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).

Government Building Construction

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 56,252 sq ft gross floor area, and the construction cost was $41M. This comes comes to $728 per sq ft.

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.

Private Real Estate Developers Construction

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.

Lexington Documents and Data

Estabrook

• Estabrook Educational Program
• Estabrook Project Meetings
• Estabrook Space Summary 11-10-19
• Estabrook Work Plan Schedule 11-09-16
• 11-10-13 SPL-Option 1 - 3 Story School
• 11-10-13 SPL-Option 2 - 3 Story School
• 11-10-13 SPL-Option 3 - 2 Story School
• 11-10-13 SPL-Phased Construction

LHS Modulars

• Lexington Minuteman: Town Meeting approves Lexington High School modular classrooms, by Marc Filippino (Nov 7, 2013)
• LHS Overcrowding, School Committee update, (Sept 10, 2013)

Massachusetts Documents and Data

• 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.

News & OpEds

• Boston Globe: Next target: the prevailing wage law, by David G.Tuerck (Aug 20, 2008)
• 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)