5 Challenges Commercial Construction Companies Must Overcome

by | Jul 29, 2016 | Commercial Construction, General Construction

Commercial construction is a complex, and ever-evolving industry. New commercial buildings go up every day, but very few people understand what goes on behind the scenes. Only those in the construction industry fully understand the hurdles construction managers must clear in order to build a structurally-sound commercial building on-time and on-budget. Here’s a breakdown of the top five challenges today’s commercial construction manager must overcome.

Going Green

Green building has been expanding over recent years, including the commercial construction realm. There are a myriad new products and technologies which can be implemented into a new commercial building to make it more efficient. In addition, a number of strict laws have been put in place to protect both the natural environment and public health. It’s important for project managers to have a clear understanding of permit requirements and environmental requirements they must adhere to and oversee. Failure to do so can delay a project, harm a company’s reputation, and lead to potential fines, civil action, or even criminal prosecution.

Government Regulation & Outside Pressure

Commercial contractors today face increasing government regulation from federal, state, county, and local governments. From restrictive local building codes and licensing requirements to permit requirements, environmental and safety laws and more. Adhering to these regulations can prove to be costly and limiting at times.

Social and political pressures can impact a job’s timeline more today than in the past. Projects can be stalled as a result of community or political pressure. Everyone from adjacent property owners, businesses, or institutions—as well as civic organizations and community groups may want their say in the process. It’s wise to have an understanding of the moving parts concerned so any rising issues can easily be dealt with.

Safety & Health Concerns

There are more fatal injuries in construction than any other industry. On any given day there are roughly 252,000 active construction sites and 6.5 million workers exposed to workplace safety hazards like falls, trench or scaffold collapses, electrical shock, and injuries tied to equipment use or repetitive or strenuous motion.

In addition to human suffering, the financial hit construction companies take from workplace accidents is astronomical. It’s estimated that accidents annually account for $10 billion in construction costs.

While accidents can and will happen, commercial construction managers must prioritize workplace safety protocol and take precautions for the sake of their workers and business. Most workplace accidents or deaths are found to be avoidable if training or safety measures were implemented properly.

Skilled Worker Shortage

Here at Baratto Brothers, we’re fully aware a commercial contractor’s greatest asset is their team. While we’ve been lucky when it comes to finding (and keeping) highly-skilled and experienced employees, construction itself is often seen as a less-than-desirable industry to get into. The work is physically demanding, dirty, and can be downright dangerous. Projects are inconsistent and there is always that threat of a lull with incoming work when seasons change or if there’s an economic downturn.

Time is Money  

When a commercial construction company is hired by a property owner or tenant, a return on that party’s investment is expected. Lost revenue due to delays contributing to the loss of customers, clients, or tenants is unacceptable. This often means a high volume of work must be completed within a tight time frame on a strict budget. Construction project managers have the responsibility of setting forth a comprehensive plan. Then, they must closely monitor progress to ensure they stay on track and can swiftly react when something goes sideways.

Construction involves a bunch of interdependent activities cohesively coming together as one in the end. Naturally, this presents challenges other industries typically don’t encounter. Seasonal weather, remote sites with access issues, occupied work spaces, neighboring properties, and equipment breakdown or malfunction are just a few potential challenges. Any one of them can wreak havoc on a day’s productivity and the project’s overall timeline. It’s up to the commercial project manager be prepared to identify changing conditions and upcoming challenges, then mitigate their impact.

Let us help

As you can see, commercial construction is a complicated, challenging, and ultimately rewarding industry. If you’re interested in starting a new commercial construction project, renovation, or just curious about what we offer at Baratto Brothers, contact us today by filling out our contact form, stopping in to say hello, or by giving us a call at (218) 692-1070. We’re here to help you sift through your options, and come up with an affordable plan that delivers the results you’re looking for. We’ll do everything we can to become your Commercial Builder for Life.

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Are LED Lights Worth the Investment?

by | Jul 22, 2016 | Commercial Construction, General Construction, Homeowner

If you weren’t aware, incandescent lighting is gradually being phased out. As of 2012, the US government passed regulation ceasing the production of 100-watt incandescent bulbs. It was followed shortly by the 75-watt in 2013, the 40-watt in 2014. While you still may be able to find these bulbs in stores for the moment, the regulation means once they’re gone—they’re gone. This in turn leaves us with the question—which replacement bulb is best? Are LED lights worth the hype?

Energy savvy consumers were switching from incandescents long before these regulations went into effect. Originally, most people began switching to compact fluorescent light (CFL) bulbs. This is because Light Emitting Diodes (LED) bulbs were much more expensive and harder to come by. However, LED’s have been gaining popularity with their energy savings, and versatility.

How Do LEDs Compare to CFLs?

One of the more interesting comparisons LEDs have to CFLs has to do with perception. Unlike CFLs, LED lighting doesn’t have the negative association with poor mood lighting and quality (think flickering and non-starting). Many interior designers and homeowners remember how poor the early fluorescent lighting was, and aren’t able to get over the stigma. LEDs put off wonderful light, can be dimmed, and even colored. Their light is strong and consistent.

Ever try to start up a CFL in high humidity or really cold weather? They don’t work well, right? Not so with LEDs. According to most manufacturers, LEDs do extremely well in cold weather (for sure down to 20 degrees). LED lights have already replaced incandescents in refrigerator and freezers all over the US.

Another thing to note: CFLs contains mercury (which is toxic), where LEDs don’t. Also, CFLs generate twice as much carbon dioxide emissions (via the coal utilities burn to create the electricity). So if helping the environment is a purpose for choosing between the two, LEDs have CFLs beat.

In order to accurately compare efficiency between LEDs and CFLs, we need to consider the new Federal Trade Commission light bulb packaging standards, which now stress lumens over wattage, and hours of lifespan.

Here’s an example comparing a generic LED to a generic CFL of similar lumens:

9 Watt LED – 470 Lumens – 25,000 hour lifespan ($7.50 – $9.99)

10 Watt CFL – 520 Lumens – 8,000 hour lifespan ($7.99 – $8.99)

As you can see, while the two are comparable in price, wattage (output), and lumens. However, their lifespan is vastly different. Not long ago, the overall savings between CFL and LED was pretty nominal. However, that gap is closing every year. You decide if the lifespan or the environment is worth a few extra dollars.

LEDs Light the Way

It’s no mystery why so many people view LEDs as the future of lighting. For starters, they’re highly efficient. One LED bulb can use the equivalent wattage of up to eight incandescents and last for an absurdly longer period of time—upward of 50,000 hours of use coming from each. They’re also considered far safer, as they burn much cooler than incandescent bulbs.

With the price coming down as the technology gets better and reaches market saturation, LEDs will beat CFLs, hands down. They’ll replace both indoor and outdoor lighting for homes and commercial properties. Have you made the switch yet?

 

We’re Here to Help

Baratto Brothers Construction knows lighting deeply impacts a home’s ambiance and energy output. We want our clients to make informed decisions when enhancing their home to fit their needs. If you’d like to learn more, contact us today by filling out our contact form, stopping in to say hello, or by giving us a call at (218) 692-1070. We’ll do all we can to become your Builder for Life.

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New Commercial Projects Breaking Ground

by | Apr 15, 2016 | Commercial Construction, Press Releases

Here are Baratto Brother’s Construction, we’re always up to something new. This spring, in addition to many new custom homes going up, we also have a number of new commercial construction projects breaking ground that we’re excited to tell you about.

We’re very pleased to announce the recent approval by the Isanti County Board of Commissioners hiring us to handle the complete renovation of the former Hayford Ford dealership building on South Main Street in Cambridge. Phase one of the renovation project began last week as we create a new Sheriff Administration Office from the old dealership location. This new space will provide much needed space for offices for the department, as well as interview rooms, an evidence locker, armory, indoor vehicle storage for Sheriff vehicles and evidence gathering, locker rooms, and SWAT storage. This phase of the renovation is expected to wrap up in September, at which time we can move on to the next phase of this large project.

Once the new Sheriff office renovation has been completed and moving has finalized, we’ll also be remodeling and upgrading the current 911 Dispatch Center, which is housed in the current Sheriff’s office. This upgrade will allow the Dispatch Center to expand into the space, and utilize it as their needs demand. This second phase of the project is estimated to begin in October of this year wrap up by February of 2017.

New Commercial ConstructionIn addition to the Isanti Sheriff Office, we’re also excited to say we’ve recently broke ground at the Oscar Kristofferson Park in Baxter, where we’re building a new pavilion to enhance the park. Once completed, the pavilion will have a kitchen area, stone columns, and a new patio area as well.

Progress also continues at Madden’s Resort, as we work on Wilson Bay Lodge, Pemmican Room, Wilson Bay North (40 units), and multiple cabins throughout the resort site.

If you’d like to see photos of our current projects as they’re underway, head over to our Facebook Page and take a look or visit our Current Projects page.

 

If you’re looking to start a new commercial construction project, renovation, or just curious about what we offer at Baratto Brothers, contact us today by filling out our contact form, stopping in to say hello, or by giving us a call at (218) 692-1070. We’re here to help you sift through your options, and come up with an affordable plan that delivers the results you’re looking for. We’ll do everything we can to become your Commercial Builder for Life.

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How Superior Commercial Construction Projects Start With Superior Relationships

by | Dec 11, 2015 | Commercial Construction

At Baratto Brothers Construction, we’ve been around the construction industry long enough to know that superior construction doesn’t happen by accident. It happens as a result of a superior client/contractor relationship. We’ve been fortunate to cultivate some lifelong construction partnerships with our clients over the years and we’ve got some thoughts on why relationships like these matter.

  • Advice you can trust. When you have trust built between you and your commercial contractor, everything runs more smoothly. Communication is key. Not only do open lines of communication benefit you throughout the entire project, but you can also trust the advice you receive from the start. Your commercial contractor has years of experience not only in construction, but with many other aspects of the project you may not have considered. They have a big picture view of what your project may entail, which is why having a great relationship with your contractor is extremely important. It can save you more than just money; your relationship can save a lifetime of headaches from ever developing.
  • Location help. If you’re starting your commercial project from the ground up, finding the right location can be crucial. You wouldn’t want to buy land, only to find out it can’t be used for its intended purpose. Your contractor should be able to offer you some very specific tips, as well as being willing to view land with you before you buy. They may see potential problems with the land, or give you the go-ahead to set your mind at ease.
  • Finding the right subcontractors. A commercial contractor who’s been in business for a while will have a good knowledge base of the subcontractors in and around the area who will get the job done right the first time. Often times, when an initial low bid comes in, it can look very enticing; especially when you’re trying to keep things lean. Unfortunately, a low-ball initial bid can come with sub-par work, which ends up costing more in the end. By having a contractor on your side who’s got your back, relying on their advice for subcontractor hires can save you a ton of time and money. Not only will they know which subcontractors to use (and those to possibly avoid), they’ll also know which ones are best suited for your project, too, based on the expectations you set together.
  • Better expectations. Having great communication with a commercial contractor you trust sets the entire project up with better expectations. In this way, clients and contractors work together to determine the most important parts of the process. By doing so, everyone will be on the same page for identifying where (and how much) money should be allocated. This could be determined in a number of ways, but as an example, you wouldn’t treat a restaurant the same way you’d treat a retail store. A store may require more money allocated into lighting, where a restaurant may be finishing ambiance and HVAC equipment. In the end, with better expectations all around, your contractor can deliver the superior results you’re looking for.
  • Identifying potential savings. Saving money, especially in the building process, is always a welcome relief. When you’re working with a commercial contractor who has a good pulse on the project, they’ll be able to see ways you can save on your project, and still get the results you want. Some of this has to do with having clearer expectations of the project’s most important aspects, but it’s much more than that. As we stated earlier, your contractor will have contacts within the industry, whether they’re subcontractors, mortgage lenders, or even real estate advisers. All of these contacts mean you have a broader talent base from which to pull from who are already a trusted group because your contractor approves of their work.

Baratto Brothers Construction has been building superior homes in the Brainerd Lakes Area since 2002 and we’ve extended that excellence to commercial construction in recent years. If you’re looking to build a commercial construction relationship you can rely on for years to come, contact us at 218-692-1070 for a free consultation. Getting the right team for your next commercial construction project doesn’t have to be daunting, or tedious. We’re here to help make it as easy and stress-free as possible. It’s just one of the many ways we work hard to become your Commercial Builder for Life.

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Baratto Brothers Commercial Financing Tips

by | Dec 4, 2015 | Commercial Construction, Financing & Lending

Getting commercial financing for your business venture may seem a bit daunting to those who’ve never tread those waters before. In fact, just knowing when to start can be a bit of a question. Do you start early when you’re company is still in startup phase? Wait until your business is established? Do you apply before you need the funds? Or wait until there’s a pressing need?

In truth, finding a lender for your business really comes down to what you need the financing for. For some, this may mean startup costs and getting a location. For others, it could mean adding additional supplies, staff, and equipment; or even expanding into a new building.

Regardless of your reasons, we’ve got a few tips we’d like to offer based on our years of experience working with lenders for our clients.

  • Start local. Getting good financing can ultimately come down to relationships. When you’re on the hunt for commercial financing, check out all of the specials and deals with your local banks and credit unions. Often times, they’ll understand your need better than a larger bank. Be sure to find a lender who has an understanding of your industry, too. They’re knowledge will ultimately be beneficial in structuring your financial solution and maximizing the credit available to you.
  • Build a report early. Once you’ve found the perfect lender, start talking to them as early as possible. Ideally, months (or even years) before you need their assistance. As we said, having a relationship with your lender will not only help you get better deals, but you’ll also have a much better overall picture of the process.
  • Get clarity. This is also known as Business Planning time. In order to get financing for your commercial project, you’re going to need to get clear about your business plan and goals. You’ll need to get very detailed and have a clear vision of how your business is going to succeed and how the loan will help impact that success.
  • Know your objectives. You’ll want to write out an objective for your lender to gain financing from them. This helps them gain a better understanding of how you plan to execute your overall business purpose and impact your target market. This usually includes a details about how you plan to run your business, how many people you need to make your plans happen (and whether you need to hire more or not), and how you intend to generate cash flow to pay back the loan
  • Economic Cash Flow Assessment. Completing an economic cash flow assessment is crucial to gaining commercial financing. This basically shows your lender why you believe your future business will positively impact the community it’s going to affect. It also shows how you intend to manage money and how you’ll handle things if something was to go wrong.
  • Submit a resume. This one may sound a little strange at first, but it makes sense. Giving your lender a history of your employment will help them to better understand how your experiences have brought you to this point and why you’re a good fit for financing the specific business your proposing. By telling your personal work story, you’ll be able to give more perspective to your lending agent.
  • Personal finances. When applying for commercial financing, you’ll still need to be prepared to have your personal financial records looked over. You’ll be submitting last year’s taxes, as well as a number of bank statements determined by your commercial lender. Be prepared to have your personal credit score reviewed when applying. If your credit score is less than appealing, consider taking steps to improve your score before applying for your business loan. There are a number of ways to acquire your credit score for free. Your best bet is with AnnualCreditReport.com, which is federally authorized.
  • Have a co-signer. If your credit score could use a bump, but you don’t want to wait – consider taking on a business partner to co-sign your commercial loan. Choose wisely, as their credit score needs to be in tip-top shape, too.
  • Collateral. When applying, you’ll need to think like a lender. Do you have anything in your name that could be used as collateral for your new loan? This is basically anything that gives your lender assurance you’ll pay back the money. It could be something as simple as jewelry, to a car title, home equity, or even property. But remember, don’t gamble with your collateral unless you’re willing to let it go.
  • Apply. Once you have all of the other steps in order, it’s time to officially apply with your bank or credit union. Get in touch with your lender and have them start the process. Because of the all the advanced leg-work you’ve done, applying should be a breeze and the relationship you’ve cultivated could mean a fantastic financing arrangement for you and your business.

Here at Baratto Brothers, we’ve worked with lenders of all shapes and sizes; local and not-so-local. If you’re looking to finance a commercial construction project, feel free to give us a call at 218-692-1070 and we’d be happy to give you suggestions and recommendations. We know how daunting financing a commercial project can be, especially if it’s new to you – but we’re here to help you every step of the way. It’s just one of the ways Baratto Brothers Construction works hard at becoming your Commercial Builder for Life.

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