The more-traditional ways to add value in commercial construction investments—solar panels, salvaged materials, insurance—offer considerable benefits to offset a large financial venture.
This, however, isn’t where I was looking to focus my attention in this blog. Naturally I was curious to learn more about the less explored and more unconventional ideas. With some digging, I developed a list that hopefully introduces some new notions to link in with your big book of construction hacks. Industry to industry, I’m sure some ideas aren’t a perfect fit, but with use of adjustments for your world, there’s a pretty good shot at boosting your investment’s value.
1. Bricks:
Property Aspects Magazine highlights that, “Bricks are no longer simply commonplace building components. They present certain advantageous physical properties, such as thermal and acoustic insulation and fire resistance. Beyond this, they offer a huge variety of options for architectural design.
‘We believe that bricks can contribute enormously to the character of a building,’ comments Jonathan Plews, Managing Director of All About Bricks. ‘Bricks are about finding practical, but elegant, solutions for construction, and giving architects more choice.’ Although bricks are only one small example of a choice an architect can weigh in on, there are stronger structural benefits than other materials that could end up being pricier with less aesthetic appeal.
‘We believe that bricks can contribute enormously to the character of a building,’ comments Jonathan Plews, Managing Director of All About Bricks. ‘Bricks are about finding practical, but elegant, solutions for construction, and giving architects more choice.’ Although bricks are only one small example of a choice an architect can weigh in on, there are stronger structural benefits than other materials that could end up being pricier with less aesthetic appeal.
2. Engaging a CM/GC with a Health Program:
Involving a general contractor or construction manager that values their health program has direct ties to a business’ bottom line. The relationship between health/safety programs and an organization’s financial stability is more correlated than you would initially think. Construction Business Owner magazine lays out some of the costs that are spared by ensuring a GC is up on their safety. Author Stan Rosen condensed these areas as follows:
“When workers stay whole and healthy, the direct cost-savings to businesses include:
– lower workers’ compensation insurance costs;
– reduced medical expenditures;
– smaller expenditures for return-to-work programs;
– fewer faulty products;
– lower costs for job accommodations for
– injured workers;
– less money spent for overtime benefits.
– lower workers’ compensation insurance costs;
– reduced medical expenditures;
– smaller expenditures for return-to-work programs;
– fewer faulty products;
– lower costs for job accommodations for
– injured workers;
– less money spent for overtime benefits.
Safety and health also make big reductions in indirect costs, due to:
– increased productivity;
– higher quality products;
– increased morale;
– better labor/management relations;
– reduced turnover;
– better use of human resources.
– increased productivity;
– higher quality products;
– increased morale;
– better labor/management relations;
– reduced turnover;
– better use of human resources.
Employees and their families benefit from safety and health because:
– their incomes are protected;
– their family lives are not hindered by injury;
– their stress is not increased.”
– their incomes are protected;
– their family lives are not hindered by injury;
– their stress is not increased.”
3. Impact Mapping:
If a construction manager is able to truly understand the work environment, this can drive efficiencies that wouldn’t be available if building use wasn’t a component of project planning. For example, through impact mapping, the impact of the building layout on users can show how construction is conducive or disruptive to operations. This view of a project allows for a drastically lower level of re-work and change orders—saving hard dollars.
4. Risk Mitigation through an In-depth Service Contract:
A Next Level Purchasing guest blog I put together a few years back emphasizes that since trust in construction managers (or any supplier) alone cannot prevent potential risk, an in-depth contract is a critical component to risk mitigation. Through monitoring a supplier’s progress and having a comprehensive contract in place, a company has the potential to be confronted of issues early on, before a costly business interruption can occur. To prevent an outside party from causing a damage to brand reputation (through a delay in construction hindering revenue, etc.), it is crucial to have these control mechanisms in place that establish safety standards, prevent corrupt practices, enforce confidentiality requirements, and address whatever obligations may be needed given the specific environment.
These hacks working hand-in-hand with the more obvious value-adds can equal a nice off-set to your next construction project’s investment.
Sources referenced:
– http://propertyaspectsmagazine.co.uk/architects-bricks-add-value-to-buildings/
– http://www.constructionbusinessowner.com/topics/safety/construction-safety/safety-and-health-program-adds-value-your-bottom-line
– https://books.google.com/books?id=MnTCBwAAQBAJ&pg=PA515&lpg=PA515&dq=construction+value+driver&source=bl&ots=WD212QxVa8&sig=sdqD7AEZ71aiAhOjl6wIIbcm3qg&hl=en&sa=X&ved=0ahUKEwjaw7uq7YTNAhXLPj4KHeZADag4ChDoAQg-MAU#v=onepage&q=construction%20value%20driver&f=false
– http://www.nextlevelpurchasing.com/blog/2014/10/risk-mitigation-in-any-industry.html
– http://propertyaspectsmagazine.co.uk/architects-bricks-add-value-to-buildings/
– http://www.constructionbusinessowner.com/topics/safety/construction-safety/safety-and-health-program-adds-value-your-bottom-line
– https://books.google.com/books?id=MnTCBwAAQBAJ&pg=PA515&lpg=PA515&dq=construction+value+driver&source=bl&ots=WD212QxVa8&sig=sdqD7AEZ71aiAhOjl6wIIbcm3qg&hl=en&sa=X&ved=0ahUKEwjaw7uq7YTNAhXLPj4KHeZADag4ChDoAQg-MAU#v=onepage&q=construction%20value%20driver&f=false
– http://www.nextlevelpurchasing.com/blog/2014/10/risk-mitigation-in-any-industry.html