In a roaring development cycle, size is an edge. The construction company with a monster lineup of staff, resources, equipment, and experience nearly always has a jump snaring attractive projects – benefiting from economies of scale and fatter profit potential. Smaller players generally have to find niches and exploit them rather than compete against larger contractors. Photo: BKSK Architects ICS Builders recently broke ground for the new $4.1 million Community of the Holy Spirit building in Manhattan. Photo: Lauren Mancuso A $30-million, 176,000-sq-ft expansion and renovation project for the Ward Melville High School in East Setauket, N.Y., includes a new
As construction managers build new strategies – or otherwise scramble to respond to the development market slowdown – their moves often have significant repercussions for subcontractors. Related Links: Playing Small Ball Among the prime concerns for subcontractors are the dirt-cheap rates that some general contractors and construction managers are bidding for new work. That in turn has surety companies that bond subcontractors in similar distress, says Jay Price, executive v.p. of business development for the Conti Group, a contractor based in South Plainfield, N.J. “[Surety companies] are very nervous that the subcontractor default rates are going to be skyrocketing because
One of the harshest construction markets in decades is reminding contractors why it’s great to be a specialist, but even better to have many specialties. Contractors across the New York region are reaching into new markets to find business, but they’re taking many different paths. Related Links: Fit for Survival Crystal Ball Blues For Structure Tone, a decision to pursue work in the health care sector started several years ago, says Robert Mullen, the CEO. To establish a foothold, the $2 billion construction manager started modestly. “We were able to get some small projects with major health care institutions just
Construction industry faithful who thought 2009 was painful should stop thumbing through this year's calendar. Most observers say the region's market is going to get worse. At least in 2009, many contractors had backlogs to finish, even if they were lighter than normal, says Mike Kolakowski, CEO of KBE Building of Farmington, Conn. “I think 2010 will be a challenging year for a lot of companies,” he adds. “I believe that we’ll start to see some positive signs in 2011 but not feel the effects until the middle to end of that year and into 2012.” Related Links: Fit for
The storm clouds over the New York region’s construction industry had formed in late fall 2009 as project backlogs emptied and new jobs were few on the horizon. But that bleak juncture is when some general contractors and construction managers geared up for investments – even some that escaped them during the dizzying market boom of recent years. Related Links: Contractors Stretch for New Markets Crystal Ball Blues Top Contractors For Structure Tone, a decision to diversify its expertise was part of a long-term strategy – one the market bust didn’t deter, says Robert Mullen, CEO of the New York-based
“Grim.” “Dire.” “Hairy.”The words construction industry veterans are using to describe the state of project financing show how far the market has fallen since the 2008 economic crash. But while the lean times aren’t over, the market mood appears to be changing from shell-shocked in trenches to a cautious look outward for opportunity. “It is pretty dire out there, with up to 15 to 20% of construction loans in default,” says David Pfeffer, an attorney and co-chair of the construction practice group at New York’s Tarter Krinsky & Drogin. “But I have been seeing a little light at the end
The Empire State Building was a marvel when it debuted as the world’s tallest building in 1931. Built in 18 months, the 102-story building kicked off a race for urban construction heights that continues today. Photo: Skanska USA Skanska USA was recently awarded LEED Platinum status for the $4.6 million fit-out of its own corporate headquarters at the Empire State Building. Related Links: Getting to LEED Platinum It’s only fitting that a recent $4.6 million fit-out in the building may set the benchmark for what it costs, what it takes, and how much can be saved in the long haul
The captains of architecture and engineering practices across the New York region were already enduring hard times in the past year, and didn’t need reminders of how bad things were. But in June came news that one of the region’s most ambitious design efforts was retreating. Related Links: ‘Right-Sizing’ Design A Chance to Rethink the Practice Top Design Firms Forest City Ratner Cos. – developer for the $4.9 billion, 7-million-sq-ft, 17-building Atlantic Yards complex in Brooklyn, that was to be anchored by a transcendent sports arena design – announced it was no longer using “starchitect” Frank Gehry and his firm,
Twenty years ago, New York-area firms working overseas were drawing plans by hand and sending them across the world by courier. And “instant” communication was by fax and telephone, says Eugene Kohn, chairman of Kohn Pedersen Fox, a New York-based architect that first took its practice abroad in the late 1980s. Related Links: World View See the World But today, working globally is a whole new ball game. Mobile communications, Web-driven databases, e-mail, digital photography, file transferring, scanning, video conferencing, and other advancements have transformed not only how often, how fast, and how effectively professionals can communicate with colleagues, partners,
