2015’s Top 3 Construction Management Software Solutions

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Construction management software has advanced rapidly in the last few years, bringing the industry to new levels of efficiency and productivity in the process. Streamlining workflows, cutting down on paperwork, and eliminating repetitive manual entry are only the most basic benefits to be found in the latest generation of construction management software. Yet, many construction business owners who want to adopt this new technology are stymied about what software is the best fit for their business. To clear up this confusion, HBW is pleased to present a roundup of the three most popular construction management software solutions, as ranked by the software and technology firm Capterra.

1.RibMC2

With their proprietary iTWO 5D platform, RibMC2 integrates virtual modeling and communications with physical construction to enable EPCMS and contractors to see the project before it begins, review project execution remotely, and reuse project data to predict future trends. This is the only solution that covers the entire project lifecycle from initial concept to final closeout. This industry-standard, 5D end-to-end technology models the time, quality, cost, and collaboration aspects of the construction process, resulting in cost reductions of 30% and a 20% decrease in time to completion. Using a standardized single enterprise platform enables iTWO to integrate all phases of the project life cycle from design through execution, and accounting through forecasting. The platform delivers real-time project performance and key metrics in a visual format, which simplifies portfolio management and eliminates the need for traditional month-end progress reporting.

Better for: Volume builders and large GC’s with a diverse portfolio of large-scale civil and commercial projects and a huge number of stakeholders.

2.Newforma

Construction Suite by Newforma is a project information solution that incorporates Preconstruction, Project Management, and Field Management. The Preconstruction function lets users manage email, drawings and documents, search the network for information, distribute/coordinate bid documents, and coordinate models and documents to detect potential MEP clashes. The Project Management function organizes contracts, submittals, RFI’s, change orders, and action items through remote, touchscreen technology for smartphones and tablets that can be synced across the entire team and collaboratively annotated. The Field Management function integrates punch lists, project images, spatial indices, and site reporting into a tablet app, which streamlines the field capture and administration of punch list items. The suite includes: The Newforma web interface, Newforma Form Letters, Newforma Project Publisher, Newforma Contact Directory, and the Newforma Construction Suite, including the Newforma Add-in for Microsoft® Office® Outlook®.

Better for: Design-build firms, small GC’s, construction managers and specialty subcontractors.

3. Viewpoint Construction Software

The core offering of this software-as-a-service solution revolves around construction accounting including payroll, cash management, and account administration. Additional modules are purchased separately for HR, project management, inventory management, and field management. The fully upgraded version of Viewpoint includes data storage and virtual collaboration space, as well as tracking of labor, equipment, and field agents. It also offers maintenance scheduling and tools for creating/managing punch lists, records, and change orders.

Better for: Small and mid-sized residential companies and specialty subcontractors.

EquipmentShare: Airbnb For Construction Equipment

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Any contractor knows that equipment is a sizable investment, an investment which in the construction industry can run into the millions of dollars. Rental revenue for construction equipment exceeds $40 billion each year. For contractors who buy, the more specialized pieces of equipment sit idle in the warehouse for months or years. Some contractors even have to think twice about taking jobs that need such equipment because rental fees and insurance can take too large of a bite out of their bottom line.

Many of these problems are solved with EquipmentShare, a construction equipment sharing service app backed by famed venture capital firm YCombinator. The premise is simple: equipment owners can make money off of pieces that would normally sit idle, and subcontractors can support their fellow trades professionals while paying more reasonable rates for equipment than can be found at rental companies.

EquipmentShare is the brainchild of brothers Willy and Jabbok Schlacks, industry veterans with more than 20+ years of construction experience between them. The idea for EquipmentShare germinated because the brothers grew tired of the frustration they felt from continuously agonizing over whether to pay exorbitant rent for equipment they needed, or buy the equipment and let their investment set idle. But the Schlacks realized that, when pooled as a whole, the equipment inventory held by the general contractors of a given area tends to be three times larger than the amount inventoried by rental companies.

The Schlacks realized that idle equipment could turn a profit for contractors if they had a more efficient way to connect and share. EquipmentShare provides that platform. Contractors can make money off of idle equipment by offering to share it at rates that are more reasonable than those offered by rental companies. The fees a rental company charges for a piece of equipment are based on demand and inventory availability. EquipmentShare eliminates that price pressure because contractors are only sharing equipment that they are not currently using. The service’s prices are an average of 30% lower than what rental companies charge.

Because the app features a two-sided rating system similar to the one found on Airbnb and other peer-to-peer platforms, both contractors and renters are motivated to keep the equipment well-maintained. This rating system is expected to provide a better experience than the current alternatives—especially Craigslist, which is how contractors typically find equipment shares. The service also provides a framework for verifying the identity and licenses of contractors, insuring the equipment against damage, and protecting contractors from liability due to workplace accidents that might occur with their equipment. All payment processing is handled through the app, which keeps things on track.

While currently limited to the Missouri market, YC should enable the EquipmentShare service to migrate to additional markets soon. The Schlacks are watching other peer-to-peer services for strategies to maximize their move to other markets. Admittedly, there is precious little overlap between other software start-ups and EquipmentShare, but this won’t deter the Schlacks from widening their service area as soon as possible. EquipmentShare is a free app for the iOS platform, and it can be downloaded from the App Shopper site.

Remodel Your Bathroom for ROI

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Realtors know that bathrooms and kitchens sell houses. But rather than doing a remodel for their family’s enjoyment, too many homeowners wait until they’re ready to sell and then do a quick superficial facelift. According to renovation expert Ken Perrin, people who want to do a bathroom remodeling job should “do it and enjoy it, and if [they] do it well and it’s quality workmanship, [they’ll] get your money out of it because the house will sell.”

#1: The Bathroom is a Sanctuary

At the end of the day, buys, overworked folks just want to unwind. Many homeowners want to seek refuge in spa-quality bathrooms. Bathrooms are much larger than in the past, with larger windows, designer lighting, and radiant heat floors. The toilet is walled off into its own area and the two sinks are standard in the enlarged vanity. The tub and shower are separated into a deep soaking tub and an open, airy, multi-head shower. Where space is at a premium, many homeowners forgo a tub altogether in favor of a luxurious spa shower.

#2: Smart Upgrades

Entertainment systems equipped with satellite radio, internet, and cable television are popping up more frequently in spa bathrooms, but these showy features aren’t the best bet for a high return on investment. Instead, consider upgrading the storage and green factors in the room. Low-flow water fixtures for the multiple shower heads, sinks, and toilets are very desirable, as are on-demand tankless water heaters that conserve both water and energy. LED lighting fixtures also cut down on bathroom energy use. Adding floor-to-ceiling vertical cabinets featuring shallow drawers with dividers and electrical outlets inside the cabinet will yield sensible but sensational storage to the bathroom.

#3: Remodeling Starts at the Studs

Bathroom remodeling projects need to go deeper than superficial fixture swapping, re-tiling, and painting if the improvement is to hold its value. To make sure that the bathroom can stand up to everyday sink splashes and over-full tub sploshes, the walls, ceilings, and sub-floors should be upgraded. Mold-and-moisture-resistant drywall for the room and cement board for the shower and tub areas are keys to making sure that your remodel is a lasting improvement.

Construction on Birmingham’s Pizitz Building Starts This Week

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Bayer Properties, in association with Wisznia Architecture & Development of New Orleans and Baton Rouge-based Stonehenge Capital, are finally beginning their much-anticipated renovation of the historic Pizitz building in downtown Birmingham. Redevelopment of the 251,210-square-foot building will cost an estimated $66 million. This project is set to transform the building into six floors of mixed-use residential and commercial retail space. There will be 143 multifamily units and office space on the mezzanine level. A public urban market will occupy much of the ground floor, with conventional retail taking up the rest. The seven-story parking garage attached to the building will also be redeveloped.

It is expected that redevelopment of the Pizitz, which was constructed in 1923, will catalyze the redevelopment of the city center while maintaining the volume of redevelopment happening on Second Avenue North. The area has seen many historic renovations, redevelopments, and new tenants in recent years, but the Pizitz project is the crowning achievement in the effort to revitalize downtown.

In an interview with the BBJ, Bayer principal David Silverstein was quoted as saying, “We’re extremely excited for being able to start the Pizitz project … It’s a great project for our company, but most importantly, it’s an even more important project for the revitalization that’s ongoing in downtown Birmingham.” This week’s efforts will focus on demolition of the annex, which is not part of the historic original structure.

The Pizitz, located at 1821 Second Ave. N. at 19th Street, was purchased by Bayer a decade ago. In that time, the building has been the subject of numerous redevelopment proposals. According to Bayer CEO Jeffrey Bayer, the time is now right for the project to proceed. “When we acquired the Pizitz Building and parking deck, we believed that the size of the property was of a scale that, when appropriate for a redevelopment, it would have a profound impact on the future of the central business district,” he says, “That time has now arrived, and we are thrilled to be a part of this gentrification.”

In fall of 2014, Bayer went public with the building’s plans and finalized agreements on funding and initial physical alterations to the property. The financial arrangements came together last week through the assistance of the city of Birmingham, Birmingham’s Highland Commercial Mortgage, US Bank Community Development Corp., Iberia Bank, the Birmingham and Atlanta offices of the U.S. Department of Housing & Urban Development, National New Markets Fund LLC, and ServisFirst Bank. Last March, the city agreed to provide $1.9 million for enhancements around the building and back Bayer properties on a $3.2 million Section 108 loan. “We appreciate the support of Mayor (William) Bell, the Birmingham City Council, our financial partners, and the community without which this project could not have happened,” says Silverstein, “[and] we’re looking forward to a new neighborhood emerging in 2016.”

Wisznia Architecture & Redevelopment has subcontracted with Birmingham’s own KPS to provide on-site architect support services. Brasfield & Gorrie will serve as the general contractors on the project, which is scheduled for completion in 2016.

Crockett High School Building Trades Program is Expanding

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South Austin’s Crockett High School has a double dose of awesome with its new Construction Technology Program. Students who successfully complete the program can walk directly into a job on a work site. Program instructor Duane Lardon says that the starting salaries for entry-level workers “[is] substantial. I think they start at $15 an hour just at the base level.” Austin-based subcontractors looking for skilled labor to complement their teams might consider looking into the program’s pool of recent graduates.

Students who choose to continue their construction technology and project management studies in Higher Ed will earn college credit for the course. To offer the most expansive program possible, Crockett partnered with Austin Community College to develop the curriculum and ensure that the credits earned are transferable. The program began in 2009, and thus far is the only high school construction technology program in the Austin Independent School District. The school is currently building a 12,000-square-foot workshop this summer. Beginning in Fall 2015, the six-year-old program will be adding advanced carpentry, plumbing, electrical, and HVAC courses to their current offerings.

In addition to the nuts-and-bolts of the building trades, program participants learn teamwork and leadership skills. They apply their algebra and geometry skills to solve construction problems, and their science skills to understand green building techniques. Safety protocols and OSHA regulations are also an important part of the curriculum. The introductory course is one semester long, and provides foundational skills like how to safely use power tools. They build picnic tables, bookcases, and other small, student-chosen projects. Students also construct a building for sale, the proceeds of which reimburse the materials expense of the program and help it to be self-sustaining.

Field trips, career networking, and social activities give students the opportunity to interact with team members and co-workers. There are two other courses in the program: Building Trades I/CNBT 1411: Construction Methods & Materials, and Building Trades II/CNBT 1402 Mechanical, Plumbing and Electrical. BT1 teaches students site layout, framing, concrete pouring, and roof framing. BT2 teaches infrastructure and interior finish work.

The program is a key initiative in providing for Austin’s construction workforce needs, which face the same skilled labor shortages and commensurate wage spikes as other booming construction markets nationwide are facing. Austin Home Builders Association vice president Emily Lubbers says that 14% of the home price increase in 2014 was due to construction labor costs. “Home builders are still just trying to meet the demand of the market and trying to ramp up their supply so they can do that,” Lubbers explains. While ramped up building regulations and protracted planning periods are partly to blame for the labor wage spike, the biggest cause was a serious shortage of skilled labor. Few young people are interested in blue-collar work, even though the construction industry offers tremendous opportunity for growth and earning potential, as Lubbers says, “the construction industry is such a great industry. It offers such a great opportunity for career growth.”

To learn about participating in the program, or to locate recent and upcoming program graduates, contact program instructor Jim Stricklan at (512) 414-7884, or jim.stricklan@austinisd.org.

Florida Legislature to Tackle Affordable Housing, Water Policy, Taxes, and Estoppels in 2015

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According to Florida Realtors®, the Florida state lawmakers are finally addressing concerns regarding affordable housing, the state’s water policy, commercial rent taxes, and fees for estoppel certificates. All of these issues are set to impact the state’s residential and commercial construction industries. 

The first issues regards the tangle caused by Amendment 1, a measure requiring 33% of documentary stamp taxes collected on real estate transactions to go to land and water conservation efforts in Florida. Currently, 20% of the doc stamp taxes go to conservation efforts, and the 13% increase is expected to bring in over $757 million in additional funds for 2015. The passage of Amendment 1 raised concerns that funding for transportation and affordable housing initiatives in the state would face cuts in order to fully fund the measure, but this isn’t necessarily the case. 

Florida Realtors President Andres Barbar is very clear in his advocacy of Amendment 1, saying, “A vote for Amendment 1 last November was not a vote against housing … Affordable housing and the conservation of water and land resources are equally crucial goals for our citizens.” Of Floridians’ affordable housing concerns, Barbar goes on to say that, “fully funding the Sadowski Affordable Housing Trust Funds would mean that many of our state’s neediest residents – those who are homeless, low-income families and veterans – would benefit from $267 million going into home buying and rental assistance programs … Not only does a strong housing policy help strengthen and revitalize our communities, housing also creates jobs and helps to drive Florida’s economy forward.” 

The revenues needed for Amendment 1 do not need to come from the Sadowski Trust, because the General Fund and the current $1 billion government surplus can be diverted to cover the funding for the measure. Florida’s commercial builders will need to keep an eye on this funding issue to determine how it will affect their bidding on affordable housing projects. 

In keeping with the demand for water conservation, the State of Florida is initiating a comprehensive new water policy. Senate Bill 918 and House Bill 7003 address the need to balance water resource restoration and conservation while protecting private property rights. Lobbyists are asking lawmakers to consider using money from the Land Acquisition Trust Fund to maintain state-owned water resources and lands, supporting comprehensive, science-based, anti-pollution programs to keep springs, lakes, and other water clean, expand the use of alternative water supplies, and provide new water storage regulations on agricultural lands. The water rights of property holders may affect lot prices and valuation. Builders may need to factor alternative water acquisition and storage into building infrastructure as a supplement to public water or private wells.

Florida is the only state that taxes commercial rents. Currently, there is a 6% tax on rent and expenses (landscaping, insurance, and property tax) paid by commercial tenants, and local governments might charge a discretionary sales surtax on top of that. New legislation will lower the tax from 6% to 5%, beginning in 2015. 

According to Florida Realtors’ vice president of public policy Carrie O’Rourke, a tax decrease will “make Florida more competitive and business-friendly … Since Florida is the only state in the nation that charges this additional tax, it is very anti-competitive and puts our businesses at an economic disadvantage.” O’Rourke goes on to state that “adding sales tax to rent can be the difference in whether a small business can stay in business … We’ve heard from many business owners who say they could expand, hire more workers or raise salaries if this tax were to be eliminated or phased out.” Lowering the tax on commercial rent will also make commercial real estate development that much more profitable for investors and builders.

As master-planned communities and mixed-use condominium projects begin to gather traction in Florida’s construction industry, estoppel certificate fees have become quite an issue. Florida law currently demands that homeowners of properties governed by a condominium or homeowners’ association must provide an estoppel certificate, or statement of financial status, with the association before their home can be refinanced or sold. The law allows community associations to charge reasonable fees for the preparation of an estoppel certificate, but this bureaucratic task has morphed into a miniature revenue stream for many associations, who routinely charge $500 or more to prepare one.

New legislation will cap the fees at $100 for owners who are current in their assessments, with an additional $50 fee to expedite or update the estoppel certificate. The $50 fee will also apply to owners who are delinquent in paying their assessments. Although this alternative mini-stream of revenue will decrease, it is doubtless that estoppel certificate reform will streamline the sale of properties in master-planned communities and condominiums.

Construction Costs Rise Faster then Inflation Nationwide

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The cost of construction is rising fast and will keep rising for the foreseeable future according to Commercial Property Executive contributing editor Dees Stribling. The Consumer Price Index for January dropped 0.7%, largely due to the 18.7% price drop for gasoline during that month. Food, fuel oil and natural gas were also low, although electricity rose 0.2% during the same time period. If the unusual energy and food transportation cost drop is taken out of the equation, prices would have risen 0.2% during January 2015. The average inflation rate across all items in the index of 2014 was 0.1% lower than in 2013, but if energy and food are taken from the calculation, then prices would have risen 1.6% for the year.

When comparing the reasonable inflation rates to the cost increases in the construction industry, it is clear that the resurgence of land development is driving a cost increase in the real estate industry that outpaces inflation.

The Engineering News-Record found that total construction costs from February 2014 to February 2015 rose 2.9%. The price increase is attributed to the rising costs of labor and materials. The baseline labor wage increase was 2.8% for 2014, but the busiest markets were seeing even higher labor cost increases. The materials costs for 2014 also increased to higher-than-inflation rates. The ENR lists a 0.1% price increase for rebar in its 20-city average price index. Rebar rates currently sit 3.4% higher than they were in February 2014. The 20-city index also lists the current average price for gypsum wallboard as 21% higher than in February 2014. Paving asphalt rose 3.5% for the year, but if oil prices remain low, that rate may be expected to drop. After a 0.4% increase in January, the most stable price to be found in the index is for reinforced-concrete pipes, which remained between 3.2% and 4.9% for the past year.

Although land prices vary widely by location, the nationwide trends show that undeveloped real estate, even for B-grade lots, are dramatically increasing in larger urban centers. The economic downturn forced many companies to divest their land holdings and discouraged firms from buying more land. As a result, the “development pipeline” for proper permitting and entitled land ready for building is very scarce. Other areas have simply run out of lots to develop. As a result, land prices are at a premium for most of the markets in the 20-city index.

Residential SIP Demand Rises

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Use of alternative building methods and materials is on the rise, especially in the residential construction industry. While stick-frame construction is still the norm in much of the U.S., many builders are embracing the use of Structural Insulated Panels, or SIP’s, in construction. As concerns over environmental pollution, energy conservation, and affordable utilities attain a critical mass, builders more and more often find themselves working with SIPs.

The typical SIP is a piece of insulating foam core sandwiched between two pieces of OSB. The foam core may be composed of extruded polystyrene or rigid polyurethane insulation, and the boards could use plywood, precast concrete, sheet metal, or magnesium board for the structural facings.

Because SIPS create a continuous thermal barrier, they lack the thermal bridging problem created when using metal or wood studs. The air infiltration and heat resistance problems of fiberglass insulation don’t exist with SIPs. SIP construction tends to be 40% more airtight than stick frame construction, and a 4” SIP outperforms a standard stick-framed, insulated structure with comparative R-value.

SIPs are manufactured in a more eco-friendly way than stick-frame building materials are. The OSB in each SIP  is manufactured from younger, faster-growing, under-utilized wood, which conserves trees that would be otherwise be cut down to make dimensional lumber. The foam core in SIP’s is only 2% plastic, much of which is recycled. Because SIPs arrive at the jobsite cut-to-measure and ready to install, there is significantly less waste. Because building with SIPs is easier and faster than with conventional building, the construction time is quicker and the labor costs are lower.

With the increasing interest in environmentally sound home building, it’s a good idea to become familiar with the procedures and techniques of building with SIPs. Whereas you won’t need a worker to cut holes into studs for wiring because the wire chases are pre-cast in the foam, you will need to be extra aware of the plumbing and ventilation fittings. The air-tightness of a SIP structure will keep standing water from roof, window, or pipe leaks locked into the structure, which can cause accelerated rotting and structural collapse.

SIPs are an excellent, eco-friendly alternative to stick-frame construction, but they aren’t perfect. Residential building professionals who are familiar with the specific demands of SIP construction will produce high-quality and eco-friendly results. Which will make them much more desirable on the job market than those who aren’t.

3 Steps to a Great Outdoor Kitchen

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GC’s and subcontractors who are keeping up with the latest design trends know that more and more homeowners want their new homes equipped with outdoor kitchens. Unfortunately, one challenge many builders face with outdoor kitchens is that they are working with materials and conditions traditionally handled by landscapers, pool installers, and deck designers. Keeping these three tips in mind will help ensure that you’re building the very best outdoor kitchens your clients could wish for.

1. Basic Design Principles are All-Weather Concepts

Good kitchen design is good kitchen design, period. Make sure that the layout of cold areas (refrigeration), dry areas (prep counters), hot areas (grill/stove/oven), and wet areas (sinks) in the outdoor kitchen is as efficient and functional as the indoor kitchen layout. Each zone should have proper space and appropriate proximity to the other areas.

2. Light, Climate, and Power

Locating the grill, refrigerator, and stove to maximize their access to the home’s utilities is a no-brainer. But don’t forget that outdoor kitchens have an even greater need for adequate task lighting in the different function zones because there is no ambient lighting coming from the rest of the house, and much of the entertaining outdoors is done at night. You’ll also need to address outdoor cooling and heating needs if the homeowners wish to extend the seasonal use of their outdoor kitchen. This is doubly true if they client plans on having an outdoor dining room.

3. Durability

A well-designed outdoor kitchen demands two kinds of durability: design and equipment. A durable design is one that uses sturdy materials and closely matches the design elements of the rest of the house. Repeating tile patterns, brick types, colors, and exterior wall coverings ensures that the outdoor kitchen blends so seamlessly into the overall design so that the client won’t feel the need to remodel the space later on. Durability in equipment means installing countertops, sinks, and cooking gear that is specifically meant for outdoor kitchens and can weather the elements well season after season. It also means planning space for the clients to install any equipment (warming drawers, ice makers, an upgraded grill) they may choose to add later as their entertaining needs grow.

Green Climate Control Options for New Homes

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Although summer traditionally begins on June 21st, most Americans begin to feel the heat long before then. But ever-increasing energy costs and concerns over environmental pollution have left some reluctant to crank up the A/C, leaving their homes stifling and uncomfortable. As home builders forge ahead into the construction season, it’s a good time to think about what energy-efficient air conditioning and green cooling options are available for the homes they are building. There are four good alternatives to central air conditioners.

Perhaps the most conventional is the whole-house fan, or the “attic fan” as my dad calls his. Whole-house fans use 90% less energy than an a/c unit, and can be run instead of the a/c during the evening, when the outside air is cooler.

Another alternative is the ductless mini-split system, which pairs an external, wall-mounted condenser connected to a series of wall- or ceiling-mounted indoor evaporators via refrigerant lines. Each room can be cooled separately, and the system eliminates wiring, noise, and cumbersome energy-inefficient attic duct work while offering at least 30% in energy savings.

Perfect for warmer climates with low humidity, central evaporative coolers (also called “swamp coolers”) are a good option. Costing about 50% less than conventional air conditioners and consuming about 75% less energy, the evaporative cooler exploits the fact that evaporating water cools the surrounding air.

Geothermal “heat pump” cooling systems can also be used for wintertime home heating and heating your water year-round. They use about 30%-60% less energy than a typical air conditioner. Geothermal systems rely on the circulation of fluid to transfer heat from your home into the ground beneath, and US homeowners can get a 30% tax credit on geothermal systems thorough 2016.

If budget constraints make these options unpractical for your clients’ home, there are still ways to make conventional climate control more energy efficient and environmentally friendly. One strategy is to install tinted windows to reduce the amount of light and heat that get into the house. Adding extra insulation to the attic will reduce the amount of heat that gets in and keep temperatures inside the house lower. When paired with classic a/c, the humble ceiling fan boosts the circulation of cool air, meaning that the air conditioner can run for shorter periods of time and at higher thermostat settings, saving at least $30 per month on the electric bill.