corner, and Americans are pondering what their day-to-day lives will look like in the coming year. Technology is advancing rapidly, and several things exist today that our grandparents would never have deemed possible.
The leader of the pack is the internet. As more and more devices become smart-wired and connectable to the internet, new ideas and services are becoming a reality.
Large metropolitan cities and high rise buildings are now able to use the internet to monitor and control things such as traffic flow, water resources and energy allotment. This helps conserve valuable resources and enables them to operate more cost-efficiently.
Consumers can now purchase electric crock pots that will warm dinner at the touch of a button, from miles away. They can log on to a website and view their child or pet in a daycare setting. They can also set their home’s security system and view their property from a camera lens while sitting in their office desk.
Commercial real estate developers and brokers are getting involved in this trend by using 3-D tours of homes to show buyers and potential customers “actual” and “what if” scenarios. Savvy business owners are capitalizing on the success of popular online games and are creating “lures” so that perspective customers are drawn to their spot.
City governments are teaming up with commercial real estate developers to revitalize the downtown areas in many major U.S. cities. Live, work and play communities are making it easier for the average worker to be able to take care of all of his or her needs without driving a car or getting caught in commuter traffic.
For those companies that still want to operate in major U.S. cities, it’s not uncommon for them to get subtenants who don’t compete with them. These subtenants may rent out other units or floors in a building owned by a major business.
Commercial real estate companies are finding it harder to get financing as the larger banks crack down on their lending policies. As a result, many are calling on local or regional banks to ask for financing.
Since these smaller credit unions and banks already have an interest in seeing their own businesses thrive in a slow development season, they are usually more than happy to finance the loan. This becomes a win-win situation for both them and their borrowers.
As baby boomers retire and move out of the workforce, they are seeking affordable housing. This trend is shared with millennials who no longer see their first job as being a permanent career. Both segments of the population want to be free to travel and to pursue a lifestyle that fits their whim.
More baby boomers are retiring than new income earners are entering the workforce. This is creating a labor shortage in several industries, especially among blue collar workers. In addition, some people are extending their college years, putting off a formal entrance into the labor force until they have achieved a higher education degree.
The millennials are also more hesitant to put down roots. However, the retirees may be selling that large home where they raised their family in favor of a trendier and smaller living space. Both generations are happy to use public transportation when it’s easy to access and when they are made to feel safe and secure.
Another trend on the rise is online shopping. Companies are trying to beat each other to the punch by offering same or next day delivery. In order to accomplish that task, they need to have a lot of warehouse space available and keep it supplied with the hottest items.
Proximity to the customer remains an issue. As the New Year approaches, many companies are eyeing abandoned super stores and malls and turning them into “last mile” distribution centers. Old fashioned rail cars, shipping containers and delivery trucks are still on the main supply chain. However, everyone is waiting to see if “drone delivery” will really be implemented.
More and more Americans are moving to the suburbs, which is another reason why city governments are fighting to revitalize their downtown communities. Businesses are also continuing to move some of their main offices to the suburbs, citing lower rents and more space available for the money as incentives.
Once these consumers and businesses head for the suburbs, the single home and new apartment industries benefit, because everyone needs a place to live. New home prices are rising by about five percent a year, but the new job creation rate is only growing by about 1.7 percent per year.
As more and more of the general population moves to the suburbs, the need increases for medical offices, restaurants, shopping, specialty stores, entertainment plazas, religious services, parks and grocery stores. This, in turn, benefits the commercial real estate industry by creating a demand for their services.
There are many new and exciting changes in store for 2017. Education will continue to be very important, and older workers will need to embrace added career training in order to stay ahead in a changing work environment. Business developers will need to build smarter, more durable structures and operate them more efficiently. City governments need to work together to create safe communities in order for their areas to succeed.
Technology will continue to lead the pack. Americans will continue to compete for business on a global scale. The best way to succeed in this changing world will be for the average business to operate smart, lean and with good conscious.
-Patrick Gaughan
The Commercial Construction Process – Part Two
When we left off with part one of the commercial construction process, we were discussing how an architect develops plans and specifications that a contractor uses to bid the project. (As a side-note, a contractor can use the plans and specifications to assist with a remodel, too, but for the purposes of this blog, we are only discussing new construction.)
It is good practice to solicit bids from at least three general contractors and then determine which one will be the best fit to work on the project. The contractor needs to view a list of building materials. This is usually provided in the plans and specifications. A determination can then be made on material and labor costs.
Once a general contractor is selected, that person will often bring his or her own sub-contractor team in to consult on the project. Several items will have to be installed in the new building, including HVAC, electric wiring, mechanical devices, utilities and plumbing. The contractor will apply for a building permit at the city. Once the city approves the building permit and the fees are paid, work can begin.
The first step in putting up the building is to break ground. Many new owners love to bring their personal shovel in to get a picture made of themselves scooping up the first pile of dirt for their new business address. After the festivities have commenced, they step aside and excavation begins.
During the excavation process, the soil is removed and/or compacted to assure a suitable base for the building foundation. Rocks, tree roots, glass, debris and the like are removed during this period.
Next, if any pipes need to be installed under the building for sewer and water, this needs to be done before the foundation is constructed. No work can be performed until this occurs. After that, construction of the foundation usually consists of pouring concrete within forms prepared by the contractor.
After the concrete foundation has cured, the initial framework can begin. During this time, the contractor will construct the exterior walls and roof. Once the building shell is completed, interior can begin. At this time, insulation, interior walls, drywall, doors, HVAC, electrical, plumbing are all completed.
Look for part three of our series to continue in a few weeks.
-Dan Hebert
Employee Attraction and Retention Tools
We all know someone who loves or hates their workplace. Every day, thousands of workers quit one job only to rush to another one for any number of reasons. Let’s take a look at what companies are doing to attract and retain talent.
Most people think of money when they consider a new job. Questions often pondered are, “Will this increase in salary improve my living conditions,” or maybe, “Will this new salary be enough to support a move to the neighborhood I’m eyeing?”
Although salary is a huge draw, there are many other things that companies are using to lure the best talent. After a prospective employee is decided upon, the company will consider where that future employee is currently living. If he or she isn’t within an hour’s drive of the office, it’s time to consider a relocation package.
A good relocation package will pay for a percentage of closing costs on both the old home and the new one. It will often pay for movers, and if the employee needs to report onsite before his or her family can arrive, then the company may also pay for temporary housing.
In addition to these items, a company needs to consider the overall health and well-being of the employee. Paid time off, offering good medical insurance, dental and vision, short and long term disability plans, profit sharing and 401K plans should be part of each company’s benefits package.
Some companies are large enough to include a workout area in their plaza. Others may staff this area with health and fitness promotion workers who can offer suggestions for diet and workout programs in order to improve the health of the employees.
After the employee is acclimated to the new job, a challenge lies in trying to keep the employee happy at work. A good company recognizes that their workers are human and that things come up, such as having a child get sick or repairs needing to be done at home.
Flex time or telecommuting is a nice plus. Some employees can’t always be at the office from 8-5. If management can offer a small flex work or telecommuting schedule, the employee can still see to his or her personal needs without having to call in or take a personal vacation day.
Having a great relationship with an immediate supervisor and manager is key to an employee’s happiness. A good company will empower an employee to make certain business decisions up to a point. If a supervisor needs to have the final word, then it’s important that this person be accessible whenever needed. It’s also important that the supervisor supports the employee when dealing with other in-house departments and the public.
In addition, the best companies go a step further and reward employees who put forth their best efforts. If an annual bonus is offered, it is often based on performance review. A good company will hold weekly one-on-ones between supervisor and employee so that the employee understands how well he or she is doing in the position.
Besides an annual bonus, a company that focuses on employee retention may also have programs such as internal recognition or employee recognition day. These companies also realize that if it’s possible to promote within, then they should do so. Otherwise, their employees may feel that they’ve been overlooked and will want to head for another place where they will feel appreciated.
Finally, continuous improvement is another effective employee retention tool. A company may offer to pay a part or the entirety of classes at the college level that will aid a worker in his or her job. The company will also offer in-house training and some will even give workers a chance to take classes on-site or intern in other departments for a few weeks.
Changing jobs or keeping the one you have is always challenging. Everyone wants to make sure that he or she is getting the most value in exchange for his or her efforts. The best companies will recognize and respond to this and will go out of their way to promote employee retention. As a result, their bottom line looks great and their workers are happy, which creates a positive workplace.
Gaughan Companies is committed to building strong communities and creating good relationships within those communities. That includes our workplace. Our core values are honesty / integrity, priority focused / accountable, positive / solution-based, strong communication, and hardworking.
-Patrick Gaughan
U.S. Bank Stadium Complete
Vikings fans unite in celebration of the completion of the U.S. Bank Stadium! On June 17th, 2016, Mortenson Construction was proud to announce that the stadium had been finalized six weeks prior to the scheduled completion date, and is now ready for business. The U.S. Bank Stadium boasts architectural beauty, as it was designed to reflect a modern day Vikings ship.
The grand opening ceremony is currently scheduled for July 22nd, 2016. The ceremony will be followed by a weekend long festival that will include fun festivities for the whole family!
We are proud to recognize this achievement as a historic milestone in the Twin Cities.
Stealth Train – A reality or fantasy?
In 2014, the North American High Speed Rail (NAHSR) had proposed a business plan for the privately funded 200 MPH Stealth Train, which would be built to expedite travel from the Twin Cities metro area to Rochester. The High Speed Rail (HSR) route is a proposed 77 mile track that is estimated to make the commute in 45 minutes.
The HSR will be fueled by clean electricity supplied by renewable sources such as wind, solar, geothermal, and ocean power. The HSR project is estimated to create more than 4,000 construction jobs, and will help alleviate the congestion on highways and runways. This would positively impact society by decreasing the amount of traffic fatalities caused along this route. This project would also boost economic activity due to a variety of factors that are estimated at $1.6 billion dollars per year.
Current theories on the actuality of the HSR coming to life in MN are met by opposition due to rural land owners in Minnesota, and conflicts of interest expressed by concerned MN citizens. There is also concern over the speculation that the train would be outsourced to China for their rail expertise, however no official statement has been released regarding this theory.
The statement from MN Transportation Commissioner, Charles Zelle, was optimistic as he commented, “The Governor’s observation is this will happen in someone’s lifetime in North America, why not here?”
The development of HSR should be an interesting topic as MN learns more about this project coming to life over the next two years.
Read more on the HSR at, (TCB) Twin Cities Business www.tcbmag.com
