BUILDING AROUND COST
 
Even with the rising costs of materials, contractors in Texas continue to find ways to construct quality products in a speedy manner.
 

 
Contractors throughout Texas are not having any trouble finding new projects to build. From residential to hospitality, there seems to a need for all types of properties in the Lone Star State. But along with the demand for new developments comes increased cost for materials and shortened time for delivery. Texas Real Estate Business recently spoke with three contractors to find out what trends are popping up in Texas, and what they are doing to fill the need.
 
With the population boost that is currently taking place in Texas, contractors are discovering new opportunities to construct several types of projects. In addition to the residential rise, many companies also are finding Texas to be a smart place to relocate their businesses. Contractors are realizing that, not only are the quality of the projects important, but the speed in which they are constructed. This is leading to the need for new technology in the workplace.
 
“The use of technology has been just enormous,” says Patrick Riordan, president of Riordan Construction Group. “It is the speed at which clients expect results that drives changes as fast as anything else. You have to have IT on board or in-office to keep pace — communications tools, instruments of measure, computerized scheduling tools.”
 
According to Riordan, all the company’s job sites are wireless, offering a new kind of access and convenience to the construction process. By making communications easier between the companies involved, Riordan Construction Group is able to take on new projects and lead the attempt to satisfy the growth in the state. And with two projects on its palette, the company is doing just that.
 
Riordan Construction Group is currently building a new portion of the Hill Country Resort in Canyon Lake, Texas. The company is constructing Building 50 for the development, which is located at 17545 FM 306 S. The new three-story building, constructed with a wood frame, will be part of the private time-share resort facility owned and developed by Silverleaf Resorts. With sales peaking at Hill Country Resort, Riordan is building on a tight schedule in order to fully realize the potential of the project’s growth.
 
The company also is rebuilding the Dobie Center, a University of Texas residence hall located at 2021 Guadalupe in Austin, Texas, that recently received damage from a fire. The rebuilding project will feature amenities such as an academic computer lab, on-site laundry facilities, study rooms, a fitness center, free wireless Internet and free cable. Dobie Center also will house a mall featuring a movie theatre, restaurants, and specialty stores located on the first two levels of the building. The 27-story building, which houses 930 residents, is owned by Dobie Austin.
 
Cost is another important element coming into play in current Texas market. The cost of materials is rising and companies are doing what they can to help ease the blow for developers and consumers.
 
“We have to be more flexible in our delivery methods,” says Riordan. “The cost of materials is ever-increasing. The number of manufacturers and distributors grows smaller every year as the costs for the fuel to manufacture and ship these materials increases. At the same time the developing world continues to grow faster than the west. Material costs will continue to increase faster that inflation for the foreseeable future.”
 
 
Despite rising material costs, Texas contractors see a bright future for the market. Many believe that LEED buildings will continue to gain popularity because of the money saving opportunities they provide. In the meantime, contractors are using their experience, as well as current technologies, to adapt and provide developers and consumers with high-quality developments at the best cost.

excerpt from  Texas Real Estate Business by Stephen O’Kane