Before a project reaches the field, decisions made during planning, budgeting and design can have a significant impact on cost and schedule.
Shannon Construction estimators Kevin Kilinsky and John Beck spend their days reviewing drawings, developing budgets, talking with trade partners and tracking the factors affecting construction costs. We asked them what they are seeing in the market now, where they are finding opportunities for value engineering and what owners considering projects in late 2026 or 2027 should have on their radar.
Kevin: We’re doing a lot of budgets right now. There are plenty of projects being considered, but we’re seeing them spend more time in the planning and development stages before moving into construction. That makes ongoing budgeting throughout design especially important.
John: We’re also seeing strong subcontractor participation when projects go out to bid, which gives us good coverage across a number of trades. On the office side, we’re seeing some changes in how spaces are being designed too, including denser footprints and a return to more individual offices compared with some of the open-concept layouts we’ve seen in recent years.
John: Material costs continue to move. Metal studs and aluminum are two areas we’ve been watching closely, with noticeable increases over the last several months. It’s important to keep checking current pricing as a project moves through design because numbers from a few months ago may not necessarily reflect where the market is today.
Kevin: Steel is another one we’re watching. Demand associated with data center construction is putting additional pressure on steel pricing and availability. That can have an impact on other projects competing for the same materials, so it’s something we’re keeping an eye on as we develop budgets.
John: Electrical equipment continues to be a big one. Certain electrical switchgear and generators can still have lead times of a year or more. Steel is also becoming more of a procurement consideration.
Kevin: Data center construction could put additional pressure on some of those materials and equipment. Skilled labor availability is another factor we continue to account for when looking at both cost and schedule.
Kevin: We’re seeing more RFPs where owners are evaluating more than just the final number. They want to understand the contractor, the proposed project team and how that team plans to approach the work.
John: The submissions themselves have become more detailed too. We’re seeing more prequalification requirements, technical proposals, estimating schedules and project-specific information. It gives owners an opportunity to evaluate qualifications, approach and team experience along with cost.
John: We’re still seeing a mix of office, retail and industrial work. We’re also seeing demolition and make-ready projects, along with tenants making targeted improvements or refreshing existing spaces rather than always undertaking a complete renovation.
Kevin: Tenant retention continues to be important for building owners. We’re seeing owners look strategically at improvements that can help existing tenants make better use of their spaces and keep properties competitive.
“The goal isn’t simply to reduce cost. It’s to identify where the budget can be used most effectively without sacrificing function or creating maintenance issues down the road.
John: Lighting packages are a big one. We also look for opportunities to reuse existing doors, frames, flooring and other materials that are still in good condition. Finish selections can make a difference too. Wall coverings, acoustical panels, millwork and decorative wall panels are all areas we evaluate for potential savings. Sometimes something as simple as using an accent paint color instead of a wall covering can provide the same visual impact at a lower cost.
Kevin: HVAC controls are another area worth evaluating, because they can represent a significant cost. We also look at many of the same finish and material selections John mentioned. The goal isn’t simply to reduce cost. It’s to identify where the budget can be used most effectively without sacrificing function or creating maintenance issues down the road.
Kevin: One of the biggest advantages is being able to provide progress budgets as the design develops. That gives us the opportunity to identify cost impacts and value-engineering options along the way instead of waiting until the drawings are complete to compare the design against the budget.
John: It gives the owner more control over the cost of the project. Early involvement also gives the team time to identify long-lead items. If we know a project is moving toward construction, there may be opportunities to plan for or release certain materials and equipment earlier rather than waiting until the entire design is complete.
John: Electrical code requirements can have a bigger impact on renovation projects than people expect. When we get into an older space with antiquated lighting or controls, current code requirements may mean upgrades need to be incorporated into the project. Identifying those conditions early helps everyone account for them in the budget and design.
We’ve also had a positive experience recently with permitting timelines in the City of Pittsburgh. From what we’re seeing, the process has been moving more efficiently than it has at times in the past.
Kevin: Another important piece is making sure the project scope, design goals and budget stay aligned as the design develops. The earlier the owner, design team and contractor can establish those parameters together, the more useful our budgeting can be and the easier it is to make informed decisions along the way.
John: Labor rates are something to account for. If construction isn’t starting for six months or a year, the labor rates in place when the work is performed may be different from what we’re pricing today.
Kevin: The same is true for materials. Pricing continues to change, particularly in areas where demand is putting pressure on supply. A budget developed today needs to account for when the project will actually be purchased and built.
The more information we have early, and the more decisions that can be made as the design progresses, the more accurately we can price the work and help the team plan ahead.
Early budgeting can help identify cost, procurement and scheduling consierations while there is still time to evaluate options. Connect with Shannon Construction to start the conversation.
Tony Kozak shares his thoughts on stepping into the Controller position, supporting our project and operations teams, and a few personal insights as well.
This year, General Superintendent Mike Kaminsky celebrates 40 years with Shannon Construction, a career that has taken him from laborer and carpenter apprentice to leading projects and helping develop the next generation of Shannon’s field team.
Mike’s connection to Shannon Construction actually started before his own career. His father worked for Larson Builders and later Shannon for 40 years. Mike spent summers during high school working in the warehouse, stocking and organizing tools and materials. Larson Builders was founded by the grandfather of Shannon President Ken Schultz, beginning a family construction legacy that now spans four generations.
After high school, he tried a few other things before returning to Shannon in 1986. “My first job as a laborer was at the Grant Building, where we were working on multiple floors,” Mike recalled. A year later, he joined the carpenters union, beginning his apprenticeship at Two Chatham Center on a nine-floor renovation.
When Mike started, nearly all of Shannon’s work was in Downtown Pittsburgh. “There were days you would carry your tools through town and visit multiple jobs,” he said. The technology was a little different, too. “The only thing we had when I started were pagers and paper. If somebody wanted you, they would page you, and you had to go find a phone to call them back.”
Today, Shannon’s work extends throughout Western Pennsylvania and beyond, and cell phones, computers and tablets have transformed how projects are managed. But for Mike, the fundamentals of running a good job haven’t changed. “Strong communication skills, the ability to plan ahead, treating people with respect, being able to handle pressure, and having the drive to get jobs done on time and under budget.”
After four decades, two projects immediately come to mind for Mike. At Cranberry Mall, Shannon replaced approximately half a mile of storefront and sidewalks while keeping every store accessible and working around heavy traffic. Another was the renovation of the center core at Pittsburgh International Airport, which included demolition and the construction of nine new high-end retail stores.
Both required extensive coordination and planning, skills Mike developed by learning from many experienced foremen and superintendents throughout his career. “I took different things from each of them to develop the way I run jobs,” he said. “I also learned a lot about construction and work ethic from my dad.”
Today, Mike is helping the next generation of Shannon’s field team learn the same way he did. His advice is straightforward: communicate with your crew and project manager, plan ahead, keep a good daily log, continue learning and don’t be afraid to ask questions. Most importantly, he believes experienced tradespeople have a responsibility to teach those coming up behind them.
“Teach the apprentices and younger carpenters. They are our future,” Mike said. “I hope a lot of our younger guys are doing this same 40-year interview in the future.”
A lot has changed at Shannon since 1986, but Mike says one thing hasn’t. “The way Shannon and the Schultz family treat their employees. I’m now working with the fourth generation, and they have all treated the employees and coworkers very well.”
That is also a big part of what has kept him here for 40 years. “You couldn’t ask for a better place to work or a better family to work for. I’ve been lucky to work with a lot of great people over the years.”
Of course, not every Shannon tradition survived four decades. Mike remembers when employees received a 20-pound frozen turkey and a box of candy for Christmas. George Schultz, Ken Schultz’s father, and Ken would load the turkeys into George’s station wagon and personally deliver them to Shannon jobsites. “It was always fun carrying a 20-pound frozen turkey up the hill from the job to the parking lot at the Civic Arena, or carrying it home on the T.” Some parts of working in construction really have gotten easier.
Congratulations to Mike on an incredible 40 years with Shannon Construction. Thank you for four decades of hard work, leadership and for helping pass that experience on to the next generation. We look forward to the positive impact you will continue to have on the organization.
CASE STUDY | HISTORIC PRESERVATION
Pattern Shop Rehabilitation | Johnstown, Pennsylvania
PROJECT OVERVIEW
The rehabilitation of the Center for Metal Arts Pattern Shop was more
than the renovation of an aging industrial building. It was an effort
to preserve a piece of American industrial history while creating a
safe, functional environment where the traditions of forging,
blacksmithing and metalworking can continue for generations.
Located within the Cambria Iron & Steel National Historic Landmark
in Johnstown, Pennsylvania, the Center for Metal Arts is a nonprofit
blacksmithing school and metalworking facility dedicated to education,
craftsmanship and the tradition of forging.
Shannon Construction’s work on the Pattern Shop required the team to
balance two objectives that became increasingly intertwined as
construction progressed: stabilize and modernize a severely
deteriorated 155-year-old structure while preserving the historic
materials and industrial character that make the building significant.
THE CHALLENGE
Historic rehabilitation always carries uncertainty. At the Pattern Shop,
that uncertainty became one of the defining characteristics of
construction.
As demolition progressed and concealed portions of the building became
accessible, the team discovered conditions substantially more severe than
anticipated. Extensive termite damage, decades of water infiltration,
mold contamination, deteriorated floor and roof framing and hidden
subfloor deterioration affected structural systems throughout the
building.
Several existing structural columns were even discovered bearing directly
on limestone boulders rather than conventional engineered foundations.
What began as a historic rehabilitation ultimately became an extensive
structural rescue.
STRUCTURAL STABILIZATION
Concealed deterioration affected columns, girders, joists and roof
framing throughout the Pattern Shop. Before damaged structural members
could be removed, the remaining historic structure first had to be
safely supported.
Shannon coordinated engineered temporary shoring systems throughout
affected areas, creating a controlled sequence in which existing
loads could be supported while deteriorated structural components
were selectively removed and reconstructed.
Severely deteriorated portions of the Pattern Shop were stabilized
and reconstructed while viable portions of the original historic
structure were retained.
HISTORIC PRESERVATION
The objective was not simply to make the building new. Historic wood
framing, masonry, windows and other character-defining elements were
essential to the identity of the Pattern Shop and needed to be
retained wherever possible.
Existing materials were evaluated and repaired wherever feasible.
Where replacement was unavoidable, new structural wood elements were
finished with a semi-transparent age stain selected to complement
adjacent original timber framing.
The completed rehabilitation preserves the Pattern Shop’s authentic
industrial character while providing the structural integrity needed
for continued use.
EXTREME WINTER CONDITIONS
Major roof reconstruction took place during extreme winter
conditions. Crews were working at elevation on a partially
reconstructed historic roof while coordinating demolition, structural
framing, crane operations and temporary weather protection.
Shannon adjusted sequencing and daily operations around changing
weather conditions, maintained temporary protection for the exposed
structure and coordinated lifting activities carefully as major
structural members were maneuvered into place.
Complex roof and structural reconstruction continued through severe
winter conditions while maintaining rigorous safety standards and
protecting the historic structure.
SAFETY THROUGH CHANGING CONDITIONS
Safety planning extended well beyond conventional renovation
procedures. Crews worked within a historic structure containing
concealed deterioration, temporary structural conditions, active
demolition zones, extensive shoring and changing load paths.
Shannon utilized daily planning, controlled access zones, engineered
demolition and stabilization sequencing, continuous structural
monitoring, third-party safety inspections and close coordination with
the project’s structural engineer.
During roof reconstruction, workers remained 100% tied off while
temporary weather protection, fencing, signage and pedestrian controls
helped protect workers, students, educators and visitors around the
active construction area.
BUILDING THROUGH COLLABORATION
The Pattern Shop could not be rehabilitated through a conventional
build-from-the-drawings approach.
As demolition revealed new conditions, Shannon Construction,
Pittsburgh Gateways, the Center for Metal Arts, Pfaffmann + Associates
and the structural engineer worked together to evaluate the building
and develop practical solutions.
Decisions about structural stabilization, temporary shoring, demolition
and reconstruction often had to be made in sequence as conditions
became visible. Shannon’s role extended beyond executing a predetermined
construction plan. The team became an active participant in discovering
the building, protecting it and determining how to preserve it safely.
PRESERVING AN INDUSTRIAL LANDMARK
The Center for Metal Arts is not simply occupying a historic building.
Its mission continues the tradition of making things by hand in a place
built during one of the most important periods of American iron and
steel production.
Even while major rehabilitation work occurred, the Center for Metal
Arts continued its educational mission. Shannon coordinated
construction activities to maintain a safe environment around ongoing
programming while transforming the Pattern Shop around it.
The building that once supported Johnstown’s industrial economy will
now help teach the skills and craftsmanship rooted in that same history.
PROJECT HIGHLIGHTS
CASE STUDY | CORPORATE INTERIORS
Union Trust Building | Pittsburgh, Pennsylvania
PROJECT OVERVIEW
Shannon Construction completed a 13,077-square-foot corporate office
renovation for Sisterson within the historic Union Trust Building in
downtown Pittsburgh.
Located on the fourth floor, the project transformed the existing
office into a contemporary workplace designed around collaboration,
flexibility, employee wellness and client experience.
Delivering that transformation within an occupied historic high-rise
required modern workplace systems, specialty architectural finishes,
and upgraded infrastructure to be carefully coordinated with the
conditions and operational requirements of an existing landmark building.
THE CHALLENGE
Renovating an office within an existing high-rise introduces constraints
that are not present in new construction. At the Union Trust Building,
those constraints were amplified by the age and historic character of
the property.
Existing structure and building infrastructure established the framework
within which the new office had to be constructed. HVAC, electrical,
plumbing, fire protection, life safety and technology systems all
required modification and integration with existing conditions.
At the same time, construction occurred within an occupied downtown
office tower, requiring careful consideration of logistics, material
movement, building access and activities that could affect neighboring
occupants.
OCCUPIED HIGH-RISE CONSTRUCTION
Construction took place within an active downtown office tower.
Material deliveries, demolition, noise, dust, vertical transportation
and daily construction activity had to be managed around building
operations.
Shannon coordinated work with building management and project
stakeholders, established controlled construction zones and planned
higher-impact activities around building operations.
The renovation progressed within the active commercial environment
while maintaining safe access and minimizing disruption to
surrounding building operations.
EXISTING CONDITIONS + BUILDING SYSTEMS
HVAC, electrical, lighting, power, data, plumbing, fire alarm and
fire protection systems all required modification within the
constraints of an existing historic high-rise.
Shannon performed ongoing field verification and coordinated closely
with NEXT Architecture, CJL Engineering and project trade partners
to resolve existing conditions and sequence new systems.
Modern building systems were integrated into the existing
infrastructure while supporting the architectural vision for the
new workplace.
ARCHITECTURAL + FINISH COORDINATION
Frameless glazing, storefront systems, architectural woodwork,
acoustic treatments and specialty ceilings intersected with lighting,
HVAC, fire protection and other building systems.
Shannon used detailed pre-installation planning, field coordination
and sequencing reviews to align specialty trades before installation.
Architectural finishes and building systems came together as a
cohesive environment with the quality and level of detail expected
of the finished workplace.
BUILDING THROUGH COLLABORATION
Shannon worked closely with Sisterson, JLL, NEXT Architecture,
CJL Engineering, building management and project trade partners
throughout construction.
That collaboration was particularly important where architectural
details intersected with existing infrastructure. Resolving those
conditions required input from multiple disciplines and practical
field solutions that respected both design intent and constructability.
PROJECT HIGHLIGHTS
