Difference between revisions of "Local Politics:Issues:Construction Costs"

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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).   
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).   


Line 18: Line 21:
! School Name
! School Name
! Completion Year
! Completion Year
! Sections (General Ed. Classrooms)
! Cost
! Cost
! Sq Ft (Gross)
! Sq Ft (Gross)
! Cost per Gross Sq Ft
! Budget Cost per Sq Ft
! Construction Cost per Sq Ft (incl. site work)
! Addition/Renovation
! Addition/Renovation
|-
| Hastings Elementary School
|
| 30 <ref name="Hastings MSBA PSB">[[Media:Hastings Lexington PS&B Board Memo_Final.pdf|Hastings Project Scope and Budget]]</ref>
| $65.27M <ref name="Hastings costs">[[Media:Hastings Project Budget.pdf|Hastings Project Budget]]</ref>
| 110,000 <ref name="Hastings MSBA PSB"/>
| $593 (2018 dollars) <ref name="Hastings costs" />
| $482 (2018 dollars) <ref name="Hastings MSBA PSB"/>
|
|-
|-
| Estabrook Elementary School
| Estabrook Elementary School
| 2013 <ref name="SMMA Phase 1" />
| 2013 <ref name="SMMA Phase 1" />
| 27
| $43.35M <ref  name="Estabrook costs" />
| $43.35M <ref  name="Estabrook costs" />
| 91,840 <ref name="SMMA Phase 1">[[Media:FinalCapacityrpr20Nov14.pdf|Final Phase 1 Capacity Report]] (Nov 19, 2014), p. 18</ref>
| 91,840 <ref name="SMMA Phase 1">[[Media:FinalCapacityrpr20Nov14.pdf|Final Phase 1 Capacity Report]] (Nov 19, 2014), p. 18</ref>
| $472 (2014 dollars)
| $472 (2014 dollars)
|
|
|
|-
|-
| Fiske Elementary School
| Fiske Elementary School
| 2007 <ref name="SMMA Phase 1" />
| 2007 <ref name="SMMA Phase 1" />
|
| $18M
| $18M
| 75,840 <ref name="SMMA Phase 1" />
| 75,840 <ref name="SMMA Phase 1" />
| $237 (2007 dollars)
| $237 (2007 dollars)
|
|  
|  
|-
|-
| Harrington Elementary School
| Harrington Elementary School
| 2005 <ref name="SMMA Phase 1" />
| 2005 <ref name="SMMA Phase 1" />
|
| $13M
| $13M
| 79,470 <ref name="SMMA Phase 1" />
| 79,470 <ref name="SMMA Phase 1" />
| $171 (2005 dollars)
| $171 (2005 dollars)
|
|  
|  
|-
|-
| Clarke Middle School
| Clarke Middle School
| 1972 <ref name="SMMA Phase 1" />
| 1972 <ref name="SMMA Phase 1" />
|
|  
|  
| 133,200 <ref name="SMMA Phase 1" />
| 133,200 <ref name="SMMA Phase 1" />
|
|
|
| Reno 2000  
| Reno 2000  
Line 53: Line 75:
| Bowman Elementary School
| Bowman Elementary School
| 1967 <ref name="SMMA Phase 1" />
| 1967 <ref name="SMMA Phase 1" />
|
|  
|  
| 66,800 incl. modular CR's <ref name="SMMA Phase 1" />
| 66,800 incl. modular CR's <ref name="SMMA Phase 1" />
|
|
|
| Reno 2014  
| Reno 2014  
Line 60: Line 84:
| Bridge Elementary School
| Bridge Elementary School
| 1966 <ref name="SMMA Phase 1" />
| 1966 <ref name="SMMA Phase 1" />
|
|  
|  
| 64,450 <ref name="SMMA Phase 1" />
| 64,450 <ref name="SMMA Phase 1" />
|
|
|
| Reno 2014  
| Reno 2014  
|-
|-
| Hastings Elementary School
| Old Hastings Elementary School
| 1955 <ref name="SMMA Phase 1" />
| 1955 <ref name="SMMA Phase 1" />
|
|  
|  
| 64,980 incl. modular CR's <ref name="SMMA Phase 1" />
| 64,980 incl. modular CR's <ref name="SMMA Phase 1" />
|
|
|
| 1959, 1995, 2003  
| 1959, 1995, 2003  
Line 74: Line 102:
| High School
| High School
| 1953 <ref name="SMMA Phase 1" />
| 1953 <ref name="SMMA Phase 1" />
|
|  
|  
| 361,200 incl. modular CR's <ref name="SMMA Phase 1" />
| 361,200 incl. modular CR's <ref name="SMMA Phase 1" />
|
|
|
| 1955, 1962, 2000, 2014
| 1955, 1962, 2000, 2014
|}
|}


This table was last updated in March 2015.
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.


== Private Real Estate Developers Construction ==
== Private Real Estate Developers Construction ==
Line 88: Line 121:


== Lexington Documents and Data ==
== Lexington Documents and Data ==
=== 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)
* MSBA submission (Aug 2017)
** [[Media:00 Cover - Hastings.pdf|00 Cover]]
** [[Media:00 OPM Cover Letter - Hastings.pdf|00 OPM Cover Letter]]
** [[Media:00 TOC - Hastings.pdf|00 TOC]]
** [[Media:01 Introduction - Hastings.pdf|01 Introduction]]
** [[Media:02 MEPA-MHC-LHC - Hastings.pdf|02 MEPA-MHC-LHC]]
** [[Media:03 DESE Submission - Hastings.pdf|03 DESE Submission]]
** [[Media:04 Local Actions _ Approvals - Hastings.pdf|04 Local Actions - Approvals]]
** [[Media:05 Educational Goals - Hastings.pdf|05 Educational Goals]]
** [[Media:06 Design Characteristics - Hastings.pdf|06 Design Characteristics]]
** [[Media:07 Program Design - Hastings.pdf|07 Program Design]]
** [[Media:08 Site Design - Hastings.pdf|08 Site Design]]
** [[Media:09 Building Design - Hastings.pdf|09 Building Design]]
** [[Media:10 Construction Methodology - Hastings.pdf|10 Construction Methodology]]
** [[Media:11 Project Work Plan - Hastings.pdf|11 Project Work Plan]]
** [[Media:Hastings_Project_Budget.pdf|12 Project Budget]]
** 13 Outline Specs_Drawings - unavailable (too large to upload)
** [[Media:14 Board Pres Material - Hastings.pdf|14 Board Pres Material]]
* [[Media:17-06-28 PBC Mtg.pdf|17-06-28 PBC Mtg]]
* [[Media:17-08-23 PBC Mtg.pdf|17-08-23 PBC Mtg]]
* [[Media:17-09-14 Community Mtg.pdf|17-09-14 Community Mtg]]


=== Estabrook ===
=== Estabrook ===
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=== Studies and Documents ===
=== Studies and Documents ===
* [http://www.mass.gov/ig/publications/manuals/dcmanual.pdf Designing and Constructing Public Facilities] (Aug 2014)
* Managing Public Sector Projects, by David S. Kassel (2010), ISBN 978-1420088731
* Boston Globe op/eds:
** [http://archive.boston.com/bostonglobe/editorial_opinion/oped/articles/2009/03/22/project_labor_agreements/?page=1 Unions a stabilizing force], by Mark Erlich (Mar 22, 2009)
** [http://archive.boston.com/bostonglobe/editorial_opinion/oped/articles/2009/03/22/project_labor_agreements/?page=2 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.
* [[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.
* [https://www.msu.edu/~kenfrank/The%20Effect%20of%20Project%20Labor%20Agreements%20on%20the%20Cost%20of%20School%20Construction%20in%20Massachusetts.pdf Project Labor Agreements’ Effect on School Construction Costs in Massachusetts], by Dale Belman, Russell Ormiston, Richard Kelso, William Schriver and Kenneth A. Frank
* [https://www.msu.edu/~kenfrank/The%20Effect%20of%20Project%20Labor%20Agreements%20on%20the%20Cost%20of%20School%20Construction%20in%20Massachusetts.pdf 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 [[wikipedia:Project_Labor_Agreement|Project Labor Agreement]] page.
* Wikipidia's [[wikipedia:Project_Labor_Agreement|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)
* ''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
** [http://www.turnerconstruction.com/cost-index Turner Building Cost Index], [[Media:CostIndex2015Qrtr3.pdf|Pdf]] (2015)
** [http://www.enr.com/economics/historical_indices/Boston ENR Cost Index for Boston], [[Media:ENR Cost Indexes in Boston 1978-2015.xlsx|Excel]] (2015)
=== Massachusetts Construction Costs ===
* MSBA
** [http://www.massschoolbuildings.org/building 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 ==
== News & OpEds ==
* Governing: [http://www.governing.com/blogs/bfc/col-prevailing-wage-government-construction-projects.html How to Save Billions on Public Construction], by Charles Chieppo (Oct 7, 2015)
* The Commonwealth: [http://commonwealthmagazine.org/economy/contracting-system-isnt-saving-money/ Contracting system isn't saving money], by Jack Sullivan (Oct 13, 2015)
* New York Times: [http://www.nytimes.com/2015/05/03/us/gop-expands-labor-battle-to-laws-setting-state-construction-wages.html G.O.P. Expands Labor Battle to Laws Setting State Construction Wages], by Monica Davey (May 3, 2015)
* Boston Globe: [http://www.bostonglobe.com/metro/regionals/south/2014/09/13/state-rethinking-model-school-designs-after-touting-them-cost-saving-approach/8OYcz758CWd8dFKxFensuJ/story.html State rethinking model school designs], by Johanna Seltz (Sept 13, 2014)
* Boston Globe: [http://www.bostonglobe.com/metro/regionals/south/2014/09/13/state-rethinking-model-school-designs-after-touting-them-cost-saving-approach/8OYcz758CWd8dFKxFensuJ/story.html State rethinking model school designs], by Johanna Seltz (Sept 13, 2014)
* Boston Globe: [https://www.bostonglobe.com/metro/regionals/west/2014/08/23/average-cost-for-new-refurbished-high-schools-seven-boston-suburbs-checks-million/2VSQ3ibtEt752qxixSZGoK/story.html 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: [http://www.seacoastonline.com/article/20140209/News/402090344 The high cost of building schools], by Joey Cresta (Feb 9, 2014)
* Metro West Daily News: [http://www.metrowestdailynews.com/article/20120528/News/305289953/?tag=1 Prevailing wage law frustrates MetroWest officials], by Brad Petrishen (May 28, 2012)
* Metro West Daily News: [http://www.metrowestdailynews.com/article/20120528/News/305289953/?tag=1 Prevailing wage law frustrates MetroWest officials], by Brad Petrishen (May 28, 2012)
* Boston Globe: [https://secure.pqarchiver.com/boston-sub/doc/405146369.html?FMT=FT&FMTS=ABS:FT&type=current&date=Mar+12%2C+2009&author=Kane%2C+Brad&pub=Boston+Globe&edition=&startpage=&desc=Town+seeks+wage-law+exemption Town seeks wage-law exemption], by Brad Kane (Mar 12, 2009)
* Boston Globe: [https://secure.pqarchiver.com/boston-sub/doc/405146369.html?FMT=FT&FMTS=ABS:FT&type=current&date=Mar+12%2C+2009&author=Kane%2C+Brad&pub=Boston+Globe&edition=&startpage=&desc=Town+seeks+wage-law+exemption Town seeks wage-law exemption], by Brad Kane (Mar 12, 2009)
* Boston Globe: [https://secure.pqarchiver.com/boston-sub/doc/405125684.html?FMT=FT&FMTS=ABS:FT&type=current&date=Aug+20%2C+2008&author=David+G.Tuerck%3B+Tuerck+is+executive+director+Beacon+Hill+Institute%3B+professor+of+economics+at+Suffolk+University.&pub=Boston+Globe&edition=&startpage=&desc=Next+target%3A+the+prevailing+wage+law Next target: the prevailing wage law], by David G.Tuerck (Aug 20, 2008)
* Boston Globe: [https://secure.pqarchiver.com/boston-sub/doc/405125684.html?FMT=FT&FMTS=ABS:FT&type=current&date=Aug+20%2C+2008&author=David+G.Tuerck%3B+Tuerck+is+executive+director+Beacon+Hill+Institute%3B+professor+of+economics+at+Suffolk+University.&pub=Boston+Globe&edition=&startpage=&desc=Next+target%3A+the+prevailing+wage+law Next target: the prevailing wage law], by David G.Tuerck (Aug 20, 2008)
* The Commonwealth: [http://commonwealthmagazine.org/uncategorized/craven-gets-a-grip-on-the-rising-costs-of-school-construction/ Craven gets a grip on the rising costs of school construction], by Gabrielle Gurley (June 4, 2008)
* NewAmerica.org: [https://www.newamerica.org/education-policy/subsidizing-school-construction-in-massachusetts/ Subsidizing School Construction in Massachusetts], by Lindsey Luebchow (May 27, 2008)
* Metro West Daily News: [http://www.metrowestdailynews.com/x1880507791/Cities-may-rethink-pricey-school-plans Cities may rethink pricey school plans], by Lindsey Parietti (May 23, 2008)
* Boston Globe: [https://secure.pqarchiver.com/boston-sub/doc/405116512.html?FMT=FT&FMTS=ABS:FT&type=current&date=May+7%2C+2008&author=Luberoff%2C+David%3B+David+Luberoff+is+executive+director+of+Harvard+University%27s+Rappaport+Institute+for+Greater+Boston.&pub=Boston+Globe&edition=&startpage=&desc=The+high+cost+of+affordable+housing The high cost of affordable housing], by David Luberoff (May 7, 2008)
* Boston Globe: [https://secure.pqarchiver.com/boston-sub/doc/405116512.html?FMT=FT&FMTS=ABS:FT&type=current&date=May+7%2C+2008&author=Luberoff%2C+David%3B+David+Luberoff+is+executive+director+of+Harvard+University%27s+Rappaport+Institute+for+Greater+Boston.&pub=Boston+Globe&edition=&startpage=&desc=The+high+cost+of+affordable+housing The high cost of affordable housing], by David Luberoff (May 7, 2008)
* Boston Globe: [https://secure.pqarchiver.com/boston-sub/doc/405107581.html?FMT=FT&FMTS=ABS:FT&type=current&date=Feb+22%2C+2008&author=&pub=&desc=Cahill+says+redesign+would+lower+school+cost Cahill says redesign would lower school cost], by Ralph Ranalli and Rachana Rathi (Feb 22, 2008)
* The Commonwealth: [http://commonwealthmagazine.org/economy/uniononly-construction-projects-lose-ground/ Unions fight moves against construction labor agreements], by Shaun Sutner (Oct 22, 2007)
* Boston Globe: [http://www.boston.com/news/globe/ideas/articles/2006/07/23/a_usable_past 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: [http://www.boston.com/news/globe/ideas/articles/2006/07/23/a_usable_past 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: [https://secure.pqarchiver.com/boston-sub/doc/404956586.html?FMT=FT&FMTS=ABS:FT&type=current&date=May+20%2C+2005&author=LEHIGH%2C+SCOT&pub=Boston+Globe&edition=&startpage=&desc=THE+UNFAIR+PRICE+OF+UNION+LABOR The unfair price of union labor], by Scot Lehigh (May 20, 2005)
* Boston Globe: [https://secure.pqarchiver.com/boston-sub/doc/404956586.html?FMT=FT&FMTS=ABS:FT&type=current&date=May+20%2C+2005&author=LEHIGH%2C+SCOT&pub=Boston+Globe&edition=&startpage=&desc=THE+UNFAIR+PRICE+OF+UNION+LABOR The unfair price of union labor], by Scot Lehigh (May 20, 2005)

Latest revision as of 15:07, 20 September 2017

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[1][2].

Estabrook Construction

The Estabrook school construction has a 82,080 sq ft gross floor area[3], and the construction cost was $43.35M[4]. 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[5] at an estimated construction cost of $6.7M-$7.7M[5], including an unspecified amount of technology equipment. This comes to $273-$313 per sq ft.

Summary of School Construction in Lexington

School Name Completion Year Sections (General Ed. Classrooms) Cost Sq Ft (Gross) Budget Cost per Sq Ft Construction Cost per Sq Ft (incl. site work) Addition/Renovation
Hastings Elementary School 30 [6] $65.27M [7] 110,000 [6] $593 (2018 dollars) [7] $482 (2018 dollars) [6]
Estabrook Elementary School 2013 [8] 27 $43.35M [4] 91,840 [8] $472 (2014 dollars)
Fiske Elementary School 2007 [8] $18M 75,840 [8] $237 (2007 dollars)
Harrington Elementary School 2005 [8] $13M 79,470 [8] $171 (2005 dollars)
Clarke Middle School 1972 [8] 133,200 [8] Reno 2000
Bowman Elementary School 1967 [8] 66,800 incl. modular CR's [8] Reno 2014
Bridge Elementary School 1966 [8] 64,450 [8] Reno 2014
Old Hastings Elementary School 1955 [8] 64,980 incl. modular CR's [8] 1959, 1995, 2003
High School 1953 [8] 361,200 incl. modular CR's [8] 1955, 1962, 2000, 2014

This table was last updated in Sept 2017.

Reports:

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[9]. 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

Hastings

Estabrook

LHS Modulars

Massachusetts Documents and Data

Legislation

Public Works in Massachusetts function under M.G.L. c. 149 and 149A.

Studies and Documents

Massachusetts Construction Costs

News & OpEds


Notes

  1. Apr 7, 2014 Town Meeting session, min. 70.
  2. lex-tmma thread: Financial impact of reconsideration of article 10L (Apr 2014)
  3. See Estabrook Space Summary 11-10-19 for Estabrook floor area data
  4. 4.0 4.1 $1,05M for FY12 feasibility, $39.7M for FY13 design and construction, $2.6M for FY12 to accommodate increase in estimated construction costs. Also see Lexington Minuteman: Costs rise for Estabrook School building project, by Ben Aaronson (Oct 16, 2012) The MSBA refunded $12.25M of the construction costs.
  5. 5.0 5.1 LHS Overcrowding, School Committee update, (Sept 10, 2013)
  6. 6.0 6.1 6.2 Hastings Project Scope and Budget
  7. 7.0 7.1 Hastings Project Budget
  8. 8.00 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 8.09 8.10 8.11 8.12 8.13 8.14 8.15 Final Phase 1 Capacity Report (Nov 19, 2014), p. 18
  9. Boston.com: Developers propose $100m, 315,000 square foot Vistaprint building in Waltham, by Jaclyn Reiss (Nov 5, 2013)