Fire Elimination in Wood Frame Construction
Michael Feigin, Chief Construction OfficerAvalonBay Communities
AGENDA
THE CHALLENGE
HOW AVB RESPONDED TO THE CHALLENGE
THE COMPONENTS OF FIRE ELIMINATION
UNDERWRITING CONSIDERATIONS
WHAT’S NEXT?
3 EXPANSION MARKET
➢ 25+ YEAR FOCUS ON ATTRACTIVE COASTAL MARKETS
AVALONBAY AT A GLANCE
$31BTOTAL ENTERPRISE VALUE
291APARTMENT COMMUNITIES
$2.4BUNDER CONSTRUCTION(1)
20U.S. MARKETS
12.9%ANNUALIZED TOTAL SHAREHOLDER RETURN
SINCE IPO
5.2%ANNUALIZED DIVIDEND GROWTH
SINCE IPO(2)
Source: Company reports.Data as of December 31, 2018Initial public offering (IPO) occurred on November 11, 1993.Total shareholder return calculated as the change in the value of the period stated with all dividends reinvested.Dividend growth includes AVN & BYA dividends prior to merger.(1) Excludes projected Total Capital Cost for 15 West 61st Street of $620 million.(2) Includes 2019 dividend increase.
LEGACY MARKET
2018 NEW
CONSTRUCTION HARD COST
SPENDREGION
CA $115M17%
FL $5M1%
MA $120M17%
DMV $38M6%
NJ $132M19%
NY $148M21%
TX $4M1%
WA $120M18%
2018 NEW
CONSTRUCTION HARD COST
SPENDPRODUCT
TYPE
$514,993,939
$170,968,624
75%
25%
THE CHALLENGE
WOOD IS ALMOST THE PERFECT BUILDING MATERIAL.
IT’S SUSTAINABLE.
IT’S VERSATILE.
IT’S STRUCTURALLY STRONG.
IT’S INEXPENSIVE.
BUT…..WOOD BURNS.
WOOD FRAME CONSTRUCTION
FIRE CODE FOCUSES ON
NFPA 13 AND 13R
FIRE DETECTION
SLOWING THE PACE OF FIRE
PROTECTING THE COMPLETED STRUCTURE
A fire that starts during construction and prior to completion of life safety
systems almost always results in complete or almost complete
destruction of the property and a great threat to human life.
Large Construction Fires 2017 – March 8, 2019
1
2
3Maplewood, NJ
January 2017
1 Month Before the fire
1
2
3
Maplewood, NJ
February 2017
1 Day After the fire
Maplewood, NJ
February 2017
7 Months After the fire
“”
We will not have another destructive fire on an AVB
construction project.
CHANGE THE DISCUSSION
FIRE AVOIDANCE
FIRE SUPPRESSION
FIRE MITIGATION
FIRE CONTROL
FIRE ELIMINATION
FIRE ELIMINATION
PROGRAM: 4 CORE
COMPONENTS
ELIMINATE SOURCE OF FIRES
SECURITY
DETECTION
SUPPRESSION
ELIMINATE THE SOURCE OF FIRES
EXTREME HOUSEKEEPINGREMOVE FUNDAMENTAL FUEL SOURCE FOR FIRE
EVERY PROJECT EVERY MONTH
RATED 1 -10
ELIMINATE THE SOURCE
OF FIRES
NO DIRECT FIRED HEATERS ON JOB SITES.
ELIMINATE THE SOURCE
OF FIRES
ONLY USE INDIRECT FIRED, DUCTED HEAT SOURCE
FLAMELESS HEATER IN
ACTION
ELIMINATE THE SOURCE
OF FIRES
NO MORE HOT WORKS ON PLUMBING
SECURITY Enhanced
Perimeter
Fencing
SECURITY:STATE OF THE
ART HD PERIMETER
CAMERAS
COSTS LESS THAN SECURITY GUARDS
DOESN’T SLEEP OR TAKE BREAKS
FULL AREA COVERAGECENTRAL MONITORING OF MULTIPLE CAMERAS
HD 24/7 VIDEO PLUS MOTION SENSING
SPEAKER LIVE, REAL TIME WARNINGS
DETECTION:PILLAR
INDUSTRIES
DETECTS:TEMPERATURE, WITH SUDDEN INCREASE ALERTMOISTURE AND HUMIDITYAIRBORNE PARTICULATES
13 AVB ACTIVE SITES
MESH NETWORK OF 990 PODS
1 POD = 2,000 SQ. OF COVERAGE
AVERAGE PROJECT HAS ABOUT 100-150 PODS WHEN COMPLETE.
System Components
PODs
PODs collect environmental
metrics and relay wirelessly to
the Gateway
Gateway
Gateway collects POD data and
relays to the cloud based
platform via cellular
Cloud Platform
Pillar Platform overlays environmental
data on floorplans to provide a real
time view into jobsite conditions
Alerts
Pillar pushes alerts to cell and
email when dangerous
conditions are detected
Work Days
Weekends
Stable Temp
Stable Humidity
Data Outputs
SUPPRESSIONMFIRE
ESSENTIALLY RENDERS WOOD FIREPROOF.
A SPRAYED OR DIPPED (3 SECOND) APPLICATION FOR WOOD.
MUCH LESS EXPENSIVE THAN ALTERNATIVES.
SUPPRESSIONMFIRE
DOES MFIRE REALLY WORK?
DOES MFIRE AFFECT THE STRUCTURAL INTEGRITY OF WOOD?
DOES MFIRE INCREASE MOISTURE CONTENT OF THE WOOD?
IS MFIRE SAFE FOR WORKERS AND RESIDENTS?
UNDERWRITING CONSIDERATIONS
HOT WORKS
HOUSEKEEPING
SECURITY
DETECTION
SUPPRESSION
HOT WORKS
HOW ARE YOU LIMITING HOT WORKS ON YOUR PROJECT?
WHAT ARE YOUR HOT WORKS PROGRAM REQUIREMENTS?
ISSUE HOT WORKS PERMIT.
PROPER TRAINING AND CERTIFICATIONS.
PROPER EQUIPMENT.
AREA CLEAN, NO COMBUSTIBLES.
FIRE WATCH AND FIRE EXTINGUISHERS.
ARE YOU USING ANY OPEN FLAME HEATERS?
HOUSEKEEPING
DO YOU HAVE A WRITTEN HOUSEKEEPING POLICY AND PROGRAM?
DO YOU MAINTAIN RESPONSIBILITY FOR YOUR HOUSEKEEPING PROGRAM, OR DO YOU DELEGATE TO SUBS?
HOW DO YOU TRACK THE SUCCESS OF YOUR HOUSEKEEPING PROGRAM? HOW OFTEN? HOW DO YOU REPORT RESULTS? WHAT DO YOU DO WITH THE RESULTS?
SECURITY
DO YOU USE SEMI-PERMANENT OR PERMANENT FENCING TO SECURE YOUR SITE?
WHAT IS THE MAXIMUM NUMBER OF ENTRY POINTS THAT YOU ALLOW?
DO YOU HAVE PERIMETER CAMERAS? ARE THEY CENTRALLY MONITORED? DO YOU GET REAL TIME ALERTS?
DO YOU HAVE SECURITY GUARDS ON SITE? WHERE AND WHEN?
DETECTION
DO YOU HAVE A FIRE WATCH ON SITE? WHEN ARE THEY ON DUTY? DO THEY HAVE FLIR SENSORS? ARE THEY CERTIFIED OR TRAINED? WHAT IS THE CRISIS PROTOCOL?
DO YOU USE ANY TYPE OF SENSOR ON SITE TO ACTIVELY MONITOR CHANGES IN TEMPERATURE? WHEN ARE THEY INSTALLED? DO THEY PROVIDE 100% SITE COVERAGE? DO THEY PROVIDE INSTANT ALERTS IF TEMPERATURE EXCEEDS A CERTAIN THRESHOLD?
SUPPRESSION
DO YOU USE OSB BOARDS OR TRUSSES?
DO YOU USE FIRE RETARDANT TIMBER OR ANY OTHER FIRE PROTECTION OTHER THAN WHAT IS REQUIRED BY CODE?
DO YOU USE ANY APPLIED FIRE SUPPRESSANT OR PROTECTOR?
WHAT’S NEXT?
LOCAL LEGISLATIVE EFFORTS TO BAN OR SEVERELY LIMIT LIGHT GAUGE WOOD FRAME CONSTRUCTION.
FOCUS ON AMENDING FIRE CODES WITH STRICTER REQUIREMENTS AND ENHANCED PROCESSES.
LOCAL FIRE OFFICIALS AND BUILDING DEPARTMENTS CRACKING DOWN.
EFFORTS BY ALTERNATIVE MATERIAL SUPPLIERS (CONCRETE AND STEEL) TO FORCE A MOVE TO NON COMBUSTIBLE MATERIALS.
FOCUS ON THE ROOT CAUSE OF
FIRES
HEAT AND FLAMES ON CONSTRUCTION SITES – ELIMINATE OR CONTROL
THIRD PARTY INTERVENTION – SECURITY
TIMELY NOTIFICATION – DETECTION
PROVEN WOOD PROTECTION
FIRE ELIMINATION