MJBizMag October 2021 - 108

Battling Building Challenges
construction, and the cost of metal studs
has gone up 15%-20%, Fettner said.
" Cost is an issue, but the availability is
really what we have red-flagged, " Fettner
said. " When you're building anything
in the cannabis industry, time is of the
essence. When we see an item that's
typically in stock but is now eight weeks
out, we stockpile. "
JUST KEEP BUILDING
Most of the cultivation facilities that
St. Louis-based Arco National
Construction offers are preengineered
metal buildings. The cost of steel has
jumped as much as 40% in the past
12 months, and the building material also
is in short supply, said Drew Blaylock,
Arco's director of preconstruction.
Even so, cannabis companies are not
delaying construction of their facilities.
" A lot of them are moving forward because
they have licensure requirements, "
Blaylock said of Arco's cannabis clients.
" A lot can ask for extensions, but not a lot
are granted extensions. "
Blaylock said Arco, a design-build
firm, will pay a premium for materials to
ensure it meets the established timeline.
If the price of materials is pushing the
106 MJBizMagazine | October 2021
Las Vegas-based Deep Roots Harvest is working to complete four dispensaries before February.
Courtesy Photos
project's cost beyond the budget, and
a cannabis business is required to be
operating by a certain time, the company
can either build a smaller facility or leave
some of the rooms unfinished, he said.
" You've got to think outside the box, "
Blaylock said. " You have to find more
creative ways to get there-whether that's
through value engineering or changing
your design. ... Tell me what you must
have and what you'd like to have, and
we'll come up with the best mousetrap
we can design. "
To keep costs down, Blaylock
recommends getting a contractor
involved in the project as soon as
possible so that someone who has a
good sense of the process and cost of
materials and labor can help guide
decisions and make creative suggestions
about where to save.
PAYING FOR CONSTRUCTION
With higher construction costs comes
the need for a lender that can bridge the
financing gap from the time construction

MJBizMag October 2021

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