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ECE Group

A COLLABORATIVE APPROACH TO PLANNING AND CONSTRUCTION

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The construction industry is going through a difficult period. What’s causing it and how is ECE rising to the challenge?

Arndt Schwerdtfeger:  It’s because very little financing is available due to the change in interest rates and the near-collapse of the property transaction market. As a result, much less is being built in all categories, which has  caused a massive slump in orders in the construction industry. We’re seeing very marked price shifts in the market. But that also opens up opportunities for us – and we plan to take advantage!

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So things haven’t ground to a halt at ECE?

No, quite the opposite. We’re working on projects in the residential, hotel, and logistics sectors as well as upgrading properties in our shopping center portfolio. We rely on partnerships and innovative tendering models. We’re constantly expanding our network with construction companies of all sizes. Collaborating on planning and construction projects increases efficiency, as we can get to work very quickly, based on a strong foundation of trust.

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How has digitalization affected the construction sector?

There are now lots of digital tools for individual aspects of planning and construction. We use a variety of AI-assisted tools to create visualizations. The industry is starting to experiment with using AI to calculate costs or robots to  monitor construction sites. But a lot of it’s still very rudimentary. The construction industry has a lot of catching up to do in this area. Even today, many buildings are still being built as one-off projects.

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What other options exist  to make construction projects more efficient?

There’s BIM – building information modeling, in which all relevant building data is digitally modeled, combined, anddocumented. We don’t use BIM much in our shopping center portfolio: Almost none of the centers have been digitally surveyed, since it would be very costly and complex. But we do use BIM for many of our projects in the ECE Work & Live division. It has a lot of potential, because using BIM creates transparency: What are the planned dimensions and materials? Which ones are specified in the tender? How much does everything cost? Besides enabling transparent  coordination, these models are also very helpful when it comes to meeting ESG criteria.       >

Arndt Schwerdtfeger manages all ECE’s planning and construction activities in our shopping center portfolio and in the residential, hotel, logistics, and office sectors. He is Managing Director Architecture & Construction at ECE Group Services and Chief Technical Officer at ECE Work & Live. In our  interview, he explains why partnership is important in construction, how digitalization and AI are changing the construction industry, and what role good funding management can play.
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“Our working relationship with ECE is characterized by a high degree of professionalism and strong partnership. We’ve completed numerous projects together on budget and on time.” 

NILS WENDLER
MANAGING PARTNER OTTO WULFF BAUUNTERNEHMUNG GMBH

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How important are sustainability and ESG?

They’ve become part of our DNA. That means we consider many sustainability issues right from the early design phase, and keep doing so throughout the planning and application stages right up to the awarding of contracts. Sustainability isn’t cost-neutral. It creates additional costs, because you sometimes need to use different materials or processes, and the documentation requirements are more demanding. But ignoring sustainability isn’t an option, as ESG is relevant to all investors

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What funding sources are available, and which ones does ECE make use of?

Local, state, and federal government funding is available for various types of projects, including sustainable construction projects. For us, it makes most sense to apply for funding from federal programs, like the Federal Funding for Efficient Buildings (BEG). We look carefully at what funding we can use to make energy efficiency upgrades at shopping centers or for new construction projects by ECE Work & Live. It’s often possible to combine multiple sources of funding. For example, there’s funding for modular construction, for modern heating systems, and for solar panels. We assess each project for potential eligibility and then apply for funding where possible. That’s done by a small in-house team and in collaboration with external partners.

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What role does lean management play?

The big construction companies have synchronized their sites to improve and speed up their processes. That saves a lot of resources when it works. But the client is the biggest factor when it comes to using lean management. They’re the ones who set the conditions and requirements. For us, lean management means a total focus on the client. For instance, we break down the planning process into smaller aspects, the things we know absolutely have to be done, so as to minimize duplication and wasted time.

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When are multiparty contracts used?

Multiparty contracts replace the many individual bilateral contracts we used to have between the various parties involved in a construction project with a single combined contract, so that planning and construction can be more closely integrated. One current example is Life Hamburg, an educational project initiated by Benjamin Otto,  where a multiparty contract set out the common goals at a very early stage. We worked closely with planning and construction partners on the building application, and construction will be commencing soon. But that kind of partnership only makes sense if the specifications for the building are unclear early on or the building is very complex. In that case, this methodology supports a highly collaborative approach to achieving the goal. But this kind of contract model would be too expensive for residential developments, for which there are tried-and-true contractual methods (augmented by various digital tools) forms of digitalization that can be used to set up a good project that delivers on its goals.    //

“As long-standing construction partners, GOLDBECK and ECE work together to create buildings that harmoniously combine sustainability, functionality, and cost-efficiency. Our modular construction method keeps waste and emissions to a minimum.”

RENÉ KALDENHOVEN
MANAGING PARTNER, GOLDBECK NORD GMBH

Impressions

ECE Construction Day 2024

ECE GROUP

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