Sustainability
Following a $200 million water project win in Nevada in April, Carollo Engineers has secured a $210 million construction management contract for Phase 1 of the Ophir Water Treatment Plant in Placer County, California. Phase 1 will add 10 million gallons per day of treatment capacity, serving approximately 10,000 households.
Since tariffs took effect in early 2025, construction costs have surged, exposing the drawbacks of traditional project models. By identifying material risks early and optimizing procurement strategies, pre-construction is shifting from the periphery to the core, becoming a key reliance for owners navigating uncertainty.
When pursuing growth, contractors are often exposed to significant losses due to mismatches among contract terms, risk allocation, and insurance coverage. Based on industry practices, this article analyzes key stages such as bid-stage review, understanding of indemnity clauses, adjustments to insurance programs, and risk management of subcontractors, emphasizing the value of early collaboration and professional advisors to help contractors achieve sustainable growth.
Detroit-based builder Walbridge, on Ford's $2.5 billion manufacturing facility project in Marshall, Michigan, partnered with Grand Rapids-based Woodchuck, using an AI-driven waste sorting platform to achieve 40% of the project's expected material savings in the first three months of collaboration, with plans to divert 8,000 tons of wood and 1,000 tons of cardboard, plastic, and metal from landfills over the project's duration.
NAR's sustainability survey of commercial real estate brokers found that although most brokers agree on the value of energy efficiency and green building features, only 13% of respondents' commercial information exchange (CIE) systems have green data fields, and most brokers rarely encounter such properties. The survey also shows that tenants are highly interested in green amenities, but buyers and tenants still regard hard costs as the primary consideration.
In response to the frequent extreme rainfall caused by climate change, New York City announced a $68 million investment in Brooklyn's Prospect Park to build the borough's first Bluebelt system. The project will upgrade lake drainage facilities, create new ponds and rain gardens to naturally mitigate flood risks, and complement the existing lakeshore restoration plan.
Michigan has introduced the Mass Timber Catalyst Program, offering grants of $25,000 to $75,000 and expert guidance for projects using this material, aiming to drive the green transformation of the construction industry.
Over the past decade, ESG considerations have become increasingly prevalent in commercial real estate development. For multifamily developers and investors, ESG is not just about green building certifications but has become an important basis for investment evaluation, insurance negotiations, and risk management. This article explores the three dimensions of ESG, insurance and environmental risks, and how to protect asset value through due diligence and disclosure.
Mass timber construction is booming, with project numbers up more than fivefold since 2016. Ironworkers argue their expertise in heavy rigging and structural framing makes them ideal for these builds, though they acknowledge material differences and advocate for hybrid crews that combine trades for best outcomes.
Amazon announced on Thursday the opening of a delivery facility in Elkhart, Indiana, whose structure extensively uses mass timber (a low-carbon building material) and integrates more than 40 sustainability initiatives. The company stated that the facility will serve as a 'laboratory' for sustainable construction and operations to test and promote related practices.