Planning for the unpredictable

September is National Preparedness Month! So this week, we’ve got advice to help you respond effectively in a disaster and prepare better budgets. We also check in on the hotel-to-housing trend. 

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Don’t overlook these aspects of an emergency plan

It’s not just for Scouts; being prepared is for construction executives, too. With news of FEMA officials’ doubt over the government’s capacity for disaster response and increased climate volatility, now is a good time to review, update or create an emergency action plan, notes Raffi Elchemmas, the Mechanical Contractors Association of America’s executive director of safety, health and risk management. “Identifying the potential emergency and disaster-related risks is the first step in managing those risks. Asking those ‘What if?’ questions can go a long way toward preparation and response actions," says Elchemmas. 

Beyond the plan, though, are two often overlooked tasks that improve emergency response: training and partnerships. “I strongly suggest all contractors prepare and practice [a plan] that suits the various risks they face,” he counsels. In addition to reviewing the plan with employees, schedule periodic run-throughs to keep procedures fresh and do toolbox talks when weather events are forecast. It’s also wise to reach out to your community’s emergency management agency, your utility providers and your insurance brokers. They can review your plan (or help you build one) to make sure you have the resources you need to respond quickly and effectively.  

Why it matters: Natural disasters and other disruptions can’t be predicted. Investing in preparedness is the best way to get through a calamity with minimal negative impacts to safety, productivity and budget. Don’t wait to plan. (ACHR News)

Communities welcome hospitality-to-housing conversions

Demand for lodging continues to slow as the need for housing accelerates. These opposing trends are increasing interest in converting hospitality properties into homes for unhoused or lower-income residents. And governments are responding with incentives to prompt re-use, including California, Oregon, Montgomery County, Pa., and New Castle, Del. The transformation is dramatic. For its recent conversion, San Buenaventura Housing Authority “gutted the rooms. They were brought back to the studs,” says CEO Jeffrey Lambert, and rebuilt with kitchenettes and other amenities more in line with a home than a hotel room. 

Why it matters: This trend can be a new line of business for you. Check in with your local housing authority or nonprofit developers to see if they have projects in the pipeline. Also, talk to commercial brokers who may have a line on landlords motivated to sell or convert. (Governing)

How to forecast costs with more accuracy

Building an accurate budget takes more than cyphering on the back of an envelope. Knowing how material and labor costs are trending—and how they impact construction costs—is crucial for on-target forecasts. Technology can help you “provide clients with more reliable cost estimates and better manage financial risks for upcoming projects,” explains Suffolk’s general manager of Florida East Coast operations, Tom Thrasher.

Why it matters: Predictive analytics and modeling tools simulate the financial impact of market shifts using historical and real-time data. That reduces variables so you can uncover and analyze trends for more precise budget projections. (Miami Today)

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Planning for unplanned expenses 

"We build in a big line-item early on, knowing that we're going to discover opportunities as we go through. Ultimately, though, we don't have an endless amount of money, [but] the best opportunities, we always make sure we capture." 
—Aaron Tudisco, Ridge Design + Build

When you’re a spec homebuilder, it can be easy to get carried away with cool finishes, gee-whiz technology or high-priced materials. Builder Aaron Tudisco of Ridge Design + Build joined “The Curious Builder” podcast to talk a range of topics, including how his family construction business keeps the budget intact.

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The Level is curated and written by Margot Lester and edited by Bianca Prieto.