Local Politics:Issues:Construction Costs

The question we are posing here is why government building construction costs, at the town and state level (for schools, police and fire stations, community centers, city halls, state college buildings etc), are much higher than those incurred by private real estate developers (for office buildings, manufacturing facilities, shopping malls, private schools, private college buildings etc).

Vynebrooke Village Renovations
In 2014, Annual Town Meeting approved in its Article 8 (g) renovations at Vynebrooke Village, at the cost of $300k to Lexington and $600k to the Dept of Housing and Community Development. Work scope: replacing 27,000 sq ft of siding, 17,000 sq ft shingle roof, and 24 doors.

Estabrook Construction
The Estabrook school construction has a 82,080 sq ft gross floor area, and the construction cost was $43.35M. This comes comes to $528 per sq ft. The construction was completed in 2013.

Lexington High School Modulars
The High School Modulars are 24,525 sq ft gross floor area at an estimated construction cost of $6.7M-$7.7M, including an unspecified amount of technology equipment. This comes to $273-$313 per sq ft.

Summary of School Construction in Lexington
This table was last updated in Sept 2017.

Reports:
 * [[Media:School Construction Costs Inflation.xlsx|School Construction Costs Inflation]] (2015) indicates an average new construction cost inflation rate of 8.85% per annum between 1997-2015.

Hobbs Brook Construction in Waltham
Hobbs Brook announced in the fall of 2013 that it is planning to construct an office space building in Waltham, at 275 Wyman St, for 315,000 sq ft at $100M construction costs. This comes to $317 per sq ft. Vistaprint will move its headquarters from Lexington into the new building once it is completed.

Hastings

 * [[Media:Hastings Project Budget.pdf|Project Budget]] (Aug 2017)
 * [[Media:Hastings Lexington PS&B Board Memo_Final.pdf|Hastings Project Scope and Budget]], MSBA (Aug 16, 2017)

Estabrook

 * [[Media:Estabrook Educational Program.pdf|Estabrook Educational Program]]
 * [[Media:Estabrook Project Meetings.pdf|Estabrook Project Meetings]]
 * [[Media:Estabrook Space Summary 11-10-19.pdf|Estabrook Space Summary 11-10-19]]
 * [[Media:Estabrook Work Plan Schedule 11-09-16.pdf|Estabrook Work Plan Schedule 11-09-16]]
 * [[Media:11-10-13 SPL-Option 1 - 3 Story School.pdf|11-10-13 SPL-Option 1 - 3 Story School]]
 * [[Media:11-10-13 SPL-Option 2 - 3 Story School.pdf|11-10-13 SPL-Option 2 - 3 Story School]]
 * [[Media:11-10-13 SPL-Option 3 - 2 Story School.pdf|11-10-13 SPL-Option 3 - 2 Story School]]
 * [[Media:11-10-13 SPL-Phased Construction.pdf|11-10-13 SPL-Phased Construction]]

LHS Modulars

 * Lexington Minuteman: Town Meeting approves Lexington High School modular classrooms, by Marc Filippino (Nov 7, 2013)
 * [[Media:LHSFac0verview10Sep13.pdf|LHS Overcrowding]], School Committee update, (Sept 10, 2013)

Legislation
Public Works in Massachusetts function under M.G.L. c. 149 and 149A.
 * Public Procurement Procedure Charts at the MA Office of the Inspector General. Building construction contracts are at p. 3.
 * [[Media:T34%20Public%20Work%20in%20Massachusetts%20-%20Understanding%20Chapter%20149%20and%20Chapter%20149A.pdf|Public Work In Massachusetts, Understanding Chapter 149 and Chapter 149A]]

Studies and Documents

 * Designing and Constructing Public Facilities (Aug 2014)
 * Managing Public Sector Projects, by David S. Kassel (2010), ISBN 978-1420088731
 * Boston Globe op/eds:
 * Unions a stabilizing force, by Mark Erlich (Mar 22, 2009)
 * Nonunion workers lose out, by Greg Beeman (Mar 22, 2009)
 * [[Media:bp215.pdf|Prevailing Wages and Government Contracting Costs]], by Nooshin Mahalia (July 3, 2008)
 * [[Media:BHIMASSPLAUpdate061204FINAL.pdf|Project Labor Agreements and Financing Public School Construction in Massachusetts]], by David G. Tuerck and Paul Bachman. Beacon Hill Institute, Dec 2006.
 * Project Labor Agreements’ Effect on School Construction Costs in Massachusetts, by Dale Belman, Russell Ormiston, Richard Kelso, William Schriver and Kenneth A. Frank
 * Wikipidia's Project Labor Agreement page.
 * Massachusetts Politics and Public Policy, Studies in Power and Leadership, by Richard A. Hogarty, ISBN 978-1558493513 (see the MBM construction contracts for political donations scandal and the Ward Commission Report)
 * Cost Indexes
 * Turner Building Cost Index, [[Media:CostIndex2015Qrtr3.pdf|Pdf]] (2015)
 * ENR Cost Index for Boston, [[Media:ENR Cost Indexes in Boston 1978-2015.xlsx|Excel]] (2015)

Massachusetts Construction Costs

 * MSBA
 * Construction Data
 * Estimated Construction & Total Project Budget Cost Data at Schematic Design
 * [[Media:Est_Const_Total_Proj_Budget_Jan_2015.pdf|Pdf]], [[Media:MSBA_Est_Const_Total_Proj_Budget_Jan_2015.xlsx|Excel]] (Jan 2015)
 * [[Media:MSBA_New_Schools_Jan_2014.xlsx|New Elementary Schools Summary]] (Jan 2015)
 * Bid Results for Construction Contracts
 * [[Media:Bid_Results_Construction_Contracts_PFA_January_2015.pdf|Pdf]] (Jan 2015)
 * Project Overview Reports [[Media:Project_Overview_Report_1_30_13.pdf|Jan 2013]], [[Media:Project_Overview_Report_w-Attachments_9_24_14.pdf|Sept 2014]]
 * Construction Cost Trends [[Media:Construction_Cost_Trends_8_6_15.pdf|Aug 2015]]
 * Audits of the MSBA: [[Media:200814613a.pdf|2008]]

News & OpEds

 * Governing: How to Save Billions on Public Construction, by Charles Chieppo (Oct 7, 2015)
 * The Commonwealth: Contracting system isn't saving money, by Jack Sullivan (Oct 13, 2015)
 * New York Times: G.O.P. Expands Labor Battle to Laws Setting State Construction Wages, by Monica Davey (May 3, 2015)
 * Boston Globe: State rethinking model school designs, by Johanna Seltz (Sept 13, 2014)
 * Boston Globe: Average cost for new or refurbished high schools in seven Boston suburbs checks in at $100 million, by John Dyer (Aug 23, 2014)
 * Sea Coast Online: The high cost of building schools, by Joey Cresta (Feb 9, 2014)
 * Metro West Daily News: Prevailing wage law frustrates MetroWest officials, by Brad Petrishen (May 28, 2012)
 * Boston Globe: Town seeks wage-law exemption, by Brad Kane (Mar 12, 2009)
 * Boston Globe: Next target: the prevailing wage law, by David G.Tuerck (Aug 20, 2008)
 * The Commonwealth: Craven gets a grip on the rising costs of school construction, by Gabrielle Gurley (June 4, 2008)
 * NewAmerica.org: Subsidizing School Construction in Massachusetts, by Lindsey Luebchow (May 27, 2008)
 * Metro West Daily News: Cities may rethink pricey school plans, by Lindsey Parietti (May 23, 2008)
 * Boston Globe: The high cost of affordable housing, by David Luberoff (May 7, 2008)
 * Boston Globe: Cahill says redesign would lower school cost, by Ralph Ranalli and Rachana Rathi (Feb 22, 2008)
 * The Commonwealth: Unions fight moves against construction labor agreements, by Shaun Sutner (Oct 22, 2007)
 * Boston Globe: A usable past. In 1980, the Ward Commission exposed a culture of corruption and brought about far-reaching reforms. Can its lessons..., by Dave Denison (July 23, 2006)
 * Boston Globe: The unfair price of union labor, by Scot Lehigh (May 20, 2005)
 * Boston Globe: 23 charged for sub-par Big Dig pay Truckers say they didn't receive prevailing wage required by law, by Thomas C Palmer, Jr (May 8, 1998)
 * Boston Globe: Big Dig truck subcontractors referred to AG Prevailing wage violations cited, by Thomas C. Palmer (Apr 19, 1997)
 * Boston Globe: Prevailing wage law idling, by Diane E. Lewis (Oct 25, 1992)
 * Boston Globe: Unions beat Question 2, preserve wage law, by Bruce Butterfield (Nov 9, 1988)
 * Boston Globe: 'Prevailing wage' costs city millions, foe says, by Steve Marantz (Nov 4, 1988)
 * Boston Globe: No on Question 2, by the Editorial Board (Oct 18, 1988)
 * Boston Globe: Labor leaders pledge campaign to preserve prevailing wage law, by Jonathan Kaufman (Sep 6, 1988)
 * Boston Globe: Report released on prevailing wage, by Bruce Butterfield (Aug 26, 1988)
 * Boston Globe: Prevailing wage faces tough test, by Bruce Butterfield (Jun 12, 1988)
 * Boston Globe: Fair wage group files suit, claims construction unions interfering with petition drive, by Bruce Mohl (Oct 14, 1987)
 * Boston Globe: 'Prevailing wage' masquarade, by the Editorial Board (Dec 24, 1986)
 * Boston Globe: Coalition starts referendum move on state wage law, by the Globe State House Bureau (Sept 25, 1985)
 * Boston Globe: Should 'prevailing wage' prevail?, by the Editorial Board (Apr 18, 1984)
 * Boston Globe: 'Prevailing wage' hurts, by Kirk Scharfenberg (Feb 19, 1983)