What Do Rising Commercial Construction Costs Mean

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As the pandemic eases, construction costs are rising across the commercial sector. There are several uncharted factors impacting these market forces. However, even with the increases, demand is expected to rise as retail, offices, medical facilities, industrial properties, and multifamily businesses re-enter sectors of the economy they have put off during the last eighteen months.

Commercial real estate inventory, demand, cost of building materials, supply chain disruptions, interest rates, labor shortages, and the pandemic are heavy influences of current pricing trends. Federal infrastructure spending in the near future is expected to squeeze resources further. You may continue to see construction costs rise or at the very least remain unstable for the next year or two.

Let’s just look at one building material – lumber – perhaps the single most important building supply. Since the start of the pandemic the price of lumber has fluctuated greatly. The unit price for a thousand board feet of lumber reached a low of $258 in April 2020, and then staggered its way to a record high of $1670 in May 2021. This was an increase of nearly 650%. It fell steadily since then to the mid-$400s in August 2021, but climbed to over $600 in September. Many analysts put the price in the pre-pandemic range of $350 in the months ahead, but it is really anyone’s guess.

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lumber 1-year producer price index 2017 2021 construction costs

Other costs have risen substantially in year-over-year comparisons based on the producer price index (PPI) for new nonresidential building construction. These are the year-over-year percentage rate increases for common building materials:

Steel mill products 109%
Diesel fuel 82%
Copper and brass mill shapes 49%
Aluminum mill shapes 33%
Plastic construction products 27%
Gypsum products 22%
Truck transportation of freight 14%
Insulation materials 12%
Asphalt felt and coatings 10%

Despite increases in material costs, orders are rising. As material costs reach double digits, the costs for new construction are still tempered with moderate single digit increases. Here are the PPI increases for new buildings:

Warehouse 6.5%
Offices 5.9%
Industrial buildings 3.9%
Schools 3.3%
Healthcare buildings 3.2%

These increases impact construction costs, but more importantly, the volatility is changing the construction bidding process. Bid prices are guaranteed for much shorter time periods, requiring quicker decision making. This is expected to continue as long as the price of materials continues to fluctuate unpredictably.

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Scheduling also becomes challenging. The bid process may require shorter lead times, while material back-orders extend schedules. Pre-ordering and securing construction materials may become necessary to meet deadlines.

Building supply costs are just one price consideration in the overall cost of construction. Another refrain from construction companies is the shortage of skilled and unskilled labor. As unemployment benefits begin to run out, the labor supply is expected to increase. While this may have some impact, wages are also expected to increase as the labor supply struggles to meet demand.

The pandemic has also impacted the labor market in extraordinary ways. Health and safety rules have limited the number of people allowed on a job site or within a confined work area. Work reductions in government offices have slowed the rate of inspections and permit approvals.

Interest rates have remained the one constant. And while historically low rates will eventually rise, they are expected to do so at a slow rate. However, commercial financing and construction loans are not just based on interest rates. In recent years the architecture of these loans has changed significantly from long-term lending to shorter bridge loans throughout various phases of a project.

As construction booms and resources tighten, smaller projects may get pushed aside by large construction companies. Finding a smaller, yet experienced company may be the right answer for many. Omnia Pacific Construction, a Los Angeles based company specializing in retail and commercial projects, is seeing an uptick in small and mid-level construction. Space conversion, remodeling, and ADA remediation are popular requests.

Another area growing in popularity is space demising. As commercial properties evolve, many larger spaces are looking to demise rooms into smaller, multiple rental units. These projects are perfect for a small construction company, as they require industry experience and expertise but are often too small for the bigger firms.

It is clear that commercial construction is entering a new phase. As labor and supply resources tighten in the months ahead, finding the right construction resources might be essential to complete your project in a timely and cost-effective manner. Tapping into new sources might pleasantly surprise you with the best possible outcome.

Sources:

Construction Material Costs Overall Continue Rise, While Lumber Drops; Floor Daily
https://www.floordaily.net/flooring-news/construction-material-costs-overall-continue-rise-while-lumber-drops

Material Cost Escalation, Delays and COVID-19: Managing Risk in Challenging Times; JD Supra
https://www.jdsupra.com/legalnews/material-cost-escalation-delays-and-3911119

Covid to Impact Construction Claims Until at Least 2023; Pinsent Masons
https://www.pinsentmasons.com/out-law/analysis/covid-impact-construction-claims-2023

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    The Latest Trends in Retail Space Conversions

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    While there are always shifts and trends in the commercial property market, they usually happen gradually. Many predict that the retail and commercial real estate markets are on the verge of their most disruptive transitions in recent memory. Questions still linger as to which direction these retail conversions, shopping center makeovers, and office conversions will take.

    The ascent of e-commerce shopping and shifts in consumer shopping habits were occurring for more than a decade. The pandemic forced rapid widespread acceptance of online shopping for millions who may have otherwise taken years to adapt, if at all. It is too early to tell if these unnatural shifts in habits will continue in the long run.

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    Subsequently, the boom in e-commerce led to a near immediate demand for last mile distribution centers. Big box retailers with large spaces, empty stores, and vacant parking lots were an easy match to fill the need. Some converted to mini-distribution centers almost overnight.

    The conversion of retail shopping centers had begun long before the pandemic. The descent of former powerhouse retailers such as Sears and JC Penney signaled a decline in brick-and-mortar retail and prompted industry speculation about other uses for these large spaces. Indoor shopping malls also waned and were joined into the conversation.

    The requirements for last-mile distribution centers are much in line with those of retail stores. The proximity to population centers, transportation corridors, and large open spaces make them compatible conversions.

    Some indoor shopping mall spaces are being converted into high-end, creative office spaces. The open floorplan of tech work environments and the rise of co-work offices have opened the door for many of these types of conversions.

    Vacant office spaces are also being converted into co-workspaces to meet the demands of shifting work habits. With many office jobs shifting to remote or hybrid roles, the demand for individual office space is expected to decline dramatically. Shared workspaces and short-term office rentals may be viable solutions for underutilized office buildings.

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    The demand for medical offices is also on the rise. Depending on the practice and on-site services provided, these are conversions that can work well for strip malls, shopping centers, and office buildings.

    One of the reasons for the wide range of medical facility conversions is that the category covers a variety of business types. Medical specialists, dental offices, lab services, physical therapy, urgent care centers, and even veterinary care are the types of businesses that have taken up occupancy in converted spaces.

    While these are the typical conversions taking place in retail and office spaces, other transformations are also reshaping the commercial landscape. Concert venues, childcare centers, food halls, and experiential retail have all moved into converted spaces.

    Historic architecture has found new life as multifamily and mixed-use properties. Developers have also seen that blending residential with retail has proven to be very successful, finding cross-over compatibility, especially with high-end, open-air environments.

    Besides their proximity to large population centers, retail spaces have other characteristics that make them suitable for conversion. They generally have ample parking and the buildings are structurally capable of conversion, which makes them efficient to transform to other uses.

    Converting an unused space to a business that benefits the community will generally garner public support. Repurposing is also environmentally friendly. Construction costs and build time are significantly lower for conversions versus starting from the ground up.

    As the commercial landscape shifts, retail, office, and other commercial spaces will need to consider these types of solutions for maintaining occupancy into the future.

    Source: Omnia Pacific Construction, a division of Omnia Pacific Construction, is a construction company that specializes in revitalizing retail and commercial centers throughout Southern California.

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      From the Desk of Our EHS Specialist: The Importance of Stormwater Management

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      Stormwater runoff is precipitation that flows across land, permeates into soil, merges into bodies of water, or evaporates back into the atmosphere. However, in urban environments, rainfall flows quickly across hard surfaces laden with pollutants. These contaminants are swept into waterways via drains and streams.

      Improperly managed stormwater runoff can cause several problems for businesses, including property damage and regulatory violations.

      Flooding: As stormwater flows over impermeable surfaces, such as roofs and pavement, large volumes of water can collect or flow rapidly, often causing property damage. Stormwater can also contribute to natural disasters by instantly raising water levels leading to severe flooding.

      Water Pollution: Pollutants such as leaked automotive fluids, industrial waste, agricultural fertilizers, trash, animal waste, and refuse get picked up by urban stormwater flow and find their way, untreated, into local streams.

      Stream Bank Erosion: As stormwater flows at unnaturally high speeds and volumes, it can cause severe degradation of shore banks. Rising waters can encroach on waterside property boundaries, destroy aquatic ecosystems, and create additional pollution from eroded sediment.

      Human Health: Contaminants introduced to the natural water supply through stormwater runoff can adversely affect drinking water and the access to recreational water activities.

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      REGULATION & COMPLIANCE

      As a result of the immense impact that stormwater runoff can have, the Environmental Protection Agency (EPA) developed the National Pollutant Discharge Elimination System (NPDES). This is a permit program, created in 1972 by the Clean Water Act (CWA), to address pollution by regulating sources that discharge pollutants to waters of the United States.

      Under the CWA, Phase 2 of this program was established in 2003. It identified stormwater as a contributor to water pollution and mandated NPDES permits for land between 1 to 5 acres in size.

      Most stormwater is conveyed through a Municipal Separate Storm Sewer System (MS4) and discharged into local water bodies. While generally owned by a state, local, or public entity, an MS4 is a system of drains, pipes, and ditches used to collect and transport stormwater. This water flow is typically discharged, untreated, into federally owned waters.

      MS4 operators are required to get permits and develop Stormwater Control Measures (SCM), to limit the damaging effects of surface runoff. Failure to comply with the regulations results in a Notice of Violation (NOV).

      An NOV informs the property owner or manager regarding a failed assessment, including a detailed observation of the property, non-compliance issues, assessed fines, and penalties. An inspection is typically conducted by local city or government official alerted through an unscheduled property check, distressed phone call from a stakeholder, or general observation. Unfamiliarity with environmental compliance laws is not an excuse for non-compliance.

      Compliance with stormwater regulations is also strictly monitored during permitted construction projects. Sometimes violations are discovered after construction, requiring costly modifications. Common violations include:

      • Failure of permit coverage
      • Failure to include Stormwater Pollution Prevention Plans (SWPPP)
      • Failure to implement SCM with essential maintenance and repair
      • Failure to conduct or document inspections
      • Illegal dumping or discharge
      • Inadequate erosion controls

      Violation notices typically include a one-time fine along with daily penalties for each subsequent day of non-compliance while the issue is remedied, sometimes reaching tens of thousands of dollars. The frequency and severity of these violations depend on the degree of impact to the environment along with the harm or potential harm to human health.

      These situations can often be avoided with an annual inspection, costing as little as $100, and less costly preventative remediation.

      ASSESSING STORMWATER ON YOUR PROPERTY

      It is important to understand how stormwater is generated within and flows on your property. Here are the steps used by professionals to evaluate water generation, flow, and volume on a property.

      Draw boundaries of the property. If not readily available, look up property tax assessment papers or deeds for basic property maps. Draw buildings and other features on the property. Be sure to designate:

      • Impermeable areas and hard surfaces that prevent stormwater from soaking into the ground
      • Lawn and landscaped areas
      • Natural vegetation
      • Water features (i.e., streams, wetlands, ponds, swimming pools)

      Assess and map stormwater flow, identifying the directional flow of runoff on the property and any problems it may cause. Common issues include ponding or large puddles, damp basements, and soil erosion. Map the following:

      • Roof downspouts
      • Stormwater flow paths (using arrows for direction)
      • Areas of ponding
      • Ditches or gullies from soil erosion

      Some of these common stormwater control measures may exist or be incorporated into a property:

      • Retention or detention ponds
      • Constructed wetlands
      • Grass swales
      • Sand filters
      • Level spreaders
      • Underground systems (popular in metropolitan cities due to the scarcity of space)

      Drainage structures include:

      • Inlet/Concrete flume
      • Catch basin/Drop inlet
      • Permeable pavement
      • Curb inlets
      • Trench drains (popular for retail assets)
      • Culvert
      • Headwall
      • Flared-end section
      • Dock drains

      SITE-SPECIFIC OPERATIONS AND MAINTENANCE (O&M)

      O&M plans are usually developed as part of a construction or remediation plan and filed with local municipality authorities. These consist of maintenance schedules, inspection requirements, maintenance easements, and descriptions of maintenance activities.

      CONCLUSION

      The most efficient ways to avoid NOVs and costly fines are to know your O&M agreement, consult with stormwater management professionals, communicate with regulatory bodies, set up maintenance programs, and schedule annual inspections.

      Stormwater maintenance programs can also safeguard and extend the life of your investment while keeping long-term repair costs down. Be proud that you are making an impact on protecting the local environment and watershed.

      About The Author: Pranav Heryani is an EHS & Sustainability Specialist. Among the next generation of environmental professionals, his projects have encompassed both local and international efforts toward green initiatives with practical sustainability for the commercial sector.

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        California Steps Up Enforcement of Stormwater Management Violations

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        As concerns about the environment continue to rise, California has increased their efforts to hold businesses accountable for violations. To reduce pollutants entering natural waterways and public water systems, the state has expanded the role of the California Water Boards regarding industrial stormwater runoff.

        Pursuant to Senate Bill 205, the state Water Code now requires all eligible businesses renewing or applying for a business license to prove enrollment in a stormwater management program. It essentially makes it easier to catch violators by reviewing stormwater practices for all relevant businesses rather than performing random checks. The list of affected businesses is extensive.

        Stormwater management is a consideration for businesses and public facilities alike, commonly implemented for shopping centers, office buildings, multifamily residential properties, municipalities, recreational parks, and industrial facilities. Here is a list of Standard Industrial Classification codes (SIC) for the businesses to which the stormwater program is automatically considered.

        Stormwater runoff occurs when rain or snowmelt flows over land without soaking through the surface. This water can accumulate and transport pollutants such as oil, industrial castoff, or trash into the common waterways or ground sources. In fact, unmanaged stormwater is a major source of pollution for lakes, rivers, streams, reservoirs, and the ocean. Dry weather runoff is similarly a problem.

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        Fortunately, stormwater management practices have improved dramatically in recent years. Equipment, planning, and design have evolved to where they can manage the flow and filter water before sending it into municipal sewers. Sometimes this water is even reclaimed and used onsite for landscaping and other purposes.

        Even before the state mandate, property and facility managers became increasingly involved in actively addressing public concerns for green initiatives. In fact, many forward-thinking companies already benefit from integrated plans for their properties. This includes sustainability planning, which incorporates public health and safety, environmentally green solutions, hi-tech efficiencies, and partner vendor relationships.

        Stormwater management is another area where a strong property partner can use their inside knowledge to help with viable and affordable solutions. A facility company that provides landscaping, hardscaping, janitorial, handyman, and construction services can be well-suited to providing effective solutions for stormwater management plans and construction.

        Major engineering firms and national construction companies might not be the right fit when it comes to state mandated stormwater management plans. Working with a company that does daily business within your industry, understands the nature of your specific property, and brings more relevant experience to the table can provide real benefits and save money. After all, you really do not need a company that manages large scale municipal water projects to implement your simple stormwater runoff plan.

        In California, Omnia Pacific Construction has provided facility services for properties just like yours since 1987. Their in-house team and sister company Omnia Pacific Construction can develop and execute a viable stormwater management plan for your company as they have for many of California’s top companies. To learn more today call 1-800-974-4515.

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          Multifamily Maintenance: Tips For Contracting Services

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          Although they are commercial properties, multifamily facilities fall into a unique category with regard to upkeep. Unlike most commercial properties for business use, these properties are occupied continuously. Multifamily maintenance requires a wider range of skills and resident diplomacy, whether a high-rise apartment building, sprawling garden style community, condominiums, or townhouse community.

          Multifamily properties typically have more paying tenants to keep satisfied. The demands on common areas and amenities also tend to be higher. The lifestyles of the occupants tend to follow less rigid patterns of behavior, whereas business tenants more closely follow a uniform code of behavior.

          Working with a property services company that has a cooperative team across multiple disciplines will save busy property managers time, money, and frustration. Imagine the convenience of contacting just one point-person for nearly all property needs such as landscaping, janitorial, power washing, garbage area cleanup, trash chute repair, virus disinfecting, ADA compliance, and parking garage sweeping.

          General maintenance is the first concern for servicing multifamily properties. As property occupants are staying home more and paying attention to sanitizing and cleaning procedures these days, a more professional standard of cleaning is demanded. Janitorial services are less behind-the-scenes than they may have been in the past.

          Pristine common areas are the first key to making tenants happy. Indoor cleaning may require extra attention on frequent touch point and high traffic areas. Community rooms and fitness centers require additional sanitization. Expert carpet cleaning and floor care can extend the life of your asset. Day porter services also provide a higher level of concierge service.

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          Common areas are the most visible and important to keep clean. Lobbies, entryways, elevators, stairwells, parking garages, and walkways that are not maintained can become eyesores and liability hazards. A company that properly repairs and maintains trash chutes and garbage collection areas can reduce odors, disease, and safety hazards from properties.

          Professional landscaping provides a great first impression for prospective residents and visitors and can add value. Exterior maintenance also covers a lot of ground and includes services such as hard surface steam cleaning, parking lot sweeping, and underground parking maintenance, to name a few. Although these areas may be lower profile, they are equally important to maintain.

          Perimeter inspections, aerial drone video inspections, hauling large illegally dumped items, graffiti removal, alleyway cleanup, and handyman services should also be offered by a full-service company.

          Hiring a good team that recognizes preventative maintenance issues is also valuable. The more skills a facility services team brings, the more qualified they are to identify and report potential problems. They can prevent small abnormalities from escalating into large, full-blown problems that create headaches and unwanted expenses.

          This is the type of depth you should look for when hiring a company for multifamily maintenance. A strong team can save property managers considerable time and expense in the long run. Your property will provide an enhanced living experience and tenants will be routinely happier.

          If you are an owner or manager of multifamily real estate in California, you should call upon Omnia Pacific Construction. From now on all your multifamily property needs could be handled with a phone call to just one company. They are a premier provider, trusted by many of the top residential property companies in the state since 1987.

          Call 800-576-3050 to get started today.

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            Landlord Responsibility in ADA Lawsuits

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            A federal district court in Northern California has determined that landlords need to be more proactive when it comes to the accessibility of their tenant spaces. Historically, commercial landlords have not concerned themselves with areas outside of their own exterior common area because their leases state that the tenant is responsible for ADA compliance. In this case, the court agreed that although the ADA allows landlords and tenants to allocate the responsibility for compliance between themselves, both parties are liable for violations in leased spaces with respect to persons with disabilities who are denied access. Both the landlord and tenant were made to pay the entirety of the plaintiff’s attorney’s fees and costs awarded by the court.

            Landlords should make themselves aware of whether or not their tenants are meeting the accessibility requirements, even if their leases put the burden of compliance on the tenant. Be proactive to avoid costly litigation and court fees. Here are a few things you can do to reduce your risk:

            • – Ensure that lease agreements include a stipulation requiring all tenants to obtain a CASp inspection and that the results must be submitted to the landlord
            • – Require all Tenant Improvements or exterior renovations to be reviewed by ADA consultants employed by the landlord
            • – Have vacant spaces inspected prior to signing new tenants
            • – Always be sure to have common areas inspected
            ADA elements

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              How Pedestrian Access Provides Protection from Lawsuits

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              Accessible routes for pedestrians are an ongoing debate for commercial and office retail spaces,  although the requirement for a property owner to have accessible routes from the public walking path to connecting all buildings on the site is part of the 2013 California Building Code. The question arises when a site only has a vehicular access point from the building entrance to the facility, and whether or not there should be pedestrian access.

              Most property owners believe that if a concrete or asphalt path is the access point between buildings in a facility, they are not responsible for providing a pedestrian route of travel. These property owners come to the conclusion that they do not have to provide pedestrian accessibility because the property was originally built without such connections, exempting them from providing access – don’t believe this myth because these property owners are wrong. The law1 {1991 ADA standards sections 4.1.2(1) & (2)} states that if it can be anticipated that the route between access points will be used by pedestrians, property owners must provide an accessible route.

              In some situations, the investment of installing connections to public sidewalks can be done without destroying the property, reducing landscape areas or creating financial burdens on ownership2. Depending on the city/county, building codes require certain amount of landscape to be maintained which makes it harder to create these access points for pedestrians. CAM Services has ADA + CASp experts and can manage all types of different situations regarding access points on a property. Call Omnia at 800-576-3050 for an inspection today!

              Proper Pedestrian Access Near Disabled Person Parking

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                The Dangers of a Dirty Trash Chute

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                Have you ever thought about what happens when the doors of a trash chute are opened?  It’s definitely something you should be thinking about and be aware of. Recent studies have discovered the inner surface of a chute can carry more than 30 different biological and bacterial growths. If a trash chute doesn’t receive proper and timely cleaning care, all of these germs and bacteria become airborne every time the chute doors are opened. These bacteria carry all kinds of illnesses and infections throughout the building, potentially affecting occupants.

                Harmful Pathogens

                Trash chutes are breeding grounds for some harmful fungal pathogens; for example: E. Coli, Salmonella, Legionella, Stahylococci Aureus and Pseudomonas. According to Environmental Research & Restoration, the lack of trash chute cleaning is potentially responsible for the increase in frequency of doctor’s office visits. Many pathogenic molds have the ability to inhabit the respiratory tract and become life-threatening. Items found in trash chutes contain organic waste ingredients, a perfect breeding ground for bacteria and disease-causing organisms to thrive and spread throughout the building.

                Pathogens

                Fire Hazards

                Property owners and managers face building violations, odor, and fire hazard risks on a daily basis. The potential possibility for fire risks is the most dangerous. Dirty or substandard trash chutes can cause all of these conditions, although they are entirely avoidable and affordable within a community’s budget. Grease, sludge, and grime build-up, faulty trash chute doors, and clogged air vents are all genuine threats.  When gooey residue builds up, it prevents the chute doors from closing and can even ignite. If, during a fire, the trash chute doors do not close properly, a wind tunnel effect is created, funneling the fire up and down the building. The risk of fire is reduced when a chute is functioning properly and the chute doors are safety-approved. Your building is in violation of fire and safety codes if your chute doors don’t close or latch automatically. In order to keep a chute functioning properly, grease and sludge and grime build-up must be removed on a regular basis; otherwise you risk damaging the components of the chute which occur from build-up, therefore preventing the doors from closing. Furthermore, the collection of goo on the inside of the chute has been proven to be flammable even at temperatures as low as 180 degrees. It’s very important to eliminate risks of a flash explosion by keeping the chute clean and properly maintained. Chute doors that don’t close automatically can create a wind tunnel and increase the severity of a fire.

                Cleaning Schedule

                Trash chutes should be cleaned a minimum of twice a year, preferably in the summer and winter.  It is also recommended that you clean your trash chutes before and after major holidays; tenants welcome a cleaning in anticipation of holiday entertaining and an increase of visitors. A top notch cleaning process should also include maintenance and repair services.

                A properly cleaned trash chute should include the following steps listed below:

                Cleaning Process

                ■ Pre-treat interior chute walls and doors with biodegradable enzyme solution to de-grease, disinfect and deodorize

                ■ Pressure wash interior chute walls and doors at up to 3,000 psi to strip away grime

                ■ Steam clean trash room floor and walls

                ■ Service options: Trash room odor control blocks and water reclamation (important for water conservation during this severe drought or when you have a lack of drainage)

                A properly cleaned trash chute leads to more than just a safe and cleaner living environment, it also eliminates breeding a breeding ground for vermin, neutralizes odors, and reduces the possibility of resident complaints.

                Listed below are several basic maintenance and repair services associated with a properly maintained trash chute.

                Maintenance and Repair Services Offered by Omnia Services

                ■ Inspection of intake and discharge door each cleaning visit

                ■ Repair and replacement of worn hardware performed by trained technicians

                ■ Refurbish your existing trash chutes and doors to bring them up to code

                The seemingly small task of cleaning and maintain a trash chute is more important than some would think and can be good for your business.  Putting forth the effort to keep your tenants healthy and happy increases the likelihood that they will stay in your building longer and reduces your liability.

                Trash chute

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                  Top 10 ADA Violations in California

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                  Based on information from lawsuits filed against The Americans with Disabilities Act (ADA) violations, as required by California Senate Bill 1186, the California Commission on Disability Access (CCDA) has compiled the following list:

                  Top Ten Alleged Construction Issues (Jul-Dec 2019)

                  Rank Description %
                  1 Access Height of Goods, Support, Services, and Equipment: Heights of surfaces such as counters, bars, or tables are not compliant. 21
                  2 Exterior Path of Travel – Pathway: Routes to and from parking lot or public right of way are not accessible. May include uneven surfaces or lack of detectable warnings. 11
                  3 Number of Handicap Parking Spaces: Parking lot does not contain a minimum number of accessible parking spaces. 9
                  4 Parking Spaces: Existing parking spaces are not compliant; fading blue paint or excessive slope. 9
                  5 Interior Path of Travel: Path of travel features not accessible including non-compliant surfaces, excessive slope, cross-slope, etc. 5
                  6 Exterior Path of Travel – Door Hardware: Thresholds, handles, pulls, latches, locks, or other operating devices are not accessible. Lacking door kick plates. 5
                  7 Parking Signage: Signage in parking lot is not compliant (e.g. spaces need to be designated as reserved by a sign showing the symbol of accessibility). 4
                  8 Parking Areas: Loading zones and van access aisles are not compliant or non-existent. 4
                  9 Access to Goods, Support, Services, and Equipment: Accessible lodging units are non-existent, inaccessible, or insufficient in quantities. 3
                  10 Exterior Path of Travel – Ramps: Curb ramps or entrance ramps are not compliant or non-existent. 3

                  *edited for ease of reading. Read original table here.

                  These ADA violations account for 74% of the total violations. The remaining allegations are less common but still enforceable and actionable.

                  Penalties and fines for these violations can be costly. Select law firms have targeted businesses for ADA lawsuits in California, as the laws are more favorable to plaintiffs than elsewhere.

                  Facilities interested in an evaluation or that suspect violations should be inspected by a professional Certified Access Specialist (CASp), licensed by the state of California in order to provide adequate access to all customers and minimize business liability.

                  Omnia Pacific Construction has supported property managers and facilities in California since 1987. In addition to building services, landscape, hardscape, construction, and maintenance, Omnia offers fully integrated ADA compliance and CASp inspections, remediation, and repair services. Contact Omnia today at 800-576-3050.

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                    Facilities Prevent ADA Compliance Violations Through Inspection and Remediation

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                    Code enforcement against businesses violating The Americans with Disabilities Act (ADA) continue to rise, while civil lawsuits set record levels year over year. California is particularly active in penalizing ADA code violations. In the first half of 2019, the state represented a staggering 43% of the country’s ADA lawsuits according to Seyfarth Shaw LLP. ADA compliance is an important aspect of facility management.

                    Courts continue to rule against businesses violating the ADA for failing to meet legal regulations with curb cuts, parking, signage, wheelchair ramps, countertops, and restroom facilities. Quite often, business owners have no idea of the violations prior to the lawsuit.

                    modern toilet sign
                    man in wheelchair having trouble going through door
                    Handicap parking at a medical office

                    In addition to statutory citations, California courts are fraught with cases brought about by plaintiffs and law firms targeting small businesses for ADA violations. While Federal law offers a $1,000 minimum for violations, California awards a $4,000 minimum per violation plus plaintiff attorney fees, making the state a hotbed for lawyers seeking quick, out-of-court settlements.

                    Some of these cases are brought about by vexatious litigants seeking to shakedown business owners for unjust profit. One study showed 46% of the ADA lawsuits in California were filed by just 14 plaintiffs.

                    In recent years federal and state lawmakers have attempted to reform the rules around filing ADA cases. Some require giving a business time to make repairs prior to the filing of a lawsuit. However, plaintiffs have been quick to adjust, often moving lawsuits from one jurisdiction to another to circumvent such requirements. ADA lawsuits can typically be filed in state or federal court.

                    Most cases do not proceed through to a full court trial as businesses tend to settle these grievances out of court. The legal fees and penalties can be substantial, so businesses often begrudgingly settle with plaintiff attorneys for less than the estimated cost of a legal defense. This is especially true when a business is likely to be found in violation, whether they knew about the regulation or not.

                    It is clear that avoiding these types of complaints and lawsuits is most advantageous. The best way is to hire a company for an ADA inspection. If violations are found, repairs should be immediate. Most property managers find it advisable to hire one company that does both the ADA inspection and the ADA remediation, leaving no room for dispute.

                    In addition to code enforcement, California regulators also certify professionals specifically trained in ADA remediation. A Certified Access Specialist for Property Inspection (CASp) is educated and licensed through the Division of the State Architect (DSA) to inspect buildings and properties for compliance with state and federal accessibility standards. These certified CASp experts are best qualified to lead ADA compliance efforts.

                    As facility professionals in California since 1987, Omnia Pacific Construction is well equipped to handle any ADA concerns you might have. Omnia offers ADA inspections, repairs, and remediation, for existing and new construction. Omnia facility experts have extensive experience with buildings, access points, parking lots, and other common areas. Their certified CASp experts are available to assess and manage your ADA concerns.

                    Problematic ADA lawsuits can arrive without warning. Fortunately, property managers in California can call 800-576-3050 now for a consultation about ADA compliance before it becomes an even bigger issue.

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