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Thought Leadership
Houston

A growing energy market and an opportunity to expand design-build delivery

As we move into 2023, financial alignment, early decisions, and innovation in how we build and support our clients will be critical to project and programmatic success. In Houston, our local team is well aware of the shifts in the market, and in this 3-part series, they provide insights on what they’re seeing and how we can adapt in the markets of energy, multifamily, and healthcare.

Houston continues to move in the direction of a growing energy market, which is a balancing act for a market that dominates the oil and gas industry. Moves are being made to bring development of carbon-capture and renewable energy programs to Houston based energy companies as they look toward a future diversified alongside oil. No matter the political divide, there is understanding that the earth’s climate is changing, and it is time that we all put our best foot forward and work on innovative solutions. Additionally, trends show that more businesses are focused on Environmental, Social and Governance (ESG) disclosure and implementing responsible policies (ULI Emerging Trends Report) – trends that are going to require technologically sophisticated contractors who have the resources to keep pace within this evolving environment.

We expect to see (Energy 2.0 or Energy Transition) renewable project opportunities in the next year, but they won’t be limited to the typical re-purposing of existing, outdated buildings. There will be a need for new greenfield projects as we usher in the transition toward Energy 2.0 with construction of these facilities incorporating enhanced technology and sustainability requirements within their facilities. Building tomorrow’s facilities will necessitate that owner, design and construction teams work hand in hand from the inception of a project, ideally working in a format that will allow for full collaboration and transparency.

The challenge of mitigating cost and schedule risk as we face continuing fluctuations in material prices and availability as well as labor shortages from a shrinking workforce can be alleviated by choosing the right team and a delivery method such as design-build. We have implemented a specific design-build delivery process that will streamline the project delivery and timeline by concentrating on developing smart design bid packages while focusing on early release of key components, concurrence of systems installation, and giving our project teams with the tools and technology that will allow them and ultimately our clients to see around the corner.

Conrad Hammond
Project Manager

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