James Heuer Heuer & Company (201) 493-0220 jim@heuerandcompany.com More Info

While recently performing my family’s weekly food shopping , I found myself marveling at the shrinking packaging of many of our staples. I noticed that the down-sizing is often accompanied by redesigned and rebranded packaging whose intention, it seems, is to disguise the lower volume and higher unit price. I began to consider whether a similar dynamic could be in effect in the commercial construction world. Is it possible that the commercial construction provider is selling services at last year’s prices but somehow packing less coffee, corn flakes or orange juice in the package? A cursory review of client expectations and industry standards reveals that in fact, quite the opposite is true. It seems that the commercial construction service provider is faced with an increasingly knowledgeable and demanding client with progressively higher expectations about the level of service purchased with their money. More often now, in addition to constructing plumb, level and square structures based on sound building techniques, the commercial construction provider is expected to:

• operate with a high level of professionalism
• respond quickly to communication, usually within hours or even minutes
• maintain expertise in all disciplines of complex projects
• minimize risks by developing and implementing safety programs
• own, operate and maintain technology that supports core business functions that include timely communication, accurate record keeping, project scheduling and cost projecting
• maintain knowledge of building code changes
  
• stay current with sustainability and green building initiatives
  
• employ sound legal documentation including contracts, change orders, lien releases, requisitions, email correspondence and meeting minutes
  
• maintain appropriate levels of insurance and provide indemnification where necessary
  
• develop and maintain relationships with material suppliers and subcontractors to obtain the best value in product and trade sourcing
  
• provide supplemental design services when the design professional’s level of engagement falls short of the project requirements

The combination of these escalating expectations and weaker demand for construction services in general, leads many commercial construction companies to find themselves caught between the anvil and hammer of higher project delivery costs and the inclination of the market toward lower prices. In the current commercial construction market, prices have fallen and there definitely are more corn flakes in the box.