LOOK TO THE STARS ALSO: RENOVATION OF CHRISTA MCAULIFFE SPACE CENTER WILL INSPIRE YOUNG MINDS FOR GENERATIONS TO COME - UTAH CONSTRUCTION & ...
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March | April 2022 Look to the Stars Renovation of Christa McAuliffe Space Center will inspire young minds for generations to come. Also: Excellence in Masonry Awards Supply Chain Trends Arch Nexus SLC
ARCH NEXUS IS HIRING! WESTLAND CONSTRUCTION AT ARCH NEXUS YOU ARE PART OF A COLLABORATIVE DESIGN PRACTICE WORKING ON SOME OF THE MOST MEANINGFUL PROJECTS IN OUR REGION, ALL WHILE DESIGNING FROM A REGENERATIVE BUILDING. SEND YOUR RESUME TO INFO@ARCHNEXUS.COM. bold new brand a higher level of construction management BENEFITS AT ARCH NEXUS INCLUDE: ▪ EMPLOYEE OWNERSHIP ▪ COMPETITIVE SALARY ▪ 6 WEEKS PAID FAMILY LEAVE ▪ FULL HEALTHCARE AND WELLNESS BENEFITS ▪ PAID LEAVE TIME AND PAID VOLUNTEER TIME ▪ COMPREHENSIVE RETIREMENT PLAN USA CANADA AFRICA SOUTH PACIFIC LATIN AMERICA ▪ PROFIT SHARING w w w.w e s t l a n d c o n s t r u c t i o n . c o m
UPCOMING EVENTS APRIL SEPTEMBER • Safety Awards Breakfast • So. Utah Sporting Clay Shoot • So. Utah Spring Golf Tournament • Trap Shoot Tournament • Sun Valley Golf Tournament MAY • AGC/DFCM Meet & Greet NOVEMBER • Highway Apprenticeship Graduation • Membership Breakfast/Economic Forecast JUNE • So. Utah Winter Golf Tournament • Safety Roundtable--Scaffolding • So. Utah AGC/DFCM Meet & Greet • Summer Golf Tournament • So. Utah ATV Ride JULY DECEMBER • Safety Roundtable – Hot Weather • Highway Apprenticeship Graduation • So. Utah Open House AUGUST • Safety Roundtable--Drywall, FOCUSED ON THE BIG-IDEA SINCE 1967 We wear it on our rolled-up sleeves. It’s tattooed to our frontal lobe. And Painting, Ceiling Grid, Millwork ASSOCIATED GENERAL stamped on our psyche. It means we deliver a job well done, with a gusto that • Industry Motorcycle Ride CONTRACTORS OF UTAH guarantees your expectations will be exceeded. ”The Construction Association” • 100 Year Member Appreciation And then some. Breakfast C A LL 80 0.74 8. 4 4 81 OR V IS IT WWW. B IG - D.COM 801.363.2753 www.agc-utah.org AGC Headquarters: 2207 S 1070 W SLC, UT 84119 AGC So. Utah: 230 N 1680 E Suite B-1 St. George, UT 84790
UC&D UTAH’S PREMIER SCHOOL BUILDER PROVIDING SUPERIOR CONSTRUCTION MANAGEMENT INNOVATION, EXPERTISE, & EXPERIENCE! Utah Construction & Design Table of Contents 8 Publisher’s Message 10 A/E/C People 14 Construction Law 16 Commercial Real Estate 18 Energy Viewpoint 20 2022 Utah Legislative Recap 22 Utah Asphalt Paving Features 28 24 Run Aground How the global supply chain breakdown impacts Utah’s economic shores. 28 Where Does Sustainability Go From Here? The concept is ever present in the minds of architects and engineers—sustainability. But where will it go next? 36 Blast Off! Innovation, creativity fuel design and construction effort of dynamic Central Elementary and Christa McAuliffe Space Center. 41 Q&A with Vern Latham Veteran architect says “improving student 36 outcomes” is the driving force behind modern K-12 design. 44 Astro-nomical Focus Bowen Studios founder and avid astrophotographer Brent Bowen diligently spends hours of time trying to capture that one perfect celestial shot. 48 The Nexus of Regenerative Design Architectural Nexus aims for a second bullseye with the Living Building Challenge, pushing the industry past sustainability and into regenerative design. 54 New Digs Key in Furthering EDCUtah’s Mission The Economic Development Corporation of Utah’s newly renovated downtown office helps show off everything that Utah can offer incoming business. 44 56 Brisk Times for Utah’s DFCM State’s Division of Facilities Construction and Management is jamming on all fronts after landing $1.8 billion in funding for new projects while owning maintaining 3,900 buildings across Utah. CENTRAL ELEMENTARY SCHOOL & CHRISTA MCAULIFFE SPACE CENTER — PLEASANT GROVE, UT UT 60 What’s Sprouting Up on Washington Boulevard? Senior Living on Washington achieves an impressive standard in sustainability by embracing the built environement’s best A construction firm that has built over five hundred school projects in Utah and throughout the practices. region in over 77 years is better at reducing costs, shortening schedules, increasing quality, mitigating risk, and managing the safety of your K12 project than those who occasionally “dabble” 64 UMC 2022 Excellence in Masonry Awards in the marketplace. To solve our clients’ challenges, Hogan was the first to use Construction 48 Management / General Contracting (CM/GC) in Utah and the region. This continued quest for On the Cover: The Christa McAuliffe Space Center has always been a place of wonder for innovation is always a part of every project we undertake and will lead to your overall success. the hundreds of thousands that have passed through its doors. With the recent renovation of both the center and the adjoining Central Elementary School, the center’s planetarium (pictured) brings the grandeur of space closer to earthlings (photo courtesy VCBO CALL 801-951-7000 OR VISIT US AT WWW.HOGANCONSTRUCTION.COM Architecture, by Alan Blakely). Mar | Apr 22 | UTAH CONSTRUCTION & DESIGN | 7
< Publisher’s Message Eye on the Sky One of the more interesting interviews I’ve done UC&D recently was with Brent Bowen, founder of Salt Lake-based Utah Construction & Design Magazine Bowen Studios, for his firm’s 20th Anniversary profile (see 2075 S. Pioneer Road Ste. B page 44). I’ve known Brent for more than a decade; he is an Salt Lake City, UT 84104 engaging, dynamic person and we share some similar social O: (801) 924-8788 and philosophical beliefs. www.utahcdmag.com I’ve known for several years that he’s into “astrophotography”—defined as the use of photography in astronomy and photographing celestial objects and phenomena—but I didn’t Bradley Fullmer realize until our interview in February just how dedicated he is to the craft. Publisher Bowen spends 8–10 hours at a time for these various photo sessions and is even bfullmer@utahcdmag.com constructing an observatory on a property he owns in the tiny Southern Utah town of Boulder. Taylor Larsen His firm specializes in world-class architectural renderings, 3D illustrations, Editor and video project animations, having carved out a nice niche in Utah’s A/E/C tlarsen@utahcdmag.com community the past two decades. Check out his story—it’s worth the read! Coincidentally, space is also the main theme of our cover story on the new Elise McGregor Christa McAuliffe Space Center (see page 36), an incredible project located next Associate Editor to Central Elementary School in Pleasant Grove that was originally built in 1990 and has hosted an estimated 400,000 participants during those 30-plus years. Ladd Marshall Congratulations to the design and construction team (VCBO Architecture; Hogan & General Manager/Sales Director Associates) for delivering a truly dazzling building that will inspire young minds for lmarshall@utahcdmag.com generations to come. Inspiration is certainly what comes to mind when pondering two articles on Jay Hartwell sustainability. The first (see page 28) talks about where we are as an A/E/C industry regarding the design and construction of truly sustainable, carbon neutral (Net Art Director Zero) buildings and where we go with it in the future. jhartwell@utahcdmag.com The other, a profile of the renovation of Architectural Nexus’ Salt Lake headquarters (see page 48), is a fascinating look at the length, width, and depth design firms can go to achieve truly remarkable results in sustainability, as this building was designed to meet the rigid criteria of the Living Building Challenge, which goes above and beyond the LEED Double Platinum status Nexus’ headquarters previously attained. Kudos to all involved for raising the bar on sustainable design locally. We also dive into the challenges the A/E/C industry and owners are facing with supply chain breakdowns on a local, national and global scale (see page 24). It’s a problem causing consternation for executives across the board in the design and construction market, one likely to create significant headaches for the foreseeable future. Among a bevy of other content are articles that focus on two prominent public owners in Utah that greatly aid the A/E/C market: the Economic Development Corporation of Utah’s sweet new digs in the Utah One Center in downtown Salt Lake (see page 54), and the staggering amount of work currently being done by the Utah Construction & Design is published eight (8) times a year. Postage Division of Facilities Construction and Management, which received a hearty $1.8 paid in Salt Lake City, UT. All rights reserved. Reproduction in whole or in billion from the Utah Legislature this past session (see page 56). part without written permission is prohibited. Subscriptions: $64.00 per year. Subscribers: If Postal Service alerts us that magazine is undeliverable As always, we appreciate the many firms who support our efforts in making to present address, we need to receive corrected address. Postmaster: UC&D the “voice” of this great industry in the Beehive State, particularly our loyal Send address changes to 2075 S Pioneer Rd. STE B, Salt Lake City UT 84104. To subscribe or contribute editorial content, or for reprints, please email advertisers. Without them, our publication would not be possible. support@utahcdmag.com. For Advertising rates/Media Kit, please email lmarshall@utahcdmag.com. Regards, Vol. 10 No. 2 Coming in May issue of UC&D: 2022 Top Utah Architectural Firm Rankings Southern Utah Spotlight A/E/C Technology Bradley Fullmer 8 | UTAH CONSTRUCTION & DESIGN | Mar | Apr 22
> A/E/C People surveying, subdivision platting, and is going to be a massive improvement. The to the industry via his father at a young Records of Survey. biggest challenge is filling it with classes age. He has experience with carpentry Laura Alley, PE, recently received and getting people in here learning. We’re and as an HVAC technician. He also has Psomas’ Salt Lake Office her professional engineering license. She has over six years of experience in more than doubling the number of seats we have to teach people and can now experience with YouthBuild as an onsite instructor at Ogden-Weber Technical Announces New Hires and Promotions Civil Engineering design, with a focus on roadway, traffic, and drainage design. She schedule multiple classes at the same time. It’s going to give us a ton of opportunities College. Most recently, he was an adjunct instructor teaching a Construction has a B.S. in Civil Engineering from the to do more things.” Safety/OSHA-30 course for five years at AGC of Utah bolsters apprenticeship training staff; local University of Utah. Alley spent the past Gallegos has worked in construction Weber State University’s Construction design and engineering firms announce personnel moves, four years working on roadway projects his entire life, having been introduced Management program. >> in Ohio. Her work included large-scale Steel Encounters announces new CFO. highway design jobs for clients like the Ohio Department of Transportation and the Ohio Turnpike, and high-profile projects Psomas’ Salt Lake office recently like roundabouts in the City of Columbus announced promotions and new hires of and multiuse trails in the City of Cleveland. five individuals. Alley was happy to return to Utah this past Travis Perry, PE, LEED AP, ENV SP, year to join the Psomas team. also named Regional Manager and Vice Tanner Snow, PLA joined Psomas President in February of this year, was as the Lead Landscape Architect for promoted to Principal. Perry has been the Landscape Architecture division with Psomas for over 15 years and has in the Planning Department. Snow has more than 22 years of experience in eight years of industry experience, five the civil engineering industry. His areas as a licensed Landscape Architect, and of expertise include water design, site over two years as a Lead Landscape Travis Perry Chris Hupp Shawn Vernon design, watershed management, storm Architect. He received his Bachelor of drain design, land development, project Landscape Architecture from Utah State management, and development reviews. University. Snow is licensed in Utah, Idaho, He is adept at overseeing the development Arizona, and Colorado and brings a solid and approval of water projects, grading understanding of plants and landscape and drainage plans, and the completion of maintenance practices, diverse large-scale site planning projects. Chris Hupp, ENV SP, STP, promoted The Associated General to Associate, is a talented Project Contractors (AGC) of Utah announced Manager and Land/Active Transportation two recent personnel moves to Planner and Urban Designer leading our bolster their apprenticeship training planning and landscape design team. program. Taylor Smith , a three-year Laura Alley Tanner Snow Taylor Smith He has been with Psomas for six years veteran of AGC of Utah, was named and has experience in all facets of the Director of Safety & Education, while development process. Hupp has completed Lucio Gallegos was hired to serve as numerous master planned communities, Director of Apprenticeship & Workforce small and station area plans, park, trail, Development. The two will work together and recreation plans, TODs and MXDs, on improving the association’s overall development standards and zoning training mission. ordinances, community development, Smith has served as Director of sustainable land use, urban design, and Apprenticeship & Training since 2019. public engagement projects. His projects With a passion for education and safety range from small-scale site planning, resources, Smith earned a Bachelor of due diligence, and design work to large History from BYU-Idaho before attending Lucio Gallegos Dave Harris Heather Weymouth regional plans. the University of Utah. He has prior Shawn Vernon, PLS, was also provides technical expertise to a wide Title Surveys, Right-of-Way calculations experience as Education Coordinator for promoted to Associate, has been in the variety of surveying and mapping and descriptions, easement and survey the Utah Apartment Association. industry for 21 years and with Psomas assignments. His knowledge in Land calculations and legal descriptions, Smith expressed his excitement for for six years. As Project Manager, Vernon Surveying includes ALTA/NSPS Land topographic surveys, construction the AGC’s new Training Center, saying, “This 10 | UTAH CONSTRUCTION & DESIGN | Mar | Apr 22 Mar | Apr 22 | UTAH CONSTRUCTION & DESIGN | 11
> A/E/C People “I’m beyond thrilled to be working As a designer with a keen eye for with the best of the best,” said Gallegos. “I detail and a project manager with the am excited and up for the challenge.” skills to move a process forward, Hanson has played key roles in the development Dave Harris and Heather of projects ranging from tenant Weymouth have been promoted by EPG, improvements to landmark commercial A Terracon Company. and civic buildings. Harris was named Principal and serves A Utah native with a broad project as the Office Manager for the Landscape portfolio and knowledge of regional Architecture and Planning Department in context, Hansen is able to meet diverse Salt Lake. Harris has extensive experience program requirements while creating in master planning and neighborhood Courtney Haddick Emir Tursic Philip Dimick Brandon Ruiz Bret Nielsen Justin Hawley spaces that feel meaningful and tied to crafting. Throughout his 30-year career, their particular place. He has been at EDA Harris has designed, managed, and for nearly 10 years. installed a variety of urban plazas, “I love having the opportunity schools, libraries, public parks, trails, and to shape and effect my community,” private development projects ranging said Hansen. “EDA has given me many from 500 acres to more than 8,000-acre challenges and opportunities and I’m communities. looking forward to more.” Weymouth has been named a Cultural Resource Senior Scientist for the firm’s Dijana Alickovic Rambo has been Salt Lake office. Weymouth has served promoted to Senior Associate and Jordan as principal investigator and project Patrick Ramstack Tiffany Frizzell Leeman has been promoted to Associate Saxon Peterson Michael Rudge manager for cultural resources projects Nelson Hanson by ajc architects. throughout the Intermountain West. She Rambo has been with ajc since 2016 has conducted more than 300 projects for and has consistently excelled in numerous the Spectrum Engineering team for over Justin Hawley recently was hired as National Historic Preservation Act Section 10 years. Most recently Sarah’s focus has a Landscape Designer. He has previously facets of planning, programming, design, 106 and National Environmental Policy Act been on Higher Education, Courthouses, worked for GSBS Architecture and Home and construction administration. Her compliance. She has held Bureau of Land Healthcare, Houses of Worship and Depot Kitchen Design. His planning and attention to detail and dedication to Management and state permits in ten Corporate Office Building projects. Sarah design experience is a great addition to ensuring the best possible outcome for our western states. greatly enjoys the variety of projects she the firm. clients has paved the way for numerous award-winning design projects including gets to work on and working with great Saxon Peterson was hired as a Courtney Haddick , Senior Associate people during all phases of the design Landscape Designer. He will be graduating three Salt Lake area Community Resource Architect with FFKR Architects, has been process. from Utah State University this spring Centers, SLCC’s Tim and Brenda Huval appointed to the National AIA Documents and is finishing his last semester. He is Dijana Alickovic Rambo Jordan Leeman Sarah Rollins Jordan Campus Student Center, and SLCC’s Committee. Salt Lake-based MGB+A recently passionate about creating spaces and Westpointe Workforce Training and Committee members work to draft announced four personnel moves. places for communities. Education Center. and revise AIA Contract Documents over Philip Dimick, AIA, Project Designer, high standards of excellence. Brandon Ruiz was recently Leeman has been with ajc for just voluntary 10-year terms. Their knowledge was promoted to Vice President position. “Our firm’s values are based on promoted to an Associate. Ruiz has been Steel Encounters, Inc. announced over four years and manages ajc’s office, and dedication are used to help ensure Philip began working at HKS in 2010 and relationships, character and purpose. This part of MGB+A for over 13 years and has the promotion of Michael Rudge to Chief accounting, and human resources. that AIA Contract Documents remain the is fully involved in all project phases. His year’s group of promoted people exhibit contributed passionately to the profession Financial Officer. Dependable, efficient, well-organized, and Industry Standard. experience encompasses cultural, mixed-use, the highest level of integrity and continue of landscape architecture, design, and As CFO, he is the senior executive ever-positive, Leeman has demonstrated hospitality, health, and corporate projects. to demonstrate leadership in bringing sustainability. He holds a Bachelor responsible for managing all financial exceptional skills in managing our office, HKS Architects, Inc. recently Patrick Ramstack , Project Architect, enhanced value to our clients,” said Mike of Horticulture from Brigham Young actions by Steel Encounters, as well supporting the team, and managing promoted four individuals in the Salt Lake was promoted to Associate. Patrick Vela, AIA, LEED AP, Salt Lake City Director University. as human resources and information their accounts. Leeman is a key player City office to co-director, vice president, joined HKS in 2015 and previously served at HKS. “We are proud that they are Bret Nielsen was promoted to technology. An experienced professional in ajc’s day to day operations and her principal, and executive assistant positions. as a Forum member. He has focused on growing in their role within the firm, and Project Manager. Nielsen has been at with 22-plus years of experience in the contributions continue to make the firm Emir Tursic, AIA, LEED AP was hospitality and his experience is rooted in I am excited to congratulate them for this MGB+A for over three years and has been industry, 12 of those years with employee- a unique and enjoyable workplace for the promoted to Co-Director of HKS’s Salt shaping recreational and leisure spaces recognition.” For more information, visit immersed in diverse projects. He comes owned Steel Encounters, he holds a degree entire staff. Lake City office. Emir joined HKS in 2004 across the country. www.hksinc.com or contact Mike Vela, AIA with over seven-years experience in in Finance from the University of Utah, a and will share Directorship with Mike Vela Tiffany Frizzell was promoted to at mvela@hksinc.com. Sarah Rollins of Spectrum landscape planning and design. He has master’s degree in Finance from San Diego for the next two years and will thereafter Executive Assistant. She joined HKS in Engineers was promoted to Principal. a keen eye for details and a talent for State University, and a CPA license.. n be the Director of the HKS Salt Lake City 2020 and is committed to providing quality Architecture firm EDA promoted Rollins holds a Master’s Degree in creating spaces that flow into each other office. administrative support and maintaining Nelson Hanson to Associate. Acoustics and has been a valued part of creating unique human experiences. 12 | UTAH CONSTRUCTION & DESIGN | Mar | Apr 22 Mar | Apr 22 | UTAH CONSTRUCTION & DESIGN | 13
> Construction Law General contractors may also find it table are completely project-dependent and impacts on their ability to perform. Lastly, beneficial to include a performance target should be designed with both the work and discussing with subcontractors about how table in the contract, like language that capabilities of the subcontractor in mind. they can be best incentivized to perform Driving Subcontractor Production & Performance dictates a bonus to be awarded to the subcontractor if targets are met. Conversely, Making Things Right their work promptly and of the best quality should result in optimal results for both the if a target is not met, there will be a Subcontractors must feel that they have general contractor and subcontractor. n By Kent B. Scott & Justin Scott negative consequence. This permits general the opportunity and ability to correct any contractors to ensure that important events, performance issues, especially if correcting Justin Scott is a shareholder in the law regardless of whether they may explicitly such can avoid negative incentives. We firm of Babcock Scott & Babcock where For a general contractor, construction relationship between contractual parties affect the prime contract obligations—such recommend that the contract provide a he practices in the areas of construction projects have many moving parts. Multiple and rendering it ineffective. as the delivery of certain documents or cure period that will allow subcontractors litigation and insurance defense. Justin subcontractors are working on the same On the other hand, using only positive certificates—are provided for. The table to remedy their work and avoid the effects has represented owners, developers, project, often at the same time, meaning incentives, including bonuses and other could set forth target details, including of the negative incentives. Open and contractors, suppliers, insurance companies, the acts of one can negatively impact performance-based incentives, isn’t the quality of work, time frames, opportunities transparent channels of communication engineers and homeowners in the the project schedule of many. These best “only” option. It can result in unrealistic for assessment, and discussion of progress. within the contractor chain are crucial. prevention and resolution of construction negative impacts impair the ability of other expectations from subcontractors, especially As always, it is important to be careful claims and disputes. He may be reached at subcontractors to effectively and timely during market downturn or force majeure with time-related targets that encourage a Conclusion justin@babcockscott.com. complete their work, leading to significant events outside of the contracting parties’ subcontractor to accelerate performance, as It is critical that any incentives, whether Kent Scott Justin Scott scheduling and delivery issues. control. such can result in a corresponding reduction positive or negative, be discussed with the Kent Scott is a shareholder and Vice General contractors can deter Creating a contractual mechanism in the quality of the work. We recommend subcontractors before they are included President in the law firm of Babcock Scott subcontractors from compromising the that maximizes each type of performance contractor on the next order from general contractors include targets in a contract. General contractors should & Babcock. He is both an Arbitrator and timely completion of a project by including incentive can be difficult for general the frequent subcontractor if the relating to both elements of performance take the necessary time to understand Mediator and has primarily been involved a liquidated damage provision in their contractors. Some of the key issues for a subcontractor fails to achieve (acceleration of performance and quality the cost drivers, scheduling concerns, and in the prevention and resolution of contracts. However, situations may occur general contractor to consider include: specified milestone dates of work) in any such set of goals. However, performance standards issues of their construction project disputes. He may be where substandard performance from a • The nature of the incentives • A “Best Subcontractor Award” the exact details and nature of any such subcontractors, as well as any potential reached at Kent@babcockscott.com. subcontractor does not result in contractual • How subcontractor performance is each year, with the reward being a liability for damages, including liquidated measured promise of right of first refusal for damages. Even though such performance • Timing of when performance is future contracts does not result in contractual liability, it measured • Graduated, tiered provisions for may create significant overall challenges— • Whether subcontractor failures can increased profits for excellent coordination issues, scheduling be remedied performance complications, and anything that makes the project more difficult or time-consuming. Incentive Options Performance Measurement So how can general contractors Financial and non-financial incentives must A general contractor must develop specific encourage their subcontractors to be clearly articulated and incorporated and realistic performance measurements positively affect the schedule and final into the contract between the general to maximize the effectiveness of incentives. delivery of a project, instead? And how contractor and subcontractor. Both Benchmarking is imperative, although can they incentivize their subcontractors parties may negotiate positive incentives the precise details of benchmarks are to go above and beyond minimal contract in whatever fashion they deem mutually likely to be specific to each project. The requirements and industry standards? agreeable. For example, both may agree to contract must make clear whether the a bonus structure when target dates are general contractor or subcontractor will Positive and Negative Incentives met and/or performance standards exceed be responsible for capturing and reporting Incentives can have a positive or a certain level. This bonus structure may any relevant data used in benchmarking negative impact—especially in only result in a minor increase in expenses, and at what intervals. Templates can record construction. Incentives can encourage but the value conferred to the project may the relevant data, but the form should be peak performance either through the far outweigh the cost and have a dramatic specified within the contract documents. expectation for greater financial reward or effect on performance. For this to occur, Reporting and evaluating performance through concerns about liability exposure. however, any targets must be measurable. at regular intervals, as opposed to using Traditionally, construction contracts There are other options for general end targets, will also assist in managing the include provisions with more negative contractors in regards to positive and project. In addition, potential problems and incentives than positive ones. Studies show negative incentives, including: areas of risk are more likely to be identified that utilizing negative incentives harms • Provisions for service credits if earlier, increasing the chance of positive contractual performance, like disrupting the targets are not met. An example resolution before a negative impact on the development of a trusting and collaborative would be a discount for the general project occurs. 14 | UTAH CONSTRUCTION & DESIGN | Mar | Apr 22 Mar | Apr 22 | UTAH CONSTRUCTION & DESIGN | 15
> Commercial Real Estate Utah’s Office Market Continues to Rise By Brandon Fugal The Utah office market and the state’s incoming businesses announcing plans economy continue to defy the gravity of to hire thousands of new employees the pandemic over the last 24 months, with combined. This influx is a primary reason numerous cranes dotting the rising skyline. why Utah’s market continues to observe There are many contributing factors positive absorption, even during the height and trends illustrating Utah’s incredible of the pandemic. Utah’s quality of life is momentum. Utah recorded the second key to recruitment, as well as the fact that The commercial office market in Utah has continued to see positive absorption, even during the height of the pandemic. With projects like University Tower (above) and 95 largest population growth in 2021, despite pricing for commercial space (in particular State at City Creek (below) impacting their respective markets Utah is well positioned despite current challenges (photos courtesy Colliers International). the lowest nationwide population growth office and retail) is extremely competitive. in history. With anticipated price growth From an office standpoint, Utah is a With several large projects approaching most diverse economies in the nation, of 8.5% and sales growth of 15.25%, Salt relative bargain. Brandon Fugal completion during the first part of 2022, emerging sectors within the office Lake City leads the housing market, ahead One of the headline stories construction numbers in Salt Lake County market—including life science, aerospace, of Boise, Idaho; Spokane, Washington; and signaling Utah’s strength involves the to consolidate and upgrade facilities are expected to be cut in half unless and fintech—will also contribute to Indianapolis, Indiana. And, while Salt Lake groundbreaking and construction of the to strengthen employee retention and vacancy rates drop, and developers are growth and increased diversity. Tenant City is Utah’s focal point of growth, Utah as new Zions Bancorporation Technology recruitment. more motivated to start new projects. concessions and incentives including a whole is projected to continue this trend, Campus. Anticipated to be completed in Although growth and expansion The cost of construction and increased free rent, generous tenant improvement setting itself apart from the rest of the mid-2022, the sustainably built, 400,000- encompass the entire Wasatch Front, rates required in order to underwrite allowances, and enhanced amenity spaces country as a viable destination and place SF Class A office campus will house over the greatest concentration of activity new projects will likely slow growth, continue to be offered in order to procure to call home. 2,100 employees and is anticipated to continues to be centered on the Point with developers and users taking a more tenants, while landlords and investors see As part of the record in-migration, achieve a LEED Platinum certification with of the Mountain suburban submarket— cautious approach with future planning. opportunities in the form of attractive cap the Salt Lake area office market has 11,000 SF of amenity space. That amenity comprising the communities located at Inflationary pressures, labor shortages, rates and forecasted rent growth. welcomed numerous companies either space includes a large modern café, the convergence of both Salt Lake County supply chain issues, rising interest rates, As a dynamic secondary market, Utah relocating or shifting expansion to Utah. fitness facility, and outdoor recreation and Utah County. Major office tenants and other concerns will weigh heavily as continues to rise and receive national This includes Eltropy, ServiceTitan, ClickUp, opportunities. This is a powerful example maintaining a presence in this area include decision-makers evaluate options. attention. n and Scorpion, to name a few, with these of the desire for large corporate occupiers Adobe, eBay, Oracle, Ancestry, Pluralsight, Higher education will play an Podium, Divvy, Xactware, 1800 Contacts, important role in deciding Utah’s future, Brandon Fugal is a nationally Pattern, Route, and Young Living Essential with major institutions including Utah recognized business leader and former Oils. New construction in this area suburban market, Salt Lake’s Central Valley University, the University of EY Entrepreneur of the Year—Western includes Innovation Pointe among other Business District is also rising. The Utah, Brigham Young University, Utah Region, and current Chairman of Colliers developments. The ability to recruit and speculative 25-story 95 State Tower is State University, Weber State, Salt Lake International in Utah. Before merging and retain talent from the two most populous nearing completion with 515,000 SF, along Community College, and Westminster partnering with Colliers International, counties along the Wasatch Front drives with more downtown high-rise buildings College providing critical resources to Brandon was Co-founder and Owner of activity in this area. being announced. Major employers bolster recruitment, technology transfer, Coldwell Banker Commercial Advisors, Class A suburban building, which including Goldman Sachs, Intermountain and other initiatives. These will continue to with offices nationwide. Over the past continues in Lehi at Thanksgiving Point— Healthcare, Fidelity Investments, Workday, be foundational, especially with respect to several years, Fugal has leased more office is creating a true campus environment in and The Church of Jesus Christ of Latter- strengthening our technology, aerospace, space and represented more companies the heart of Silicon Slopes. Located within day Saints continue to call downtown Salt and life science communities as these and leading commercial real estate steps of the Lehi FrontRunner Station, this Lake City home. companies look for areas to locate with developments than any other professional growth and demand further underscores Despite all the the positive news, skilled labor readily available. Almost all in the region. Fugal currently serves on the importance of transit-oriented the ongoing health crisis and other higher education institutions have been the Governor’s Economic Council, Utah development (TOD), and the important role factors have brought about challenges. grappling with expansion planning and National Parks Council, and the Utah of mass transit services for future office Construction numbers are the lowest related pressures as they work to meet the Valley Chamber of Commerce Board and requirements. they have been since year-end 2018, when needs of the growing business community. Executive Roundtable. He can be reached Along with the momentum of the 1,194,665 SF of construction was reported. With Utah recognized as one of the at brandon.fugal@colliers.com. 16 | UTAH CONSTRUCTION & DESIGN | Mar | Apr 22 Mar | Apr 22 | UTAH CONSTRUCTION & DESIGN | 17
> Energy Viewpoint cost-effective opportunities is only the [1] Science-Based Targets, https:// the world and has provided technical first step. The real challenge is retaining sciencebasedtargets.org/ guidance to support the engineering Science-Based Targets energy savings and preventing a building [2] Scope definitions from: https:// and Monitoring-Based Commissioning from drifting back into inefficiency. Like www.ghgprotocol.org/sites/default/files/ programs. Jim holds a B.S. in Mechanical tires losing air pressure, “building drift” ghgp/public/FAQ.pdf n Engineering from Brigham Young happens gradually and is difficult to notice University and an MBA from Southern How retaining energy savings could make or break your business. without measurement and tracking. But Jim Crockett, PE, has 25 years of Methodist University. He is a registered once diagnosed, the problem is easily fixed. experience in the HVAC industry with 15 Professional Engineer in several states and By Jim Crockett Continuing the car analogy, much like years focusing on energy efficiency. At was the recipient of the 2021 AEE Region V how a vehicle’s continuous monitoring Bernhard, Jim has been the senior engineer Engineer of the Year Award. systems alerts the driver when a tire loses on HVAC Energy Efficiency projects around Science Based Targets (SBT) is an • Scope 1 refers to emissions pressure, changes in technology have organization that helps companies set generated at the participant’s made monitoring-based commissioning energy reduction targets and records their site(s). This includes factors like fuel- (MBCx) an affordable reality for buildings. commitments. From the SBT website, targets burning equipment such as furnaces, Not only does MBCx enable detection of are considered science-based when they align water heaters, ovens, forklifts, and drifts from peak efficiency, but it allows with what climate science deems necessary other machines. operators to identify and test further to meet the goals of the Paris Agreement— • Scope 2 refers to the emissions improvements. Our MBCx clients see their limiting global warming to well below 2°C generated externally that create energy costs going downward year-over- above pre-industrial levels and pursuing the energy consumed—such as Jim Crockett year, rather than drifting upward. efforts to limit warming to 1.5°C. Participants electricity, chilled water, or steam. In most commercial buildings, can commit to following either trajectory: • Scope 3 refers to “all indirect contractually obligated to reduce annual energy savings of 10%–40% 1.5°C (aggressive) or 2.0°C (less aggressive). emissions that occur in the value emissions to continue doing business can realistically be achieved without At the date of this publication, 2,735 chain of the reporting company, with SBT program participants. Or, large capital upgrades by simply addressing companies have signed up with the SBT including both upstream and companies with SBT targets might replace inefficiencies in existing systems. These initiative, and the number is growing rapidly. downstream emissions.” existing suppliers with companies with savings are generally quite cost-effective, Many companies join SBT in response to lower greenhouse gas emissions. with payback periods ranging from a few internal and external pressures such as The Implications (and Opportunities) Previously, Bernhard’s customers months to a few years. This initial first step brand reputation, investor/stakeholder of Scope 3 Targets were primarily interested in energy makes savings targets much less daunting satisfaction, and resilience against Scope 3 targets impact the entire supply efficiency to save money; now we’re seeing and frees up funds for energy measures regulation. In the last six months alone, chain. For many manufacturers, the supply exponentially more customers seeking with longer payback periods. close to 1,000 new companies signed on to chain makes up more than 90% of their guidance on meeting carbon reduction the initiative. Of the 2,735 companies that total emissions. For most manufacturers, requirements imposed by their company Why Monitoring and Analytics have joined, 1,356 have opted for the 1.5°C Scope 3 includes the emissions of its leadership, customers, lenders, and other Installing monitoring is like hiring a 24/7 trajectory, coming in just under 50%. [1] suppliers. For auto manufacturers, this stakeholders. energy specialist to identify changes also includes the downstream emissions of in system performance. Analytics are Scope 1, 2, and 3 Targets their vehicles. Energy Efficiency as a Competitive Edge numeric routines, programmed to identify Energy reduction targets are broken into 3 The expectations these Scope 3 Because of this new landscape, being the irregularities in operation, such as fans categories: Scope 1, 2, and 3. To understand targets impose on the supply chain are first to solve the decarbonization riddle can running at 100%, simultaneous heating the impact of these targets, we need to game-changers. Equipment or material be a competitive business advantage. Almost and cooling by the same system, and understand what each includes. [2] providers might find themselves invariably, the most cost-effective first step degradations in chiller efficiency. is increasing energy efficiency by optimizing As more companies strive toward existing systems. Minimizing consumption energy- and carbon-reduction goals, no reduces required generation capacity, serious long-term plan is complete without electrification, carbon offsets, renewables, the ability to track and retain savings. and storage. Some companies depend on Monitoring arms you with data to hold Renewable Energy Certificates (RECs) to hit vendors accountable for delivering the targets. But these should be a last resort savings they promise. You can correct due to market uncertainty, risk, and rising efficiency drifts that might otherwise prices driven by increased demand. Astute require you to buy expensive RECs or companies will focus on energy-saving offsets to stay on target. upgrades to make their facilities more Hire a specialist to help optimize your sustainable and energy-efficient. building—making it run as efficiently as Companies that reduce energy possible, then install an MBCx system to consumption quickly learn that finding keep it that way. 18 | UTAH CONSTRUCTION & DESIGN | Mar | Apr 22 Mar | Apr 22 | UTAH CONSTRUCTION & DESIGN | 19
> 2022 Utah Legislative Recap safety violations. This nearly is a doubling of current Utah OSHA fine amounts, but is required if Utah wanted to stay off Legislature Approves Significant Funds the federal threat to take over our State for Future Construction Projects in Utah managed OSHA plan. As an organization, and as By Joey Gilbert someone that personally www.stakerparson.com | 801-731-1111 lobbies for the commercial Utah continues to lead the nation in discussion and debate. Of those bills in construction industry, economic performance, exceeding the both the House and Senate, 513 passed. It high expectations within the local A/E/C is now up to the governor to decide which I can assure you we are community, with a rock-solid outlook of the 513 will receive his final signature or working hard on the expected to stay steady for years to come. possible veto. industry’s behalf, having Overall, this was another As an organization, and as someone been actively engaged in unprecedented year fiscally, with a state that personally lobbies for the commercial budget of $26 billion dollars—which construction industry, I can assure you we are 65 bills this session. included a significant amount of one- working hard on the industry’s behalf, having “Limitations on Employer Liability” time and ongoing revenue available for been actively engaged in 65 bills this session. Joey Gilbert (SB95): Under this legislation it states that a appropriation by the Utah Legislature. cause of action may not be brought against Revenue estimates, released in late Some highlights include: an employer for negligently hiring an February by the Governor’s Office, the Utah Transportation Appropriations ($1.2 employee based solely on evidence that the Senate, and House of Representatives, billion one-time funding bills): A few bills • HB3 and HB 322: $382 million for employee has been previously convicted reported that collectively within the general were combined here to create a good Transit Projects in this state or in another jurisdiction of fund and education fund, legislators would funding source for some well-needed • HB 409: $40 million for Active an offense. Meaning that employers that have an additional $3.8 billion for the 2022 transportation projects over the next Transportation are looking to hire previously incarcerated legislative session. few years. • HB3: $98 million for Additional individuals seeking employment and Utah’s 45-day legislative session ended Projects another chance, will have an extra layer of March 5 and was never short of content, • HB3: $721 million to Accelerate State protection from being sued. with legislators presenting 814 bills for Road Projects Revenue Bond and Capital Facilities (HB191): This legislation is a $750 million- “Construction Registry Amendments” plus revenue bond bill that outlines (SB148): Under this legislation, the Division more than a dozen Division of Facilities of Occupational & Professional Licensing Construction and Management projects, (DOPL) is charged with creation of the including $400 million for a new University “Construction Business Registry.” In simple of Utah Hospital in West Valley City. terms, this means they will be creating an THANKS FOR CHOOSING US AS Small Claims Amendments (HB107): online Yellow Pages for contractors, which YOUR PREFERRED SOURCE will be managed and maintained by DOPL. This increases the monetary amount that There are other bills that were passed individuals can seek in small claims court, this session that could be discussed—as allowing greater access to the courts. The well as those that were successfully small claims amount which is currently set defeated—but rest assured knowing that at $11,000 will gradually increase overtime AGC will continue to be working hard to $25,000 by the year 2030. throughout the year and looking out for the “Occupational Safety and Health best interests of Utah Contractors. n Amendments” (HB245): Under this new legislation, companies will want to pay Joey Gilbert is the Vice President of the closer attention to their safety policies, Associated General Contractors of Utah, procedures, and what is required of based in Salt Lake City. Gilbert has been employers to keep their employees safe with the Chapter since 1997. Sand, Rock & Landscape Products | Ready Mixed Concrete on the job. HB245 essentially is Utah OSHA Asphalt | Paving | Construction Services adopting the Federal OSHA fine schedule for 20 | UTAH CONSTRUCTION & DESIGN | Mar | Apr 22 Mar | Apr 22 | UTAH CONSTRUCTION & DESIGN | 21
> Utah Asphalt Paving construction of asphalt pavements, we will together on the Road Forward, I am Reed Ryan joined UAPA in 2012 as the further promote technologies such as warm confident we will be better—and that’s association’s first Executive Director. He mix asphalt, improve trucking efficiency the best part of it all. The train has left the has a BA in Political Science from Brigham through the use of e-ticketing, increase use station. I am no longer on the tracks, but am Young University and a JD from The George The Road Forward of renewable energy sources in the process, and much more. The industry will partner enjoying the challenges and opportunities to do what is right. Together with the Washington University. Originally from the mountains of Colorado, Reed enjoys the with customers—from production to companies in UAPA, we are driving our outdoors, playing golf, and fly-fishing. He A Vision for the Asphalt Pavement Industry in Utah construction—to reduce emissions through pavement quality, durability, longevity, and climate stewardship forward. I am excited for what the future holds. finds great joy in raising three sons and a daughter with his wife of twenty years. efficiency standards. I invite you to follow our progress at By Reed Ryan At some point, we have to recognize that asphaltpavement.org/Forward n the design standards that most of us rely on I am standing on the railroad tracks. is still coming—perhaps even arrived, are now anywhere from 40–70 years old. A The train is coming. I cannot stop it, try as proverbially speaking, in many areas of our lot has changed in that time, and so must we. I might. Soon it will hit me and others—we lives and business. And it is not so much Fortunately, the industry in Utah is leading are powerless, but somehow, somewhere, that we are on the track waiting for it to the charge with projects featuring HiMod we must fight against it. run us asunder. Most, if not all of us, are Asphalt and other innovations, but it will take So went the visions and daydreams of either now riding the train or are at the a partnership with owners to think differently what I believed to be my own personal and station with our ticket in hand, patiently about how we specify, inspect, and accept professional nightmare when it came to waiting to board. our pavements. It is not enough, however, the chatter regarding climate change, new to only look at our finished product as regulations from the government, and what What changed? Reed Ryan contractors and owners, we will also need to I believed, at the time, would be irreparable When most people think of roads, they develop a net zero materials supply chain. As harm to the great companies and are typically considering which ones will people are not thinking about the ground an industry, we are well on our way down this organizations that I represent in Utah. We, get them to their destination, or how time underneath them. Rather, they are thinking path, but we can do more. Implementation of as the Utah Asphalt Pavement Association consuming that route will be due to traffic, about where it will take them and how it may more performance metrics under principles (UAPA), were doomed. construction, or stops. Similarly, when ultimately help them achieve their personal of Balanced Mix Design will allow us to Thankfully, I no longer have such biking down smooth paths or jogging on goals for exercise et cetera. In that sense, we innovate and recycle more. Coupled with nightmares even though the same train durable roadways paved with asphalt, most rarely view roads in light of where we have things like Cold Central Plant Recycling, we been, but where we are moving toward. can and will reduce the demands of our In essence, it is the “Road Forward” that footprint on our supply chain. propels us toward what is good and right in our lives: new goals, new achievements, new On The Road Forward growth, and healthier lives. It is no different With this sort of vision in hand, we are for the asphalt pavement industry in Utah. no longer victims of an impending doom, We now have a Road Forward—a vision locked in the tracks of the past waiting for for ambitious and achievable stewardship the train to hit us. Instead, we are now part of the climate for our industry. The Road of the movement. We are helping to propel Forward is how we, as an industry, get to a better train forward together. Rather than net zero carbon emissions. New goals. New a mandate created without any input, we achievements. New growth. Healthier lives. have a seat at the table to have a discussion. Centered on four major industry-wide In place of an arbitrary rule, we have a plan. goals, the asphalt pavement industry in And, in the end, we will do what is right for Utah will achieve net-zero carbon emissions both our environment and our businesses. in the production and construction of our This is a win-win for industry and our state. roads by 2050. We will do so by partnering I have come to realize it is not a zero-sum with agencies, suppliers, and energy game. It is the Road Forward. providers in developing specifications The advantages of asphalt pavement and policies that reduce and eliminate our for our environment are already clear. Scope 1, 2, and 3 emissions in many areas. We are the most-recycled product on the Here are just a few of the programmatic planet. We already have significantly less details being rolled out in partnership carbon output to make our product. Our with the National Asphalt Pavement asphalt plants capture more particulates Association. To achieve net-zero carbon and use less energy than ever before. And emissions during both production and yet, we can be better. In fact, working 22 | UTAH CONSTRUCTION & DESIGN | Mar | Apr 22 Mar | Apr 22 | UTAH CONSTRUCTION & DESIGN | 23
Supply Chain Trends early 2021 where manufacturing in nearly insulated when the first shipping waves every economic sector ground to a halt, hit the ports. But that isn’t the only reason production has, for the most part, returned why Utah was spared the initial impacts to pre-Covid levels, Berry said. The problem of global shortages—the state’s vibrant now is resolving the wave-like activity that construction industry can also take some of has developed in global shipping chains. the credit, White said. Ports, like factories, shut down during When manufacturers realized they the initial Covid-19 outbreak. Shipments faced production and shipping backlogs that already in transit couldn’t just freeze where could take years to resolve, they started to they were, so products began to back up at prioritize, White said. As a business, if you the ports. When the ports opened again, they have two orders and the ability to fill one of moved the backlogged products all at once. them, you’re going to go with the customer The release of this backlog created that you believe has the greatest potential to wave-like effect in global supply chains, place orders in the future. In the case of the Berry explains, because of the imbalanced last few years, suppliers have been betting distribution of manufacturing versus on Utah, White said. consumption around the globe—in general, “That’s a roundabout way of saying our wealthy countries consume more than they economy is so good that manufacturers produce compared with other countries have made allocations to us appropriate to with lower labor costs that often produce the growth we are having,” White explained. “There are logistical issues in terms of being landlocked— in one way that’s what has protected Utah for years and years and years. But as we are entering into a global economy as a state, as Silicon Slopes is happening ... RUN AGROUND How the global supply chain breakdown impacts Utah’s economic shores. getting product here that you need just takes a while.” —Tim White, Mountainland Supply By Emma Penrod more than they consume. As the first waves However, being landlocked isn’t of ships arrived at, say, European ports, always an asset—even with supply chains F or better or worse, economic trends “Items that have multiple components Slopes is happening … getting product here DeHerrera said. About 10% of the world’s there wasn’t enough product to fill them running smoothly, it takes longer to get in Utah have always lagged a few have enormous lead times, and sometimes that you need just takes a while.” nickel, a key component of stainless steel, up and send them back. This resulted in a materials to Utah than it does to coastal months or even years behind the U.S. come with an undefined delivery time,” Van is produced in Russia, as is 40% of the shortage of shipping containers when the areas. As we know, the shipping waves as a whole. The supply chain disruptions Orden said. “We’ve had equipment come Waves at the Ports world’s palladium, which is used to make empty ships backed up at one set of ports eventually hit Utah, too. triggered by Covid-19 and perpetuated by with a 24-week scheduled delivery. Stainless Associated Builders and Contractors (ABC) catalytic converters and microchips. and product once again backed up at the Some products were spared the one global calamity after another have been pipe vendors have indicated a 98% price estimates that total construction input A year before this latest crisis began, others. Similar dynamics have impacted supply shocks entirely. Mountainland no exception. Utah’s response to the virus increase mid-March due to nickel sourcing costs rose 23.6% over the last year. But the White said, the lack of available resin to overland shipping, whether by rail or truck. was able to continue providing certain may have been relatively lenient, but like the out of Russia stressing other suppliers.” rate of increase depends on the product. make pipes and other products represented The world has been trying to break bathtubs, for example, without significant coming of the Transcontinental Railroad, we Even with a second wave of shortages This past January—which saw overall prices the major pain point. Severe storms in early the cycle ever since, but every time a delays because it just so happens that all watched and waited as the aftermath of on its way, Utah is likely positioned to fare increase about 3.5% compared to January 2021 hit the three largest resin plants in the crisis disrupts the production side of the company that makes them is located the virus approached from both coasts. better than other states when it comes to 2021—softwood lumber, plumbing fixtures, U.S—all located in Texas—and for the better the equation, the cycle starts anew. in Utah, White said. But manufacturing The bulk of the supply chain disruptions access to construction materials, according concrete, and crude petroleum had the part of the year, it was difficult to even find Meanwhile, ongoing labor shortages in Utah is generally limited. This means finally arrived in Utah about halfway to Tim White, Director of Marketing for Utah- fastest-growing price increases, according available resin pipe, no matter the price. and generally good business policies—it that even though Utah produces sizable through last year, Josh Van Orden, President based wholesaler Mountainland Supply. But to Chris DeHerrera, ABC Utah president and The impact of these unrelated doesn’t make sense to build a bunch quantities of natural materials such as of VO Brothers Mechanical, recalled. it won’t necessarily be immune, he said. CEO, while metals including iron and steel catastrophes may seem outsized, but it of expensive new ships in response to copper and gas, the state was still subject Everything from natural materials to parts “There are logistical issues in terms of finally experienced some price relief. all began in 2020 with Covid-19’s global a temporary problem—have further to shortages of copper pipe and wire and equipment such as chillers, boilers, and being landlocked—in one way that’s what Metals including copper, aluminum, outbreak, according to Tom Berry, CEO of the entrenched the wave-like shipping trend. because it lacks the facilities to take these pumps suddenly cost more, and shipping has protected Utah for years and years and platinum, and especially palladium and Institute for Supply Management, a nonprofit homegrown materials and turn them into times multiplied—if those materials could be years,” White said. “But as we are entering nickel are expected to rise again on dedicated to professional education. Inland Insulation products. As in many other cases, copper had at all. into a global economy as a state, as Silicon account of the Ukrainian-Russian conflict, While there was a span in late 2020 and Utah’s landlocked nature kept it relatively mined in Utah is shipped elsewhere for >> 24 | UTAH CONSTRUCTION & DESIGN | Mar | Apr 22 Mar | Apr 22 | UTAH CONSTRUCTION & DESIGN | 25
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