Paying More to Get Less in Construction - It's a Cultural Thing
By Craig Getchell

The culture in the real estate industry is creating obstacles that are driving up initial construction costs and negatively impacting sustainable operations. Architects & engineers are hyper-focused on the construction effort, and technology is less than 5% of that effort. These professionals have bigger concerns; even a 15-20% swing in such a small portion of the overall budget has little impact.

Architects & engineers do not understand the critical, long-term importance of technology. They have fallen into the habit of allowing equipment manufacturers to provide specification language. This is how equipment controllers, meters & sensors have been procured for the last 20+ years. The manufacturers have taken advantage of this opportunity to drive profit, control and influence towards themselves, while taking visibility, options, savings, & functionality away from owners.

The current culture is not driven by the owners, property managers, and tenants that will utilize the facility long-term; in fact, they are primarily kept out of the construction process. It is being driven by architects & engineers that just keep doing what is "comfortable" from their past. The current architect & engineering professionals in the industry are not motivated either financially nor have the expertise to look at the long-term benefits of new ideas. They are the establishment and do not want things to change.

The result is that the industry is ignoring the opportunities available by the adoption of newer technologies for base building systems. It's just too difficult to get past the current formats & processes. The "pressure" being applied by the established players keeps owners deploying segmented systems, which are limiting functionality & expandability and driving up costs.

Now owners are beginning to feel the impacts of this culture as they continue to pay excessive amounts for next-generation buildings that don't really deliver the expected functionality. Owners are currently beginning to understand the reality; that the current design & construction teams are unwilling to learn and are not financially motivated to embrace change.

Owners are taking charge, as the only member of the design team with the long-term view. They are engaging new professionals with experience & expertise to educate themselves and bring innovative ideas to projects. Owners that want to receive the benefits of next-generation solutions are challenging the current culture to make sure that a technology plan is implemented early, which not only acquires the right technology but also addresses the "real world" challenges of getting things done efficiently.

Agile Real Estate Automation Solutions LLC provides a comprehensive methodology for building & retrofitting facilities with emerging technologies and alternative energy solutions within the traditional construction industry. Our unique approach ensures that next-generation solutions are adopted by the established construction team, with minimal impact.

AREA Solutions, Exeter, NH, 603-969-7892, http://www.areasolutions.net

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