Tom Radz

Meet our New Director of Construction in Texas

Posted on by Tom Radz

As part of an on-going effort to grow our operations in the Dallas-Fort Worth area, LGE Design Build recently took one more integral step toward our goal of setting the bar in this flourishing market. At the end of last month, we brought on Caleb Parsons to be our Director of Construction at our LGE Texas headquarters in Dallas. Caleb has already drawn from his deep well of experience to hit the ground running in his new role. Last week, we were able to catch up with him and hear more about his background in the construction industry that dates back to his childhood.  

You come from a long line of builders in your family. How has that impacted you throughout your career?

From a young age, construction is all I knew. I find myself leaning on the experience and knowledge that my grandfather and father taught me. This first-hand understanding of construction skills has always been a valuable tool in seeing the full scope of the construction process and identifying potential issues before they occur.

Other than those in your family, who has had the biggest impact on you, professionally?

Abhishek Gupta. He was my Senior Project Manager on the SCVM Hospital Project and has stayed in touch and mentored me for the last 12 years. Gupta has taught me the value of first-hand communication and to always challenge the roadblock before trying to solve an issue.

What is your background geographically? And what is your connection to Texas?

I was born in a small logging town in Washington State. I have lived and worked in Maine, Arizona, California, Washington, and now Texas. Texas has been a goal of my wife and I for the last 8 years, and we are proud to have made it here and ready to establish our roots deep in the community.

You owned and operated your own business. Tell us a little more about that and what it taught you about leadership.

I would say that leadership was identified as a necessary skillset early in the process. As I was building the company from extremely small roots, it became clear to me that I could not accomplish my goals on my own. I would need the support of my staff, local suppliers, subcontractors, and the community.

Leadership, in my opinion, is never mastered; I consider myself a student and am always looking for feedback to improve.

What’s the biggest difference between your past roles in operations and your current role?

Involvement in the process at an earlier stage of design/concept. Sole responsibility for the success of the Construction Division.

What is the biggest challenge you see in the Dallas market?

Relationships – Dallas is an extremely tight-knit area and relationships drive a good portion of business here. 

How is LGE poised to make an impact in the largest industrial construction market in the nation?

LGE has a hand up from my vantage point, due to our knowledge and capability of design build. The value in true, cost-saving design build is something most companies do not understand. With our roots established, and a good base of subcontractors, we should be able to leverage those successful projects and build momentum in future endeavors.

What is most exciting to you about the Dallas market?

Opportunity. There continues to be a steady stream of global companies moving their operations to the state of Texas. With the central time zone, centralized shipping, and continual support from state and local leadership, the sky is the limit.

Which of your previous positions do you feel prepared you the best for the role you are taking on at LGE?

Operations Manager at FORMA Construction. In this role, I reported to an amazing leader in Jace Munson. Jace always encouraged me to take on responsibility and allowed me to operate with autonomy after building trust with him. This allowed me to create and implement a new process, improve our deliverables, and bring on talent that ultimately doubled our volume over 4 years.

Another role that prepared me was owning and operating ONYX Industries. This taught me many valuable lessons. Failure is the most valuable teacher, and I had many opportunities to learn from them.

Do you have any short or long-term goals for your position at LGE?

Short-term goals are to build relationships with our staff and design partners and to fully understand our current processes and procedures.

Long-term goals are to grow this division to $500 million-plus in the next three years.

I would like to make a lasting impression here at LGE and ultimately end my career here as a principal partner.

Is there a learning curve as the Director of Construction for a design-build firm vs. a traditional contractor?

Mindset. I have been part of design-build projects in the past, so this helps, but the internal team aspect of our unique deliverable is exciting, and I need to keep my perspective on this as I interact with project challenges.

What has been your biggest challenge, thus far, at LGE?

Starting slow. I’m fighting my urge to jump in neck-deep and start implementing a new process. This was a promise I made to myself, that I would take the time to fully understand how we operate, before making suggestions or strategizing with the team on how we can improve.

What project are you most looking forward to and why?

The LGE Texas Headquarters. It will be great to see our staff move into a newly renovated building that signifies that LGE is here to stay and ready to take on more volume.

One of your hobbies is working on cars. Tell us about your most current project.

Currently, I’m working on a 2019 Mustang GT. This is my first American project, as I have always built German cars (9 BMWs and 2 Audis).

I have a Whipple Stage 3 Supercharger, Twin-Disc Ceramic Clutch, Carbon Fiber Driveshaft, Outlaw Half Shafts, and a dual return fuel system, that should put 900 HP down. I struggle with time, as always, so I may be working on this for the next two years.

A future project is a 1971 MACH 1 with my children. Frame-off Resto Mod.

What advice would you give someone who is just starting out in the construction industry but has aspirations of becoming a director of construction?

Listen, work hard, do what you say you will do, and always be willing to help others.

What to Expect for Construction in H2

Posted on by Tom Radz

When looking at the sectors in which we build (industrial, mixed-use, office, retail/hospitality, medical, and tenant improvement), demand still remains across almost all of them. There is an expected 14.3 percent growth in nonresidential construction expected for this year, before slowing down going into 2023.  Office, retail, and hospitality, in particular, are all expected to grow into next year, with warehouse construction slowing because of a drop in demand for household goods.

Construction Labor

Training and mentorship are filling the skilled labor gap, increasing team member retention. Additionally, compensation has been on the rise, making the construction trade a more attractive employment option. The construction unemployment rate is now well lower than the pre-pandemic levels and the sector is filling more positions. Skilled trades, however, continue to struggle to recruit the younger generation to fill the gap left by early retirees from the pandemic.

residential versus nonresidential construction employment chart

Supply Chain

Despite inflation, demand for construction remains high as recent developments in the shipping industry point to decongestion in the supply chain. Ports are seeing shorter wait times and the trucking industry appears to be rebounding with more drivers to share the load. Delays will continue to linger, and we can expect the construction of local semiconductor plants and the Infrastructure Investment and Jobs Act to be additional factors to consider for non-government projects that require the same materials, like concrete, for their buildings.

Shipping containers chart

Material Costs

Overall construction volume is expected to grow by 5% over the course of 2022. Final construction costs are expected to remain high for at least another quarter, but as more supply chain solutions are put in place, we can expect material costs to decrease even more. The cost of steel, specifically, is expected to continue its trend downward as 2022 progresses.

9 Key Architecture Terms to Know

Posted on by Tom Radz

The process of building a custom structure can be overwhelming on many levels, and some might even find it intimidating. If you have never been through the process before, it could elicit a little bit of fear and get you out of your comfort zone.

One of the ways to alleviate any anxiety you might have is to do your research, especially when it comes to the lingo used in the industry. To help guide you through this process, below is a list of architectural terms and some basic definitions you should familiarize yourself with prior to starting the journey of your build:

ARCHITECTURE
The art of designing a building that is to be constructed.

ARCHITECTURAL SUPPLEMENTAL INFORMATION (ASI)
These are additional instructions or interpretations added to architecture plans.

BUILDING INFORMATION MODELING (BMI)
The digital modeling of a building or structure, usually done on a computer. This model often gives you a 3D rendering of the project.

EGRESS
A pathway to exit a building. These are emergency escape routes from the inside of the building to the outside.

FAÇADE
The face or outside of a building. It could be used to describe all sides, but in some cases only refers to the side that faces the street.

OCCUPANCY
How the building is intended to be used once complete.

PIER
The upright support of a structure.

TIME AND MATERIALS
Time and Materials (T&M) contracts are drawn up to outline the project when it comes to pricing and timeline.

VENEER
A thin sheet of material that is added to the exterior of a building. This is often wood, metal, stucco, brick, or even plastic.

Commercial Interior Design: The Shift to Minimalism

Posted on by Tom Radz

Most people have heard the term “minimalism” and are very familiar with at least a basic understanding of it. The term is very popular in the world of interior design where it refers to a prominent style for furnishing commercial spaces like hotels, restaurants, and offices. What many do not know, however, is that another concept exists called “maximalism”, and while it was once the more prevalent, its popularity has waned.

It is no secret that minimalism has become the more dominant of the two, especially over the last couple of decades. A majority of hotels, restaurants, and offices have made the shift to minimalist interior designs, and it is even evident in the rebranding of their logos. The 21st Century has brought with it the need to be more sleek and polished.  

Put simply, minimalism is done with purpose through clean lines and open spaces, while maximalism can often give the impression of clutter through the use of space for decorative elements. Evidence of the shift from maximalism to minimalism can be seen in the following areas:

HOTELS

It doesn’t take long to notice the minimalist décor of a hotel, in fact, the moment one enters the lobby, it’s evident all around them. Without stripping the necessary amenities, hotels have taken their lobbies and created open spaces that serve as communal areas. Inside the guest rooms, there are simple color schemes between the different elements of the room. The patterned wallpaper and carpeting have either been replaced with a single color, or the patterns are much more simple. The same applies to the bedspreads and curtains. The furniture often has a smaller footprint, and it is purely there for functional purposes or not at all. Take for example the nightstand. What was once a full piece of furniture has been replaced by sometimes just a single drawer that is attached to the wall.

modern design in a hotel lobby

RESTAURANTS

The food service industry is, perhaps, where one can see the most drastic shift when it comes to interior design. During the 1980’s, it became very popular for restaurants to fill almost every inch of their walls with décor. Even hospitality concepts like T.G.I. Friday’s have exchanged their trademark flair for a more smart look. From high-end dining to fast food, there have been almost no exceptions for this shift to minimalism. Restauranteurs have even scaled back on the amount of tables and chairs to create a more open, breathable atmosphere – a strong testament to the idea that less is, in fact, more. 

modern architecture at a sushi restaurant

OFFICES

Team morale and productivity are certainly two of the most important factors to consider when designing an office. Fortunately, the concept of minimalism lends itself to both. Because of this, many businesses have adopted an open floor plan to increase the amount of collaboration and general interaction between team members. The simplistic, no frills approach also conveys an air of professionalism and efficiency, which is another reason for the shift to a more minimalist office theme.

modern architecture in an office lobby

Bringing Light to Those in Need

Posted on by Tom Radz

For nearly 70 years, there has been a “Miracle in the desert” in east Mesa. Over the course of that time, Sunshine Acres has provided a loving home for more than 2,000 disadvantaged children in the Phoenix Valley, and they continue to do so to this day.

During the month of August, the David R. Sellers Foundation, the philanthropic arm of LGE Design Build, set a goal of raising $10,000 for this amazing organization to continue their mission. For every donation made this month, LGE will match it dollar-for-dollar up to $10,000 in an effort to double the impact made by the DRS.

Founded by Jim and Vera Dingman in 1954, Sunshine Acres was an abandoned boarding school on 125 acres that they purchased for $29,500. In the years since, the organization has grown to operate with more than forty buildings, on what is now 109 acres. Seven of these buildings are modern homes that house approximately ten children each. An eighth house is currently under construction.

Each of the homes at Sunshine Acres has a set of parents who take on such responsibilities as driving them to school or even taking them to the doctor. Sunshine Acres provides all of their meals so that these parents can focus on spending quality time with these children whose real parents may be in prison or deceased. Some of the children even come to Sunshine Acres after failed adoptions, amongst various other reasons.

Providing loving and stable homes for these children is at the core of Sunshine Acres’ mission, however, much of what makes this place so special happens outside of the houses. Among the many initiatives at Sunshine Acres are a karate program, music lessons, along with a choir and drama program. They also offer a Junior Harvester Program in their green house, as well as a Horse Program and Livestock Show Team to teach proper care for animals. On their property, you will also find a large in-ground pool, a skate park, a small zoo, and a baseball field.   

While part of their funding comes from two resale boutiques where they take material donations, they also accept monetary gifts from private donors, which is crucial to their operation, as they do not receive any government funding.

Please join us in supporting this wonderful organization and help them provide loving and stable homes for these underprivileged children. Click here to make a donation and LGE will match it dollar-for-dollar up to $10,000 until the end of August!

Mixed-Use Project Looking to Add Life to Downtown Gilbert

Posted on by Tom Radz

The already vibrant downtown area of Gilbert, Ariz., will soon get another injection of excitement with the highly anticipated arrival of Heritage Park. LGE Design Build is planning to construct this massive mixed-use project on 10 acres of prime real estate in the popular Heritage District for the Phoenix-based developer, Creation. 

After serving as the general contractor for a number of other buildings (see below) in Downtown Gilbert, LGE will be constructing five stories of office space, totaling 150,000 square feet, along with 30,000 square feet of retail. This is all in addition to a residential structure that will include approximately 290 units, as well as a five-story hotel. 

“This is the largest contiguous property in that area,” said David Sellers, Creation Co-Founder and LGE President/CEO. “What we’ve tried to do is create an extension of the Heritage District.”

The name of the project, Heritage Park, is derived from the open greenspace that will be centrally located within the mixed-use site. This park area will include a structure that looks like the top of the landmark Gilbert water tower, which sits just to the south of the property. This structure, along with the other mixed-use buildings, will be a nod to Gilbert’s historic past with a modern twist and will be consistent with the existing properties in the district.

The speed limit on Gilbert Road, which runs down the center of the Heritage District, is 25 miles per hour and provides great visibility for the businesses located there. Because most of the already-existing patio areas are facing the street, the energy of the district is more than evident, and LGE’s upcoming, mixed-use construction project will only enhance that lively feel. 

“Really, at the end of the day, we want it be a true mixed-use environment,” said Sellers. “We want it to be where people live, where they work, where they visit, with the hotel. There’s going to be amazing restaurants, vibrant patios – a mix of uses, a mix of retailers.”

This project, which has been a few years in the making, immediately saw delays during the approval process due to the pandemic. The developer, Creation, and LGE Design Build worked hand-in-hand with the Town of Gilbert to push the project through. 

“I think the involvement we had with the town yielded a better plan than we started out with,” said Sellers. “You would think going into it, on Day One we got it right, but there was a lot of good input from the Town and from their staff, and what we have today is a phenomenal plan. And a lot of kudos go to the Town and their staff.”

With the delays now behind them, a groundbreaking on Heritage Park is expected to be taking place very soon. LGE Design Build is looking forward to constructing this new piece of Gilbert’s bright future while also tipping a hat to their historic past. 

Check out some of our other buildings we built in the Heritage District: Dierks Bentley Whiskey Row, The Porch, Postino East, Snooze, Oregano’s, Zinburger, Lolo’s Chicken & Waffles, Pomo Pizzeria, Level 1 Arcade Bar, Clever Koi, and The Collab (mixed-use office building). 

Defining Modern Architecture

Posted on by Tom Radz

The word “modern” has been used as an adjective for many things throughout history. The word is derived from Latin and dates back to the 16th century. This means that for five centuries, people have been describing new concepts as “modern.”

There’s been phrases like “modern music,” “modern art,” and “modern style” thrown around since the inception of this word. So, how do we define things that are “modern” and when does something stop being “modern”? Perhaps, that is why one may think there is not a consensus on what “modern architecture” truly consists of.

With time, what we consider “modern” often changes. What was considered “modern architecture” in the 20th century is a far cry from what is considered “modern architecture” in the 21st century. Much of the architecture in the 20th century, which was often an homage to past styles, has been rejected by modern architects, who set out to forge their own path for design. This begs the question, now, in 2022: What defines “modern architecture?”

MODERN BUILDING MATERIALS
When taking into account what has changed in architecture over the years, one of the most obvious answers is building materials. The advent of manufactured steel and durable glass has revolutionized how structures are built and look. One has to look no further than a skyscraper to see an example of how drastically different buildings look from a century ago. While steel was originally used to establish the internal structure, it has become more evident in exteriors with exposed steel-framed buildings, and thus a newer element of modern architecture. Glass, which was first used just for windows, now makes up the entire façade in many modern buildings and allows for another element of modern design, which is natural light.

OPEN SPACE
Anyone who has ever stayed in an old hotel or watched a game in an old stadium can tell you that modern architecture embraces the idea of open space as opposed to the buildings of the past. Functionality and efficiency still play large roles in the designs of modern buildings, however, many architects now allow for expansive open areas. This trend is most evident in office buildings, where open floor plans have become the preferred layout. 

MINIMALIST DESIGN
The level of detail in modern design is incredibly simple compared to almost every other era of architecture. Whether it be the Romans, Greeks, or even 20th Century American architecture, intricate designs dominated not only the exteriors of buildings, but the interiors as well. The adverse is true for modern architecture which boasts simple designs of both. 

CLEAN LINES
Bold and simplistic geometric shapes have become the calling card of modern architecture, especially for the exteriors of modern buildings. These buildings feature obvious inspiration from the Art Deco movement which began in the mid-1920’s. Basic flat roofs and clean angles are drawn from classic mid-century modern looks made famous by architects like Walter Gropius, Ludwig Mies van der Rohe, and Frank Lloyd Wright. 

Construction Labor Outlook for Q2 of 2022

Posted on by Tom Radz

One of the major pain points for general contractors, right now, is the shortage of skilled workers. Despite the steady decline of construction unemployment, firms are still struggling to find the necessary manpower across a number of different trades.

According to the Associated General Contractors of America (AGC), nearly 20,000 jobs were added between February and March of this year. However, trades like masonry, carpentry, electrical, and plumbing are still struggling to keep up with demand due to a dwindling workforce.

AGE IN THE CONSTRUCTION INDUSTRY
One major factor for this shortage can be directly linked to the pandemic. When the entire construction industry came to halt, in early 2020, many of the workers in the higher age group decided to retire early. When this mass exodus occurred, there was a disproportionate amount of entry-level/apprentices entering these trades. 

CONSTRUCTION LABORERS ON THE RISE 
Among all of the trades, only construction laborers saw an increase in employment since the onset of the pandemic. The recruitment of laborers can most likely be attributed to the average pay, which has been gradually increasing, according to the U.S. Bureau of Labor and Statistics (BLS).

Despite reaching a record level of unfilled jobs in January, at 380,000 vacancies, the BLS also reported that overall unemployment in the construction industry is at 4.6 percent as of April of 2022. This is well below the pre-pandemic numbers which were 5.5 percent in February of 2020. 

ONGOING CONCERN FOR GENERAL CONTRACTORS
The numbers appear to be trending positively, but because most of the vacancies are in the more skilled trades, general contractors are still showing concern. Demand has returned across most sectors, many of which are near pre-pandemic levels, yet there is this lingering obstacle that all firms must face. Lack of manpower leads to delays, so general contractors are scrambling to find solutions to this ongoing issue. 

Cost of Construction Materials to Remain High

Posted on by Tom Radz

The good news for the construction industry is that the market is beginning to have some semblance of what it looked like prior to the pandemic. Most of the halted projects during 2020 have either been built or are in the process of construction right now. On the surface, it appears as if the construction industry has returned to normal, with the exception of one thing – cost.

RISING COSTS OF BUILDING MATERIALS
Across the board, the prices of building materials have increased – some much more than others. General contractors could only watch on as the price of materials rose nearly 20% in 2021. From this past November through March, we witnessed a massive increase of 10.6 percent in that short span.

THE CONSTRUCTION MATERIALS AFFECTED THE MOST
Inflation is a constant, no matter what industry you are in, but the unprecedented levels in the construction industry has general contractors rethinking not only how they source their materials, but how they build their projects. The cost of certain building materials has risen exponentially compared to others. Atop the list is steel pipe and tube, which has increased nearly 60% from one year ago. Copper and lumber aren’t very far behind at nearly 50 percent, with metal bar joists just over 40%. 

OTHER ISSUES AFFECTING SOURCING FOR GENERAL CONTRACTORS
Just as signs of recovery from the pandemic began to show, another global issue took hold of the construction industry. The ongoing war in the Ukraine has created yet another hurdle for general contractors when it comes to the cost of building materials. The rising cost of fuel has translated to higher shipping costs and delivery delays. When you add in recent natural disasters and the various supply chain issues, the construction industry has seen a “perfect storm” when it comes to material costs. 

Multi-Building Development in Haltom City, Texas, Complete

Posted on by Tom Radz

Dallas (August 19, 2021) – LGE Design Build, a full-service commercial general contractor with an in-house architecture firm, recently completed construction on 820 Exchange in Haltom City, Texas. 

820 Exchange is a four-building development that is made up of nearly 1 million square feet of industrial distribution space and features clean-cut modern design, state-of-the-art industrial amenities and first-rate access to key transportation routes. 

Aerial footage of 820 Exchange.

This best-in-class, multi-building development has top-of-the-line industrial amenities. It has best-of-market clear height and loading area dimensions, complete with contemporary finishes. The office entrances on each building are clad in a Texas limestone, adding a raw aesthetic to the structure. The limestone bricks used in the construction were sourced from local quarries.

Watch 820 Exchange being tilted.

“I am proud of our construction team for completing this massive project on time, in spite of many challenges,” said Grant Blunt, Vice President of Construction for LGE Design Build. “Not only did we complete this project during the COVID-19 pandemic, but we also had to endure the Texas power crisis and corresponding freeze in February and develop creative solutions to stay on track after numerous rain delays. We would not have been able to shift and adapt to these challenges without the collaboration we saw from our construction teams, subcontractors and the City of Haltom.”

Located between Beach St. and Haltom Road, just south of Interstate 820, the business park has near immediate highway accessibility and is only four miles north of Fort Worth’s bustling downtown. Haltom City has been named as one of the fastest growing and fourth largest metro areas in the U.S. 

LGE Design Build served as the general contractor on this project. LGE Design Group was the architect. 

Supply Chain Outlook for General Contractors

Posted on by Tom Radz

In 2022, the demand for commercial construction has nearly returned to pre-pandemic levels. General contractors are beginning to fill backlog orders from the hiatus created by COVID-19. Fortunately, most of those projects are, once again, underway. However, while developers have regained their confidence in the market, issues with the supply chain continue to persist. 

As the first major shut down gets further away in our rearview mirror, more obstacles have begun to surface. The combination of several major factors have ensured that the supply chain issue will continue for at least the next two quarters. 

NO MORE “JUST-IN-TIME” DELIVERIES FOR CONSTRUCTION PROJECTS
Bottlenecks have emerged at major U.S. ports, including Los Angeles and Long Beach, where a large portion or our imports are processed. This has severely impacted “just-in-time” deliveries for general contractors, who became accustomed to receiving materials right around the time they were needed for projects. 

NO ONE TO DELIVER CONSTRUCTION MATERIALS
One unanticipated effect of the pandemic was seeing so many older workers opt for early retirement. General contractors not only saw the size of their crews dwindle, but trucking companies were forced to slow their operations because of driver shortages. With a limited amount of drivers, deliveries were delayed, or in some cases cancelled altogether. Compound this issue with the recently skyrocketing price of gas, and the delivery of construction materials has not only become more difficult, but it has also become much more expensive.

HOPE FOR GENERAL CONTRACTORS
It’s abundantly clear, at this point, that there is no overnight solution to this issue for the general contractors. However, the recently passed Infrastructure Investment and Jobs Act includes $17 billion to be allocated toward port infrastructure and waterways. President Biden has also negotiated a deal with the Ports of Los Angeles and Long Beach to operate on a round-the-clock schedule to alleviate as much of the backlog as possible. 

In the meantime, all general contractors can do is be transparent with their customers about this fluid situation and continue to be conservative on any timeline expectations for their new construction projects.

A Brief Forecast of the Construction Industry Q2 2022

Posted on by Tom Radz

The construction industry in the Southwest continues to follow a positive trajectory. Growth is occurring across almost every commercial construction sector, namely industrial, office, mixed-use, retail/hospitality, healthcare, and adaptive re-use/tenant improvement. While both the office and retail sector were hit hard by the pandemic, they have both since recovered.

Confidence has returned to the construction industry and the growth is forecasted to continue, but not without its fair share of obstacles:

CONSTRUCTION LABOR
When COVID hit and the shutdown took place, many of the older workers used it as an opportunity to enter early retirement. Without having enough younger workers to replace them, especially in the more skilled construction trades, many general contractors are placing more emphasis on training and mentorship to fill that gap.

SUPPLY CHAIN ISSUES
Even though demand for construction projects remains high across the United States, the challenge of sourcing building materials continues to linger. Every sector continues to be affected by these supply chain issues, and the newly-passed Infrastructure Investment and Jobs Act will compound these issues for nongovernment construction projects.

COST OF BUILDING MATERIALS
Inflation and other factors have continued to drive up the costs on all building materials. Over this past year, we have seen a 20 percent increase in the overall cost of these materials. Skyrocketing gas prices have also contributed to the cost of doing business. As the ongoing war in the Ukraine continues to unfold, there doesn’t seem to be any indication that this problem will be alleviated any time soon. Not only have general contractors been forced to find creative solutions to sourcing their construction materials, but they also need to find alternative ways to ship them.