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Voices: Tom Oberle, Executive Vice President, Brinkmann Constructors

This article is sponsored by Brinkmann Constructors. In this Voices interview, Senior Housing News sits down with Brinkmann Executive Vice President Tom Oberle to learn what it takes for senior living developers to operate effectively with a national footprint. He also discusses the four key challenges of breaking into new markets, and he explains how to overcome them.

Senior Housing News: Tom, you’ve been with Brinkmann for 28 years, and you’ve served as EVP for about a decade. What are the top career experiences that you most draw from in your current role?

Tom Oberle: I draw from all my experiences. I began as a project engineer, then manager, then director, and eventually moved into the executive vice president role. I have a strong understanding of what it takes to make a successful project. I understand the importance of both the preconstruction and operations processes and my background in the construction industry allows me to successfully oversee the work on the front end of projects, including preconstruction, business development and marketing.

As a leader at Brinkmann, I’ve been able to help create a strong strategic vision for the organization that has allowed us to expand our national footprint and become a nationally recognized builder in the senior living market.

For those who are unfamiliar, tell us about Brinkmann’s mission and its founding principles.

Oberle: Our purpose statement says, “Our purpose is people and our passion is building.” On the people side, we like to hire and invest in the best talent to create strong teams in every facet of the business. That is the driver of our success over the years, and it has created long-lasting relationships with our clients as well. These are relationships where the client recognizes the value we offer in current and future projects.

We have great teams that wake up every day and love what they do and are really good at what they do.

With your headquarters in St. Louis and offices in Denver, Kansas City and another opening in Richmond, you know that building in one location in the U.S. is not comparable to building in another. What are the top areas of consideration for senior living contractors who want to build a national presence?

Oberle: To add a little context, all the offices we opened were based on clients we followed into new territories. We didn’t venture out to create a national footprint — we followed clients who took us to their next project because they wanted us to build for them regardless of the location. We’ve been fortunate to enter new markets because of these relationships.

When you go into new markets, you have to understand the variables. Certain parts of the country lean toward specific building materials based on the geography. For example, some people like to build using masonry while others prefer concrete. It just depends on the location and the market conditions. You need to understand that and apply it to the building structure.

Terrain and soil are the other big variables in understanding different parts of the country. You just have to do your homework. Talk to the soils engineer, talk to the local site contractors, and understand how you can improve the ground and design the foundation. You also have to have a knowledge of weather patterns, local jurisdiction, building codes, licensing and inspections.

We’ve become really familiar with the process of working in new markets, and it boils down to doing your due diligence before you put a shovel in the ground. Over the last 37 years, Brinkmann has worked in 42 states. We’ve captured most of the learning curve because we’ve been just about everywhere at this point and have a pretty good idea of what to expect before we get there. We always run through the process of just double-checking our assumptions. Those are the challenges of working on a national footprint.

Let’s dive into those variables. What are the top challenges right now regarding building materials?

Oberle: Right now, the most significant challenge in the world of construction is material pricing and availability. It’s the most volatile it’s ever been in my career, and that creates significant hurdles. Shortages of wood and steel, and other unknowns, have led to difficult market conditions.

We feel that the sooner we can get involved in a project, understand the design and confirm the material selections, we can lock down the pricing and place the order. You can’t wait to purchase materials because there are a lot of moving targets out there. You need a sense of urgency coupled with choosing the right materials for the design of the project to be successful.

How do differences in terrain, soil and weather impact building decisions, and what areas are affected?

Oberle: Under pre-COVID conditions, this would normally be the number one challenge of entering a new market. Like I said, this snapshot in time — material pricing and procurement — is the biggest challenge. The soil conditions and sitework are typically the most significant variable in the equation of construction cost.

Seventy-five percent of our project managers, engineers and directors have an engineering degree. We dig into the site design to understand the specifics of the soil conditions and the site design itself. We always start with a thorough analysis of the site work that includes the earthwork, site utilities and the pavement design because we recognize how easy it is to over-design those elements. We focus on the site design to understand and possibly challenge some of the site design decisions.

When you get into the building process, we do a thorough analysis of those soil conditions and the foundation and structure design to make sure they make sense. Different parts of the country have different variables. Sometimes you run into rock excavation. Other times, you’re in areas that have a high water table. There’s always a challenge, but if you understand what you’re up against, you can collaborate with the owner and the engineer to come up with the most economical design.

What sort of assistance does a contractor need to manage jurisdictional and legal barriers in a given region?

Oberle: You must understand local jurisdictions relative to licensing requirements, building codes and any sort of special inspections that might be required — especially if you’re building assisted living or skilled nursing. Do your homework, and communicate with the local building officials. Whether that’s the local Inspector or the plan reviewer, it’s critical to understand their expectations before you start building.

How does this change with a CCRC compared to a standalone campus that has fewer care levels?

Oberle: With a CCRC, the assumption is that you’re building IL, AL and skilled, so you’ll have multiple buildings — some with overlap in terms of the construction sequencing. Our experience building CCRC campuses points to more staffing, more subcontractor coordination and some overlapping in the buildings.

Typically there are phased turnovers, which create a little bit of a challenge because you’re occupying one building while you’re finishing another. It takes more oversight and coordination for that type of work as opposed to building a standalone 90-to-110-unit building.

Entering this year, no one fully knew what to expect in the industry. What has been the biggest surprise to you with regards to senior living construction, and what impact do you think that surprise will have on the industry for the remainder of the year?

Oberle: A lot of the construction hit the pause button right after the onset of COVID because operational issues took precedence. Now we’re seeing construction start again with some of our national clients. We’re beginning to see more preconstruction activity where operators are looking forward to building another facility.

But as I said before, the challenge of material pricing remains.

We got over the COVID delay, but project numbers have increased because of the material volatility. We’re dealing with that and trying to come up with solutions on how to mitigate some of that cost increase. However, there’s still a demand for independent living, assisted living and skilled memory care, and that demand will be strong for the next several years. I’m optimistic that we will see an increase in construction projects.

Editor’s note: This interview has been edited for length and clarity.

To learn more about how Brinkmann can help your new construction plans, visit BrinkmannConstructors.com, or contact Rebecca Randolph at rrandolph@brinkmannconstructors.com.

The Voices Series is a sponsored content program featuring leading executives discussing trends, topics and more — shaping their industry in a question-and-answer format. For more information on Voices, please contact sales@agingmedia.com.

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