Preconstruction

The construction industry continues to face myriad uncertainties, including tariffs, fluctuations in material costs, supply chain delays, and increased competition for a limited pool of funds.  

Given that climate, constructability reviews and value engineering become critical to finding safer, more efficient and cost-effective alternatives that help owners manage both budgets and risks without compromising the final product. 

These reviews identify potential omissions and inconsistencies in a set of plans and can offer alternative, more efficient ways to build. This reduces the likelihood of change orders, cost overruns and project delays. 

But beyond just pinpointing technical gaps, these reviews also address schedule layout, phasing operations and proper selection of construction techniques — all of which directly impact how smoothly a project gets executed once construction begins.

A better bidding process

Owners can gain the greatest benefits in cost and schedule when constructability reviews are incorporated into the bid process. Conducting the constructability review as early as possible in preconstruction recognizes the inherent gaps that can exist between plans and their execution on the construction site.

When the most effective construction approach is vetted early and clearly communicated to prospective bidders, it creates a level playing field and drives down costs. Contractors are bidding against a consistent, well-defined scope, rather than interpreting ambiguities or making assumptions that could later lead to disputes. This is why owners often see wide variations between bid estimates. 

When the design is not crystal clear, contractors will interpret certain elements differently. Some will price risk conservatively, adding a cushion to the bid to protect themselves. Others may submit a lower bid, only to end up renegotiating through change orders. 

Reviewing plans from a contractor’s perspective helps refine the specifications and ensures the design intent is accurately captured in the bid documents. This process allows owners to receive more competitive and consistent bids that better reflect the true cost of the work.

Multiple perspectives

A significant advantage in this process is having a team with actual contractor experience involved in the preconstruction phase. Former contractors and former owners offer a dual perspective that allows them to understand both what the client needs and how contractors will view the plans when preparing bids. 

This experience also plays a major role in mitigating risks through value engineering by accounting for critical elements, including staging areas, construction sequencing, laydown space, long-term maintainability and operations. 

The knowledge gained from being directly involved in construction gives these reviewers an ability to recognize practical risks that may not always be apparent in design drawings but can have major consequences if not addressed ahead of time. In many ways, it is like hiring a contractor during the pre-bid phase, but without the contractual complications that typically follow once construction starts. 

Communication is key

With so many stakeholders involved in any given project, effective communication is key. It allows for the coordination and consolidation of all technical information into a unified, consistent set of plans that speaks clearly to contractors as one binding document. Without that clarity, missed scope items lead to contract add-ons, and poorly scoped work results in change order discrepancies. 

Bringing together the perspectives of ex-contractors, ex-owners and technical engineers allows each project to be dissected and reviewed from every angle. The result is a stronger, more coherent set of bid documents that aligns expectations upfront and produces more stable projects overall.

A process that fits all sizes

One of the most valuable aspects of constructability reviews and value engineering is scalability. The process is not limited to large-scale transportation projects or billion-dollar capital programs. These services are equally effective in smaller efforts, from nonprofit projects to mid-size municipal work. Regardless of project size, the principles remain constant. Eliminate uncertainty, minimize risk and ensure a more predictable construction phase before any work begins in the field.

Having real-world experience managing, building, and troubleshooting construction projects offers insight into what separates buildable plans from those prone to costly surprises. Applying that knowledge early gives owners a critical advantage, allowing them to strengthen their projects before the first bid ever comes in, protecting both their budgets and their timelines.

Modular firms with the highest returns typically build around a strong system and exercise control over the value chain, according to a modular construction report from consulting firm McKinsey.

Profitability often rises when companies simplify, such as honing in on one material or sticking to less complex projects. That allows factories to run at steadier levels, according to the report.

The findings land as the modular industry remains a small slice of the overall construction market, suggesting the next phase will test whether companies can scale without a repeat of past failures.

Successful modular firms invest significantly in their modular building systems, and continue to pour money toward improvements based on lessons learned from completed projects, according to the McKinsey report.

The study, based on 700 firms in 50 countries, shows margins are not tied to whether a company produces 2D or 3D volumetric modules. What makes the difference is whether the entire modularization process is tied together into a closed loop.

That link allows production to be repeated and refined. In other words, firms that handle design and manufacturing themselves, or tightly align partners across those stages, capture the real benefits of modular.

For example, companies that narrowed to one primary material, such as steel or timber, captured the most cost advantages. On the other hand, those that chased multiple product types or materials diluted their scale and saw returns weaken, according to the report.

The analysis also highlights the dangers of overexpansion. Several firms highlighted in the report invested in fully automated factories before securing demand to fill the lines. That led to low capacity and ultimately fragile balance sheets. Meanwhile, operators that first proved their approach in one asset type or geography, then expanded outward, posted the most success, according to the report.

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By Beck Technology

Construction KPIs and How the Right Tools Can Help

How do you really measure construction project success? It’s not just about finishing the building; it’s about the path you take to get there. Was your budget spot-on? Was the schedule realistic? Did your team celebrate the final deliverable or just breathe a sigh of relief that it’s over? The answers aren’t just gut feelings; they’re measurable, trackable, and foundational to how leading teams deliver consistent wins.   

Welcome to the world of construction KPIs (or Key Performance Indicators), a toolbox for building smarter from the very first step.

Why Construction KPIs Matter: Setting a Winning Tone

Construction KPIs shine a spotlight on your project’s health—covering cost control, timeline accuracy, safety, and client satisfaction. Gone are the days of running blind; real-time performance data highlights the red flags before they become budget blowouts.

The impact starts before steel hits concrete. In this industry, every “good project” is rooted in a solid preconstruction plan. That’s why the smartest teams set up their KPIs at the earliest planning stages, not just as an end-of-project audit. This proactive approach lets you spot risky estimates, schedule snag points, and missing safety benchmarks while it’s still easy (and cheap) to fix.

One key part of your KPIs is the cost performance index (CPI). When you have a healthy CPI, it means your spending is in check. However, a low CPI is a red flag signaling that your current assets and current liabilities may not be in balance. Pair your CPI with schedule performance, safety incident rates, and client satisfaction and you get a full picture of your project’s health.

Why Preconstruction KPIs Are a Gamechanger

Preconstruction isn’t just paperwork—it sets the baseline for every downstream KPI. Well-run precon teams use tools like DESTINI Estimator to gather historical cost data, automate estimate updates, and benchmark schedules in real time. That means less guesswork and more confident handoffs as the job gets underway.

Take Balfour Beatty. Before rolling out DESTINI Estimator, their precon process was siloed and hard to track. Once they switched, visibility improved for KPIs like cost performance and schedule predictability. Problems were flagged and fixed long before they became emergencies, setting crews up for smoother jobs and happier clients.

Choosing the Right KPIs (and Avoiding the Junk Drawer)

The best project managers don’t track a million metrics. They focus on KPIs that matter:

• Cost Performance Index (CPI): Is your project spending in line with your plan? Catch overruns early by tracking CPI.
• Schedule Performance Index (SPI): Are you meeting critical deadlines? SPI reveals whether you’re ahead or behind—crucial for managing client expectations.
• Safety Incident Rate: Are you keeping crews safe? Low incident rates reflect solid training and safety culture.
• Rework Rate: How much work had to be redone? High rates often signal planning gaps in preconstruction.
• Client Satisfaction Score: How do clients rate your communication, quality, and delivery? This is your ticket to repeat business and referrals.

Don’t drown in data—choose KPIs that drive the most value for your company and project, then make them part of your routine check-ins.

Your KPIs Are Only as Good as Your Tools

In construction, the clock is always ticking. A small delay in one phase can send a ripple effect across the entire project. This is where having access to real-time data isn’t just helpful, it’s essential.

If you can catch a cost variance before it snowballs or spot a scheduling bottleneck before it derails your timeline, you can make adjustments and avoid the problems all together. These are major benefits that are possible when you’re tracking KPIs in real time.

Here’s where modern platforms shine. Gone are the days of manually updating spreadsheets and chasing paper reports. Technology tools offer:

• Integrated dashboards: Tools like Procore, Autodesk, Join, and DESTINI Estimator let you track progress, cost, safety, and quality across every phase.
• Cloud-based collaboration: Real-time updates mean site teams, project managers, and executives all see the same numbers, so delays and overruns are flagged fast.
• AI-powered analytics: Advanced platforms help you forecast costs, spot anomalies, and act before issues snowball.

The industry leaders are always adjusting their KPI dashboards based on new challenges, feedback, and lessons learned—a living process, not a static checklist.

The results speak for themselves regarding the value of preconstruction technology, which also has a set of KPIs that firms use. Take it from a few estimators using DESTINI Estimator on measures they track:

• Cam Delahoussaye, chief estimator with Eleven Western Builders, estimates that their accuracy of cost estimates has improved by 25%; team collaboration has jumped 30%, and errors decreased by 12.5%.
• Ryan Bensinger, director of preconstruction with Keeley Construction, estimates that their accuracy of cost estimates has improved by more than 30%; team collaboration also jumped 30%, and errors decreased by more than 25%.
• Hans Seggelke, estimator with Balfour Beatty, estimates that their accuracy of cost estimates has improved by more than 30% as well; team collaboration improved more than 35%, and errors decreased 20%.

Building a KPI-Driven Culture

Tracking KPIs isn’t just for data analysts or the executive suite—it’s a company-wide mindset. The most successful firms empower everyone to understand, access, and act on performance metrics.

When project managers understand the metrics, they can make smarter choices. When foremen see how their crew’s performance affects the bottom line, they lead with purpose. Executives should utilize KPIs to guide strategy and build resilience into their operations.

Creating this culture doesn’t happen overnight. It takes a lot of training, transparency, and trust, but the payoff is enormous. Teams that embrace KPIs hit their targets and then exceed them.

To build a KPI-driven culture, focus on these three essentials:

• Education and training: Make KPI literacy part of onboarding and regular training.
• Transparency: Share performance data at all levels; clear communication builds buy-in and accountability.
• Actionable insights: Use KPIs to drive decisions—don’t just collect numbers.

Sustained success comes from using KPIs not just to review the past but to shape the future of your company.

The Future: From Data to Decisions

With digital adoption accelerating—including AI, predictive analytics, and cloud-based platforms—the construction landscape is changing. Sustainability, diversity, and long-term innovation are joining cost, schedule, and safety on the list of must-track KPIs. Construction managers are looking beyond cost and schedule to measure impact, innovation, and long-term value.

Beck Technology’s commitment to smart preconstruction ensures that your KPIs aren’t just theoretical—they’re actionable growth drivers. The tools and expertise in the DESTINI Suite help you translate data into strategy, turning every project into a case study for success.

Bottom Line:

KPIs aren’t just numbers—they’re your roadmap to building smarter, safer, and more profitable projects. Start with the right tools, focus on the preconstruction phase, and embrace a culture of accountability. That’s how winning teams build a legacy of excellence.

KPIs are not just numbers. They are your story.

In today’s transit world, doing more with less has become the norm, which is a shared challenge for public agencies, designers and contractors alike. Expectations are rising, timelines are tightening and budgets are increasingly under pressure. Projects must be delivered in a more cohesive, collaborative way. 

But success doesn’t happen by accident. Rather, it depends on how collaboration is built from day one.  

Talk to any contractor, designer or project owner who’s lived through a well-executed construction manager/general contractor or progressive design-build project and they’ll tell you: It’s a different kind of job. 

One that demands a deeper level of partnership. Collaborative contracting starts with intention and structure and continues through commissioning and revenue service. 

Collaboration in communication

Sometimes we think we’re collaborating, when in reality, we’re working in silos. We’re each in separate rooms developing ideas, then trying to stitch it all together later.

True collaboration means getting in the same room, having a conversation together. That’s when communication becomes faster and decisions become clearer.  

Let me give you one example. During a recent preconstruction phase, we were invited to sit down and look at the contract together, really work through it as a team. I remember it clearly: not just emails flying back and forth or redlines going unnoticed, but physically sitting across the table from our partner and having an honest conversation about our concerns. 

That moment really stuck with me. The ability to shape the agreement from the very beginning; not after it’s finalized, but while it’s still being defined. It was validation that our voice mattered. That, to me, is what working together truly looks like.

Talk the talk

A key part of that communication is also the language you use with project partners.

Out in the field, I remember a training session that stood out. Not because it was long or complex, but because of how focused it was. The entire session was built around a single one-page handout. And that one page made a big impact. 

It highlighted something that seems small but is actually quite powerful: language. Specifically, how the words we use shape our relationships and behaviors in collaborative environments. 

At the top of the page, there was a simple table comparing traditional, often combative language with more collaborative alternatives. 

The training reinforced that the way we talk to each other sets the tone for how we work together. And when you’re on a five-year project with multiple partners, that kind of tone-setting matters.  

Across our major projects, I try to stay grounded in a set of shared mindsets. My approach is always rooted in the practical. Not lofty strategies, but everyday actions people can take to work better together. It often starts with something as simple as terminology or human behavior. These small, often-overlooked details can either help or hinder collaboration. I’m always trying to catch those subtle cues.   

A whole-team approach

I’ve learned in collaborative delivery that your own sense of leadership matters just as much as the structure of the partnership itself. This was especially clear to me on a project that spanned two years of preconstruction and five years of active construction: a long-term commitment that required real alignment from the start. 

When we transitioned from preconstruction to construction, I was invited to attend a training session for all contracting teams and agency members. What stood out wasn’t just the content, but who was in the room. It wasn’t limited to project managers or executives. The session brought together people from both the office and the field. Everyone involved in delivery was there. 

That kind of inclusive environment signaled that this wasn’t going to be a top-down operation. It was going to be a partnership where input from every level of the team mattered. That moment set a cultural tone that lasted through the entire five years of construction.

That should continue through estimating, as well. With our approach, especially under an open-book arrangement, we unpack the entire estimate line by line. 

You can see every activity, subcontractor quote, labor assumption, indirect cost, fee and contingency. We even walk through the risk register and how it ties back to the cost model. 

For some owners, that level of transparency is new and honestly, a little intimidating at first. So, we go through a structured orientation with the client team.

What’s critical is being able to clearly show how and why your estimate has changed with each design iteration. Everyone begins to understand not just what the number is, but the reasons behind it. 

Collaboration as the activator

At our firm, we’ve seen what happens when collaboration is embedded not just in the culture, but in the contract. Collaboration becomes the “activator,” acting as a catalyst for better outcomes across cost, risk, and trust. 

In the end, collaborative contracting is not just a better way to deliver projects, but a better way to build trust, relationships and strong teams. While structure creates the foundation, success depends on mindset and intention. Whether you are an agency leader, a builder or a designer, the goal remains the same: Show up early, stay engaged throughout and remain aligned at every step.

Andrew Hime wants to bring predictability back to material sourcing.

Hime, the procurement manager at Clune Construction, joined the Chicago-based contractor in May 2025 as part of a broader push to build a national procurement strategy across the firm’s projects and markets. The approach aims to standardize how Clune engages suppliers, so project teams can rely on consistent cost certainty.

The newly created role comes at a time of heightened complexity in construction materials sourcing. Contractors across the country continue to grapple with long lead times and price volatility on key products.

Recent tariff hikes on aluminum, steel and copper, for example, have prompted domestic producers to raise prices. Input costs ticked up again in July 2025, and sat 2.6% higher for nonresidential construction compared to the same time in 2024, according to U.S. Bureau of Labor Statistics data.

Hime’s position focuses on easing that uncertainty and building long-term value for project teams. His past roles include chief procurement officer positions at Fermilab, a U.S. Department of Energy national laboratory based in Batavia, Illinois, and for Anne Arundel County in Annapolis, Maryland.

Here, Hime talks with Construction Dive about Clune’s purchasing strategy, tariffs and why to treat procurement as a strategic advantage opportunity.

This interview has been edited for brevity and clarity.

CONSTRUCTION DIVE: How are you adapting procurement strategy in light of the tariff situation, especially for sensitive materials?

ANDREW HIME: We stay incredibly close to the markets and work hand in hand with our trade partners to track not just current tariffs, but what’s likely to happen next.

Our strategy is built around flexibility and early engagement. That means partnering with our operations team, clients, manufacturers and distributors to use market intelligence and develop sourcing strategies that minimize risk, whether it’s a pricing spike or a production delay on critical materials. 

I often say, “We need to have the right tools in the toolbox.” In procurement, that means having the right contracts in place so we can meet the needs of any project, no matter what the market throws at us.

In data center or healthcare projects, how do you ensure materials arrive on time and prices stay under control?

These projects have little room for error.

Whether it’s delivering an MRI suite or energizing a critical IT load, we start early with demand planning and forecast modeling. This is especially true for materials with long lead times or volatile pricing.

It’s not just about securing materials, it’s about sequencing the right ones at the right time and understanding where we can’t afford delays.

We also build in backup plans, alternative vendors and transparent escalation paths when issues come up. Our procurement operation is not transactional. Much like everything at Clune, our strategy hinges on both actionable data and strong and collaborative relationships.

That helps us stay ahead of the curve and solve problems before they hit the schedule.

How does the approach of relying on a small group of trusted suppliers align with Clune’s strategy?

It’s part of our strategy, but we don’t approach it like a closed club. We’ve built strong national and regional vendor relationships based on shared expectations, performance, communication and accountability.

Those relationships give us leverage and reliability. The key to success in turbulent times is staying open to new and innovative solutions.

If a new vendor has something that brings value, we’ll vet them. We want partners who can grow with us and help us adapt, not only to meet the needs of a specific project, but to strengthen our supply chain and support the industry.

Are you seeing any new tools or technology that actually help with buying materials or planning ahead? 

Yes, but we don’t fall for shiny objects.

The current global supply chain disruption unfolding around tariffs has created a significant opportunity for innovation in the space of procurement technology. Clune is taking that opportunity seriously and are looking to take major leaps that provide long-term value for our operations team as well as our clients.

Our strategy is to focus on investing in tools that improve visibility across industries and markets and bring simplicity to navigating long-lead items, material availability and cost fluctuations.

What signs do you look for that tell you prices might rise, or that delays might be coming?

There’s no one thing. It’s more like triangulating between global markets, vendor feedback and the on-the-ground reality.

We pay close attention to upstream supply chain trends, labor disruptions, raw material costs and sometimes geopolitical events. We also focus on predictive modeling so that when early warning signals start flashing, we pull together a cross-functional team to analyze risk and figure out if we should buy now or hedge.

We’d rather have the conversation early and be transparent with the client than wait until it’s a crisis.

Any other trends around procurement you are keeping tabs on?

More owners are realizing that procurement is a strategic lever and not just a cost center. We’re being brought in earlier during preconstruction and project planning phases to help mitigate risk, improve schedule certainty and advise on sourcing strategy.

That shift is good for everyone. It leads to better collaboration, better outcomes and fewer surprises once construction kicks off.

Also, sustainability is no longer a side conversation. Recent supply chain disruption combined with industry growth is sparking innovation and creativity to bring sustainability to be more central to the design and core requirements. Customers are exploring solutions that reduce energy consumption based on design and material requirements and combining projects with renewable energy sources.

We’re seeing more interest in how materials are sourced, transported, recycled and reused. We’re hoping that procurement has a bigger role to play in that evolution.

A Chicago-based offsite construction firm is scaling up its production to meet demand for faster, more affordable development.

Z Modular, the offsite construction arm of Zekelman Industries, a steel pipe and tube manufacturer, named Nate Arnold as its new president in April 2025, according to a company news release.

Arnold, who brings over two decades of leadership experience in construction and real estate development, most recently served as senior vice president at Brookfield Properties, a New York City-based commercial real estate firm, according to his LinkedIn profile.

With eight modular developments already completed and 10 more in the pipeline, Z Modular has plenty of momentum as Arnold steps into the role, according to the company. His appointment follows the promotion of former Z Modular president Mickey McNamara to president of Zekelman Industries.

Here, Arnold talks with Construction Dive about Z Modular’s industrialized approach and where modular makes the most impact.

This interview has been edited for brevity and clarity.

CONSTRUCTION DIVE: What does Z Modular deliver and how do you differ from other offsite builders?

NATE ARNOLD: Z Modular is a fully integrated commercial real estate developer, driven by the idea that there is significant room for improvement in the industry, a belief that I think many would agree with.

We address the efficiency problem by leveraging our parent company’s background in the production of steel and PVC-based products. These products, such as structural tube steel, electrical conduit and water pipe, are highly repeatable. In order to be profitable, it is not enough to simply manufacture them, they need to be made at volume with consistent high quality.

Z Modular was founded on the core philosophy that shortages, and the resulting affordability challenges, in the commercial real estate space could be solved with a more industrialized perspective.

Which sectors are you targeting, where do you see the most growth ahead?

Due to housing shortages in nearly all major markets, residential development has the greatest potential upside for a higher efficiency product. Multifamily residential, in particular, benefits from logical modular sizes that align well with standard designs and can be efficiently shipped across the country.

Related sectors, such as hospitality and student housing, will also be natural areas of growth, although the immediate need in those markets is not as acute.

In the future, we may evaluate how to effectively deliver other product types, but housing definitely is our focus for the foreseeable future.

How does integration of design, manufacturing and construction help control cost and schedules?

I had a boss early in my career who got flummoxed by yet another report about some issue we had encountered. His comment to me was, "Nate, do you want to report the news or make the news?" It has become a mantra for me to consistently look not just at what's in my way, but at how to get issues out of my way.

Many times, developers using traditional models have referred to the process as "herding cats," and even some of those proverbial cats have their own cat herding to do. It's difficult to keep all parties aligned when there are competing interests. While our production plants are very efficient, able to produce two square feet of finished product for every man hour, that’s not everything that goes into delivering a multifamily apartment building.

Z Modular has built out onsite construction teams to enhance our ability to control all the variables affecting project delivery, including developing in-house capabilities across various trades. We really want to have as much direct influence as possible.

What helps modular construction adoption gain traction?

I actually think it’s industry headwinds that encourage developers to look at alternative methods.

Regulatory reviews can be black boxes, with any number of changes required on each project. Sensitivity to time makes quicker deliveries more attractive.

Developers also need to respond to market rebounds relative to supply cliffs. Being quicker to market in a more predictable, and therefore less risky fashion, is a competitive edge as Z Modular delivers for both ourselves and third-party partners.

How involved is Z Modular in development beyond manufacturing?

We are both a vendor and a full partner in the real estate process. Zekelman has used developing its own portfolio both as a long-term investment strategy and as an R&D lab for the products we offer to our partners.

We also can offer a range of services, from full-service development to simply producing modules. Over the next few years, we’ll have an incredibly strong product offering of multifamily buildings and will be producing 5,000 units or more each year.