Greater Pacific Construction - Convergence of Manufacturing and Construction: A Game Changer

Convergence of Manufacturing and Construction: A Game Changer

It may have been unthinkable in the past that manufacturing and construction would actually come together. Both used to be distinct and separate from each other but with modern technologies and automation, the two industries have come together and are proving to be a game changer. The era of digital disruption has paved the way to create new breed of companies, challenging the traditional conventions and merging seemingly unrelated industries.

The manufacturing and construction industries are now closely linked, thanks to its professionals who continue to seek ways to improve their processes. The Architecture, Engineering and Construction industry (AEC) is on the prowl on finding efficient ways to bring their designs to life to build or for construction. With advances in technology, they even create new opportunities for distinct advantages in the market.

With convergence, architects, and the construction industry in general, are looking to manufacturing for inspiration in terms of streamlining their own systems. A great example is the manufacturing industry’s assembly line that is modular, repeatable, and precise. The construction industry is gaining insights in terms of standardizing processes that help manage and accelerate project timelines. Construction companies are now collaborating with manufacturers as they utilize pre-fabrication, smart models, 3D printing, modular systems, and many others. Meanwhile, the manufacturing industry is learning from the agility of the construction industry. Manufacturers now build flexible factories that can be restructured or re-engineered creating compact batches of valuable components for unique needs of various markets.

Greater Pacific Construction, which supports technological advancements in the construction industry, offers more insights on the benefits of construction and manufacturing convergence.

Efficient and safer construction practices

It’s no secret that the construction industry has had issues with physical danger to workers and waste of materials. A construction site is traditionally congested due to the presence of workers and materials sharing almost the same space. Builders who use manufacturing methods now have pre-fabricated components (a room, for example) that are delivered on site. The workers only need to install the assembled units. With convergence, the issues are addressed thereby allowing for a reduction in waste as well as create a safer construction sites.

Developing and Improving Skills

As continued learning and discovering happens with the application of new technologies and practices, the skill sets of professionals also improve and even cross boundaries. Architects are now able to build structures that function more like products and manufacturing designers have creations that look more like structures. In no time, making and building will become relatively consistent across industries and its professionals can move flexibly between fields, applying their skills and tools with them.

Disruptive technologies

With the onset of digitization, many processes in both manufacturing and construction have undeniably improved. Most of the modern technologies have created lean and smarter ways to build or produce. Take a look on some of these technologies.

  • Generative design changes the way architects and designers create structures. Architects are able to see their designs in different scenarios and work on possible solutions to find the best options – all computer-generated. To illustrate, an architect is able to combine blueprints with external factors like environmental noise, light or traffic flow and then see what works best for their building project.
  • 3D printing makes it possible to build faster and safer. The use of 3D printing technology is gaining popularity from using it to print molds for precast concrete to actual buildings. A good example is Dubai in the United Arab Emirates where 3D printed buildings exist.
    Robotics helps construction companies to automate some of its tasks thereby providing safer and accurate work process, save on labor costs, and reduce waste. For example, robots can weld connectors to beams and columns.
  • The use of virtual reality (VR) and augmented reality (AR) is common among manufacturers for customer presentation or review. Architects also benefit from using VR and AR as they move from physical to virtual processes, switching from manually drawn plans to 3D mock ups and simulations (interactive changing of finishing or colors, for example).

In Orange County, Greater Pacific Construction ensures the use of both traditional and modern practices to provide best outcomes for our clients.
With particular designs and requirements you need for your commercial space, finding the right contractor is a must. An experienced general contractor in Orange County can do these improvements within the agreed time frame, with the least discomfort or inconvenience to your operations.

Greater Pacific Construction in Orange County is of great reputation and experienced general contractors. Currently, they have quite impressive portfolio of commercial projects completed successfully and to the utmost satisfaction of their clients in Orange County.

Greater Pacific Construction - Tenant Improvements: What You Need To Know

Tenant Improvements: Things To Know

Congratulations! So, you found the perfect commercial place for your business! But just before you sign the contract, consider first what tenant improvements you are allowed before you start designing your space as per your needs.

What is “Tenant Improvements”

Tenant improvements or leasehold improvements are simply the bespoke interior finish or build-outs that a landlord or tenant will do on a specific commercial rental space for the benefit of the lessor. The rental space could be an office, shop, or warehouse.

The reason you need to hold your horses (if you are the possible tenant) before signing that commercial lease contract is because you need to be fully aware of the terms on alterations you or your landlord can do to the space. You do not want to spend money making improvements only to find out your landlord is against it, right? Also, when the lease term is up, who owns the improvements made? Therefore, it is necessary that tenant improvements must be negotiated clearly and agreed upon by the tenant and landlord prior to signing the commercial lease agreement.

Also, improvements can be secured to the property or assessed to the tenant on the unsecured assessment roll, according to the California State Board of Equalization. Further, properties – commercial, industrial, and others that generate income, require regular monitoring by the assessor to determine value in light of the changes made. Alterations in the property must be reflected in the assessment if they qualify as new construction or not as required by law.

The California Revenue and Taxation Code Section 441(d) requires the landlord and tenant to provide the assessor with a copy of the lease and the construction contract. Don’t worry because the terms and information provided in both the lease and construction contracts are kept strictly confidential. The assessor needs to analyze the lease to determine whether a separate assessment for the lessee-owned improvements should be created.

In case the lease has ended and nothing was defined in the contract between the tenant and landlord, it will be good to know that the law has defined default rules on fixtures that a tenant may or may not remove. Generally, fixtures are those affixed to the property like water heater, pipes, air conditioners, built-in furniture like cabinets, sink, and others.

The California Civil Code §1019 allows a tenant to remove during the lease term from the premises “anything affixed for purposes of trade, manufacture, ornament, or domestic use, if the removal can be effected without injury to the premises, unless the thing has, by the manner in which it is affixed, become an integral part of the premises.” If the tenant does not remove these before handing over the property, it is deemed part of the premises and owned by the landlord.

The State of California basically allows a tenant to remove any improvements it has made on the premises before returning the property. The tenant must return the property in pre-improvement conditions. In this case, tenant must repair the property or compensate the landlord if the removal of any improvements will cause any damage. The most common example will be re-sealing a wall that bore a hole due to an improvement done.

Still with us? Carry on, we have a few more to talk about.

Who Pays?

Tricky. But not really. Everything can be resolved through good negotiations. In tenant improvements, the landlord would generally pay for the alterations. This is so that the property can attract a long-term lease.

There are also several ways to go about tenant improvements. The paying landlord can shoulder a tenant improvement allowance of $5 to $15 per square foot budget on the build-outs. The landlord also oversees the project.

On the other hand, the landlord can also offer a discount on rent for a number of months if the tenant is shouldering the improvements. In this case, the tenant oversees and controls the project.

What Tenant Improvements Are Allowed

Having established your agreement with the landlord, you are now ready to embark on your space improvements. Every tenant improvement is unique as it is guided by your own design principle in consideration of company culture, functional and aesthetic needs, and many more. This is also why an experienced and reliable contractor such as Greater Pacific Construction is a necessary ally.

Tenant improvements are necessary in most commercial spaces as it is quite uncommon to find a space that exactly meets your needs. The negotiation of a favorable tenant improvement agreement with the landlord is crucially important to minimize your capital expenses. The alterations are structural by nature:

  • Partitions
  • New floor (tiles or carpets)
  • Walls
  • Plumbing
  • Electrical
  • Disability changes or upgrades
  • New or change paint
  • Adjustments in ceilings
  • Windows
  • Any other structural changes agreed upon

Cost and Timeframe

The timing and cost of tenant improvements largely depend on the scope of the work and the existing condition of the premises. A property without built-outs or in shell condition will relatively cost significantly to improve. It may also take an average of three to four months to complete. It is expected to cost less and faster to improve if the property has been previously occupied (unless a complete redesign is envisioned).

Design and Planning

With everything done and dusted between the landlord and tenant, the next phase is to find that reliable partner in executing the improvements.

As time costs money, it is necessary to discuss the budget with your contractor and the expected completion time (based on your need to operate). When looking for a contractor, consider the following:

  • Reputation of the contractor to deliver timely and impeccable services
  • Licensed
  • Insured
  • History in the business
  • References or sample projects that have been completed
  • Knowledge of local building codes and requirements

Look no further as Greater Pacific Construction have been in the industry for over a decade and has some of the most impressive projects in Orange County.

The General Contractor

With particular designs and requirements you need for your commercial space, finding the right contractor is a must. An experienced general contractor in Orange County can do these improvements within the agreed time frame, with the least discomfort or inconvenience to your operations.

Greater Pacific Construction in Orange County is of great reputation and experienced general contractors. Currently, they have quite an impressive portfolio of commercial projects completed successfully and to the utmost satisfaction of their clients in Orange County.