Project Guidebook AUGUST | 2022 GARDNER BUILDERS MINNEAPOLIS & ST. PAUL METRO
what’s inside WHY P.3 TENANT IMPROVEMENT P.5 LEAD TIMES P.8 INDUSTRIAL + GROUND UP P.9 HEALTHCARE P. 13 SERVICE P. 16 INDUSTRY UPDATES P.18
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
The purpose of this guide
INDUSTRIAL TENANTGROUND-UP+IMPROVEMENTHEALTHCARESERVICE
TenantImprovement
TENANTGoodBetterBestIMPROVEMENT
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OFFICE PSF
OFFICE PSF $55-$80
Office walls between offices built to deck
OFFICE PSF
+ Blinds or shades at conference rooms
+ 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
+ Elevated finish in the reception area, large client waiting area with amenities
+ Standard 2x4 light fixtures throughout main office area, minor upgraded light fixtures at conference rooms, smaller counts of pendant fixtures at front of house
+ HVAC system: bundling 3-5 offices on each thermostat, each conference room gets its own thermostat
+ 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
Office walls terminate at ceiling height
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+ Some elevated finish in the reception area - luxury vinyl tile on the floors, standard reception desk
+ Upgraded finishes in the reception area - wood floors or tile floors elevated reception desk, small client waiting area
+ Some infrastructure included for technology connections in conference rooms
+ 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
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+ Walls built to the deck with bulkheads for finished opening for full glass or furniture wall system
+ 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
+ Wood base in front of house areas and evaluated custom wall finish products
+ Fabric wrapped acoustical wall panels at conference rooms and phone rooms
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+ Basic HVAC system: bundling 5-8 offices on each thermostat, each conference room gets its own thermostat
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
+ HVAC system: bundling 3 offices on a thermostat, some offices on a dedicated zone, each conference room gets its own thermostat $135-$190 $75-$120
ON CURRENT LEAD TIMES LEADPREVIOUSTIMESCURRENTLEADTIMESPrecastITEM wall panels . . . . . . . . . . . . . . . Wood stained door . . . . . . . . . . . . . . . Hollow metal frames . . . . . . . . . . . . . . Aluminum frames . . . . . . . . . . . . . . . . . Hollow metal doors . . . . . . . . . . . . . . . Door hardware . . . . . . . . . . . . . . . . . . . Overhead doors . . . . . . . . . . . . . . . . . . Electrified door hardware . . . . . . . . . Carpet . . . . . . . . . . . . . . . . . . . . . . . . . . . Rooftop air handlers . . . . . . . . . . . . . . Electrical switchgear . . . . . . . . . . . . . Standard electric panel . . . . . . . . . . . VFD’s . . . . . . . . . . . . . . . . . . . . . . . . . . . . Generators . . . . . . . . . . . . . . . . . . . . . . . Dock Levelers . . . . . . . . . . . . . . . . . . . . RTU’s . . . . . . . . . . . . . . . . . . . . . . . . . . . . DON’T FORGET TO PLAN FOR PERMITTING 6 16-2026-286-4210-112040-7020-3810-2010-1612-1410-1616-2086-816-20monthsweeksweeksweeksweeksweeksweeksweeksweeksweekweeksweeksmonthsweeksweeksweeks 3-4 8-1012-1612-163-45-63-46-83-48-10monthsweeksweeksweeksweeksweeksweeksweeksweeksweeks We recommend focusing on identifying these items and ordering them early in the process. Permits are 2 weeks longer on average since the onset of Covid due to the fact that more state/municipal workers are remote. State inspectionsplumbingare 6 weeks out (when not inspected by the city). More municipalities are requesting a SAC determination for tenant projects.improvement 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Industrial Ground-Up+
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StandardPrecastDark Shell StandardPrecastDark Shell UpgradedPrecastDark Shell UpgradedPrecastDark Shell PAD READY, PAINTED EXTERIOR, 28’ CLEAR $70-$75 / SF PAD READY, PAINTED EXTERIOR, 28’ CLEAR $65-$70 / SF INLAID BRICK, STORM CHAMBERS, SITEWORK HEAVY, 28’ CLEAR $75-$80 / SF INLAID BRICK, STORM CHAMBERS, SITEWORK HEAVY, 28’ CLEAR $70-$75 / SF100,000200,000 SFSF INDUSTRIAL
contractLock-inlateyearin2022 earlycontractLock-in2023 contractLock-in2024 5%0% 10% THIS...CONSIDER 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
Healthcare
Healthcareinteriors DENTAL | $195-$280 / SF OPHTHALMOLOGY | $100-$175 / SF PRIMARY CARE | $125-$310 / SF WOMEN’S HEALTH | $125-$200 / SF BEHAVIORAL HEALTH - CLINICAL | $75-$150 / SF PHYSICAL THERAPY | $95-$200 / SF I-OCCUPANCY | $210-$350 / SF 14
HEALTHCARE
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SERVICE CommercialHandymanServicesForAnySizedProject SERVICE CARPENTER $130 OVERTIME $182 DOUBLETIME $234 $195SERVICE TRIP CHARGE 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 projectCurrentpromptly.Rates
We asked our trusted partners to answer some questions about the construction UpdatesIndustryindustry. 18
OWNER | OWNER’S REP As we navigate inflation and supply chain issues, we prefer General Contractors to be integrated partners at onset of a project to help proactively solves for these issues. Our clients find tremendous value when the GC and Architectural Design Partner are brought together at the onset of a project to work collaboratively through details. What would you like your general contractor to do differently?
JESSICA MOGILKA NICK MAZZOCCO JLL | NIMBLEEVP
DEANNE ERPELDING LEADER AT GENSLER
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 mation will they need to make these decisions. The more time you let go by, the harder and harder it is to be suc cessful in your project. Work on being more efficient with the client’s time. Run meetings well to optimize the effectiveness. Do not needlessly schedule meetings. What’s most important as clients embark on their real estate and construction journey? What should we continue to improve in the construction industry as a whole?
WORKPLACE MARKET
BENBETSYCALENDINEVOHSSERVICE EXECUTIVE AT PARSONS ELECTRIC STUDIO BV | OWNER & INTERIOR DESIGNER
Being realistic with the customers. Lead times are all over the place. The labor pool is stretched thin. Let them know these things prior to projects starting so their expecta tions are fair from the start.
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 impera tive 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 is communicated constantly. We also should be actively supporting and encouraging diversity and gender equity within our workplaces.
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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.
On Design Build Projects, get MEP contractors on board early to help control the budget for the entirety of the project. What would you like your general contractor to do differently?
What’s most important as clients embark on their real estate and construction journey?
CHAD GOOD MODERN HEATING & AIR CONDITIONING | PM 20
What would you like to learn about in our next edition? Let us know!
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