Building Information Modeling. Prefabs. Hyper-inflation. These are just some of the trends being utilized in Illinois’ current builds.
For more insight, Illinois Real Estate Journal recently spoke with Dave Bartolai of Chicago-based McHugh Construction, one of the largest commercial contractors in the Midwest.
McHugh has seen another exceptional year, yet caution remains in terms of supply chain issues and the still-high cost of materials. The recent dip in commodity prices doesn’t mean current projects are any cheaper. Since the market is future-driven, Bartolai said it will take time for the small decrease to have an effect. Developers are still feeling the pinch because of this, but Chicagoland has witnessed no lack of activity — and clients are getting more specific in terms of the elements they want in new buildings. Especially in the multifamily space.
Sustainability is at the root of many of these wants, and benefits like increased energy efficiency and cost savings are causing builders to entertain it. But these elements come at a cost to occupiers, and many aren’t willing to pay. Bartolai said it’s about striking the balance between providing the elements that are expected and doing so at a price that’s justifiable for everyone.
“Certain elements are becoming standard,” Bartolai said, “whether just common practice or amended by code, but there are more premium systems that are still price prohibited for builders in certain markets.”
He also noted the industry-wide focus on inclusion and equity, and McHugh is mindful about the ways in which it provides opportunities to its partners.
And not only are clients requesting new and improved upgrades, those working on the project are adopting new and improved ways to incorporate them.
Enter the digital revolution. Companies like McHugh have adopted Building Information Modeling, or BIM — a software modeling process that architects, engineers and contractors can use to collaborate on a building’s design, construction and operation, according to as opposed to each party working separately on a traditional blueprint.
BIM software will create a realistic model of a building, but unlike a simple drawing, this model is aware of all the building’s properties. “All of the different “views” of a building interact in real-time, so each party is always aware of how their changes affect the rest of the building,” according to BigRentz.com. “An increase in the size of windows, for example, will add more light to the building, but may also require a change in the HVAC system to expand cooling capacity.”
And there are many benefits. To name a few, Bartolai said that groups are able to identify and correct potential conflicts before getting to the field, which not only improves efficiency, but worker safety, as well.
Another construction-side trend is prefabrication. Prefabricated buildings, informally prefabs, are built off site in a factory or manufacturing plant, then transferred to the site. The advantage is fast turnaround, but while this might seem like the ideal method for efficiency, Bartolai said there’s no magic bullet and there’s more to be considered. Prefabs don’t reduce the cost of material, especially when additional material is added as cautionary padding to ensure a quality transport from A to B.
“The understanding is often that it [prefabrication] will be cheaper, but it rarely is,” Bartolai said. “What you’re saving is time, but by saving time on the jobsite, quality is increased because the elements are being constructed in a climate-controlled setting.”
Prefabrication requires repeatability to be efficient, and it doesn’t cater towards customization, like utilized in markets like multifamily, but for the right niche (like healthcare buildings and single-family homes) its various benefits shouldn’t be discarded.
In terms of current projects, McHugh has a lot going on. The firm recently completed one of its most noteworthy projects — the 101-story St. Regis Chicago, which is the third-tallest building in Chicago. Some of McHugh’s in-progress projects include:
- 1000M, a 74-story residential tower located at 1000 S. Michigan Ave. in the South Loop and designed by the late Helmut Jahn;
- 225 N. Elizabeth, a 28-story mixed-use apartment building for Sterling Bay in Chicago’s Fulton Market;
- Cassidy on Canal, a 33-story multifamily building for The Habitat Company at 344 N. Canal St. in Chicago’s Fulton River District;
- Platform 4611, a nine-story mixed-use apartment building for The John Buck Co. at 4611 N. Broadway in Chicago’s Uptown neighborhood;
- 43 Green, a 10-story mixed-income affordable housing community in Chicago’s Bronzeville neighborhood;
- Howard Brown Health Clinic, a five-story healthcare facility and medical office building at 3501 N. Halsted St. on Chicago’s North Side;
- FanDuel Sportsbook, a 13,000-square-foot sports betting venue at the United Center;
- Embry, a new 15-story, 58-unit condo building in the West Loop;
- and Prairie Shores Renovations, a multi-phased interior renovation of 1,381 apartment units throughout five-building campus in Chicago’s Bronzeville neighborhood.
McHugh is also completing a structural sidewalk replacement for the perimeter of the Hilton Chicago Towers on South Michigan Avenue that also includes the renovation of indoor ballroom and meeting spaces.
