Preconstruction

The importance of an effective preconstruction process has never been more apparent, said Brett Poulos, national director of preconstruction and estimating at Burns & McDonnell, a Kansas City, Missouri-based construction company.

Construction input prices increased again in July largely due to price hikes in petroleum and natural gas, according to an Associated Builders and Contractors’ analysis of U.S. Bureau of Labor Statistics data. Though these costs have begun to stabilize over the past year, they still sit near 40% higher than in February 2020.

So, as construction projects face increasing pressures from rising costs and procurement challenges, the role of preconstruction in mitigating these headwinds is growing in importance. The preconstruction phase increasingly gives owners and developers a better understanding of the project’s cost, scope and schedule.

Here, Poulos talks with Construction Dive about his experience in the construction industry, his preconstruction focus at Burns & McDonnell and the overall role of technology today.

Editor’s note: This interview has been edited for clarity and brevity.

CONSTRUCTION DIVE: What is your background in construction and how has it prepared you for this role?

BRETT POULOS: I started my career in the field with a self-perform general contractor, where I ran a total station and shot line and grade for self-perform crews. Starting my career in the field laying out work, learning from craftspeople as well as trade foremen, assistant superintendents and general superintendents really gave me a firm grasp of what it takes to plan a work activity and build a project.

My responsibilities expanded over the years and I worked my way into a project management role leading projects of various sizes and complexity in both the public and private sectors.

Throughout my career I developed a strong understanding of the front end of projects and migrated over to lead preconstruction for a few business lines, and eventually grew into my current responsibilities.

What are your top areas of focus as director of preconstruction?

Our industry is evolving.

The craft labor force doesn’t have the depth-charts that it used to have. The industry has a collective duty to draw attention to the benefits of working in the trades, and that includes creating career opportunities for experienced tradespeople within preconstruction and estimating teams.

I don’t require a college degree to be an estimator or preconstruction professional on our teams. Time in the field and time on tools can be just as valuable as a college degree — especially for self-perform discipline estimators.

With that said, our industry is rapidly evolving on the technology front as well, and we have to make sure our processes, systems and teams are structured to embrace and leverage this technology and keep a competitive advantage.

How does technology come into play in preconstruction?

Technology is one of the most powerful tools in our toolbox. Tech allows us to connect and leverage data in ways that bring huge benefits to our clients and project teams.

For our business, as an integrated EPC and design-build firm, we can merge technology, teams and workflows, and leverage the entire design and construction process, and associated data, which brings tremendous value to our clients.

We're embracing technology, AI and machine learning in our preconstruction services, and we're developing some pretty innovative offerings to our clients.

But with evolving and advancing technology, there comes a great responsibility to make sure there are robust processes to maintain data integrity.

Why is preconstruction important, especially in the face of rising costs and supply chain issues?

Preconstruction is arguably the most important phase of a project.

I'm admittedly biased, but let me explain — a robust preconstruction process allows the client to make data-driven decisions early in the design process so they can fulfill their mission.

If their goal is to fit a project within a target budget or get their plant or facility online by a certain date, the data we provide during the preconstruction process is paramount to their success.

Preconstruction is the bridge of communication, data and decision-making processes between stakeholders. The foundation of a project’s success is built and cured during the preconstruction process.

What challenges are you dealing with this year?

Over the past few years, everyone has had a hard time predicting the future and making projections on market trends, commodity pricing, etc. That has been an industry-wide challenge through unprecedented volatility.

Outside of industry-wide hurdles, the biggest challenge we're facing is developing and deploying our strategy toward the horizon.

What I mean by that is we're firming up our processes and tech to align with emerging technologies and the future of the industry. One thing is for sure, tech innovation is going to transform our industry, and the entire preconstruction process — especially for integrated EPC firms.

Any other important trends you think readers should know about preconstruction?

Preconstruction can be a broad term. We view preconstruction as the entire front-end process of safety analysis, constructability, lead time and schedule analysis, target-value-design and estimating.

When your projects are EPC, design-build, or collaborative delivery, the preconstruction process is very different from design-bid-build. The level of preconstruction integration and involvement can vary depending on the project delivery method and the capabilities of that preconstruction team.

We have found that projects are more successful for both the prime contractor and the client when preconstruction teams are engaged at the earliest possible point of project inception because it's much easier to share a clear vision of a project with a long runway for data-driven decisions.

Every builder knows what you do before you lay the first stone of a job is just as important, if not more so, than the construction itself.

To that end, Providence, Rhode Island-based Gilbane Building Co. has added Anthony Armento as a senior preconstruction executive in its Philadelphia office, the company announced on Aug. 12. He’ll report to Jim Gibson, who will continue leading the overall strategy and advancement of Gilbane’s preconstruction and purchasing departments in Philadelphia. 

Armento joined Gilbane in July after spending 17 years with a local competitor: Red Bank, New Jersey-based Torcon, most recently as its senior preconstruction director in Philadelphia, according to Armento’s LinkedIn. 

In his new role with Gilbane, Armento will oversee the daily operations of the firm’s preconstruction department. Gilbane’s addition of Armento will allow the department to focus on aligning specialized skill sets to its clients’ needs, per the contractor.

In addition to his presence in the Philadelphia area, Gilbane also touted Armento’s connections with the northern New Jersey marketplace, which the company says complements its location in Newark.

“Anthony has deep roots in our marketplace and brings excellent trade and client relationships to Gilbane,” said Shawn Carlin, Philadelphia senior business leader at Gilbane. “His experience across a wide range of markets within both Philadelphia and New Jersey makes him the perfect addition to our already impressive preconstruction team.”

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It’s a big responsibility, ensuring that construction projects meet all the requirements and standards necessary in today’s heavily fragmented environment. When safety, cost, schedule, and performance are on the line, Quality teams need every advantage they can get. 

Fortunately, artificial intelligence (AI) tools developed specifically for builders and developers are making teams more efficient and productive while improving quality. Innovative preconstruction teams are already benefiting greatly from making AI a standard part of their QA/QC and preconstruction process.

Nibbi Brothers General Contractors, one of the top contractors in the San Francisco Bay Area, has learned from decades of experience that the right approach is honest, collaborative, proactive, and supported by advanced technology. Nibbi knows that early team collaboration and proactive problem-solving can help maximize quality and avoid significant problems down the road. Their expert use of technology leads to fewer change orders and related budget/schedule impacts.

In a recent case study, Nibbi discussed its use of AI and how standardizing on the technology across its preconstruction team has given them a competitive edge. With honest insights from Nibbi QA Project Manager Anita Hsieh, a licensed architect, discusses the 3 essential advantages that Nibbi is achieving in their preconstruction process.

01. Efficiency

Nibbi’s QA/QC team spends considerable time on deep dives into their projects to ensure success. Adding Firmus AI-REVIEW to their set of tools provides a high level of consistency and takes a significant load off the team related to those more tedious tasks.

“Having a tool like Firmus, with the number of projects we have at any given time, helps accelerate the rate at which we can turn the projects around. Being able to quickly assess the volume and extent of issues, enables me to decide, for example, I’m not going to spend more than three days looking at this because the drawing set isn’t developed enough.”

When the QA/QC team hands things off to the operations side of the house, “I think they appreciate that it does take some load off them as well. They don’t have to find these minuscule problems six months into construction, which then results in wasted time, resources, or budget. At the end of the day, I can sleep better knowing I did as thorough a job as I could with the tools I had,” said Hsieh.

02. Actionable Insights

Firmus AI-REVIEW analyzes construction drawings to identify incomplete design, scope gaps, missing information, and discrepancies. It allows users to efficiently address identified issues, ensuring project accuracy, and enabling them to gain a competitive edge. “It’s a comfort in knowing right off the bat, for example, these sheets are missing. Another big issue is schedules: door schedules, window schedules, for example, are usually always a little bit anemic or missed. I don’t have to pore through the entire set just to find out that info is missing. I think that’s great because then I can focus on a more difficult, complex detail rather than poring over every window tag,” said Hsieh.

“I use Firmus on all our projects, mostly multifamily residential, on early CDs, but I’ve lately been experimenting with uploading 100% DDs, depending on the developmental level. And that’s been useful, too, because if most of the DNA is there, I can get a head start. We’re also exploring doing a 100% DD and then doing multiple benchmarks, like 25% CD and then 100% CD to see how Firmus can track the same project and potentially the same comments.”

“One of the trends that has been interesting to see is with the civil drawings. For example, there have been times when the utility connections aren’t coordinated. The existing connections don’t match because they’re not coordinated among the other trades. Those identified issues have been good to see because it’s something that can easily get missed and then when it gets picked up at the beginning of construction, that causes a huge coordination time issue. There have also been issues in MEP drawings -- for example, coordination between lighting plans and the architectural reflected ceiling plans that don’t match. It’s just the icing on the cake of things that are definitely important. I can package that information and send it to the architect to review. I don’t even have to summarize it for them. It’s obvious what the issue is and that’s been great.”

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Technology has definitely played a role in preconstruction’s increased prominence in the overall build process today. But many experts see behavioral and process swings spurred by the pandemic at the root of systemic change for the industry. 

“Of course I wish there was a tool that can get us all to where we need to be, but there’s no tool,” said David Alford, regional vice president of preconstruction for St. Louis-based McCarthy Building Cos. “The development of broader trust and cooperation in the base relationship of the partners is what gets you there.” 

That said, when it comes to how projects of the future will be managed during preconstruction — roughly the period from project conception to groundbreaking — there’s not just one established path. 

Building construction “packages”

Even the idea of preconstruction having defined start and end points is starting to vanish as teams look to resource optimization. For example, teams might pull the trigger on certain trade packages (think supply-challenged power mechanicals) even as other portions of the project remain in the design phase. 

“On almost every modern project we are working in packages, from site work and foundations to enclosures and interiors,” said Nathan Lingard, director of design phase at Minneapolis-based Mortenson Construction. “The staging of starts into packaging allows us to advance certain parts of the design even while others are lagging. We almost always overlap construction. Project teams are starting to build while we are finishing design.”

Alford calls package delivery part of an intentional and necessary blurring of the lines that helps preconstruction better reach its paramount goal of optimizing the delivery of project scope on time and on budget. 

“The idea that ‘Here’s traditional pre-con, hard stop, now here’s construction’ is becoming antiquated,” he said. “It’s actually our goal to make it blurry so that you don’t know one side from the other. You just know a project team that works closely alongside the designers and owners delivered an exceptional outcome.”

From pre- to post-construction

Robust data storage within BIM-enabled point clouds and change management platforms that can document decision-making along the way also stretches preconstruction collaboration beyond the construction phase into building operations and facility management. 

“Extending BIM continuity from preconstruction into building maintenance is something we have done on a few projects and expect to see more of in the future,” said Matthew Verst, vice president of cost planning and estimating at Cincinnati-based Messer Construction. “Especially when people start to see the increasing value from preconstruction in driving quality and safety, even for maintenance and operations personnel.”

For Alford, extension of preconstruction collaboration tenets into building ops is another example of the blurred lines that could help dissolve traditional discord and disagreement across full project life cycles, particularly in the first year of use. 

“The experience of a project is always created in how it finishes, and we want our clients to have successful buildings that operate well, that work the way they were designed,” Alford said. “The satisfaction of the experience is significantly higher when you do it right like that.” 

Bumps on the preconstruction path?

The one area for concern shared unanimously by preconstruction professionals as the practice evolves is a human one: the possible lack of stamina amongst subcontractor and specialty trades in adapting to new project delivery models and the onslaught of technologies needed to support them. 

Indeed, many subs are already struggling to staff up crews or even bid on new jobs as they clear pandemic-driven backlogs and pivot to new projects. 

“People think about long lead supply chains, or material cost escalation, but one of the biggest factors that doesn't get enough attention is the impact of that backlog on the subs and their difficulty getting labor,” Verst said. “It is tough to get competitive bids on scopes, so strong subcontractor relationships are going to be a big key to the success of future opportunities.”

Doing more with less

Like many facets of construction, AI and robotics might ultimately help alleviate labor strife and the continued pressure it exerts on project costs and scheduling, as well as other technologies. 

For instance, Miller Construction in Ft. Lauderdale, Florida, adopted Agtek estimating software to save $500,000 on one project by lowering a building’s elevation by 6 inches. Meanwhile, Dusty Robotic’s drywall automation tools, used by McCarthy and others, have helped address labor issues on jobs, an example from the subcontractor community as a way to do more with less. 

Those are just two examples of new approaches preconstruction teams have incorporated into the process since the pandemic forced a change in project collaboration and perspective. 

“Technology will change how we do things, and I’ve seen it change things ever since I’ve started in the industry,” said Eric Orquiola, director of preconstruction at Denver-based PCL Construction. “Whether efficiency is found in technology or lean delivery or whatever else is out there, we need to change processes to meet client needs, because we can’t hire as fast as the projects are coming in.”

Growing up, Matt Ventimiglia always wanted to be an architect, but he also wanted to build.

His initial plan was to get an undergraduate degree in construction management and a graduate degree in architecture, but along the way he fell in love with the building process and its team-centric approach.

Since graduating from Indiana University Indianapolis with a degree in construction technology, he has spent 20 years in construction, including the last four years with Concord, California-based Swinerton, where he became director of preconstruction two years ago.

He told Construction Dive that his job puts him at the intersection of building and design, because he works with architects and engineers to help clients realize their vision. Here, Ventimiglia talks with Construction Dive about technology, challenges and why he doesn’t like the term “freecon.”

This interview has been edited for brevity and clarity.

CONSTRUCTION DIVE: What are the top things you focus on as director of preconstruction?

MATT VENTIMIGLIA: In my current role, based in Charlotte, North Carolina, I do a lot of listening. I listen to clients, to architects and to my team. Listening helps me to see the big picture and gain a clear understanding of the client’s needs and wants, the architect’s design intent and the potential challenges facing my team.

I also really believe in continuous improvement rather than adopting new tools and processes. I find it’s small changes and tweaks to processes that really increase our efficiencies in everything we do. I constantly seek opportunities to improve as well as exceed our client’s expectations, by both watching and listening to my team.

How does technology come into play in the field of preconstruction?

While technology is a valuable tool, it cannot replace the expertise and skillset of an estimator in delivering a sound budget to a client. That said, our preconstruction team is pushing the envelope with the technologies we employ. While we use several standard preconstruction tools, such as BuildingConnected, On Center’s Onscreen Takeoff, Bluebeam and Microsoft Excel, we are also employing more advanced technology that is taking our preconstruction services to the next level, including Destini Estimator, JOIN and Revit.

The future of estimating and preconstruction relies on our ability to interpret an architect’s model to verify completeness and, sometimes, further develop the model. We are already starting to extract information from models to better understand costs, scheduling, phasing and logistics of projects. We are also able to compare different design milestone models to identify changes in designs quickly and adjust budgets and schedules accordingly.

Why is preconstruction important, especially in the face of rising costs and supply chain issues?

A strong preconstruction team is vital to the success and outcome of every project. The earlier a client brings a general contractor onto the project team to provide preconstruction services, the more accurate a project’s schedule, budget and overall quality of the project will be. In the rapidly changing environment we are in today, this is vitally important to the success of the project.

Many people think preconstruction is simply providing a client with a budget at the completion of a design milestone. However, preconstruction is so much more. 

It encompasses understanding the client’s needs and wants, working with the architect and their consultants, managing the design to meet the client’s budget, managing the design schedule, evaluating proposed means and methods, evaluating long-lead materials, analyzing the constructability of the design and making recommendations to improve efficiency and quality — all while maintaining the client’s building goals.

What challenges are you dealing with this year?

Project start dates have been slipping more than usual as higher interest rates are making it more difficult for proformas to pencil and financing to be obtained.

The demand for trade partners and material suppliers over the last several years has resulted in increased fees, labor rates and material costs — ultimately stressing the industry. Only now are trade partners starting to see and feel a potential slowdown in the industry. Pricing is starting to level out allowing some deals to move forward. With that said, select material manufacturers have also warned us of forthcoming price increases.

Labor shortages remain a challenge. Trade partners are still not able to find the people to support the pipeline of work. Swinerton is working to mitigate this challenge through various workforce development initiatives, including a Drywall Apprenticeship Program and Foreman Development Series. 

Our team self-performs as much as we can — from drywall to specialties to doors, frames, hardware and beyond — so that we can have the utmost control over quality and schedule.

What else should AEC pros know about preconstruction?

I have found that in the Southeast the construction industry has coined preconstruction as “freecon.” Traditionally, this “freecon” only includes estimating services at various design milestones. Estimating is only a very small portion of what should be included in preconstruction services and more than likely why these preconstruction services that should be called estimating services, have been free.

Swinerton is working to change how the industry perceives preconstruction services. True preconstruction service offerings manage the news whereas “freecon” services just report it with no influence or control. Preconstruction is a vital service which includes planning, budgeting, cost analysis of options, scheduling, logistics and phasing and reviewing material lead times. It is a valuable set of services that repeatedly saves the project time and money and, therefore, is a smart investment by the client.

During the construction of the San Diego Padres’ Petco Park, Gary Birdsall said his project team at the time found itself in a “peculiar situation,” when a historic building stood in the path of the planned outfield foul pole. 

“It wasn't feasible to tear down this multi-story structure, so we needed an innovative solution,” said Birdsall, who worked at Bethesda, Maryland-based Clark Construction at the time of the project, which opened in 2001.

The result was a creative solution that required approval from Major League Baseball: A ball hit on one side of the Western Metals Building would be ruled fair, and the other side foul.

“This experience highlighted the importance of flexibility and out-of-the-box thinking in stadium construction, proving that even obstacles can be transformed into distinctive assets,” said Birdsall, now in the Denver area as the vice president of PCL Construction’s preconstruction sports division. 

The contractor has constructed several high-profile North American stadium projects. PCL’s current projects include modernizing and upgrading several of them, including:

• The $350 million Scotiabank Arena renovation project for the NHL’s Toronto Maple Leafs and NBA’s Toronto Raptors.
• The $300 million Rogers Centre renovation project for the MLB’s Toronto Blue Jays.
• The renovation of Crypto.com Arena, formerly the Staples Center, in Los Angeles.

As with working on a historic building, these renovations require creative solutions to complicated problems. At the same time, the fan experience at stadiums has evolved, and so too have the renovation projects designed to upgrade the technology at North America’s biggest venues.

Tight timelines

When upgrading an existing stadium, PCL and other contractors have short windows of time during offseasons, which often means stretching out the project over multiple phases and years. 

Even then, the timelines can grow and shrink depending on if teams make the playoffs or if the arenas host events like concerts in the offseason.

“On stadium renovation projects, much of our work is scheduled during the offseason, however it inevitably extends into the season with necessary prep and cleanup,” said Dale Koger, vice president of PCL’s sports division, also based in the Denver area.

As a result, Koger said, PCL teams find themselves working within occupied facilities behind the scenes, while meticulously trying to not disrupt the buildings’ schedule.

Eric Hernandez, a superintendent for PCL’s California buildings division, said he’s seen those challenges on Crypto.com Arena’s renovation. The final set of upgrades to the venue, first opened in 1999, will include renovations to the main concourse and tunnel club as well as redesigned locker rooms for home teams. 

“This [schedule] uncertainty makes planning difficult for the trades involved, requiring them to work overtime, including six-day weeks and night shifts, to meet the deadlines,” Hernandez said. “The necessity for the construction teams to vacate and clean the site before each event, effectively erasing any trace of their presence, intensifies the time constraints.”

At the same time, Hernandez said he’s noticed a shift in stadium construction and design toward those shorter timelines and fluid initial designs.

“This requires our teams to be highly adaptable,” he said. “It appears this trend will continue, leading to even shorter schedules and a greater need for quick adaptation.”

Upgrading technology

In Birdsall’s view, the “fan experience has been revolutionized.”

The modern pro stadium experience isn’t just a ticket and a seat, PCL’s stadium builders said. It’s an immersive experience with high-resolution screens, massive score boards, increased luxury options, fast WiFi and improved concession experiences.

“Over the past few years, stadium construction and design have been profoundly transformed by technology,” said Koger. “One of the most significant shifts I've observed is the emphasis on 'futureproofing' — designing stadiums not just for today's tech but for tomorrow's possibilities.” 

The futureproofing that Koger references will largely cater to the fan experience to enhance personalization and convenience, said Daniel Brown, senior project manager for PCL’s California buildings division.

“This shift toward more technologically sophisticated and fan-centric stadiums necessitates a seamless blend of design and construction efforts,” Brown said. “It's reinforced by a shared commitment to innovation and excellence, which is crucial in navigating the tight schedules and exceeding expectations we face today.”

And stadiums that populate iconic skylines factor into the often-cited pride for contractors pointing to the visible impact their work has.

“Stadium projects hold a special charm and prestige,” Hernandez said. “These projects create an opportunity for tradespeople to be part of something monumental. There's a deep sense of pride and legacy in contributing to such iconic projects, offering workers a chance to say, ‘I helped build that,’ and share a tangible piece of their legacy with their families.”