Design Development 130: Navigating Volatile Markets: How GCs and Developers Can Thrive Together with Mike Hartnett, VP of Plumb House Inc.
Mike Hartnett is a prominent figure in the construction and real estate sector, currently serving as a vice president and partner at Plumb House. With a rich history in multifamily construction, Mike has extensive experience in various roles, from his beginnings as a project engineer to becoming a senior superintendent.
Mike offers invaluable insights into the importance of maintaining strong relationships with design partners familiar with wood frame construction to ensure project design aligns with realistic pricing methods.
Throughout the conversation, Mike and Rens explore the strategic advantages of Plumb House's niche focus on multifamily construction and self-performing subcontractor roles. Their discussion reveals how a company's geographical reach and in-depth specialization contributes to its success in limited market segments, enabling better data collection and faster learnings across projects. The importance of cultivating long-term customer relationships, investing in the labor force, and adapting to market fluctuations like the recent tariff uncertainties are also pivotal topics explored in the session.
Key Takeaways:
- Early collaboration between design teams and general contractors is crucial for ensuring project success and minimizing costs.
- Specializing in a niche market allows for better data collection, fostering faster learnings and more predictable project outcomes.
- Self-performing subcontractor roles can enhance control over schedules and costs, but strong external trade relations remain essential.
- Investing in skilled labor is more critical than ever to address industry challenges and ensure future project quality and efficiency.
- Addressing the uncertainty caused by tariffs and fluctuating market conditions requires clear communication and strategic adjustments.
Notable Quotes:
- "If you can do those things, you don't have to sweat every small mistake. You create the systems to get the big things right."
- "The most important thing is the investment in labor, skilled trades, and getting kids focused more on the benefits and opportunities within the trades."
- "We're not chasing the region; we're chasing what our clients need and where they need us to go."
- "It's important that our budgeting is paired with design partners like you to keep the thing on the rails."
- "The merit shop philosophy is putting in your time, effort, and the rewards will follow."
Resources:
Thank you so much for listening and thank you for joining the Design Development community. Don't forget to subscribe to hear about the latest episodes dropping every Wednesday. If this episode resonated with you, share it with a friend.
Our goal is to help people in the industry identify opportunities for growth by sharing the journey of top performers. There is no one path. Success isn't a straight line. There is something to learn from everyone's story. Let's go!
Leave your thoughts in the comment and reach out if you want to be valuable guest on the show!
Design Development Podcast!
Follow us on LinkedIn, Instagram & YouTube
Find out more at https://h-o.engineering/podcasts/