Facility Assessments for North Carolina Schools

Pictured above is one of nine schools in Transylvania County where Axias provided Facility Condition Assessments.

In North Carolina, school districts are required to conduct condition assessments of school facilities every five years.  This process involves evaluating the physical condition of school buildings, including structural, mechanical, electrical, plumbing, and other systems, to ensure they meet safety and performance standards.  These assessments are crucial for identifying necessary maintenance, repairs, and upgrades to maintain a safe and conducive learning environment for students and staff. The results of these assessments inform capital improvement plans and funding requests to address any identified issues.   

Over the past year, Axias has worked with many school districts and private schools, including two North Carolina school districts, conducting facility condition assessments of their facilities and developing programs to help them address capital and maintenance projects.

Transylvania County is nestled in the picturesque mountain region of western North Carolina. As a rural district, Transylvania County Schools face challenges such as funding limitations, but the County also benefits from its close-knit community relationships and unique local learning experiences. Axias was engaged to complete an assessment of the nine schools in the Transylvania County district: four elementary schools, two middle schools, and two high schools, as well as an alternative school, and district support facilities.

The assessment helped the County identify a capital need of $94 million to address construction projects over the next ten years. Common issues were identified across the schools, with roof replacements and HVAC improvements driving costs. Axias' risk-based approach to classifying recommendations identified the most critical and high-priority projects based on the consequences of not addressing these projects in a timely manner. With this risk-based prioritization information, the County's Educational Capital Work group is encouraging the board of Education to invest in a target list of projects that will have the highest impact on overall condition.  You can read more about this work here.

Across the State, in Warren County, Axias was engaged to support another district in addressing similar issues. Axias provided a condition assessment of three elementary schools to help determine if a consolidation project would be more cost-effective than capital investment in all three schools, which all needed extensive infrastructure upgrades. The condition assessment helped the School Board decide to move forward with consolidating the elementary school. Based on the findings of the FCA, the board determined it would be a more efficient use of taxpayer money and grant funds to build a new, better-designed elementary school that can comfortably serve all Warren County Schools elementary students, staff, and families.

The importance of conducting regular condition assessments of school facilities cannot be overstated. These assessments serve as a critical tool for identifying maintenance needs, repairs, and upgrades necessary to uphold safety and functionality standards in educational environments. Through our recent engagements with Transylvania County Schools and Warren County Schools in North Carolina, Axias has demonstrated its commitment to supporting rural communities in addressing infrastructure challenges. By employing a risk-based approach and collaborating closely with educational stakeholders, Axias has played a pivotal role in informing strategic decisions aimed at optimizing capital investments and improving overall learning environments. As we continue our work in partnership with school districts across the State, we remain dedicated to fostering thriving educational spaces that empower students and educators alike.

Transforming Campus Accessibility: Axias and the Impact of the ADA

Pictured above is White-Gravenor Hall at Georgetown University. Axias provided cost estimates for an accessibility improvement project, creating a barrier free entrance while maintaining the historic fabric of the building.  

In 1990, the 101st United States Congress enacted the Americans with Disabilities Act (ADA), a landmark civil rights law prohibiting discrimination based on disability. The ADA empowered the Architectural and Transportation Barriers Compliance Board (ATBCB), commonly known as the Access Board, to issue guidelines ensuring that buildings and facilities are accessible to individuals with disabilities. These guidelines set design standards for the construction and alteration of places of public accommodation, commercial facilities, and state and local government facilities.

The ADA covers various areas of discrimination against individuals with disabilities, but its impact on the built environment is especially significant in our work at Axias. Our condition assessment team regularly evaluates existing structures for ADA compliance and addresses Architectural Barriers Act-Accessibility Standards (ABAAS) for federally funded buildings and facilities. Our cost estimating team works with design teams and owners to project the costs of implementing ADA improvements.

Recently, Axias supported projects at several universities committed to enhancing campus accessibility. These universities aim to significantly improve the lives of their students, faculty, and the thousands of visitors they host. A particular focus is on updating existing buildings that predate the ADA. With the current shortage of student housing and other facilities on many college campuses, there is an emphasis on maximizing the use of existing spaces. Ensuring that facilities comply with the ADA is a crucial step in space utilization and improving the day-to-day user experience in living, learning and teaching. This makes our cost and condition assessment services invaluable for determining the scope and cost of necessary improvements.

Enhancing Campus Accessibility

Universities are starting with key areas like residence halls, classrooms, and overall site accessibility. These improvements include:

• Simple Grading Adjustments: Creating more gradual slopes around buildings for enhanced accessibility.

• Pedestrian Ramps and Railings: Integrating these into sidewalks, roads, and pedestrian crossings.

• Accessibility for Visual and Hearing Impaired: Implementing features to aid those with visual and hearing impairments.

More complex and costly projects include:

• Accessible Building Entrances: Modifying entrances to be universally accessible.

• Complete Bathroom Renovations: Updating bathrooms to meet accessibility standards.

• Building Circulation Space: Enhancing circulation areas within buildings.

• Elevator Towers: Adding elevators to buildings that currently lack them.

These enhancements often come with significant costs, requiring universities to strategically plan for these capital expenditures in their short-, mid-, and long-term budgets. For example, the cost of adding a three-stop elevator to an existing dorm building could range between $600,000 and $900,000. Restroom improvements for ADA requirement could cost around $500 per square foot bathroom area, or $30,000 per fixture base on an eight-fixture count. Many universities seek publicly available ADA compliance grants, which provide funding assistance through tax credits for alterations that improve accessibility, accurate budgets for improvement projects are an essential part of these grant applications.

Employing trusted and experienced advisors like Axias is crucial for universities, especially when seeking outside funding. Our extensive experience in the higher education sector, deep understanding of university requirements, construction costs on campuses, and the complexities of executing projects on active campuses makes us a valuable partner for institutions across the country.  Of course, accessibly is not an issue unique to university campus. Federal facilities must adhere to several key guidelines and standards to ensure accessibility for individuals with disabilities, including the ADA and ABAAS. Through Axias’ extensive work with federal agencies from elevator modernizations for the GSA to trail and pathway improvements with the National Park Services we are often called upon to assess the cost of making these important improvements and ensuring public facilities are welcoming and accessible to all.

Providing equitable access for people of all abilities is a critical issue. Despite the ADA being in place for 34 years, many public facilities still face accessibility challenges. Axias is proud to play a vital role in helping our clients improve the accessibility of their facilities, ensuring that barriers are removed, and inclusivity is enhanced.

Focus on Florida

Vizcaya Museum & Gardens

Florida State University

In 2021, Axias opened its office in Tampa, Florida, with a plan for growth into another East Coast market. Under the leadership of Vice President Steve Lee, Axias has seen success with a strategy focused on key sectors and strengths, including defense, government, higher education, and cultural facilities. A defining factor in Axias' success has been capitalizing on existing relationships with A-E firms and relationships in other markets.

In the Defense sector, our Tampa-based cost engineers have played a pivotal role in supporting significant projects for the Naval Facilities Engineering Systems Command (NAVFAC) at Kings Bay in south Georgia and Marine Corps Support Facility (MCSF) Blount Island in Jacksonville. Axias provided cost engineering, scheduling, and cost and schedule risk analysis (CSRA) support on $100 million+ projects at both bases. Additionally, Axias has been instrumental in assessing the costs of smaller-scale hurricane recovery projects at Naval Air Station Jacksonville and Naval Air Station Key West. 

Axias' Federal government resume is also growing in Florida with work for the National Park Service, a longstanding client. Our Florida team has supported projects in the iconic Everglades National Park and Big Cypress National Preserve.  With Puerto Rico being in our South East region, under the purview of our Tampa office, we also started the cost management effort on the planned renovation and expansion of the Hato Rey Federal Courthouse.

In Education, we have built on Axias' success with major institutions and leveraged our experience in the sector to secure a cost estimating, value engineering, and scheduling services contract with Florida State University. We have also completed projects for the University of Florida and Sante Fe College in Gainesville. Our work in the Education sector also extends to the K-12 segment, where Axias has worked on projects for public and private schools in the State.   

Our recent work has also been in the Cultural sector. Axias is part of a multi-disciplinary AE team engaged in various projects at the Vizcaya Museum & Gardens (Vizcaya). Vizcaya is a historic estate located in the Coconut Grove area of Miami. The Estate, with a prime location on Biscayne Bay, was built between 1914 and 1922 and resembles a 16th-century Italian villa with stunning architectural details and intricate detailing in its main house, gardens, and sculpture gardens. Vizcaya is a National Historic Landmark, and significant preservation efforts have focused on maintaining and restoring the Estate’s original beauty. The projects Axias is engaged in include ADA improvements, MEP, Fire Protection upgrades, and addressing previous hurricane-related damages.

With an impressive track record and a pipeline of projects on the horizon, including a significant State Government Office Building project in Tallahassee, Axias' momentum in Florida shows no signs of slowing down. We've recently added more staff to our Tampa-based team and continue to leverage the strength of our 37-strong Axias team to win and execute projects in the State.

Replacement Values: How Axias helps property owners understand and update these important estimates.

Building replacement values may not be at the forefront of our thoughts daily, but they are an important part of financial strategies, risk management, and property decision-making. These values, known by various names like Current Replacement Value (CRV) or Plant Replacement Value (PRV), hold significant importance across diverse sectors. In industries such as manufacturing, Replacement Asset Valuation (RAV) calculations form an integral part of proactive maintenance initiatives.

By any name, replacement values are a vital tool for building owners and operators. Axias is witnessing a surge in client requests for precise estimates, be it individual buildings, historic segments of a larger building, institution-scale portfolios, and entire government installations or campuses.

For example, Axias is collaborating with a New York-based family-owned real estate enterprise providing replacement value cost estimates to bolster their risk management and insurance valuations. Many building owners find themselves underinsured due to outdated asset valuations that fail to keep pace with escalating construction costs, evolving building technologies, and current code compliance. Recognizing this gap, clients seek Axias' expertise in cost estimation, especially when standard valuation sources prove inadequate, resulting in understated replacement values.

Axias is also currently assisting a large institutional client in Washington DC establish accurate replacement values to fortify their maintenance budgeting. Industry guidelines suggest that sustaining an asset’s optimal performance typically requires an annual investment between 1 – 2% of its replacement value. This insight empowers agencies and facility groups to advocate for higher maintenance budgets. Consider a portfolio valued at $100 million; setting aside between $1 and $2 million annually for maintenance becomes imperative, but with updated replacement values that $100 million portfolio is actually valued at $175 million, allowing the owner to justifying an increase in appropriations for annual building maintenance. 

Accurately assessing building replacement values as well as capital repair and replacement projects is a key part of Axias’ facility condition assessment services. When evaluating expansive portfolios like college campuses, clients seek comparisons to prioritize renovations, capital projects, and potentially demolition/rebuild decisions. Employing a Facility Condition Index (FCI) proves effective, calculated by dividing the total deferred maintenance value by the CRV, offering a clear rating from very poor to excellent.

Current FCI

Future FCI

We are also able to calculate five- and ten-year Facility Condition Needs Indices (FCNI), projecting building conditions if deferred maintenance and necessary capital renewals remain unattended. This helps owners gauge potential deterioration in the absence of adequate budgets. These figures also highlight the impact of undervalued replacement values; the ratio of required capital needs to building replacement value should be an apples to apples comparison, but if the CRV is not in line with current pricing, the reflected ratio is not accurate. Our team strongly advocates updating building replacement values as part of the condition assessment process.

Whether it's portfolio valuation for insurance, maintenance budget planning, or condition assessment programs, having accurate building replacement values is pivotal in asset management for financial planning and risk management. Axias' expertise is frequently enlisted to support these efforts.

Axias Celebrates New Contract with Virginia Tech

We are thrilled to share the exciting news that Axias has recently secured the renewal of our term contract with Virginia Tech (VT), reinforcing our commitment to excellence in cost estimating and scheduling services. Our partnership with VT dates back to 2019, during which we have provided invaluable cost estimating services for significant projects, including the Hitt Hall and New Dining Facility project and the new Mitchell Hall.  This renewal of this contract signifies an extended commitment, allowing Axias to provide cost and scheduling support for VT projects until 2026. We look forward to collaborating with VT on future ventures as we continue to refine and expand our expertise in the higher education sector.

Summer Brings New Staff in Alexandria and Atlanta

Axias is pleased to welcome Susan Martin to our team as a senior mechanical estimator. Susan brings a wealth of experience and passion for the cost estimating profession and with more than 30 years of experience in the field. Susan's expertise will be an asset to the Axias team as we continue the expansion of our cost estimating business.  Beyond her professional endeavors, Susan finds joy in gardening, cooking, and sewing. Her sewing skills have been put to noble use as she has dedicated her time to sewing thousands of items for the children's hospital in Philadelphia. Susan's dedication extends beyond her work and hobbies. She has contributed her expertise in cost estimating to disadvantaged programs in the City of Philadelphia for over 15 years. Additionally, she has volunteered her time to mentor high school and college students, sharing her knowledge and guidance with the younger generation. Susan will spilt her time between our East Brunswick, New Jersey and Alexandria, Virginia Offices.

The Axias' Atlanta office is pleased to welcome Taylor Ruppel as a senior facility assessor. With a background in building operations and engineering for class A commercial high-rise buildings, Taylor's expertise is complemented by industry training and certifications, including Systems Maintenance Administrator, Building Owners and Managers Association, Commercial Plumbing Code Inspector, International Code Council, and accreditation as a LEED Green Associate. Originally from Atlanta, Georgia, Taylor will feel right at home in our local office.  Taylor has various creative pursuits in his leisure time, including art, ceramics, drawing, painting, and DIY crafts. When he's not working or immersed in his hobbies, he enjoys spending quality time with his wife, their eight-month-old child, and their dog.

In May we were pleased to have John Adams re-join us as a Senior Cost Manager.  John previously worked with Axias from 2017 to 2022 and rejoined us after a brief stint with a general contractor. John has extensive experience providing cost engineering services on defense department projects and expertise in the use of MCACES (MII) and PACES cost-estimating systems on projects for USACE and NAVFAC.

Deploying UAVs to Support Axias’ Condition Assessment Offerings

Innovation and excellence are at the heart of everything we strive for at Axias, and our Condition Assessment service is leading the way with the utilization of unmanned aerial vehicles (UAV), better known as drones, during our condition assessment process. This exciting advancement is changing how we gather data, helping ensure the safety of our staff, and helping us deliver additional value to our clients.

Why use UAVs? First and foremost, safety is our top priority. By incorporating drones into our assessments, we significantly reduce the need for our inspectors to access hazardous or physically hard-to-reach areas. No more precarious climbs on rooftops, high-rise buildings, or potentially unstable structures for Axias' assessors. This means a significant decrease in the risk of accidents, falls, and injuries associated with manual inspections. We're committed to protecting our team while providing the detailed condition assessment reports Axias is known for.

Drones offer unparalleled benefits when it comes to data collection. They can access previously out-of-reach areas, such as high building facades, sloped roofs, and other often inaccessible locations. Gone are the days of relying solely on ground-level assessments with binoculars and handheld cameras. Our drones bring us up close and personal with building elements, allowing us to capture detailed photographs and videos for a more comprehensive evaluation of building systems. This opens up a world of possibilities, especially in densely populated cities where viewing angles from the ground can be limited due to the city's vertical nature.

At Axias, our commitment to providing detailed facility and property condition assessments remains unwavering. We aim to surpass the industry standards set by ASTM, constantly seeking ways to improve and mitigate risks for our valued clients and their investments. Our dedication to excellence continues to garner positive feedback, and we're excited to roll out this service wherever necessary and permitted by the FAA.

Our drones were high above Bear Creek Lake Park in Lakewood, Colorado last week helping us get a bird’s eye view of trail and parking surface conditions, and up-close views of sloped roofs. This condition assessment work is supporting the City’s master planning efforts for the 2,624-acre park.

Axias Around the World

Axias is well known for our expertise in international construction costs. We have been supporting the US Army Corps of Engineers Huntsville District with development of the Worldwide Area Cost Factors for the past three years conducting market research into construction trends; collecting labor rates for eight different crafts and indexing costs for 18 commonly used construction materials.  Our research also focuses on hourly rates for construction equipment, typical labor productivity on projects, labor availability and currency exchange rates. With this experience and market knowledge it is no wonder that Axias continues to lend its expertise to construction projects around the world.

In June, Axias was in the Philippines at the Manila American Cemetery and Memorial, supporting a planned project for the American Battle Monuments Commission. The AMBC is a US Government Agency that operates and maintains 26 American cemeteries and 30 memorials, monuments, and markers in 17 countries. The Manila American Cemetery and Memorial is the largest administered by the AMBC in the number of graves and of those missing whose names are recorded on the Wall of Missing, an engraved tablet that honors 36,286 Missing in Action in WWII American operations in the Pacific. Axias is proud to be part of projects that will keep this site accessible to visitors and continue to honor those who sacrificed their lives in service to their country.  

Our next stop takes the Axias team to an archipelago off the coast of West Africa where Axias just completed a value engineering and cost and schedule risk analysis workshop for a major government agency project. Unfortunately for us, this project did not include a site visit – we’re sure our team would have enjoyed the picturesque landscapes of these stunning islands. 

We’re also active in Europe - our team has had several recent visits to Poland as we continue to support USACE Europe with the US Army Europe-Africa (USAREUR) European Deterrence Initiative (EDI) Area Develop Plan. Axias is developing programmatic cost estimates for the projects identified in planning workshops. Our services include attending multiple week-long site visits and participating in planning charrettes in several Polish towns and villages. Our cost estimating efforts contribute to the bi-lateral US and Polish developed real property master plan in Poland, including a phased execution plan and a capital investment strategy for the entire country supporting Command Operational Imperatives and a capacity plan to adapt to future missions that emerge or change. Axias has supported Long Range Development Planning and Area Development Plans in the country and elsewhere in Central and Eastern Europe since 2016.

A little closer to home, we have recently kicked off work on the New US Courthouse Annex in Hato Rey, Puerto Rico where Axias will provide our cost engineering expertise supporting GSA's Construction Management Advisor (CMa). Axias will provide cost estimating from the initial concept design through construction documents, including reconciliation with the CMC at each design phase. Axias will also facilitate value engineering workshops during design. The Courthouse Annex project at the Federal Campus in San Juan will add space for new courtrooms, judge's chambers, and ancillary areas for the Court's operations and the US Marshals Services. The new Courthouse Annex is part of a complex multi-phase construction program at the Federal Campus. Axias has been supporting projects in Puerto Rico for several years, beginning with extensive disaster recovery cost estimating following the damage caused by Hurricane Maria and continuing today with this major federal program. 

Axias Awarded Cost Engineering IDIQ with USACE Huntington District

Axias is thrilled to have been awarded a five-year, $10 million Architect-Engineer Services Indefinite Delivery/Indefinite Quantity (ID/IQ) contract to provide cost engineering services for the US Army Corps of Engineers (USACE) Huntington District. Under this contract, Axias will provide cost engineering services utilizing MCACES, value management, cost and schedule risk analysis (CSRA), and other project and program management consulting services.    

The Army Corps of Engineers Huntington District is responsible for various civil and military engineering projects across the Ohio River Basin, including parts of Ohio, West Virginia, Kentucky, and Virginia. The USACE Huntington District undertakes many projects, including flood risk management, navigation and dredging, environmental restoration, hazardous toxic and radioactive waste clean-up, infrastructure development, emergency response, and military support.

The engagement expands Axias’ relationship with the Army Corps of Engineers, where we have been providing cost consulting services developing the worldwide area cost factors for USACE Huntsville and for USACE Europe, where Axias has provided cost engineering expertise on long-range development planning, area development plans, Army family housing master planning, and the Polish Provided Infrastructure Program.

Axias Atlanta Team Attends the Trilith Studios Phase V Topping Out Ceremony

Adam Bergantino  and Ben Warner with Fayetteville Mayor Edward Johnson 

Earlier this week, the Axias Atlanta team attended the Trilith Studios Phase V Project topping out ceremony in Fayetteville, GA. The project is an expansion of the Trilith Studios production campus and includes new sound stages, backlots, workshops, office, and warehouse space.

Trilith Studios is a well-known film and television production studio located south of Atlanta. The Studio, originally known as Pinewood Atlanta Studios, has hosted many popular TV shows and moves from "The Walking Dead" and "Stranger Things" to many Marvel movies, including "Avengers: Endgame" and "Black Panther."

Trilith has significantly impacted Atlanta, creating thousands of jobs in the film and TV industry, and stimulating economic growth in the surrounding area. Trilith also put Atlanta on the map as a major film and television production hub, offering excellent facilities, diverse filming locations, and tax incentives for film producers.

Axias provides construction monitoring services for a major global investment banking firm on the Phase V project. Axias personnel visit the site monthly to review construction progress, verify contractor payment requests versus work in place, the construction schedule, and the overall development budget.  

Axias Atlanta team members Ben Warner, Liz Hines, Adam Bergantino, and George Shields attended the topping out ceremony on Monday, April 17th. They signed the final beam, leaving their, and Axias', permanent mark on the building.

Axias team at the project site. 

Celebrating Ten Years of Axias!

Axias started in 2013 with just the two of us, Martin Jacobs and Scott Cullen. We've had countless milestones in the journey to our tenth anniversary. It all started with our work on the iconic Watergate Hotel and has grown into a multi-disciplined firm with a global reach. Only with our excellent team's dedication and the support of our amazing clients and partners have we achieved so much in just ten short years. We cannot thank all of you enough for making Axias what it is today. With your support, we will reach even greater heights in the future.

New Jersey Welcomes Richard Wilson

The New York/New Jersey office welcomed Richard in February as a director with a wide range of experience across both public and private projects.  Richard is going to be a key member of the team when it comes to growing our outreach into more sectors and services.

Richard graduated from Staffordshire University in England with a degree in Quantity Surveying.  He has worked on numerous large-scale projects throughout his career, including healthcare, academia, commercial, government, cultural, and transportation/infrastructure. In addition to cost estimating, he has experience in building assessment and project management.  Learn more about Richard here.

Celebrating the Holiday Season and Looking Forward to 2023

After several years of navigating remote working and social distancing, Axias was thrilled to gather (almost) all our staff in one place this December to celebrate a successful year.  The Axias team gathered in Old Town Alexandria to share a meal and raise a glass to another successful year.

2022 has been a year of growth, opening another office, this time in Atlanta, and adding 11 new staff to our Alexandria, Atlanta, and Tampa teams. Our investment in our people and service offerings to our clients has led to many successes this year.  To highlight a few …

• New cost estimating contracts with Georgetown University, Florida State University, and Clemson University, expanding our higher education portfolio.

• Completing a significant facility condition assessment program along the Blue Ridge Parkway, expanding our services to National Park Service, a long-term client. 

• We continued our work in Guam with a major program, further solidifying our expertise in OCONUS projects for the U.S. government.

• Working with The Smithsonian Institution on estimating building replacement values, including the unique facilities at the Smithsonian Conservation Biology Institute.

• Continuing our work with the State Department with a new value engineering contract.

As we move into 2023 and celebrate our tenth anniversary, we are immensely grateful for our talented and diverse staff and their dedication to building value for our clients and partners. 

Assessing Risk in Construction Projects

When the COVID-19 pandemic took hold in March 2020, the impact was far more significant than anyone expected. The construction industry was particularly hard hit, given its in-person, on-site nature. The magnitude of the risk associated with the pandemic was not anticipated or factored into active projects, and the impact to project budgets and schedules was significant.  Under normal circumstances, construction is an inherently risky undertaking. However, more typical and expected project risks can be forecast and plugged into a budget or schedule.

The project management tool for risk management on construction projects is generally referred to as cost schedule risk analysis (CSRA).  It is widely used across all industry sectors and is mandated on Department of Defense projects above a specified dollar value.

CSRA should be implemented in the early design stages, either during concept or schematic design. Completing it when the program has been established and basic project parameters have been identified reaps abundant benefits by:

• Encourages project stakeholders to think holistically about shared priorities and goals

• Provides a platform for review of all project assumptions and constraints

• Quantifies cost and schedule contingencies needed to account for risks

• Plans risk responses to counter project risks

• Reduces project cost and schedule through early-stage intervention and risk management

• Enhances project team collaboration and communication

The Axias process of CSRA is an iterative approach that revolves around the following steps:

Many of the components for a successful CSRA are in the preparation for and facilitation of a working session, which should involve the following key components:

Following the session, multiple iterations of potential outcomes are processed using Oracle Crystal Ball to perform Monte Carlo simulations, generating a range of potential costs and project durations.

The team can then reach consensus on what level of confidence they need on both aspects and assign contingencies accordingly, i.e., dollar amount in the estimate and float in the schedule. The result is a data-driven approach to assessing the most likely outcome of the project cost and schedule, balancing the actual risks that are present with reasonable allowances for managing those risks.

We treat CSRA as a continuous process through various design phases and occasionally into construction. CSRA workshops can continue to be held at key points of the schedule to facilitate ongoing discussions by stakeholders, using the risk register to track all the risk items with periodic reviews, updates, and reports. 

Conversations about cost and schedule risk early in the design phase promotes more accurate forecasting and project controls. A major modernization at the Norfolk Naval Shipyard is a case in point. The results of the CSRA, based on an 80% probability confidence level, significantly increased the originally recommended risk contingency. Because the CRSA was completed before design completion and bidding, the owner had a better understanding of the risks, how the cost was developed, and more confidence in the cost estimate, which in turn led to a successful award once bids were received.

Axias Awarded FSU Contract

Florida State University has awarded Axias a three-year term contract, with two additional option years, to provide construction cost consulting services and assist the university with establishing realistic estimates and budgets for projects. Our team of professionals will support FSU through the entire project lifecycle, with services ranging from facility condition assessment, long-range capital planning, feasibility studies, and early concept cost estimates to design phase cost estimates, third-party budget reconciliations, value engineering, GMP negotiation, and construction phase cost audits.

FSU is one of the largest and oldest of the 12 institutions of higher learning in the State University System of Florida and extends over three campuses: main (Leon County), Sarasota, and Panama City. Many current and planned construction projects are in the works, including an $88 million research facility and a $120 million new business school. This contract is an exciting win for our Tampa, Florida, office and builds on our long and successful track record working with higher education institutions.

The recent volatile and uncertain construction economy has shown the value of professional and independent construction cost consulting as fluctuating material, equipment, and labor costs continue to pressure project budgets. Public entities continue to rely on and benefit from our services that support their planning and budget validation processes.

For more information about our work in Florida, please contact Steve Lee.

Construction Pricing's 12-Month Trajectory

The 12-month period from May 2021 to April 2022 saw some of the highest increases in construction pricing since the 1970s. Our internal data indicates that in the DC metro area, average monthly increases in bid prices are approximately 1%, for an annual increase of over 12%. The impact varies across project types and market sectors. Labor-intensive activities such as demolition and renovation work have not been impacted as much as material-intensive projects such as new construction or prefabricated buildings. Engineering News Record (ENR) reports their Building Cost Index for 2021 increasing by 13.1%, as a national average.

The traditional relationship of supply and demand still applies. The surge following two years of restricted market activity has contributed significantly to the demand side of the equation. On the supply side, the well-documented supply chain disruptions, now exacerbated by increased oil and transportation costs, have been a potent combination. Most forecasters have been caught off guard by how long inflation has stayed at elevated levels. Even with the recent interest rate increases, it appears that inflation will remain well above historical levels through 2022. There is also a suspicion of a “bandwagon effect” in many industries, with suppliers recognizing an opportunity to recoup losses incurred during the pandemic by increasing prices. Some are taking advantage of the situation well beyond the existing raw material or delivery challenges, examples being the price of PVC pipe doubling in 12 months or wall framing costs increasing by 80%.

Axias regularly surveys the components of construction costs in many areas of the United States. This includes input costs such as labor rates, material costs, and equipment pricing. We also track the more market-driven output costs, profit margins, and similar indirect costs, which determine bid levels. One recently completed nationwide survey indicated the following general conclusions on input costs:

The primary contributors with the highest material increases have been copper products such as wire, steel-based finished products like steel pipe, door frames, EMT conduit, and wall framing; and plastic-based products such as PVC pipe. With the cyclical nature of commodity pricing, some materials can reduce year-over-year, but that did not happen in the last 12 months, which was unusual. Labor shortages are well-documented, but this hasn’t demonstrably impacted wage levels thus far.

With bid prices only increasing by 12% in the DC metro area, it is clear some costs are being absorbed or negotiated out by sub-contractors, whereas others are being recovered through contract changes and claims. Because this is largely unsustainable, bid prices will continue to rise over the course of the year but then likely begin to level off and slowly decrease as a result.

Forecast for 2023 - 2024

Chief Economist Simon Baptist of the Economist Intelligence Unit in mid-June stated that:

“In quarter-on-quarter terms, US consumer price inflation should fall below 1% by the fourth quarter and continue to drift further downwards throughout 2023. Year-on-year inflation measures will also cool but remain elevated until the second quarter of 2023, when the dramatic commodity price shifts following Russia's invasion of Ukraine fall out of the base of comparison. Although the inflation rate will drop, we don't expect to see deflation, and commodity prices will merely stop increasing rather than giving up their gains of the first half of this year. Even as commodity prices drop back, there will be continued cost pass-through at subsequent levels of the supply chain as producers and retailers adjust prices to reflect this new, higher medium-term level of commodity prices.”

At Axias, we review multiple data sources to inform our escalation and inflation calculations.  Still, the above most closely aligns with how we see the construction market over the next 18 months: a cooling off towards the end of this year to an annualized rate of 8.5%, continuing to drop in 2023 to 6% for the year, and in 2024 reverting closer to historical averages but remaining elevated at 4.5%.

A New Face in Marketing: Tori Sandelli

Tori joined Axias in June 2022 as marketing and proposals assistant. With a foundation in graphic design and marketing, she brings a fresh perspective to the company’s brand identity and visual consistency.  Although she is a newcomer to the A/E/C industry, Tori is enthusiastic about learning and adding value to the team.

A graduate of James Madison University, Tori now lives in Falls Church. In her free time, she does digital art and explores a wide range of hobbies, from tabletop games to armor crafting.  She also loves spending time with her fiancé and Sylvie, their Staffordshire terrier mix. 

Getting Social: Team Building and Baseball Teams

After more than two years of remote working, and exponential growth during the same period, good food and a Washington Nationals game was just the ticket for Axias staff team-building and fun.

On May 25 we gathered in the Alexandria office and took advantage of the beautiful spring weather to have lunch on our rooftop deck.  Then it was off to Nationals Park to see the home team take on the LA Dodgers and emerge victorious.

The best part of the day was bringing staff from our other four offices (North Jersey, Atlanta, Tampa, and Denver) together in the same place, with many meeting in person for the very first time. This was especially meaningful as we experienced unprecedented growth over the past two years during the pandemic, when most business functions were carried out virtually.

Atlanta Office Welcomes George Shields

Our cost estimating/cost management department just grew! George H. Shields, III, has joined the team as a senior cost engineer in Atlanta, where he will leverage his prior 33 years of experience on projects for the Smithsonian, the Department of Defense, and the U.S. Army Corps of Engineers.

A civil engineer with a B.S. from Spring Garden College in Philadelphia, George moved from Philly to Atlanta 23 years ago. He has traveled widely for previous jobs; among his most memorable assignments were spending several nights in Alcatraz Prison for the National Park Service and visiting a project site in Japan during cherry blossom season. Get to know George better here.

Prince George's County Facilities Master Plan

Axias is part of the K. Dixon Architecture PLLC team that was recently awarded a contract by Prince George’s County, Maryland, to provide planning for county facilities that will result in a 10-year master plan. The project, which addresses 20 buildings totaling 2.2 million square feet, will enable the county to make informed decisions and set priorities for the maintenance, improvement, adaptability, and sustainability of its numerous property assets.

Among the facilities in the county’s substantial portfolio to be assessed are office, public works and warehouse buildings; fire and police stations; the County Correctional Center; and at 900,000 square feet, the largest county courthouse in the United States.

Axias is providing facility condition assessment (FCA) services on the project. Led by Thomas Hall, MRICS, we are conducting a full FCA on two buildings—Inglewood Business Center and Cranford-Graves Fire Services Building. A full FCA covers identification of deficiencies in all major building elements and systems, including site, building envelope, structural elements, MEP, fire safety, elevators, interior common elements, and ADA compliance.

Our next task is a partial scope assessment of two additional buildings, Largo Government Center and an administrative services/warehouse building in Landover. K. Dixon will then proceed with the remainder of the full FCAs, with Axias providing technical QA/QC of those reports.