Bluescape Construction Management

Homing in┬áStarting up a business in the current economic climate might seem a risky proposition, but 30 years of construction management experience and a sky-high reputation for building high-rise apartments have provided firm foundations for a burgeoning business, Andrew Pelis learns. Bluescape Construction Management came to fruition around a year ago, but principals Pat Sena and Louis J. Hack had worked together for over five years previously.  ÔÇ£We both worked for another company and primarily for one developer,ÔÇØ states Hack, who spent several years managing design-build projects and has a key role in the companyÔÇÖs management of construction activities, pricing, estimating and construction cost control. ÔÇ£It was a good time for us to start the company, and weÔÇÖve had a very good first year,ÔÇØ he continues. ÔÇ£The nature of our work means weÔÇÖre involved in projects for two- or three-year periods at a time, and weÔÇÖve been fortunate, given the economic downturn, that a couple of the projects are still ongoing.ÔÇØThe company currently concentrates its expertise on two areas of construction: the high-rise residential condominium market and also affordable housing projects in Toronto. Both Hack and Sena have extensive experience in the high-rise sector, and theyÔÇÖve built a strong relationship with an organization called Toronto Community Housing Corporation, which in recent years has been very active in the area of affordable housing.ÔÇ£There are distinct differences between the two markets we operate in,ÔÇØ explains Sena. ÔÇ£With affordable housing, financing is often already in place, and there is typically a tender process for a developer/construction manager. In the condominium market, land is procured and the decision is then made to build condos. We will work with the design consultants in the design development and sometimes even the marketing of the units being built. As part of this process, we can provide value engineering expertise, and once the drawings are finished and the permits are in place, we manage the construction phase.ÔÇØ┬á At present the company is involved in two high-profile projects in Toronto. The 501 Adelaide St. East project to construct a 14-story building comprising 180 units of affordable housing in the downtown area is set for completion in summer 2009. Hack and Sena began work on the 200,000-square-foot site in July 2007 and remain very much on schedule.The Bloor Street Transformation Project (set in the cityÔÇÖs main shopping district) has presented a different set of challenges. ÔÇ£We were asked if we could help to manage the renovation of one mile of TorontoÔÇÖs most high-end shopping street,ÔÇØ explains Sena. ÔÇ£The plan was to repave the street with granite, plant trees and implement an underground natural irrigation system. In total the cost will be in the region of $25 million. There have been a lot of surprises with the existing underground services, and while we have some experience in landscaping, the Bloor Street project has involved much more than we were used to. However, IÔÇÖm pleased to say that roughly one year into the project, about 40 percent of the work is now complete.ÔÇØ┬á With financial pressures affecting many industries including construction, Bluescape has seen a couple of projects put on hold indefinitely; however, as Hack describes, the company is well positioned to ride out the current hardships. ÔÇ£In the last year weÔÇÖve been successful in finding a couple of new projects that have yet to begin. One of these in downtown Toronto will be our biggest project to date, costing as much as $150 million on completion.ÔÇØ This exciting new venture will again see the company involved in the construction of affordable housing on land not far from the cityÔÇÖs railway station. Upon completion, the complex will comprise five or six buildings built on two adjacent parcels of land.Over the years Hack and Sena have seen a number of changes in the approach to construction management, with much greater focus today on environmental issues. ÔÇ£This is a relatively new area in Canada,ÔÇØ states Hack. ÔÇ£We have always been aware of the need to keep down building operating costs, but in the last five years in particular green issues have crept into our building work. However, while LEED accreditation has become popular, in the current economy itÔÇÖs not always a viable option, and it can cost money to save money.ÔÇØHealth and safety became another area the construction industry needed to devote more attention to and is a key focus for Bluescape. ÔÇ£As company owners, safety is our number one priority,ÔÇØ says Sena. ÔÇ£We have a full-time safety inspector on-site each day and hold regular safety meetings with our partners.ÔÇØSo with such demands, how is Bluescape able to deliver on-time, quality housing? ÔÇ£Developers are very aware of our background,ÔÇØ Sena explains. ÔÇ£If we couldnÔÇÖt deliver, we wouldnÔÇÖt secure future work.ÔÇØÔÇ£You have to be well organized in the first place, and both Pat and I are very hands-on: Pat deals with quality while I focus on schedules and costs,ÔÇØ adds Hack. Part of that process involves selecting the right suppliers, and with such a focus on the Toronto skyline, Bluescape tends to use local resources. ÔÇ£One of the advantages of construction management in Toronto is that there may be numerous suppliers providing the same product or service, such as window installation,ÔÇØ says Hack. ÔÇ£However, for the large projects we may look at several different companies but decide that three or four are too small. That said, we like to give new companies an opportunity, though the final decision on who we work with may not come down to us; after all, it is the developerÔÇÖs money.ÔÇØ Repeat business has become a feature of BluescapeÔÇÖs success, and Hack and Sena are confident this will continue. ÔÇ£The people we work with appreciate the hands-on attention we give them,ÔÇØ states Hack. ÔÇ£We do whatever it takes to get the job done and certainly do not limit our working hours to between 9 and 5. You have to be absolutely committed to be successful.ÔÇØ ÔÇ£WeÔÇÖre always looking further afield for opportunities, but business is good for us right now,ÔÇØ adds Sena. ÔÇ£WeÔÇÖre finding things manageable, and one positive aspect of the economic downturn for us has been that the quality of people available to work on our projects has improved. We have a nice market and are very happy right now,ÔÇØ he concludes. ÔÇô Editorial research by Michael Fretwell┬á