One Bryant Park

One Bryant Park:  The Bank of America Tower is a 1,200 foot tall skyscraper in the Midtown district of Manhattan in New York City. It is located on Sixth Avenue, between 42nd and 43rd Street, opposite Bryant Park.  The one billion dollar project was designed by Cook+Fox Architects to be one of the most efficient and ecologically friendly buildings in the world. In June 2010, the Bank of America Tower was the recipient of the 2010 Best Tall Building Americas award by the Council on Tall Buildings and Urban Habitat.

Energy Efficient Windows: The design of the building makes it environmentally friendly, using technologies such as floor-to-ceiling insulating glass to contain heat and maximize natural light, and an automatic daylight dimming system.

Greywater Site: The tower also features a greywater system, which captures rainwater for reuse. Bank of America states that the building is made largely of recycled and recyclable materials.

Recycled Air:  Air entering the building is filtered, as is common, but the air exhausted is cleaned as well.  Bank of America Tower is the first skyscraper designed to attain a Platinum LEED Certification.

Green Materials:  The Bank of America tower is constructed using a concrete manufactured with slag, a byproduct of blast furnaces. The mixture used in the tower concrete is 55% cement and 45% slag. The use of slag cement reduces damage to the environment by decreasing the amount of cement needed for the building, which in turn lowers the amount of carbon dioxide greenhouse gas produced through the normal cement manufacturing process. Each ton of regular cement produced creates about one ton of carbon dioxide in the atmosphere.

Climate Control:  Temperature control and the production of some of its energy are accomplished in an environmentally friendly manner for the tower. Insulating glass reduces thermal loss, lowering energy consumption and increasing transparency. Carbon dioxide sensors signal increased fresh air ventilation when elevated levels of carbon dioxide are detected in the building.

Conditioned air for the occupants is provided by multiple air column units located in the tenant space that deliver 62 degree air into a raised access floor plenum. The underfloor air system provides users with the ability to control their own space temperature as well as improving the ventilation effectiveness. When building churn occurs, workstation moves can be performed easier with lower cost and less product waste.

Water Conservation: Conservation features in the tower include waterless urinals, which are estimated to save 8,000,000 gallons of water per year and reduce CO₂ emissions by 144,000 pounds per year.

ICC Code Development Process

What are the I-Codes?:  The I-Codes are the first and only set of coordinated, consistent, and comprehensive construction, fire prevention, plumbing, zoning, and energy and sustainability codes. As a result, fire and building code enforcement officials, architects, engineers, designers, and contractors can work with a consistent set of requirements from coast to coast.

 
Consensus Process:  The consensus process through which ICC develops and maintains comprehensive and balanced codes is designed to protect the public’s health, safety, and welfare as well as protect our planet by encouraging water and energy conservation and other sustainability methods. The ICC process allows all jurisdictions, regardless of size, to benefit from the expertise of thousands of professionals who participate in the development of the model codes, available for adoption at the state and local level. The cost to include this expertise and manage this process would be prohibitive for any single jurisdiction.

The Foundation -- Governmental Consensus: The ICC code development system ensures fairness in the process, controls against conflicts of interest, and prevents vested economic interests from determining the outcome of a code change proposal. The ICC governmental consensus process meets the principles defined by the U.S. Standards Strategy of 2005; and the OMB Circular A-119, Federal Participation in the Development and Use of Voluntary Consensus Standards and in Conformity Assessment Activities (1998), codified by Public Law 104-113, National Technology Transfer and Advancement Act of 1995. The key mechanisms that govern the ICC governmental consensus process include:

Open Public Forums

• All forums are open to the public at no cost.
• Anyone can submit a code change proposal and testify at the hearings.
• All views are considered by a code committee prior to a vote.

Decision Transparency

• All testimony and committee recommendations are made in open public hearings.
• All final code change proposal decisions are made by public safety officials in an open hearing.

Representation of Interests

• Wide-ranging representation.
• Full disclosure of conflicts of interest.
• One-third of the committee’s members must be governmental members with no financial vested interests.
• Membership on a committee is not conditional on membership in ICC.

Due Process

• Equal opportunities for rebuttal.
• Committees consider all views, objections, and the cost impact of all code change proposals.
• All who attend can testify.

Appeals Process

• Appeals considered per due process. 

Majority Consensus

• A simple majority from the committee decides the recommended action on the proposed code change.
• An assembly action allows an audience vote on the committee’s action.

The ICC Code Development Process

The ICC code development process is the framework to develop and provide a comprehensive regulatory system for the built environment that is effective, efficient, and meets the needs of government, industry, public health, and safety. The objectives of the ICC code development process are to:

• Recognize and evaluate in a timely manner technological developments that affect construction techniques/regulations
• Host an open debate and democratic discussion of proposals
• Present the final determination of code text modifications
• Create an opportunity for building, plumbing, electrical, mechanical, fire, energy, and sustainability professionals to react and share lessons learned

The Eight-Step I-Code Development Cycle

The eight-step ICC code development process demonstrates a continuous improvement cycle, incorporates the latest lessons learned in the construction industry, and keeps up with technological changes to protect communities and build a safer world. ICC publishes new editions of the code every three years.

Step 1: Code Changes Submitted: Any interested person may submit a code change proposal. Before code changes are due for the current cycle, an announcement is posted on the ICC web site and in other media, including a notice in the Federal Register. In year one of the code cycle, Group A codes begin this revision process. In year two, Group B codes begin the process.

Step 2: Proposed Code Changes Posted: Code change proposals are posted at least 30 days prior to the public hearing.

Step 3: Code Development Hearing (Public Hearing): The Code Development Hearing is a public meeting open to all parties. Anyone can attend, testify, and take part in debates. There is no cost to attend or participate in the hearing, which can also be viewed via webcast. During the code development hearing, interested parties can present their views including the cost, benefits, and impact of the code change proposals. The hearing includes the following steps:

• Floor Discussion – The code change proposals are considered at the floor discussion.
• Committee Action – The code development committee makes a recommendation on the code change proposal disposition.
• Assembly Action – ICC Members in attendance can challenge committee actions.

Step 4: Public Hearing Results Posted: The results of the public hearing are posted not less than 60 days prior to the Final Action Hearing.

Step 5: Public Comments Sought on Public Hearing Results: Any interested person can submit comments on the results of the public hearing to challenge a committee action or assembly action. This public comment process provides an opportunity to consider specific support for or objections to the results of the public hearings.

Step 6: Public Comments Posted:  Code changes that received a public comment as well as code changes that had a successful assembly action are posted in the Final Action Agenda at least 30 days prior to the Final Action consideration. The proposed changes receiving neither an assembly action nor a public comment will be block voted on by simple majority at the Final Action Hearing.

Step 7: Final Action Hearing: Eligible voters consisting of designated Governmental Members and Honorary Members cast votes on the final determination of all code change proposals presented in a code development cycle. The Final Action Hearings are open, fair, objective, and allow no proprietary interests to influence their outcomes. The Final Action Hearings are open to the public and also webcast with streaming video and audio.

Eligible voters: The eligible ICC Governmental Member Representatives and Honorary Members in attendance at the Final Action Hearing will each have one vote per code change considered. ICC Governmental Members are those who, in their positions of public trust, enforce the code and are charged with the public’s safety. Any change to a representative’s voting status must be received by the Code Council no later than 10 days prior to the commencement of the first day of the Final Action Hearing to ensure the voter’s eligibility.

Step 8: New Edition is Published: The final actions on all proposed code changes are incorporated in the next edition of the applicable I-Codes.

New Editions: The ICC Board has determined that new editions of the codes are to be published every three years. Each new edition will incorporate the results of the code development activity since the last edition.

FOOTNOTES:

1.  The ICC Code Development Proces, Published Date: 01.23.2012By Bruce Johnson, Director of Fire Service Activities, International Code Council – Government Relations

2. http://www.nvfc.org/media/news/the-icc-code-development-process/

ICC Family of Model Codes

Genesis of ICC:  Since the early 1900s, the system of building regulations in the United States was based on model building codes developed by three regional model code groups. The codes developed by the Building Officials Code Administrators International (BOCA) were used on the East Coast and throughout the Midwest of the United States, while the codes from the Southern Building Code Congress International (SBCCI) were used in the Southeast and the codes published by the International Conference of Building Officials (ICBO) covered the West Coast and across to most of the Midwest. Although regional code development has been effective and responsive to the regulatory needs of the local jurisdictions, by early 1990s it became obvious that the country needed a single coordinated set of national model building codes. The nation’s three model code groups decided to combine their efforts and in 1994 formed the International Code Council (ICC) to develop codes that would have no regional limitations. After three years of extensive research and development, the first edition of the International Building Code was published in 1997. The code was patterned on three legacy codes previously developed by the organizations that constitute ICC. By the year 2000, ICC had completed the International Codes series and ceased development of the legacy codes in favor of their national successor.

Broad Application of ICC Codes:  Most states or municipalities in the United States of America adopt the ICC family of codes and other reference standards and codes in whole or with local amendments. This has the effect of designating a copyrighted work as actual law, and, once enacted, that law enters the public domain. The model codes themselves, prior to their adoption as law, are not in the public domain and the ICC retains copyright on the model code itself.  

ICC Family of Building Codes:

• International Building Code
• International Residential Code
• International Fire Code
• International Plumbing Code
• International Mechanical Code
• International Fuel Gas Code
• International Energy Conservation Code
• ICC Performance Code

• International Wildland Urban Interface Code
• International Existing Building Code
• International Property Maintenance Code
• International Private Sewage Disposal Code
• International Zoning Code
• International Green Construction Code

Building Codes

What is a Building Code?: A building code is a set of rules that specify the minimum acceptable level of safety for buildings and nonbuilding structures. The building code becomes law of a particular jurisdiction when formally enacted by the appropriate authority.

The Purpose of Building Codes: The main purpose of building codes are to protect public health, safety and general welfare as they relate to the construction and occupancy of buildings and structures.

Who Uses Building Codes?: Building codes are generally intended to be applied by architects and engineers.  Building codes are also used for various purposes by safety inspectors, environmental scientists, real estate developers, contractors and subcontractors, manufacturers of building products and materials, insurance companies, facility managers, tenants, and others.

Creation & Adoption of Building Codes: The practice of developing, approving, and enforcing building codes varies considerably among localities. In some places building codes are developed by the government agencies or quasi-governmental standards organizations and then enforced by the government. In other locations a system of model building codes is used. Model building codes have no legal status unless adopted or adapted by an authority having jurisdiction. The developers of model codes urge public authorities to reference model codes in their laws, ordinances, regulations, and administrative orders. When referenced in any of these legal instruments, a particular model code becomes law. This practice is known as adoption by reference. When an adopting authority decides to delete, add, or revise any portions of the model code adopted, it is usually required by the model code developer to follow a formal adoption procedure in which those modifications can be documented for legal purposes.

Verification of Compliance With Building Codes:  To ensure applicable codes are adhered to, political subdivisions normally require various kinds of permits, field inspections at certain stages of construction, and test reports.  A general building permit is a universal requisite, requiring the filing of complete drawings and specifications prepared by a registered architect-engineer with a designated public office.  These documents are reviewed for design conformance with the applicable codes by the responsible building authority. Permits for plumbing, electrical work, heating equipment, signs, air conditioning, elevators and escalators, and refrigeration systems are also normally required.  Occupancy permits are often required after the completion of a building, necessitating an inspection to ensure compliance with building code standards.

How to Build a Skyscraper: Part IV

Climate Controls, Plumbing & Communications: Mechanical and electrical engineers are responsible for ensuring the building becomes inhabitable on schedule.  This includes the completion of the plumbing, HVAC and electrical systems for the building.

HVAC System: The heating, ventilation and air conditioning system is key to the building's comfort and functionality.  Both temperature and humidity must be controlled simultaneously for the building to attain optional functionality.  In a typical skyscraper, thousands of pounds of HVAC equipment and up to 20 miles of duct work can be necessary to accomplish these ends.  Zoning control mechanisms and localized thermostats may also be used to attain optimal performance.

Plumbing Systems: The old saying in the construction industry is that "Heating and cooling is a luxury, but plumbing is essential."  Without proper plumbing operations, significant health concerns arise quickly and a building will not be allowed to be occupied.  This is especially true in a skyscraper, which has a population, during regular business hours, that can rival that of small cities.  Plumbing system components generally include pipes, sinks, toilets, faucets and pumps.  Pressurized water pipes are needed to defeat gravity and deliver water to the floors where it is needed.  A waste water system drains sewage and used water away from the building, usually delivering it to municipal systems that the building ties into below ground.  It is not unusual for a skyscraper to contain 700+ toilets and urinals and 450+ faucets.  Approximately 50 miles of pipe is needed to operate a skyscraper's plumbing system.  Typical skyscraper water useage approaches 15 million gallons a year, although low flow toilets and sensor controlled sinks can be used to reduce this useage.    

Arteries for Electricity: Approximately one-third of all electricity consumed in the United States is used by large buildings such as skyscrapers.  To supply electricity to a skyscraper electric vaults with transformers, resistors, breakers and fuses are needed.  The electric load comes into the transformers in the vaults at 34,500 volts and is converted down to a more useable 480 volts before being sent from the electric vaults to electric rooms on each floor.  The electric rooms are the nerve center of each floor's electric distribution and contain conduit, wires, circuit panels, breakers and wall sockets.  In addition to electricity, conduits are run for data and voice communications equipment.  In all, approximately 1.5 million feet of data cable and 20,000 feet of voice cable are needed to support business operations in a skyscraper.

How to Build a Skyscraper: Part III

 

The Human Environment: After the exterior of the skyscraper has been completed, construction of the human environment can begin. This includes the installation of elevators, fireproofing and life safety systems. 

Elevators: The most important aspect of elevator construction is the installation of guiderails.  If the guiderails are not installed properly, the elevator ride will be rough, noisey or both.  These conditions become more aggravated and noticeable as the elevtor travels at higher speeds.  Depending on the height of the building in which the elevator will operate, additional testing of the elevator systems may be necessary.  For example, in the Taipai 101 -- one of the world's tallest skyscrapers -- the express elevators that travel at a top speed of 37 miles per hour has to be pressure tested.  This is true because the elevator chamber was designed to pressurize on the way up and depressurize on the way down in order to protect passengers ears from popping due to the dramatic elevation changes. 

Fireproofing: Monocoat MK6 is applied to the steel structure to fireproof the building. This is a gypsum based cement-like material that goes on wet and dries to the steel after application.  Its jobis to insulate the steel from extreme heat during a fire, thereby allowing the steel to maintain its strength and support the building.  This is incredibly important because fires inside skyscrapers can easily reach 2,000 degrees fahrenheit, BUT steel begins to loose its strength integrity at about 1,000 degrees fahrenheit.  Without this fireprotection, the steel would melt and the skyscraper would collapse during fires.

 

Life Safety Systems: These include the fire sprinkler systems, stairwell pressurization controls and smoke management.    These systems can be modeled and tested using the Fire Dynamic Simulator, which allows the construction and/or design team to run multiple scenarios to determine how the building or parts of the building will react under certain circumstances.  Adjustments and revisions to the proposed systems can then be made before final construction.

How to Build a Skyscraper: Part II

Construction of the Exterior: Once the foundation of the skyscraper has been completed, the steel super-structure and exteror can be completed.  Installing the steel super-structure is akin to putting together a puzzle.  The steel must be installed preisely so that all beams come together at the correct locations and angles.  Once in place, the steel beams must be plummed, bolted and/or riveted and welded.  Once the steel super-structure is completed the exterior of the building can be built.

Design Validation: Before the exterior of the skyscraper can be constructed, the design and installation methodologies must be validated.  One way to test the design and materials installation is to build a fully enclosed 3 story unit replicating the skyscraper.  The unit should include windows as called for in the design and an exterior membrane.  Once constructed, this unit can be tested for air and water infiltration.  Structural load tests and dynamic wind testing can also be completed on the unit to identify potential problems that must be remedied prior to execution of the exterior construction on the skyscraper.  Once the deisgn and materials installation methods have passed these tests and been validated for use in the field, the construction of the exterior of the skyscraper can move forward. 

How to Build a Skyscraper: Part I

Vision: Skyscrapers are symbols of power, financial prowess, ingenuity, innovation and will.  The process of building a skyscraper begins with a vision.  The vision usually comes from an owner who wants to provide a place for people to work, live, shop, congregate and/or worship.  The owner or developer will select an architect to make that vision come to life or to determine the different possible ways the vision may be implemented in the built environment.

Design: Sometimes the owner/developer will share the general desired project intent and parameters with multiple architects and select the project architect througha design competition.  Each competing architect will then render their ideas in 3-D designs and build models to bring the project to life.  Once the winner of the competition is selected, that architect will begin to prepare construction drawings, which incorporate the limitations and restrictions of building codes, structural engineering limitations, the needs and desires of the clients and the client's budget.

Construction Begins: Once the architect is selected and the construction drawings are in the works, the first phase of construction can begin.  First the excavation subcontractor comes to the site to clear the project area and dig a very large hole in the ground.  The excavation contractor may also condition and prepare the soil as necessary and appropriate.  The skyscraper building will sit atop this holeor pit. 

Next, the foundation can be installed and poured.  Depending on the type of soil, the foundation may utilize spread footings or may need to have stabilizing piers driven all the way to bed-rock.  It is imperative to have the excavation of the site and installation of the foundation properly executed, because the rest of the project will literally rest on and be supported by these systems.

Linear v Phased Construction

Two sequencing methodologies for construction project are linear construction and phased construction.

Linear Construction: The procedure of design, bidding or negotiation, and construction following one another in consecutive order.  This process is traditional in the construction industry and is widely used today.  The process is sometimes referred to as "design-then-construct."  Though widely utilized, linear construction is not always an efficient procedure with regard to the total time required for the design and construction of a project.  A more efficient alternative is phased construction.

Phased Construction: Also known as "fast-tracking," phased construction refers to the overlapping accomplishment of project design and construction.  Specifically, as the design of successive phases of the project is finalized, these work packages are put under contract.  Early project stages begin construction while later phases are still on the drawing boards.  This procedure of telescoping design and construction can significantly reduce the total time required to complete a project.  This method is especially preferred by owners during times of high interest rates because it allows shorter duration loans and earlier beneficial use of the building.

Bidding Versus Negotiation

Competitive Bidding: Construction bidding is the process of submitting a proposal (tender) to undertake, or manage the undertaking of a construction project. The process starts with a cost estimate from blueprints and take offs.

The tender is treated as an offer to do the work for a certain amount of money (firm price), or a certain amount of profit (cost reimbursement or cost plus). The tender which is submitted by the competing firms is generally based on a bill of quantities, a bill of approximate quantities or other specifications which enable the tenders attain higher levels of accuracy, the statement of work.

 

For instance, a bill of quantities is a list of all the materials (and other work such as amount of excavation) of a project which have sufficient detail to obtain a realistic cost, or rate per described item of work/material. The tenders should not only show the unit cost per material/work, but should also if possible, break it down to labor, plant and material costs. In this way the individual who is selecting the tender will be quite confident that the tender is feasible. Bids are usually, but not always chosen on cost alone.

 

 Negotiated Contract: This method differs from the competitive bid system.  Usually a general contractor and/or an architect are selected at the project’s inception. These firms work together throughout the design phase. When design documents are complete, the final construction costs are negotiated by the general contractor through bids from subcontractors on various scopes of work.  A large proportion of the annual work volume of many contractors is now made up of negotiated contracts.  This can be interpreted as a sign that owners are increasingly finding that negotiated arrangements are in their best interests.

Small and Disadvantaged Business Enterprises

Small Business Reorganization Act of 1997: This law mandated that the Small Business Administration assist small businesses through the Small Business Enterprise Program (SBE), Small Disadvantaged Business Program (SDB), and businesses located in Historically Underutilized Business Zones (HUBZones) in obtaining a larger share of public works construction contracts.

What is an SDB?:  Small Disadvantaged Businesses are small businesses that are at least 51% owned and controlled by a socially and economically disadvantaged individual or individuals. African Americans, Hispanic Americans, Asian Pacific Americans, Subcontinent Asian Americans, and Native Americans are presumed to qualify. Other individuals can qualify if they show by a preponderance of the evidence that they are disadvantaged.  All individuals must have a net worth of less than $750,000, excluding the equity of the business and primary residence. This definition applies to federal government projects where programs are intended to help federal agencies achieve the government-wide goal of 5 percent SDB participation in prime contracting.

Methods of Enforcement: The use of "set-asides," whereby certain public construction contracts are designated as being only available to small or disadvantaged businesses is the main method of enforcement for the policies.  Alternatively, quotas and bid-penalties against "non-qualified" contractors can be used to direct contracts to small and disadvantaged businesses. 

Problems and Controversy: These programs have resulted in a hodge-podge of programs with differing regulations and certification procedures.  Confusion has been created for participants in these programs and problems have plagued the administration of these programs.  Because the programs have become cumbersome and difficult to manage they are looked upon as troublesome and controversial by many in the industry.  Recent Court decisions have found some of these programs, or certain program parameters, to be unlawful because they amount to reverse discrimination against non-minority contractors.

What is Construction Management?

 

What Does Construction Management Entail?:  Construction Management is the overall planning, coordination, and control of a project from inception to completion aimed at meeting a client’s requirements in order to produce a functionally and financially viable project.

According to the Construction Management Association of America (CMAA) the 120 most common responsibilities of a Construction Manager fall into 7 categories:

1) Project Management Planning;

2) Cost Management;

3) Time Management;

4) Quality Management;

5) Contract Administration;

6) Safety Management; and

7) CM Professional Practice.

CM Functions on a Project: The functions of construction project management typically include the following: 1) Specifying project objectives and plans including delineation of scope, budgeting, scheduling, setting performance requirements, and selecting project participants; 2) Maximizing resource efficiency through procurement of labor, materials and equipment; 3) Implementing operations through proper coordination and control of planning, design, estimating, contracting and construction; and, 4) Resolving conflicts.

How to Become a Construction Manager:  To become a seasoned constrcution manager, a combination of education and work experience is necessary.  Construction Management education comes in a variety of formats including formal degree programs, on-the-job-training, and continuing education / professional development. According to the American Council for Construction Education, the academic field of construction management encompasses a wide range of topics. These range from general management skills, to management skills specifically related to construction, to technical knowledge of construction methods and practices.

Types of Construction Contracts

Construction Contract Types: Many differenct types of contracts can be used to define the rights, responsibilities and obligations on a project. The following examines some of the more common types of contracts.

Lump Sum Contract: A lump sum contract, sometimes called stipulated sum, is the most basic form of agreement between a supplier of services and a customer. The supplier agrees to provide specified services for a specific price. The receiver agrees to pay the price upon completion of the work or according to a negotiated payment schedule. In developing a lump sum bid, the builder will estimate the costs of labor and materials and add to it a standard amount for overhead and the desired amount of profit. Advantages of the lump sum contract include:  1) Low financial risk to Owner; 2) Known cost at outset; 3) Minimum Owner supervision related to quality and schedule; and, 4) Contractor selection is relatively easy. Some disadvantages are: 1) Changes difficult and costly; 2) Early project start not possible due to need to complete design prior to bidding; and,  3) Bidding can be expensive and lengthy.

Unit Price Contract:  In a unit price contract, the work to be performed is broken into various parts, usually by construction trade, and a fixed price is established for each unit of work. For example, painting is typically done on a square foot basis. Unit price contracts are seldom used for an entire major construction project, but they are frequently used for agreements with sub-contractors. They are used for maintenance and repair work. In a unit price contract, like a lump sum contract, the contractor is paid the agreed upon price, regardless of the actual cost to do the work.

Construction Management Contract: In this delivery method a Construction Manager (CM) is selected to construct the project based on fully completed drawings and specifications prepared by an architect. The CM provides advice during design. The CM is selected based on competitive proposals from three to five firms. The CM approach differs from the other methods in the following ways: 1) The project manager approves the CM’s construction management staff and their required time on the project; 2) The CM provides pre-construction services, including construction cost estimating and constructability review, throughout programming and design; 3) The project manager approves the subcontractor bidders list and the selected subcontractors; 4) All of the costs of the CM and subcontractors are "open book" to the project manager and subject to the project manager’s approval. There is no profit mark-up by the CM on the subcontracts.  CM construction contracts are commonly structured in the cost-plus-free or guaranteed maximum price format.

Design-Build Contract: In this process the owner selects one contractor to both design and build the project. This method is not a favorite of owners because it limits their ability to control quality, is difficult to confirm adherence by the Contractor to specific materials, and it is difficult to make changes with this method. This method is primarily intended to save time. There also can be slight savings in design costs.

 

Project Delivery Methods

Methods to Deliver the Project:  Several methods exist to structure the delivery of a construction project.  Some of the most common are:

Design-Bid-Build or Design-Award-Build:  An owner develops contract documents with an architect or engineer consisting of a set of blueprints and a detailed specification. Bids are solicited from contractors based on these documents; a contract is then awarded to the lowest responsive and responsible bidder.

DBB with Construction Management: With partially completed contract documents, an owner will hire a construction manager to act as an agent. As substantial portions of the documents are completed, the construction manager will solicit bids from suitable subcontractors. This allows construction to proceed more quickly and allows the owner to share some of the risk inherent in the project with the construction manager.

Design-Build: An owner develops a conceptual plan for a project, then solicits bids from joint ventures of architects and/or engineer and builders for the design and construction of the project.

 

 

Design-Build-Operate-Maintain:  DBOM takes DB one step further by including the operations and maintenance of the completed project in the same original contract.

 

Build-Operate-Transfer: BOT represents complete integration of the project delivery: the same contract governs the design, construction, operations, maintenance and financing of the project. After some concessionary period, the facility is transferred back to the owner.

Integrated Project Delivery: A project delivery method in which the interests of the primary team members are aligned in such a way that the members can be integrated for optimal project performance resulting in a collaborative, value-based process delivering high-outcome results to the entire building team.

Project Financing

Financing Options:  Projects may be financed by the owner, builder-vendor, developer, investors, government or others.  A combination of financing sources may also be utilized such as utilizing both debt and equity to build a project.  

Commercial banks and thrifts dominate many segments of the construction lending market. Especially for larger projects, construction lenders include foreign and domestic pension funds, insurance companies, and real estate investment trusts (REITs). For specific types of projects, federal, state, and local government authorities, such as the state and local industrial development authorities, housing finance agencies, the National Consumer Cooperative Bank and other agencies can paly a significant role.  Financing is unique to the specific goals and circumstances of each particular project.

Types of Construction

Types of Construction: There are four main construction divisions: 1) residential; 2) building construction; 3) engineering construction; and, 4) industrial construction.  Each is discussed separately below:

Residential Construction:  Single family homes, condos,garden-type apartments and highrise apartments are types of residential construction projects.   

 
Residential construction projects are a significant economic driver and source of jobs. This comprises approximately 40 - 45% of new construction in a typical year.

Building Construction: This category includes buildings in the commonly understood sense other than housing that are erected for institutional, educational, light industrial, commercial, social religious,governmental and recreational purposes.   Consists of 25 - 30% of annual new construction.  Design of this construction s typically done by architects, with engineering design services obtained as required.  Construction of these buildings is generally completed by prime contractors or construction managers who subcontract substantial portions of the work to specialty firms.    

Engineering Construction: This category includes structures planned and designed by engineers, which are usually publicly financed.  Examples are highways, airfields and utility infrastructure construction.  20 - 25% of the new construction markets each years oringinates from these types of projects.

Industrial Construction: The erection of projects associated with the manufacture or production of commercial products or services.  these are largely privately financed ventures that comprise 5 - 10% of annual new construction. 



The category includes petroleum refineries, steel mills, chemical plants, smelters, electric-power generating stations, heavy manufacturing facilities and one handling installaions.

Spa Castle Site Visit

Spa Castle: A Unique Mixed Use Real Estate Project

     Based on the concept of European and Asian Bath Houses, Spa Castle has implemented a unique mixed use real estate play aimed at providing the community with a place to bond while achieving cleanliness, health and well-being.  The first Spa Castle opened in College Point, New York and received approximately 300,000 visitors in 2011. On March 23, 2012, the second Spa Castle opened in Carrollton, Texas.

     Construction & Financing:  The design and construction of the Spa Castle in Texas was handled in-house.  A team of ten architects on staff designed the campus and amentities.  Spa Castle owns its own construction company, which served as the contractor for the project.  From start to finish, the construction process lasted two years.  Vice-President, Chris Cooke explained that the project cost approximately $30 million and was privately financed.

     Site Selection:  Spa Castle chose to purchase land and build in Carrollton, Texas because the land was acquired for a "bargain price," though the exact acquisition price was not disclosed.  The location was also desireable because it is in a young, vibrant, quickly growing area of the Dallas-Fort Worth Metroplex. 

Minutes from North Dallas, Addison, Lewisville, Richardson and Plano, the location is surrounded by affluent populations which can consume Spa Castle's offerings.  The site was also selected because the City Government in Carrolton was willing to modify zoning for the land and offer a package of incentives.

 Amenities: The heart of the operation is the offering of spa services such as massages, facials, manicures, pedicures and aroma therapy. However, the campus also offers indoor and outdoor pools, banquet rooms, a restaurant, food court, fitness center and rooftop bar. Additionally, a 27 room hotel is under construction on the property.

     Future Growth:  Spa Castle plans to open an additional ten locations in the coming years.  A location is scheduled to open this year on Madison Avenue in Manhattan.  Next year a Chicago location is slated to open and in 2014, business operations are scheduled to commence in Poconos, Pennsylvania.  The future looks promising for this unique business.