Others, according to Capstone, a financing company active in the construction sector, use price collars or put “ expiration dates” on bids so they “have the opportunity to rebid if the bid validity date passes to account for the higher cost of goods.” Another option that has been rare in the past, stipulating inflation terms in contract language, can benefit general contractors and at-risk CMs, as well as the suppliers involved. On the supply end, some façade system manufacturers resist bidding on projects unless they’ve received iron-clad purchase orders. An innovative, light-colored cladding of preglazed, preinsulated GFRC panels clads 1700 Pavilion in Summerlin, Nev., accelerating construction for the lifestyle-driven commercial building. Photo: Howard Hughes Corp. He says the approach cuts construction duration by three to four months, compared to traditional onsite methods. According to the CM Mortenson, which has built several of the hotels with architects Concrete, Baskervill, and Gensler, as well as engineers like Arup, integrating the “modern and luxurious modular room pods” into the building designs also slashes construction waste by up to 60% says Mortenson’s Director Of Project Development, Nathan Jenkins. Using a centralized business model, the global company created a backlog of the interchangeable and deployable, stackable units within structural steel cages.
Other project teams report using a stop-start approach on multiple project sites, both priming the project pipeline while also staging strategically for pending cladding product deliveries.ĭuring the pandemic, owner-operators with ambitious building programs like hotel company citizenM have stocked up on modular construction systems with integrated façade assemblies, completing new hotels in Los Angeles and Seattle recently, among others. Construction management (CM) firms have devised inventive project staging and sequencing to realign preconstruction activities or speed up certain trades while cladding deliveries catch up, according to global developer McLaren. Owners and developers have postponed project starts to match exterior system delivery timeframes. The initial response has been chaos for cladding specifiers and subcontractors alike. “At some point, projects no longer pencil out as contractors have to raise bid prices to keep pace with the rapid inflation in materials costs,” said Stephen E. Behind the double-digit price increases are challenges for many material suppliers, including reduced availability and price hikes for energy and fuels, constituent materials, and freight itself. Construction materials jumped over 20% on average from 2021 to 2022, according to Associated General Contractors (AGC) of America, which reported that “multiple increases have taken effect for metals, fuel, and trucking, while supply chains have become even more snarled.” Examples of base products commonly used in cladding systems include copper (24.4% YOY cost increase), architectural coatings (20.3%), insulation materials (17.8%), and plywood sheathing and exterior siding products more generally, both at 22.5%.
Where value engineering has been a dominant solution path of last resort in past decades, post-pandemic cladding selection is all about making do with less, anticipating shortages, and collaborating on clever downstream substitutions.įirst, managing project costs is a dynamic, ongoing battle.
Yet, just as this is happening, building teams are facing unprecedented price pressures and supply chain issues that necessitate rapid, creative solutions.
Technically, today’s building teams are producing passive designs and sustainable solutions that are more effective than ever, often with renewable materials that better withstand climate stressors while committing less embodied carbon. Increased use of rainscreens and new fabrication innovations, including engineered precast systems, contribute to surprising new enclosure designs backed by better solutions to ensure continuous insulation (CI) and properly installed and structurally supported air barriers. Material mixing is creating newly expressive façades, and performance standards for solar heating, air infiltration, and moisture management are more effective than ever before. From a distance, today’s building innovations in cladding performance, aesthetics, and construction appear unconstrained and quite varied.
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