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What Does It Mean To Prioritize Supplier Diversity In Commercial Construction?

August 21, 2024 by greenmellen Leave a Comment

Why Is Supplier Diversity Important and How to Achieve It in Commercial Construction

Working with a broad range of suppliers in the construction industry has its benefits. One way commercial construction companies can do this is by prioritizing supplier diversity. 

Prioritizing supplier diversity means actively seeking out and engaging with suppliers from various backgrounds, including minority-owned, women-owned, veteran-owned, and other underrepresented groups. But why is it important for commercial construction projects? 

The Importance of Supplier Diversity

Supplier diversity goes beyond fulfilling requirements—it’s about creating a business environment where everyone has a fair opportunity to contribute and succeed. In commercial construction, this means recognizing the value that diverse suppliers bring to the table. 

Diverse suppliers often offer unique perspectives, innovative solutions, and specialized skills that can enhance the quality and creativity of a project.

Moreover, supporting diverse suppliers can lead to broader economic benefits. When underrepresented businesses thrive, it contributes to job creation and economic growth in communities that might otherwise be overlooked. For companies in the commercial construction sector, this can translate to stronger community ties and a better reputation as a socially responsible business.

4 Steps to Implement Supplier Diversity in Construction Projects

Prioritizing supplier diversity in commercial construction involves a mindful approach. Here’s how companies can effectively bring diverse suppliers into their projects:

1. Set Clear Goals and Expectations

Start by setting clear goals for supplier diversity within your project. These could include allocating a specific percentage of the budget to diverse suppliers or awarding several contracts to underrepresented businesses. Communicate these goals to all stakeholders involved in the project, from procurement teams to contractors.

2. Expand Your Supplier Network

One of the most significant challenges in supplier diversity is identifying and engaging with diverse suppliers. Companies should seek suppliers from diverse backgrounds by attending networking events, engaging with community organizations, and leveraging supplier diversity databases to overcome this. Building relationships with these suppliers ensures they are considered for future projects.

3. Provide Support and Resources

Diverse suppliers, particularly smaller businesses, may face challenges in scaling up to meet the demands of large construction projects. Support, such as mentorship programs, access to resources, and flexible payment terms, can help these suppliers grow and succeed. This benefits the suppliers and strengthens the project’s overall supply chain.

4. Measure and Track Progress

Like any business initiative, measuring and tracking the progress of your supplier diversity efforts is important. Regularly review the performance of diverse suppliers, gather feedback, and adjust your strategies as needed. This data can also showcase your commitment to diversity and inclusion to clients and stakeholders.

The Benefits of Embracing Supplier Diversity

While the social and ethical reasons for prioritizing supplier diversity are compelling, there are also strong business cases to be made. Companies that embrace supplier diversity often find that it leads to increased innovation, better problem-solving, and improved project outcomes. Diverse suppliers can offer fresh perspectives and ideas that might not be considered in a more uniform supply chain.

Additionally, many clients and partners are increasingly expecting companies to demonstrate their commitment to diversity and inclusion. By prioritizing supplier diversity, construction firms can meet these expectations, potentially leading to new business opportunities and stronger client relationships.

Diversity Challenges and Considerations

It is challenging to prioritize supplier diversity in commercial construction. Finding and vetting diverse suppliers, particularly for specialized or large-scale projects, can require extra time and effort. Additionally, some diverse suppliers may need support to meet major construction projects’ technical and logistical demands.

However, these challenges can be managed through research, planning and a commitment to long-term relationships with diverse suppliers. By investing in these partnerships, companies can build a more resilient and innovative supply chain, benefiting their projects and bottom line.

Prioritizing supplier diversity in commercial construction is more than just fulfilling a social responsibility—it’s a strategic business decision that can lead to better project outcomes, stronger community relationships, and long-term success. 

You can create a more inclusive and effective supply chain by setting clear goals, expanding your supplier network, providing support, and measuring progress. In doing so, you’re not just building structures—you’re helping to build a more equitable and prosperous industry for everyone involved.

Are you ready to start your next project? Get in touch with Division 9 Commercial Construction to get started.

Filed Under: Blog Tagged With: commercial construction, Diverse suppliers, Inclusive supply chain, Minority-owned businesses, Supplier diversity, Veteran-owned businesses, Women-owned businesses

5 Steps To Mitigating Risk In Commercial Construction

August 12, 2024 by greenmellen Leave a Comment

The construction industry is prone to numerous setbacks, including those from accidents at the worksite. Safety is of utmost importance to any commercial construction company which is why risk management is instrumental to avoiding these situations and setting future projects up for success.

But what does risk management in construction look like? Below are some of the ways Division 9 Commercial Construction reduces risks while increasing safety on the job site:

Identifying Risks

Risk management in construction is identifying potential risks, evaluating their impact, and implementing procedures to mitigate their financial effect on the business. With this strategic process, construction firms can minimize the likelihood of – and loss from – undesired events while maximizing rewards. Key areas to consider include:

  • Financial Risk: Monetary risks related to budgeting, cost overruns, and financial stability of stakeholders.
  • Safety Risk: Accidents and hazards that could cause injury or harm to workers on-site.
  • Operational or Project Risk: Risks associated with the project’s workflow, such as delays or equipment failures.
  • Economic Risk: Inflation or market fluctuations are broader economic factors that might affect the project.
  • Legal Risk: These are risks related to compliance with laws and regulations.
  • Political Risk: Projects may be adversely affected by changes in government policies or political instability.

Ranking Risks in Order of Importance

After identifying risks, it’s important to rank them based on their potential impact and likelihood of occurrence. This prioritization helps focus attention and resources on the most significant threats to the project.

Developing and Executing a Risk Response Strategy

After ranking the risks, the next step is to develop strategies to mitigate or avoid them and then execute these plans effectively. This involves planning specific actions for each identified risk:

  • Avoidance: Changing the current plan to circumvent the risk.
  • Mitigation: Taking steps to reduce the impact or likelihood of the risk.
  • Transfer: Shifting the risk to another party, such as through insurance or contracts.
  • Acceptance: Acknowledging the risk and preparing to deal with its consequences if it occurs.

Once the risk response strategies are defined, it’s time to put them into action. This involves implementing safety protocols, securing financial safeguards, ensuring legal compliance, and maintaining open communication among all project stakeholders. As part of the program, workers are also trained thoroughly and drills regularly to prepare them for potential safety hazards.

Creating a Contingency Plan

No matter how well risks are managed, unexpected events can still occur. Having a contingency plan in place ensures that the project can continue smoothly even if a significant issue arises. This plan includes predefined actions and resources that can be mobilized quickly to address any emergencies.

Monitoring, Reevaluating, and Assessing Impact

Risk management is not a one-time task but an ongoing process. Continuous monitoring and reevaluation of risks help maintain safety and efficiency. Regular site inspections, feedback loops, and updates to the risk management plan help ensure that new risks are identified and managed promptly.

It’s also important to assess the impact of the risk management strategies and review the results. This involves analyzing how well the strategy worked and identifying areas for improvement. By learning from past experiences, Division 9 Commercial Construction continually enhances its risk management practices.

Successful commercial construction projects have effective risk management in place. By identifying, ranking, and responding to risks, commercial construction companies can maintain high safety standards and ensure project success. Continuous monitoring and adaptability are key to staying ahead of potential issues and safeguarding both the workforce and the project’s integrity. 

Ready to start your commercial construction project? Contact Division 9 Commercial Construction today.

Filed Under: Blog

The 7 Steps Involved with Installing Carpets in a Commercial Building

July 24, 2024 by greenmellen Leave a Comment

As a building or business owner, deciding which flooring type will depend on factors such as overall design, ease of installation, and cost. Understanding the steps involved when choosing a flooring option like carpet can help you prepare for the job and estimate costs. The crew at Division 9 Commercial Construction broke down the steps in this blog to help business and building owners prepare to install their new flooring.

1.) Pre-Installation Checks

Pre-installation checks are necessary to kick off any flooring project, especially carpet. This involves evaluating the current condition of the subfloor and ensuring it is clean, dry, and, most importantly, level. Any existing flooring or debris should be removed to provide a smooth surface for the new carpet. Additionally, you’ll need to check for any potential moisture issues, as excess moisture can lead to mold growth and damage to the carpet over time.

2.) Floor Preparation

Floor preparation is necessary to help ensure an easier installation. During floor prep and inspection, issues like cracks, uneven surfaces, and other imperfections may arise. These issues must be resolved before any next steps. This can involve filling in gaps, sanding rough areas, and ensuring the subfloor is completely dry. In some cases, a primer may be applied to enhance adhesion and provide a more stable base for the carpet.

3.) Carpet Underlay Installation

Installing an underlay is an important and necessary step that provides additional cushioning and prolongs the life of your carpet. The underlay helps to absorb impact, reduce noise, and improve overall comfort. It’s important to choose the right type of underlay for your specific needs, whether for heavy foot traffic areas or added insulation. The underlay should be cut to fit the space precisely and secured in place to prevent any shifting or wrinkling of the carpet.

4.) Carpet Layout

Next, the installers will roll out and lay the carpet in the designated area. During this time, the carpet seams are positioned in low-traffic areas and the carpet grain runs in the same direction throughout the space. Proper measurements and cuts avoid wastage and ensure a perfect fit. If your commercial space is large, you may need to sew multiple pieces of carpet together, which should be done precisely to create an invisible join.

5.) Gluing the Carpet to the Cushion

For many commercial installations, the carpet is glued directly to the cushion or underlay. This process provides a secure and stable installation that can withstand heavy use. A high-quality adhesive should be used to ensure strong bonding. The carpet is then positioned and pressed into the adhesive, starting from the center and working outwards to avoid any air bubbles or wrinkles. Rolling the carpet with a heavy-duty roller helps to ensure proper adhesion and a smooth finish.

6.) Trimming and Securing Edges

Once the carpet is glued down, the edges must be trimmed and secured. This involves cutting the excess carpet along the walls and other fixed structures, ensuring a clean and precise edge. Special attention should be given to corners and doorways to ensure a seamless transition between different flooring surfaces. In some cases, metal or rubber edging strips may be installed to provide additional protection and a polished look.

7.) Final Inspection and Clean-Up

After the carpet installation is complete, a final inspection is necessary to ensure the carpet is properly secured and free of defects. This includes checking for any loose areas, wrinkles, or seams needing additional attention. Once everything is in place, the space should be thoroughly cleaned to remove installation debris, adhesive residue, and dust.

When choosing carpeting for your commercial building, understanding how the installation process works can help you prepare for your new flooring. The proper pre-installation checks, floor preparation, and careful attention to detail throughout each step will result in a carpet installation that is durable, comfortable, and visually appealing. If you’re considering new carpets for your commercial property, contact Division 9 Commercial Construction to learn more about our expert installation services.

Filed Under: Blog Tagged With: Carpet installation in commercial buildings, commercial construction, Commercial flooring, Commercial flooring preparation, Pre-installation for carpet, Steps for installing commercial carpet

Determining the Proper Number and Placements of Electrical Outlets in Retail Construction

June 29, 2024 by greenmellen Leave a Comment

When planning a renovation or building a new retail location, are you considering all the details beyond the aesthetics? Small but important details like proper placement and number of electrical outlets are important. Ensuring your space is safe and functional can help support your vision for your space and future expansion plans. We’ve asked our retail commercial construction experts for their top factors to consider when determining the proper number and placement of electrical outlets for your construction project.

Follow Compliance and Building Codes

All construction projects involving electrical installation, regardless of new builds or renovations, must adhere to local building codes and regulations. Electrical regulations or laws enforce electrical installation safety standards. They are to protect both the building and its occupants. Improper wiring, system overload, and failure to meet these standards can result in expensive repairs or even catastrophic events like a fire.

The National Electrical Code (NEC) in the United States has specific requirements for outlet placement in commercial spaces. Outlets must be placed at intervals that ensure no point along a wall is more than six feet from an outlet. This guideline helps prevent the overuse of extension cords, which can pose fire hazards.

Understand Your Electrical Needs

Your retail business is unique to your industry, services, and space, so you will have varying electrical needs. For example, an electronics store will need many outlets and lights while catering to peak or high demand, whereas a clothing store may only need outlets primarily for lighting, sound, and point-of-sale systems. Work with your commercial construction team to conduct a needs audit to ensure your design and equipment can accommodate the proper power supply.

Plan for Future-Proofing and Design Flexibility 

Retail stores, especially those part of a larger corporation or franchise, frequently change aesthetics, product displays, technology, and floor plans. Future-proofing your electrical system by installing more outlets than you currently need can save both time and money in the future. It can also make your changes more straightforward and quicker, which leads to less disruption to your business operations. It is also recommended to include flexible power solutions such as a modular power system, which allows for easy reconfiguration and growth as your demands change.

Opt for Sustainability and Energy Efficiency

Many cities and states require that builders incorporate green building and sustainability practices into all new construction and remodels. Beyond sustainable lighting such as LED fixtures, consider using energy-efficient outlets and smart power strips that can help manage energy use more effectively. Positioning outlets to optimize natural light and energy-efficient lighting systems can also contribute to a more sustainable retail environment. Incorporating sustainability into your electrical planning can reduce operational costs and environmental impact. 

Address Safety Considerations

Safety in construction extends beyond creating a safe worksite; it also means creating a safe final product. Work closely with your contractor to ensure all outlets are properly grounded and that the electrical system can handle the load. In areas prone to moisture, such as near restrooms or cooking equipment, ground fault circuit interrupter (GFCI) outlets should be used to prevent electrical shocks. Ask about regular inspections and proper maintenance to avoid potential hazards.

Create a Functional Design and Aesthetics

Where you place outlets, they should be functional and aesthetically pleasing, blending in with your design. Outlets should be easily accessible but discreetly placed to maintain the store’s visual appeal. They can be installed behind displays or integrated into the store’s design elements. Consider using covers that blend with the decor to keep the look clean and professional.

Planning your retail remodel or new build should include small details like electrical work. Sharing your design plans and needs with your retail and commercial construction team can help ensure that you have enough outlets, proper outlet placement, and enough power for your current and future storefront and business needs. Division 9 Commercial Construction can help ensure your retail storefront is safely outfitted for your electrical needs. Contact us for more details.

Filed Under: Blog Tagged With: Commercial building codes, commercial construction, Electrical outlets placement, Electrical safety, National Electrical Code (NEC), Retail construction, Retail store design

How Big is the Commercial Construction Industry?

June 6, 2024 by greenmellen Leave a Comment

Construction is more than just a sector; it’s a community builder, a job creator, and a society enhancer. It’s one of the most important industries and one of the largest in the world economy. Construction is a diverse field, with each sector providing important services. In this blog, we will highlight the significant role of the commercial construction industry in job creation and societal improvement.

How large is the commercial construction Industry?

The commercial construction industry in the United States significantly contributes to the national economy. According to recent reports by GlobalData, the industry was valued at approximately $ 2.3 trillion in 2023 with an expected growth rate of 5.9% by 2030. The industry’s size highlights its massive role in providing infrastructure and facilities essential for businesses and communities to thrive.

Factors that Contribute to Industry Growth

The world is growing at a rapid pace. With that comes the demand for retail, office, education, and other commercial buildings. These demands help contribute to the growth of the industry. Outlined below are some of the most important driving factors:

Economic Expansion:

 As the US economy grows, there is an increasing demand for commercial spaces. Businesses are expanding, requiring new offices, retail outlets, and industrial facilities to accommodate their operations.

Urbanization: 

The trend towards urbanization is another significant driver. Cities are expanding, and with this growth comes the need for more commercial buildings to support the growing urban population.

Technological Advancements: 

Innovations in construction technology, such as Building Information Modeling (BIM), prefabrication, and sustainable construction practices, are making it easier and more cost-effective to undertake commercial construction projects. Additionally, AI is being used in the construction industry to improve efficiency, safety, and decision-making throughout the project lifecycle.

Government Initiatives: 

Government initiatives focused on infrastructure development and modernization significantly boost the industry. For example, the Infrastructure Investment and Jobs Act, passed in 2021, has allocated substantial funding for infrastructure projects, many encompassing commercial construction elements.

Challenges and Opportunities

While the commercial construction industry in the US is rapidly growing, it also faces several challenges. These include labor shortages, rising material costs, and regulatory hurdles. However, these challenges present opportunities for innovation and improvement within the industry.

Labor Shortages: 

The industry needs more skilled labor, driving the adoption of automation and robotics in construction processes. This shift towards automation addresses labor shortages and enhances efficiency and safety.

Rising Material Costs: 

Fluctuating material costs are prompting construction companies to explore alternative materials and more efficient construction methods. Sustainable construction practices, such as using recycled materials and reducing waste, are becoming more prevalent.

Regulatory Hurdles: 

Navigating the complex regulatory environment requires construction companies to stay informed and agile. Collaborating with regulatory bodies and investing in compliance expertise can help mitigate these challenges.

Sustainability Requirements: 

Sustainability requirements challenge the industry to adopt eco-friendly materials, energy-efficient designs, and other sustainable efforts. Some states require new construction to follow strict building rules to reflect these initiatives. These challenges also present an opportunity to reduce environmental impact and enhance the long-term value of construction projects.

The commercial construction industry in the United States significantly contributes to the nation’s economic growth. With a current valuation of $2.3 trillion and a projected growth rate of 5.9% by 2030, the industry is set to continue its upward trajectory. Despite challenges, the opportunities for innovation and expansion are vast, making it an exciting time for stakeholders in the commercial construction industry. As businesses and communities evolve, the industry will continue to build the foundation for the future, shaping the landscapes of cities and towns across the country. Contact Division 9 Commercial Construction to get started with your commercial project.

Filed Under: Blog Tagged With: commercial construction, Construction growth, construction industry, Division 9 Commercial Construction, Future of construction

Creating a Successful Plan for Your Office Remodel Project

May 22, 2024 by greenmellen Leave a Comment

An office remodel can give your space a much-needed improvement. Whether you need a more functional layout to accommodate growth or are looking to adopt sustainable design features, you need a strategic plan for this project to minimize disruption and ensure it aligns with your business needs. This guide will help you create a strategy to approach your remodel efficiently. 

1. Establish Clear Objectives

What is the goal of your remodel? Is it to fit growing needs such as adding more office space or accommodating more customers? You may need to add new technology that requires much-needed upgrades to the electrical and floor plan. Establishing your objectives before planning will help you provide the necessary details to your construction team. They will have a better sense of approach to drafting their designs.

2. Set a Realistic Budget

Setting the project budget is one of the most important steps in planning a remodel. Start by breaking down your budget by expected costs such as labor, materials, permits, contingency (planning for the unknown), and any additional items you can add if there is an extra budget. Consulting with a financial advisor specific to construction projects can provide valuable insights and help safeguard your investment.

3. Prioritize Spatial Efficiency

No matter your design goals, spatial efficiency is key to an effective layout. Consider how the layout can optimize space utilization while improving employee comfort and productivity. Features like versatile workstations and communal areas can significantly enhance the functionality of your space. Multiple purposes can also enhance space utilization. For example, a conference room could double as a training area or an informal gathering space, equipped with movable furniture and adaptable lighting to suit various needs and moods.

4. Commit to Compliance and Accessibility

Updating your office is an excellent opportunity to ensure compliance with current building codes and accessibility standards, such as the ADA. These updates meet legal requirements and promote a more inclusive workplace, which is essential for fostering a diverse workforce.

5. Select the Right Partners

The contractors and designers you choose will significantly impact your project’s success. Look for teams with demonstrated experience and reliability in commercial construction, specifically office renovations. Thoroughly vet potential candidates by reviewing their past projects, checking references, and conducting interviews to ensure they understand your vision. Be sure to verify they are licensed and bonded. Don’t forget to ask for references from past clients with similar projects.

6. Future-proof Your Office

As you plan your remodel, consider the future trajectory of your business. Integrating flexible design elements and scalable technologies ensures your office can adapt to future needs without requiring constant modifications.

7. Embrace Sustainable Practices

Sustainability is a top priority in the business world. Incorporating energy-efficient HVAC systems, sustainable materials, and green building practices can reduce your carbon footprint while lowering operating costs. Moreover, these practices can enhance your company’s image as a responsible business. Don’t forget to ask your contractor about any city or state requirements regarding sustainability. It may affect your design plan if you must incorporate specific materials or energy sources, such as solar panels. 

8. Plan for Minimal Disruption

An office remodel can disrupt normal business operations. Plan the remodel in phases or section by section to minimize downtime if possible. This might include scheduling major work after-hours or on weekends and setting up temporary workspaces that allow employees to continue their duties unhindered.

Planning and executing an office remodel requires foresight and strategic planning. By setting clear goals, budgeting wisely, ensuring compliance, choosing the right partners, and thinking ahead, your office remodel will meet and exceed your expectations.

Contact Division 9 Commercial Construction if you are considering remodeling your office. Our experienced team is ready to help you transform your office space into a modern, efficient, and welcoming environment.

Filed Under: Blog Tagged With: commercial construction, Division 9 Commercial Construction, office remodel, Office renovation, Sustainable office design, Workspace design

A Checklist for ADA Compliance Requirements for Retail Stores

May 8, 2024 by greenmellen Leave a Comment

As a retail store owner, creating a welcoming experience is one of the most important things you can do for your guests. Much of this comes down to the design and layout of your store. But, did you know it goes far beyond visual aesthetics? When designing or renovating your retail storefront, it is vital to include a design that is not just pleasing to the eye but also accommodating for guests of all abilities. Below is a checklist that can help you ensure your storefront is ADA Compliant to help provide a positive experience for all.

Accessible Parking

For freestanding storefronts or those part of a strip mall, ensuring your location has adequate parking and handicap-accessible spots can make or break the guest experience. Handicap spaces need to be clearly marked and located as close as possible to the store entrance. Each accessible parking space must have an adequate access aisle to accommodate wheelchairs and other mobility aids. Remember, van-accessible spaces require a wider aisle and appropriate signage.

Ramp Installations

If your storefront has any steps, ramps are a necessity for wheelchair or other mobility device access. Ramps should have a gentle incline (no steeper than a 1:12 slope), handrails on both sides and a non-slip surface. 

Doors and Entryways

Doors and entryways can pose a challenge for those with disabilities. Large, heavy, or revolving doors require an alternative. To comply with ADA standards, doorways must be a minimum of 32 inches wide when fully open, requiring no more than 5 lbs of force to open. Level-style handles or automatic door openers are not required but are a highly preferred addition.

Wide Isles and Navigable Paths

Not every store can afford a space that is wide and open. While you may want to maximize every square inch of your store, pathways, and isles must have a minimum of a 36-inch clearance to allow for wheelchairs or other mobility devices. It is best to avoid placing displays or stands where they might impede mobility or access to goods and services.

Changing Rooms

Changing rooms are required by the ADA to be easily maneuverable by mobility devices like wheelchairs. Other methods can be chosen if this is not readily achievable.

Restrooms

There are specific ADA design standards for restrooms. A wheelchair or mobility device must have enough room for a 180-degree turn. The top of an accessible toilet seat must be between 17 and 19 inches above the floor. It must also be a specific distance from the side wall to the center line. Sinks must also be no higher than 34 inches.

Accessible Sales Counters

Checkout counters are the final interaction with guests. Accessible POS stations should be at an appropriate height for wheelchair users, no higher than 34 inches from the floor. If you have multiple stations, they should be wide enough to allow for multiple-chair access.

Signage and Emergency Systems

Proper signage is important for guiding all customers. Signs should include Braille for visually impaired individuals. Additionally, your emergency alert systems should accommodate everyone, including those with hearing or visual impairments, by incorporating both audible alarms and visual alerts like strobe lights

ADA compliance is not just about adhering to regulations but about making your retail space welcoming and accessible to everyone. By following this checklist, you can enhance your store’s accessibility and demonstrate your commitment to serving all customers equally. Division 9 Commercial Construction is committed to helping you achieve these goals through expert guidance and construction solutions tailored to meet ADA standards. Contact our team to help ensure your storefront is accommodating for all.

Filed Under: Blog Tagged With: ADA compliance, Ada standards, commercial construction, Division 9 Commercial Construction, Retail construction

What are Tenant Improvements, and What are Some Examples?

April 24, 2024 by greenmellen Leave a Comment

As a landlord or property manager, keeping up with your properties is an important responsibility to maintaining a property. But upkeep means more than nicely cut grass and fresh paint. Upkeep includes planning for and making tenant improvements. Understanding those improvements and their importance can help make the planning process much easier. Follow along with us as we break down everything you need to know.

What are tenant improvements?

In real estate, tenant improvements are any changes or repairs a landlord makes to the property as a part of the lease agreement. These changes are typically made for commercial properties to configure the space for any particular tenant and their business or operational needs.

Tenant Improvement Allowance (TIA)

A standard lease agreement usually includes a special provision to allow a budget for the tenant to make changes to the rented spaces. This is called a tenant improvement allowance. A Tenant Improvement Allowance (TIA) is a budgeted amount agreed upon between the landlord and the tenant dedicated to special changes. A dollar amount of square footage of the lease spaced often breaks down TIA. The allowance covers costs related to the improvements, such as materials and labor, and sometimes design and architectural services.

How to Calculate the Tenant Improvement Allowance

Even with the fluctuating costs of materials and labor, as a landlord or building manager, there are methods for determining the costs that factor into the tenant improvement allowance. Below is a breakdown of the basic calculation:

Determine the Total Allowance: 

This is often a product of the square footage of the space being leased and the agreed-upon allowance rate. For example, if the space is 5,000 square feet and the allowance is $20 per square foot, the total allowance would be $100,000.

Budgeting and Estimates: 

The tenant, often with the help of contractors, will prepare detailed estimates of the work required. This includes all aspects of the improvements, from structural changes to finishes.

Negotiating Above-Allowance Costs:

If the estimated costs exceed the TIA, the tenant and landlord can negotiate how to cover these additional expenses. Options may include the tenant paying the overage, the landlord increasing the allowance in exchange for a higher rent, or a combination of both.

Consideration of Amortization: 

In some cases, the cost of the improvements above the allowance is amortized over the lease term. This means the tenant will repay the additional cost as part of the monthly rent.

Common Tenant Improvements

Every space and tenant need is different. However, there are common improvements that one should account for and even allow for within their tenant improvement allowance and terms. Some of the most common tenant improvements include:

Electrical System Upgrades: 

Electrical upgrades are very common for tenants with high power demands, such as tech companies, manufacturers, and healthcare. Tenants may want simple fixes such as newly upgraded light fixtures, complex mass communication systems, or high-capacity circuit breakers. 

Plumbing and Water Efficiency: 

For tenants with high water usage, such as restaurants, upgrading plumbing fixtures to more efficient models can reduce water usage and costs. This might involve installing low-flow toilets and faucets or upgrading to on-demand water heating systems.

Sustainable Building Materials: 

Using sustainable, non-toxic building materials and finishes can improve indoor environmental quality and support a tenant’s sustainability goals. This includes low-VOC paints, recycled flooring materials, and energy-efficient windows. In some cities and states, new construction and remodels may be required to adapt to sustainable materials. 

HVAC:

 Retrofitting new or graded HVAC equipment is one of the most common tenant improvements. Upgrading to more modern and efficient equipment is very beneficial for tenants. Upgrades may include advanced filtration to reduce pollutants and smart technology integration for automated, zone-specific climate control. These systems not only adjust to occupancy levels and reduce energy consumption but also support the health and well-being of occupants. Offering state-of-the-art HVAC solutions can significantly increase a property’s attractiveness and value.

Flooring: 

Upgrades to flooring in commercial spaces can align the environment with business needs and aesthetic requirements. High-quality materials like luxury vinyl tile and polished concrete enhance durability and simplify maintenance, boosting employee comfort and productivity while creating a welcoming customer atmosphere.

The benefits of tenant improvements are mutual: landlords and tenants can customize spaces to meet the needs of their businesses while adding value to their property. However, understanding the basics of a tenant improvement agreement, including who pays for what and how much control the tenant has over the renovations, is important. By effectively negotiating the terms of tenant improvements, businesses can create a space that not only meets their operational needs but also provides an environment that reflects their brand and enhances their employees’ and customers’ experiences. To learn more about tenant improvements, contact Division 9 Commercial Construction. 

Filed Under: Blog Tagged With: commercial construction, Commercial real estate, Tenant Improvement Allowance (TIA), tenant improvements

Why Division 9 Construction is Proud to be a Women-Owned Business

April 10, 2024 by greenmellen Leave a Comment

Division 9 Commercial Construction is proud to be one of the 13% of women-owned construction businesses. In the last 20 years, there has been a significant increase in the number of women in construction, both in positions in the field and in companies owned by women. As these opportunities continue to grow, their impact is leaving an even greater impact. Women’s perspectives, skills, and experience can greatly benefit construction projects.

Women who paved the industry

Women in construction date far back in history. Emily Roebling led the construction of one of the most notable US structures, the Brooklyn Bridge. She took over as lead supervisor, fulfilling the engineering responsibilities when her husband, lead designer, passed away. This monumental accomplishment allowed many women to contribute greatly to the industry. 

While we can thank Emily and many other women in the past, these modern-day women are recognized for their contributions to the construction industry, breaking barriers and leading some of the most innovative projects worldwide. Some of the most influential and famous women in construction, known for their leadership, expertise, and groundbreaking work, include:

Cheryl McKissack Daniel:

 Cheryl is the President and CEO of McKissack & McKissack. She was crucial in major projects like the World Trade Center, JFK Airport, and Lincoln Center. Her leadership exemplifies the potential of women-led companies in executing large-scale construction endeavors.

Anne Ellis: 

Anne is the Executive Director of the Charles Pankow Foundation and a former Senior Vice President at AECOM. She is known for her contributions to advancing concrete technology and innovation in construction methods and for being a strong advocate for women in engineering and construction.

Patricia Galloway: 

Patricia is the first woman president of the American Society of Civil Engineers and CEO of Pegasus Global Holdings. She has been a trailblazer in managing and consulting on large-scale international projects.

Advantages of Women-Owned Construction Companies

As a result of the growing presence of women-owned businesses in the construction sector, the sector is undergoing significant changes. With a focus on fostering innovation, promoting collaboration, prioritizing sustainability, and empowering women economically, the influence of women-led construction companies is substantial. This indicates a promising path for the future of the construction industry.

The Future of Women in Construction

Across the board, the construction industry embraces diversity and opens doors wider for women. It’s a fresh wave of energy, lighting up the field with opportunities for all. With the industry evolving, it’s becoming a place where everyone’s contributions are valued and celebrated, setting the stage for a brighter, more inclusive future. Here are other positive changes in the industry:

Technological Advancement and Leadership

Integrating new technologies, such as Building Information Modeling (BIM) and green construction methods, can enhance women’s leadership skills. Women’s aptitude for collaboration and innovation positions them well to lead in these areas, driving the industry forward.

Education and Mentorship Programs

With more women in the field, there will be greater mentorship and education program opportunities. More scholarships, internships, and networking opportunities are available for women and are designed to help encourage the next generation of female construction professionals.

Policy and Industry Changes

Initiatives in the construction industry and future policy changes aim to make the industry more inclusive and equitable. Equal pay, anti-discrimination measures, and work-life balance are among the initiatives being undertaken to make the workplace more welcoming for women.

The contributions of women in construction are paving the way for future generations, while anticipated industry changes promise a more inclusive and equitable environment. Supporting and promoting women in construction is not just about gender equality; it’s about harnessing diverse talents to drive innovation, sustainability, and equity within the industry. The future of construction is undeniably brighter, with women at the forefront, shaping its evolution with determination, skill, and vision.

Filed Under: Blog Tagged With: construction, construction industry, diversity in construction, Women in construction, women-owned construction businesses

Ground-Up Construction: What is it and What Should I Expect?

March 27, 2024 by greenmellen Leave a Comment

There are many types of commercial construction projects, each with unique benefits. Understanding your options can help you decide which is right for your needs. 

This blog post will specifically look at ground-up construction and provide details to help you know what to expect with your project.

What is Ground-Up Construction? 

Ground-up construction is when a building is constructed from undeveloped land. Unlike a renovation or expansion project, this land is bare, with no previous buildings to demolish or remodel. 

Ground-up construction takes place in a series of step-by-step phases, beginning with planning and designing and ending with construction. 

The Process and 5 Steps of Ground-Up Construction

All construction projects require careful planning. The project manager must find the right resources and equipment, determine the timeline and budget, and meet various other complex requirements. That is all before any work begins. 

This is phase one of many construction projects. Let’s break down the five phases of construction:

Phase 1: Pre-Design (Project Initiation) 

The first phase of a construction project is pre-design. During this phase, project managers and their teams evaluate the requirements, objectives, and overall feasibility and set the budget. 

This is one of the most important phases because it allows investors and stakeholders to assess the project’s risks and benefits. It also provides a good basis for carrying out every aspect of the project.

Phase 2: Design (Pre-Construction) 

The next phase is the pre-construction or design stage. During this time, detailed plans for the building’s design (blueprints) are drawn up, and all details are finalized. Costs will also be estimated and evaluated to help ensure the project is carried out within scope. 

At this stage, the design development work is essential for sourcing equipment and materials during the procurement process.

Phase 3: Procurement

During the procurement phase, materials, equipment, and services are effectively sourced, purchased, and transported using the preparations made in the design phase. Additionally, all essential team members and contractors are hired. 

Depending on the project’s scope, it may be necessary to hire subcontractors, especially if special services/skills are needed for the build.

Phase 4: Construction 

Finally, construction begins. The construction phase is the pivotal stage in ground-up construction, where architectural designs transform into physical structures. It starts with site preparation, lays the foundation, and progresses through framing. 

Then, the necessary HVAC and electrical systems are installed before enclosing the building. After the outside walls are up, the final interior work begins. The facade of the building completes the outside before the finishing touches of the landscape occur.

Throughout this phase, key considerations include:

  • Maintaining safety standards.
  • Ensuring quality control.
  • Managing the project timeline efficiently.
  • Keeping costs within budget.

This phase is complex as various trades and professionals work together to bring the envisioned structure to life.

Phase 5: Post-Construction (Closeout)

The closeout phase is the final step in ground-up construction. The project manager will ensure all work complies with project specifications through inspections and addressing any punch list items. 

It also involves finalizing documentation, such as warranties and maintenance guides, and completing financial settlements. This phase is critical for a smooth transition to the building’s owners, marking the project’s successful completion and readiness for occupancy.

Challenges to Expect With Ground-Up Construction

Budgeting

Like any construction project, there are challenges to be aware of. Budgeting is one of the biggest concerns. Many circumstances could arise, throwing a project off budget. Budgets must be carefully allocated for all resources, and it is important to have contingency funds available should issues arise.

Zoning and Permits

Another common concern is zoning laws and permits. Obtaining necessary permits is a lengthy process. Sometimes, permits and inspections are delayed, throwing the entire project off the timeline. This can also cost more money than planned.

Time Management

Time management is also crucial. Ground-up construction projects take longer than remodeling or build-out projects. Understanding this upfront and planning properly can help keep everything on track.

When working with subcontractors, if they are hired for certain periods and their start date is pushed back, they may no longer be available or require payment even when not working. There is also the weather to consider. Construction must work around the weather in areas with harsh winters and springs, especially where the ground may freeze, preventing site preparation. 

Benefits of Ground-Up Construction

Flexibility

Ground-up construction is much more flexible than expansion or remodeling. There are fewer challenges since all work can be customized – you get to decide every detail, from layout to materials, ensuring that the final structure meets your needs. 

Energy Efficiency

Energy efficiency is another significant benefit; modern construction methods and materials offer greater sustainability and long-term cost savings. In many areas, incorporating certain green building practices or laws is also a requirement. Energy efficiency is an investment in an environmentally friendly and economically savvy future.

Need Help With Your Ground-Up Construction Project?

Ground-up construction is more than just building – a journey from concept to reality. It offers a unique blend of challenges and rewards. But with careful planning, the trade-off of a completely custom build is worth it. 

For more on ground-up construction, contact Division 9 Commercial Construction.

Filed Under: Blog Tagged With: commercial construction, construction phase., construction process, Ground-up construction, project manager

5 Factors to Consider Before Opening a New Retail Location

March 6, 2024 by greenmellen Leave a Comment

As a business owner, nothing is more exciting than opening a new retail location.  It is an opportunity to start a new chapter or expand your brand. But before you sign the lease on a new place, consider the steps you must go through, particularly those involved with choosing the right location. 

We’ve seen firsthand how the right location can set a retail store up for success. Below are the top factors to consider before choosing and opening up a new retail location.

Conduct a Market Analysis

A well-researched market analysis can help you better understand your future business location. You can discover more about the demographic makeup of your target audience through this research. You can identify what motivates their buying decisions, lifestyle preferences, and how your product fits into their daily lives. A market analysis can also help you discover valuable insights into your competitors and how they operate, their strengths, and potential gaps your business can use to its advantage.

Choosing an Accessible and Visible Location 

Choosing the location for your new retail store is one of the most important decisions you can make. But, there is more to consider than which strip mall or main street is the busiest and best. You want your store to be both visible and accessible to patrons. A prime location balances high foot traffic with ease of access/accessibility. 

Visibility is not just about foot traffic; it’s also about how easily your store can be found online. Google the area. What is the online competition like? Are multiple “running shoe” stores popping up within 10 miles? Integrating location-based SEO strategies in today’s digital age can enhance your store’s online visibility, driving both virtual and physical traffic.

Additionally, think about the physical aspect of visibility – can you see your storefront from the main road? Does it stand out from other shops in the same shopping mall? Finally, do not forget about accessibility. Sure, it’s great to have ample parking, but is your store easy to get into? Are there accommodations for those with disabilities? 

Is The Location Scalable

Thinking ahead for the future can help you choose a great location should you have plans to expand. We aren’t suggesting taking a space larger than you need. Thinking ahead means finding a location with enough square footage for your current needs and future expansion. Can the current layout accommodate renovations to increase square footage? Is there an opportunity to break down walls to empty adjoining spaces? Don’t only focus on the overall size, think about how to utilize the space. What are your storage needs? Is the layout flexible enough to allow for more fitting rooms or additional merchandise displays?  The best spaces are the ones that allow for flexibility for your current and future design needs.

The best spaces also allow integrations for technology upgrades. While historic buildings may be beautiful, some may not allow or be equipped to handle structural changes to accommodate advanced technology. Ensure your space can handle digital and sustainable advancements. 

Understand Compliance and Zoning Laws

As mentioned earlier, some older or historic buildings may pose a challenge when it comes to certain upgrades and remodeling needs. However, understanding zoning and compliance laws is deeper than which upgrades you can and cannot choose.

Zoning laws and regulations dictate where, what, and how you can build. Work closely with a professional commercial construction team to help navigate the process of obtaining necessary permits, adhering to zoning laws, and ensuring that your building meets all safety and accessibility standards.

Consider Your Budget and Costs

A well-planned budget should include all initial costs and a safety cushion for future needs. Whether building a new retail location or renovating an existing storefront, there are many costs to account for. Consider the following in your budget:

  • A project budget
  • Utilities
  • Maintenance costs
  • Upgrades 
  • Additional operating costs

It’s not uncommon for a retail store to frequently change its layout, aesthetics, etc. Planning for these updates ahead of time can help you save in the long run, especially if you have an adaptable floor plan. 

This includes selecting the right materials, efficient design layouts, and sustainable building practices that reduce long-term operational costs. Furthermore, we can help navigate financial planning aspects such as assessing tax implications, understanding financing options, and planning contingencies.

Choosing the right location for your new retail space requires detailed planning. From conducting a thorough market analysis to ensuring compliance with local regulations, each aspect is crucial in establishing a successful retail business. Division 9 Commercial Construction can guide and support you through this journey. Contact us to turn your vision of the perfect retail space into a reality.

Filed Under: Blog Tagged With: commercial construction, new retail location, Retail construction, retail expansion, retail location, retail renovations

8 Most Common Examples of Commercial Renovation Projects

February 21, 2024 by greenmellen Leave a Comment

Commercial renovation project types vary based on several factors, such as the type of building and the intended purpose. Unlike residential construction, a renovation project will fall into one of several common categories, each with unique requirements. Understanding where your renovation is categorized can help you choose the right commercial contractor. 

This blog will explain the most common types of commercial renovation projects and updates you can expect.

Restaurants and Food Service

There are many classifications and styles of restaurants. Each falls into its unique category, whether or not they are a franchise or independently owned. Selecting a commercial contractor experienced in your type of restaurant can help the renovation process run smoother. Their experience can bring great value to your renovation needs. What are common renovations in the restaurant industry? Below is a list broken down by front and back of the house.

Front of the house:

  • Updated decor and lighting
  • Increased square footage, including outdoor seating
  • Updated restrooms

Back of the house:

  • Updated equipment, which may need new or expanded layout configurations
  • Additional or HVAC for equipment to accommodate growth
  • Additional storage rooms

Retail

The retail industry is highly competitive. A successful storefront is crucial to a company’s success. Retailers remain competitive by frequently updating their stores to grow with a changing market and customer needs. This could involve updating interior design elements, rearranging product displays, or incorporating new technology for a seamless shopping experience. Renovations can help attract foot traffic, boost sales, and strengthen brand identity.

Office 

After a boom in remote work, companies are heading back to the office. Whether an office is fully in-person or adapts a hybrid model, their need for updated working spaces remains high. There are many reasons for office renovations besides accommodating growth. Many companies want to incorporate open-concept seating, breakout rooms, common lounging spaces, and a more functional and sustainable space. 

Additionally, the office typically serves as an IT operations and management hub. This means you must plan for rooms that host servers and computer equipment. In addition to utilities, networking lines must run from one space to another to provide dependable, high-speed communications between computers, phones, and other connected devices.

Shopping Malls

Shopping malls remain a go-to for many consumers. Mall owners not only have to compete against online retailers but they also need to stay competitive in their market. Shopping mall renovations can provide many benefits, such as planning for future growth, becoming more sustainable, modeling to attract new business and public interest, and adaptive floor plans. Additional renovations include creating inviting common areas, introducing experiential retail concepts, or repurposing vacant anchor stores for alternative uses such as entertainment venues (movie theaters) or coworking spaces.

Medical Facility 

Hospitals, clinics, and medical offices undergo renovations to improve patient care, enhance operational efficiency, and comply with regulatory standards. Many medical facilities add new or renovate outdated wings and research centers to expand their service offerings. New medical equipment may require more space, additional electrical and HVAC, oxygen supply lines, or other needs to operate successfully. Other common medical facility renovations include HVAC, electrical, communication systems, fire protection, and sanitation lines. 

Hospitality

Hotels, resorts, hostels, and other types of commercial lodging undergo frequent renovations to keep up with evolving trends and guest expectations. These renovations are similar to residential renovations but on a larger scale. Decor, lighting, and flooring are updated regularly to improve the ambiance and visual experience. Older hotels renovate to incorporate a more user-friendly experience, including technology throughout many touchpoints. More common renovations include:

  • Updating common spaces to include restaurants and other dining options.
  • Improving pool and fitness areas.
  • Entertainment spaces.

Educational Institutions 

Schools and universities undertake renovations to create modern learning environments that foster collaboration, innovation, and student engagement. Renovations may include:

  • Upgrading classrooms.
  • Expanding facilities.
  • Adding common areas and dining halls.
  • Retrofitting buildings to meet sustainability goals.

Student housing faces the most renovations to accommodate 24/7 use. Updates to room aesthetics, common areas, and HVAC are crucial to keeping students safe and comfortable. Modernization renovations to add more connectivity to WiFi, tech, and mass communication help improve the student and faculty experience and are more common as tech advances.

Mixed Use

Mixed-use developments are becoming increasingly popular in cities and suburbs as they combine residential, commercial, and recreational spaces. Existing buildings can be renovated to accommodate mixed-use purposes, helping maximize land use efficiency and creating vibrant communities. Specific renovation needs depend on the final use of the building. For example, a large warehouse may be converted to loft-style apartments with a first-floor restaurant or workspace. Renovations may include adding many interior walls, separate plumbing, electrical, and HVAC, as well as specific needs for the restaurant. 

Commercial renovation projects include projects that are designed to improve functionality, aesthetics, and sustainability. From re-imagining retail spaces to draw in new customers and renovating historic landmarks to modernizing office buildings, commercial renovation projects play an essential role in shaping our built environment and responding to changing business and community demands. Commercial renovations add life and vibrancy to our urban spaces by revitalizing existing buildings.

Need a specialized commercial contractor for your remodel? contact Division 9 Commercial Construction.

Filed Under: Blog Tagged With: commercial construction, Commercial renovation projects, commercial renovations, Division 9 Commercial Construction, mixed-use developments, renovation updates, Retail construction, shopping mall renovations

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