Project Guidebook | Issue 1

GARDNER BUILDERS

Project Guidebook M I N N E A P O L I S & S T. PA U L M E T R O

AU G U ST | 2 0 2 2

what’s inside W H Y P. 3 T E N A N T I M P R OV E M E N T P. 5 L E A D T I M E S P. 8 I N D U S T R I A L + G R O U N D U P P. 9 H E A LT H C A R E P. 1 3 S E R V I C E P. 1 6 I N D U S T R Y U P D AT E S P. 1 8

The purpose of this guide We can all agree that our construction climate has been a little unpredictable these past few years. Material shortages, lead times, and fluctuating pricing has made all of our roles challenging. We’ve grown through these challenges and learned a lot, and we wanted to share some of our current information with you so that you are equipped to plan your next build, no matter the size or sector.

Inside you will find pricing in good/better/best scenarios for various construction types, current material and lead time challenges, and insight from some of our trusted partners.

This guide should be used as a launch point. Whoever your construction partner, it’s never too early to start planning. The relevance of this information will fluctuate, so we recommend aligning your Design and Contracting teams early. This will aid in streamlining the budget and schedule without compromising your design intent, and secure the materials needed.

We plan to issue this guide periodically and will continue to update it with information relevant to you. What would you like to learn about?

ISSUE 1 | AUGUST 2022

T E N A N T I M P R OV E M E N T

INDUSTRIAL + GROUND-UP

H E A LT H CA R E

S E RV I C E

Tenant Improvement

Good

Better

Best T E N A N T I M P R OV E M E N T

OFFICE PSF

$55-$80

+

Office walls terminate at ceiling height

+

Paint grade doors, small sidelights at office fronts, carpet, 5% wall covering, minimal millwork package with mainly all plastic laminate products, standard 2x2 ceiling system

+

Standard 2x4 light fixtures throughout main office area, minor upgraded light fixtures at conference rooms, smaller counts of pendant fixtures at front of house

+

Some elevated finish in the reception area - luxury vinyl tile on the floors, standard reception desk

+

Basic HVAC system: bundling 5-8 offices on each thermostat, each conference room gets its own thermostat

OFFICE PSF + +

$75-$120

Office walls between offices built to deck Wood veneered doors, small sidelights at office fronts, carpet tile, 10% to 15% wall covering, standard 2x2 ceiling system with some open areas or upgraded ceiling systems, plastic laminate millwork package with elevated solid surfaces in key areas

+

Upgraded finishes in the reception area - wood floors or tile floors elevated reception desk, small client waiting area

+

2x2 light fixtures throughout office, upgraded light fixtures at conference rooms, some recessed lighting in gypsum lids, medium grade and counts of pendant fixtures at front of house, conference rooms, break area, reception

+

HVAC system: bundling 3-5 offices on each thermostat, each conference room gets its own thermostat

+

Some infrastructure included for technology connections in conference rooms

OFFICE PSF +

$135-$190

Elevated wood veneered doors with full front sidelights or full glass office fronts and film, premium carpet tile, 15% -25% wall covering, elevated ceiling system, specialty lighting at front of house and in conference rooms, high-end millwork package including wood veneered products, built-in benches and credenzas, all counter-tops solid surface or quartz. Gypsum ceilings and bulkheads in conference rooms and reception

+

Walls built to the deck with bulkheads for finished opening for full glass or furniture wall system

+

Blinds or shades at conference rooms

+

Upgraded light fixtures at conference rooms, recessed specialty lighting in specialty ceiling areas, higher grade & counts of pendant fixtures at front of house, conference rooms, break area, reception

+

Elevated finish in the reception area, large client waiting area with amenities

+

Fabric wrapped acoustical wall panels at conference rooms and phone rooms

+

Wood base in front of house areas and evaluated custom wall finish products

+

HVAC system: bundling 3 offices on a thermostat, some offices on a dedicated zone, each conference room gets its own thermostat

7

ON CURRENT L EAD T IM ES We recommend focusing on identifying these items and ordering them early in the process.

ITE M

CURRENT L E AD T I ME S

Precast wall panels . . . . . . . . . . . . . . .

6 months . . . . . . . . . . 3-4 months

P RE V I O U S L E A D TI M E S

Wood stained door . . . . . . . . . . . . . . . 16-20 weeks . . . . . . 8-10 weeks Hollow metal frames . . . . . . . . . . . . . . 6-8 weeks . . . . . . . . . 3-4 weeks Aluminum frames . . . . . . . . . . . . . . . . . 8 weeks

Hollow metal doors . . . . . . . . . . . . . . . 16-20 weeks . . . . . . 6-8 weeks Door hardware . . . . . . . . . . . . . . . . . . . 10-16 weeks . . . . . . 3-4 weeks Overhead doors . . . . . . . . . . . . . . . . . . 12-14 weeks . . . . . . 5-6 weeks Electrified door hardware . . . . . . . . . 10-16 weeks . . . . . . 3-4 weeks Carpet . . . . . . . . . . . . . . . . . . . . . . . . . . . 10-20 weeks Rooftop air handlers . . . . . . . . . . . . . . 20-38 week . . . . . . . 12-16 weeks Electrical switchgear . . . . . . . . . . . . . 40-70 weeks . . . . . . 12-16 weeks Standard electric panel . . . . . . . . . . . 20 weeks VFD’s . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10-11 months

Generators . . . . . . . . . . . . . . . . . . . . . . . 6-42 weeks Dock Levelers . . . . . . . . . . . . . . . . . . . . 26-28 weeks . . . . . . 8-10 weeks RTU’s . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16-20 weeks

D O N ’ T F O R G E T TO P L A N F O R P E R M I T T I N G Permits are 2 weeks longer on average since the onset of Covid due to the fact that more state/municipal workers are remote.

8

More municipalities are requesting a SAC determination for tenant improvement projects.

State plumbing inspections are 6 weeks out (when not inspected by the city).

Industrial + Ground-Up

10

100,000 SF 200,000 SF

Standard Precast Dark Shell PAD READY, PAINTED EXTERIOR, 28’ CLEAR

$70-$75 / SF

Upgraded Precast Dark Shell INLAID BRICK, STORM CHAMBERS, SITEWORK HEAVY, 28’ CLEAR

$75-$80 / SF

Standard Precast Dark Shell PAD READY, PAINTED EXTERIOR, 28’ CLEAR

$65-$70 / SF

Upgraded Precast Dark Shell INLAID BRICK, STORM CHAMBERS, SITEWORK HEAVY, 28’ CLEAR

$70-$75 / SF

INDUSTRIAL

CO NSIDE R T HIS...

This document is a guide to show previous built products and projects in the Twin Cities market area. It is intended to show good/ better/best/exclusive categories of the different project types.

The cost shown is for construction cost only. They are not inclusive of furniture, audio-video, sound masking, art, plants, data cabling, or security.

Escalation costs will need to be considered:

12

0%

5%

10%

Lock-in contract late year in 2022

Lock-in contract early 2023

Lock-in contract 2024

Healthcare

Healthcare interiors D E N TA L | $195-$280 / SF

O P H T H A L M O L O G Y | $100-$175 / SF

P R I M A R Y C A R E | $125-$310 / SF

W O M E N ’ S H E A LT H | $125-$200 / SF

B E H AV I O R A L H E A LT H - C L I N I C A L | $75-$150 / SF

P H Y S I C A L T H E R A P Y | $95-$200 / SF

I - O C C U PA N C Y | $210-$350 / SF

14

H E A LT H C A R E

Service 16

Commercial Handyman Services For Any Sized Project We have observed how challenging it can be for our clients to take care of the little projects. In addition to our other construction services, we have a focused service team dedicated to helping with all commercial construction needs.

We consider ourselves an extension of our clients’ team, and our service technicians and a fleet of service vans are ready to help complete any project promptly.

Current Rates SERVICE CARPENTER

$130

OVERTIME

$182

DOUBLETIME

$234

SERVICE TRIP CHARGE

$195

S E RV I C E

Industry Updates

We asked our trusted partners to answer some questions about the construction industry.

18

What would you like your general contractor to do differently?

As we navigate inflation and supply chain issues, we prefer General Contractors to be integrated

part-

ners at onset of a project to help proactively solves for these issues. Our clients find tremendous value

DE ANN E ER P E L D I NG WORKP L ACE MA R K ET LEAD ER AT G ENS LER

when the GC and Architectural Design Partner are brought together at the onset of a project to work collaboratively through details.

What’s most important as clients embark on their real estate and construction journey?

Timeline! How long will you need to realistically make a decision to move forward – think about how fast does your team (legal, security, design, C-suite) move and what infor-

JE S S ICA M O G I L K A JLL | EVP

mation will they need to make these decisions. The more time you let go by, the harder and harder it is to be successful in your project.

What should we continue to improve in the construction industry as a whole?

Work on being more efficient with the client’s time. Run meetings well to optimize the effectiveness. Do not need-

NI C K M A Z Z O C C O NIMBLE OWN ER | OW NER ’S R EP

lessly schedule meetings.

What would you like your general contractor to do differently?

On Design Build Projects, get MEP contractors on board early to help control the budget for the entirety

CHAD GOOD

of the project.

MOD ERN H EAT ING & AIR C ON D I TI O NING | PM

What’s most important as clients embark on their real estate and construction journey?

Being realistic with the customers. Lead times are all over the place. The labor pool is stretched thin. Let them know

BEN CALENDINE

these things prior to projects starting so their expectations are fair from the start.

S E RVI C E EXECUT IVE AT PARSON S ELECTR IC

What should we continue to improve in the construction industry as a whole?

With supply chain issues, labor shortage concerns, and dramatic price increases within the industry, it’s imperative we discuss cost and budget early on in project design.

We should always be advocating for the quality of design while being sensitive to a client’s budgetary and schedule concerns, and this is much easier when this information

BETSY VOHS

is communicated constantly. We also should be actively

ST U D I O BV | OWNER & I N TERI OR DES IG NER

supporting and encouraging diversity and gender equity within our workplaces.

In 2021, the construction field was made up of only 11% women, and over 87% of all workers identified as white, according to the U.S. Bureau of Labor Statistics.

20

What would you like to learn about in our next edition?

Let us know!

Contact Us I N FO@ GAR DN ER -BUILDERS. COM GA R DN ER -BUILDERS. COM

+ 612 326 6377 730 SECOND AVENUE SOUTH, SUITE 1233 MINNEAPOLIS, MN 55402