A sold-out crowd of more than 100 attendees enjoyed an exciting Young Leaders Group Real Estate 101 discussion about construction on Monday, November 10 at Bingham’s downtown DC office. Mike Schlegel, President of Bozzuto Construction Company and Steve Strazzella, President of Bozzuto Development Company, humorously educated the attendees on a wide variety of construction topics including the pros and cons of different structural materials, economic margins of construction companies and their subcontractors, and even explained why a tower crane doesn’t fall over.
Steve and Mike alternated speaking throughout the presentation, which began with a quick overview of the Bozzuto Group, the relationship between their construction and development companies, and two examples of recent projects with an approximately $100 million construction budget: Crown Farm in Gaithersburg, MD and Monroe Street Market in Washington, DC. They then explained the roles a contractor plays in an overall development project, such as providing a guaranteed price to the owner and lender as well as coordinating the various trades who work to build the project. Additionally, they identified important risks that contractors shoulder, including bidding consistency, price fluctuations, and subcontractor performance.
Particular to the DC real estate market, they shared how the height act has led to our preference for concrete buildings due to its ability to maximize FAR. They also discussed recent regional trends in construction costs tied to DC’s overall economy and development cycles.
They concluded the presentation with universal truths about the phases of a construction project:
- Search for the Guilty
- Punishment of the Innocent
- Praise & Honors for the Non-Participants
Following the presentation, many attendees gathered at Circa at Foggy Bottom to continue the conversation from the evening and network with peers.