In many ways, construction companies should select from the pool of talent within their organizations. When promoting an internal leader, the individual knows the work rules, intuitively understands the culture and is a walking source of institutional knowledge. The internal candidate understands the hot button safety issues, the personality quirks of the team and the organizational discomfort with specific policies unique to a construction company. In essence, the internal leader is a known quantity. He or she has a well-defined cost, and possibly modest expectations for increased compensation due to the impending promotion. Certainly, the morale of others may rise as evidence of promotions becomes suddenly real. At least, that’s the ideal. The real world is usually less black and white. Promoting the wrong person from within can be extremely expensive – 10 to 20 times the cost of the individual’s annual salary. Selecting the right person regardless of source is always the best solution, even if it’s not the easiest one. Unless there is a clearly-defined, obvious, and well-thought-out choice waiting to take the helm, limiting the selection pool to internal candidates is a mistake more often than not.

Walking the floor of the annual NAHB International Builders’ Show (IBS) in January, the sense of optimism among the more than 55,000 attendees was apparent and undeniable, with good reason. After nearly a decade-long effort to fully recover from the Great Recession, economists were predicting that 2015 would finally see a surge in new housing starts. 

Sage Construction and Real Estate traveled to Las Vegas to talk to attendees about whether they were also feeling just as confident heading into the New Year. The majority of people I talked to were encouraged by the economists’ predictions, many had seen, in their own business, evidence that the surge had already begun. And now, six months later, those positive predictions have come true, even beating many economists’ expectations. Yet, while the recovery creates more business opportunities that make everyone happy, it comes with a new set of business challenges: having the qualified labor to complete the jobs.  With the massive purge of construction jobs in the downturn, much of that talent re-geared to work in a different, less volatile industry.

It’s no secret that the current global trend towards more energy efficient, environmentally friendly building is here to stay. According to one recent survey conducted by McGraw Hill Construction, nearly 51 percent of respondents said they planned to incorporate sustainability, also known as eco-construction, into more than 60 percent of their projects by the end of 2015.

The same study also identified a host of concerns and benefits that inspired firms into adapting more sustainable construction strategies. Not surprisingly, anxieties about soaring overhead costs and work-related illness, as well as stronger employee attraction and retention were at the top of the list. Among the other factors cited were energy savings, lower greenhouse gas emissions and water usage reduction.

Construction defects can be extremely costly, and one of the best ways to avoid them is careful planning to anticipate the common problems that occur during the design and construction phases. 

For the most part, significant defects often arise in the exterior envelope of the project resulting in water intrusion including defects in the roof system, windows, sliding glass doors, stucco application, improperly applied exterior foam features and the improper installation of post-tension cables throughout a building structure.  Aside from these issues, Americans with Disability Act requirements are frequently ignored or misinterpreted and can cost significant dollars to correct once construction is complete. All of these conditions can be avoided by taking a proactive approach to identify problems early on through a variety of measures that can effectively mitigate damages and most importantly avoid costly litigation.

Technology has placed unprecedented power in the hands of construction customers. Customers know more about the companies they are working with than ever before and the general contractor they used last time can easily be replaced. So are construction firms powerless now? No. The same new technologies that have helped drive efficiencies throughout the building process also can be used to create closer connections with your customers. In the new digital world, construction companies are discovering new methods of operation that improve efficiency, increase profitability and create strong, sustainable customer connections. 

Five major technologies have matured and collided to create what is being called the digital economy. Hyper-connectivity, super computing, cloud computing, cyber security and smart products have shaped a new world where the traditional boundaries of construction no longer exist. 

These high-tech methods are not only for high-tech companies. Construction companies also can leverage them to unlock new opportunities for improving operations, business planning and customer communications. 

Tower cranes dominate the skyline of major metropolitan areas – a sign of optimism in the construction industry, which only years ago appeared to be on the cusp of financial disaster. As the construction industry turns toward prosperity, owners, contractors and others must exercise diligence over quality control in the construction process to avoid post-construction claims for faulty construction. 

If history is any indication of things to come, then disputes over faulty construction will soon become a reality. The primary driver for such claims continues to be overly fast-paced construction to meet current market demands, resulting in the hiring of inexperienced trades. As with any boom in construction, the most reliable general contractors and subcontractors are working to capacity and cannot accept new work. This leaves the market with inexperienced and untested trades. But money matters, and construction financing depends on quickly bringing these buildings out of the ground for sale, lease or rent.

Construction projects, whether driven by need or desire, begin with one thing: a vision. Technology operates in much the same way – with the future in mind.

Architects, developers and contractors are building or starting construction on  more than 110 sports stadiums around the world over the next few years. It is especially important for them, like technologists, to consider how sports fans and concert-goers of the future will use these venues and the offerings they’ll provide.

Construction companies are most concerned with building strength, design, longevity and functionality. But technologists focus on how technology will deliver the “fan experience” for years to come in baseball stadiums, basketball and hockey arenas, race tracks, soccer and cricket fields, and other facilities. Venues will want – make that need – to provide high-speed, wireless connectivity to accommodate the thousands of fans, who will be using their smart phones, tablets, wearable technology, and who-knows-what else in our wireless futures. 

Adequate warranties covering building and facility components or capital equipment – such as power distribution and control equipment, heat exchangers, solar panels, etc. – are important for managing project risk, obtaining project financing and ensuring marketability of projects. Like most contracts, typical form warranties in a purchase agreement are  negotiable and purchasers should always attempt to negotiate the most favorable warranty possible. Here are some important questions to consider when entering into a purchase agreement.  

Who Is the Warrantor?

A warranty is only as good as the credit behind it. If the warrantor does not have the financial capability to fully honor the warranty, then it has little value regardless of how well it is negotiated. Consider demanding credit support for a product warranty where the financial strength of the supplier is in doubt or unknown. 

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