Episode Transcript
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Tony Johnson (00:02):
Welcome to another
episode of Timeless Building
and Business Strategies.
This is Tony Johnson.
Today we have Joe Marangolowith us.
Joe, thanks so much for joiningus today, sir.
Joe Marangolo (00:12):
Thank you very
much for having me.
I appreciate this.
This is great.
Tony Johnson (00:15):
Yes, sir.
So what you are is primarily anowner's rep a construction
management firm.
Could you tell us how you gotinvolved in construction
management and how long you'vebeen doing it?
Joe Marangolo (00:30):
Yeah, I mean, you
know, my career kind of started
when I was maybe 13 or so.
I grew up as a carpenter, aforeman, you know, a
superintendent, a projectmanager and sort of getting to
the crux of your question, oneof the things I realized as a PM
and as a super is that theproject takes X number of months
or years in its full lifecycleand I really saw that I was
(00:52):
coming in in the last 30 or 40%,which is where the construction
really kind of starts.
So much happens in thebeginning and I found myself
really going backwards a lotwith our clients and having to
sort of connect a lot of whatwas done before, the design, the
sequencing.
You know.
Certainly value engineeringends up being a big part of it.
I found that I really enjoyedthat as much as anything else
(01:17):
and that was sort of the impetusfor starting this firm that we
would get in with our clients inthe very beginning, this firm
that we would get in with ourclients in the very beginning.
And really what's been fun is Ireally identified that need to
connect that first you know, 50to 60 percent of the project to
the construction.
But what I really found is thatwe're also able to build teams
(01:40):
to understand, you know, themission of the project.
We talk a lot about missionbuilding within the project
goals and we find that theinfluence there really sort of
helps define the kind ofarchitects, engineers, vendors,
designers and even GCs that wecan bring to the project.
So it was all of that thatreally kind of got us to start
(02:02):
this firm and go to that otherside of the project and
influence it from the beginningand we find that it really does
sort of connect the entireproject timeline much more, you
know, safely, securely and whenyou're really keeping risk
management in mind.
Tony Johnson (02:19):
So you know, for
anyone who doesn't quite hasn't
worked with a constructionmanagement firm, could you kind
of go through what's the wholeemphasis or whatever you would
call that?
Sorry, yeah, what's theantithesis of everything
together?
What is driving and what's thepurpose of what you're doing?
Joe Marangolo (02:43):
Yeah, I mean, I
think really my role has been
something that has increasedquite a bit and my competitors
and people like this.
This role has really sort oftaken a hold and I think it has
a lot to do with the fact thatowners and clients are just less
inclined to run the projectsthemselves, are just less
(03:05):
inclined to run the projectsthemselves and they need to
understand how to pick anarchitect, how to understand
what the engineer's role is, howto choose a GC and how to do it
in a way that they feel safewith their selections, knowing
they're going to get what theywant within the agreements set
forth.
My role right off the bat is tounderstand what the goals of
(03:26):
the project is.
The goal?
Roi Is the goal a change oflife, you know.
A drastic, you know, redo on aninterior space Is it a move, and
you know?
And a higher investment in whatsomebody wants to build and or
utilize it.
You know, understanding that issomething that I think was
missing a lot on the owner'sside of the table and that's
(03:48):
where my 35 years, my businesspartner has 30 years experience,
my senior project director has25 years experience and we all
kind of have very differentexperiences within the industry
and so bringing that to aclient's side of the table so
that they can understand veryclearly what the project is
going to be.
What are the real expectations?
(04:08):
We're not starting constructiontomorrow, as everybody wants to
do.
We're going to put together aproper team and a proper process
.
Tony Johnson (04:32):
It's almost hard
to calculate that value because
we're saving time, we'recontrolling budgets and we're
really sort of making sure weunderstand and set the
expectations for quality andscope as well.
Right, and so breaking downwhat you're saying there a
little bit, joe is you know,what Joe is coming in and doing
is dealing with whether it's aneducated owner or an uneducated
owner having a project wantingto get done.
There are multiple owners thatwe deal with that have large
(04:54):
companies, do tons of projectsand you would say, oh, why would
someone like that need aconstruction management firm?
And to speak to what Joe'ssaying, is because you know,
though, they're experienced andunderstand the construction side
of things, joe and his teamwould be able to go in.
They're going to really be ableto dig in on when contractors
(05:15):
are looking at a project toreally level the bid, level the
playing field, make sureeverything is right, make sure
the scope is written up to coverthe project.
So an owner, though he might beknowledgeable, they might not
know how to write up a scope ofwork, to make sure that these
contractors are biddingeverything, to eliminate the
(05:36):
necessary change orders.
That would come along if anowner just wrote up a scope of
work and left it open, or wouldget completely different bids.
When he's getting from acontractor, then holding the
contractor accountable tomeeting, timeline given and
knowing when you know, asopposed to an owner that might
not have the time to keep up andmaintain with that schedule and
(05:59):
the schedule updates, joe'sgoing to be right on top so he's
going to be able to notify thatowner.
Hey, there is no way thiscontractor is finishing on time,
or this contractor the scope ofwork is written up this way.
He's giving you this this isnot what was drawn on the
drawings that you might miss,because we're going to catch it
(06:19):
right.
So you're going to make surethey're going to get what
they're paying for.
The project's going to stay onschedule.
If not, you're going to beright on top of it.
So those are some of the big keyadvantages on the owner side
and you know, on the contractorside, there's advantages for us
as well, because the owner, whenyou have a big league owner,
(06:43):
he's busy, he doesn't have timeto take my calls.
I got questions, I got things,I need answers.
You need that intermediary toanswer questions to keep the
projects on track.
So it's beneficial on bothsides, right.
So I love the idea of it, andit is becoming more prevalent in
(07:04):
jobs these days.
So could you give me an idea ofwhat type of projects do you
guys align with the most?
Joe Marangolo (07:14):
Yeah, most of our
projects are large scale luxury
residential projects.
We have, you know, we have aproject that's essentially a
five building residential estatein one in upstate New York.
We've got, you know, anapartment that's almost 12,000
square feet with some extremelyhigh complexity.
(07:34):
We've got, you know, we alsohave on the commercial side,
where you know we're doing somerestaurants right now.
We have buildings that aregoing through either capital
improvement, you know, or youknow actual, you know severe,
you know structural issues thatright now we have buildings that
are going through eithercapital improvement or actual
severe structural issues thatthey bring us in to make sure
and manage and mitigate thatrisk as fast as possible.
(07:54):
Bring in the right people,understand timelines, still
utilize a proposal process.
So we know we're spending ourmoney wisely, but we're also
bringing in experts.
I think the fun thing that youmentioned there is that, because
I come from the GC side, weactually do get referred by GCs
to clients for the exact reasonyou mentioned.
(08:16):
I know exactly what a GC needsA we know they need to be funded
.
So, understanding how to gothrough the requisition process,
understanding the requisitionitself, working together and
collaborating so that I can goback to the client and say
here's where we are, here'severything we've discussed and
here's the money that's owed andwe can go ahead and approve
this right now.
So understand, funding isreally that gas that we pour
(08:40):
into the project for thecontractor to keep going To your
other point understandingtimelines and getting questions
answered, getting selections,completing the design process in
time it's so critical tomaintaining our schedule.
You know, what I find is good.
Contractors don't want to deletethe job, they don't want
changeovers, they want to get in, do the job and their client to
(09:04):
say, wow, this was way easierthan I thought it was going to
be and this is the goal of everyproject is to try to mitigate
all of these issues and to makesure that not only are we
feeding the contractors whatthey need, but we're also
setting an expectation with theclient as to what to expect from
the contractors.
And it's been really sort of apleasant surprise to see a
(09:25):
contractor refer us to a projectand say we know that we're
going to get what we need ifyou're on the project and that
and you, you understand theprocess.
You understand not just whatwhat we need from you, but you
know what, what we can make surewe can agree to and and really
sort of set an expectation andthen meet or beat it, and that's
that's always the goal for allof us.
You know, my success is tied tothe success of everybody else
(09:48):
as well, and I think that's apretty good relationship to have
in a project team.
Tony Johnson (09:53):
Absolutely, and
you know the good thing is with
any business right.
So when you do a great job,that owner is going to keep you
on, and typically you knowthat's the only way you survive
in this business is you need tofind some type of repeat
business.
So obviously that's great.
So you said you have a partnerin this, and so how did you two
(10:14):
get aligned?
Joe Marangolo (10:17):
We worked on a
couple of projects when I first
started this firm, and he waspart of a GC and we did some
residential projects togetherand just hit it off and thought
to ourselves we have reallyaligned interests, aligned
ethics, aligned values andreally an aligned vision.
And so we joined forces and hecame on with clients of his own
(10:40):
as well and the two of us justhave.
I mean the last five to sixyears and in particular, have
been massive growth years for us.
We've hired PMs, We've taken onmore and more projects and we
have this thing we say ourclients are our sales force,
because what we do we can'treally be out there, there's not
really a good direct sell tosome of these clients, and so
(11:04):
our projects are allreferral-based and so every
project we do is somewhatprecious to us.
Oh, absolutely, and we knowwe've got to make sure our
client can.
Somewhat precious to us.
Tony Johnson (11:12):
Oh, absolutely.
Joe Marangolo (11:13):
And we know we've
got to make sure a client can
look back at us and say I couldnot have done this without you.
And that's a really importantpart of how we start the project
knowing how we want to end theproject.
Tony Johnson (11:24):
That's fantastic.
Now we like to talk a lot about, you know, not only building,
but business strategy.
So saying you know, when wetalk about this partner, you
know and you so.
Do you guys run on EOS or doyou use any type of operating
system that you run on?
How is your business structured?
Joe Marangolo (11:45):
Yeah, you know
it's funny project to project.
You know we've got our own, sowe use Microsoft OneDrive as our
repository.
We do you know use've got ourown, so we use Microsoft
OneDrive as our repository.
We do, you know, use Autodeskwithin our project management
side.
The fun, the funny thing, isthat you know our GCs generally
have their own projectmanagement software and this is
where this is where sort of theall the experience that we have
(12:08):
comes into it, because I'm quiteexperienced in co-construct and
Pro core, certainly Autodeskand building connected and
things like that.
So we end up having our handsin every system.
But for us in our organizationour repository is all through
OneDrive, which gives us a lotof flexibility in applications
and all the different thingsthat we can do, and I'm sure
(12:30):
everyone here kind of knows thatit's either OneDrive or Gmail
or something like that forrepositories.
But then Autodesk is where wehouse drawings and process and
things like that, where wecapture communication.
We try to do as much as we canto integrate it with our project
partners as well.
But we have to toggle that alittle bit so that we also get
(12:51):
into our GC system.
We can, you know, we can helpapprove submittals and you know
see RFIs and you know go throughthat process with them as well.
So we do sort of wear, we weara good bit of technology around
our, you know, around our officehere.
Tony Johnson (13:07):
Yeah, Speaking of
the technology, have you guys
incorporated, or are you workingto incorporate, any AI to
automate any processes, or haveyou guys delved much into AI?
I know it's really building alot of steam these days.
Joe Marangolo (13:38):
You know I know I
shouldn't say it out loud but
my first foray into AI was chatGPT, helping my email sound a
bit less like a 12-year-old andmore professional.
You know, growing up as acarpenter and a superintendent,
my typing skills were, you know,were fine, and certainly coming
out of college that was fine aswell.
But you know, we're using AIthe most at the moment,
interestingly, is through theVDC programs we've put together.
(14:00):
We're working VDC on twodifferent projects right now for
two very different end goals,and that AI is actually filling
in a lot of blanks for theengineer as we sort of go
through clash detection and weactually do.
We're doing a full build out ona hotel and we're doing it all
within an environment.
Right now I'm literally placing, you know, threaded rod anchors
(14:22):
and hangers and things likethat in the, in these ceilings
and stairwells and around thetrusses, so that we can.
You know our goal is to be atabout 92% of zero clashes by the
time we start construction andit's been an incredible process
and I've had to learn a lotabout the AI process that is
used there.
I've got a really greatengineer that sort of is running
(14:45):
it, but we've been able to jumpin and go through the
constructability, thefeasibility side of it, the
other you know the other side ofit, and this is really where I
think AI has helped us a bit.
You know we've got a luxuryresidential project here that
you know.
For example, we've got threemill workers in different
countries.
We have a stone contractor thatthey are themselves in two
(15:06):
different countries, and so usbeing able to provide a 3D
environment that's accurate towithin, you know, less than an
eighth of an inch, so everyoneactually can go into this
environment and measure.
We update our scans every monthand everyone is able to really
pull from the exact samedimensions throughout the entire
project and in doing so, thisthing is sort of learning itself
(15:28):
where things are going to goand how it can help distribute
the information to all thedifferent people that are
pulling from this.
It's a complex process to mebecause I still go back to 30
years ago using a water level.
I don't know who in youraudience is going to recognize
(15:49):
water level, but I certainlyused it when I was younger, um,
and and so now to be able towalk into a virtual 3d
environment and have this thinglearn around you and be able to
distribute information, decipherwhat everyone is trying to do
at the same time and, uh, andput it all together.
We can.
We can send it in BIM and Revitand AutoCAD, as well as a 2D
(16:11):
you know, just a 2D drawing aswell, and it's been a process
that has saved a massive amountof time and money because we're
not flying all over the place.
I can send this to my one millworker in Germany.
I've got another mill worker inLondon, the finisher is in
Italy, the stone contractor isin Austria, so I can send this
(16:32):
to everybody and they can beputting this together, at least
to a well within our shopdrawing tolerances, as we put it
all together and nobody has tofly anywhere, and it saves a
massive amount of time and money.
Tony Johnson (16:47):
Yeah, I mean,
there are so many benefits.
You know, people are just nowstarting to realize a couple
little tangible benefits, andit's moving so quickly.
It's hard you learn one aspectof it and then there's five new
ones coming your way.
So you know, I'm interested tosee where everything is going to
be in the next five to sixyears.
(17:07):
I do, you know, a lot ofindustries are going to get
wiped out.
A lot of industries are goingto get wiped out.
I think this, being moreservice-based and manual, is
beneficial to our industry,because it will take longer.
You have to have robotics,which obviously that is not near
(17:28):
as simple as some of the thingsyou can do right across the
internet.
And then technology, um, butyou know, I do have a lot of
architects and engineers are alittle bit worried.
They're nervous, for sure.
I would say that, yeah, whenyou could just have these
renderings come up in fiveseconds.
But you still need the humanelement.
Um, you know that's withoutquestion successful.
(17:51):
You know, I think what?
But?
But the intelligence level, thevalue of intelligence, of human
intelligence, is going down ata rapid pace, unfortunately.
Joe Marangolo (18:04):
You know, I still
like the on-site meetings where
everyone shows up and we lookat our problems, we solve them
and you know, and perhaps that'sa bit old school, we are
looking at ways in which we'vejust got to and again we are
utilizing AI and we're utilizingthe things that are coming in.
But where I really sort ofvalue experience and I value
(18:24):
education and I valueintelligence, I really still
utilize the on-site meetingswhere we can look and touch and
feel the problem and solve it,because ultimately, that's our
job is to make sure we can keepmoving through this thing.
And I value our architects andengineers highly in these
scenarios and I'm curious whereit goes and I know they're
(18:47):
worried, but I still have a highvalue and a high respect for
that human intelligence that weutilize on a daily basis.
Tony Johnson (18:56):
Yeah, Absolutely
so.
When you guys look forward foryour business, where are you
guys trying to take yourmanagement company in the coming
years?
And I'm sorry it's JSM ProjectManagement, correct?
Yes?
So, JSM Project Management.
I don't know if that mentionedthat in the beginning.
I want to make sure I get thatout there and we'll have it in
(19:17):
the show notes, that out thereand we'll have it in the show
notes.
Joe Marangolo (19:19):
Yeah, perfect, I
mean.
So we're primarily based in NewYork city.
We've got some, some clientsthat have taken us out West.
You know, we've got a projectin Los Angeles, we have a
project coming in Barbados.
I might selfishly take that oneon myself.
Obviously, I'll let you know ifI need some help, tony.
Thank you?
Tony Johnson (19:36):
Yeah, I will be
waiting for that phone call.
So walk us through.
How is your set to manage that?
You have to obviously havesystems in place to handle
something that far away.
So how is that going to bedifferent from one at home, and
how will you handle it?
Joe Marangolo (19:53):
So you know,
fortunately I've worked in quite
a few cities.
I've worked in Los Angeles,I've worked in DC and Miami and
New York.
I luckily don't have to reallycold interview anyone yet.
I've got enough of a network tobe able to bring people on
board as soon as I'm ready to go, and so I've really been able
to find, you know, within mynetwork, people that have again
(20:15):
those shared visions, the sharedprocess.
One thing I did in the verybeginning was I wrote process
process.
One thing I did in the verybeginning was I wrote process
and I said, look, I would loveto tell you and I would love to
try a lot of you until Iinvented all this project
management process.
We all know why I did it.
I was PMP certified when Iworked for a government
contractor there in DC.
So, funny enough, thegovernment cares about the
(20:36):
certification but notnecessarily the actual process.
Our industry doesn't care aboutthe certification but the
process is invaluable, exactly,and this is really the funniest
thing about it.
But we've got our systems inplace, we've got our templates
in place.
We're able to really sort ofkick up and going pretty quickly
, especially in these areas thatwe've already worked.
(20:56):
We already know the local DOB,we already know the codes and
requirements.
We have our network ofarchitects and engineers and
even GCs, and I think that'sreally a value that we bring to
our clients is that we caneliminate the initial scare of
who do I call?
How do I know what contractorto call?
(21:17):
What friends am I going to askIs that contractor right for the
kind of work that we do?
Well, that's something.
We can eliminate that concernand say here's a list of who we
would recommend here for thebidding process.
Let's start with this, let'spare it down to this and then
let's make our selection Again avery sort of buttoned up and
streamlined process.
(21:37):
Our vendors and those in ournetworks, our architects, our
engineers, our GCs they reallydo appreciate that because when
we bring them in, they knowthey're going to get a proper
RFP with proper drawings andthey're going to have an ability
to really meet an expectation.
And that's the give and takeabove and below.
(21:58):
What we do is to be able tobring people in pre-vetted.
They know what they're going toget when they, when they come
into one of our projects andthey know they're going to have
an opportunity to succeed.
I mean, let's you know they'rethey're in business to do to to.
You know, execute a project,you know earn their reasonable
profit and move on to the nextproject.
And and that's really it is agoal of the project to make sure
(22:19):
that everybody is successful,because if the GC is successful,
I mean likely, the owner isgoing to be very, very happy.
Tony Johnson (22:26):
Right, absolutely
Well, fantastic, joe.
Thank you so much, man.
I really appreciate you comingon today and walking through
this with us.
Now, if somebody wants to getin touch with you and
potentially work with you,what's the best way to reach out
to you?
Joe Marangolo (22:39):
You can email me
at joe at projectmgmtcom.
You can go to our website.
There's a contact page there.
I'm pretty sure there'sInstagram.
I'm not going to lie to you.
We have something that doesInstagram, because that's
something I have not figured outyet you don't have to tell me
I'm the same way.
Tony Johnson (22:57):
But yes, sir, so
we will make sure we have all
that in the show notes.
It's at JSM Project.
Mgmt is their Instagram handleIf you guys want to check them
out.
Hey, joe, thanks so much forjumping on today.
We really enjoyed the chat, sir.
Joe Marangolo (23:11):
Thank you very
much for having me on and I
appreciate what you're doing tohighlight businesses like mine
as well.
So I really appreciate whatyou're what you're doing.
Tony Johnson (23:18):
Thanks so much,
sir.
Have a great afternoon.