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According to CBRE's new 2022 U.S. Construction Cost Trends report, nationwide industry price levels have posted the largest increase in years, driven by labor shortages, inflation, supply chain disruptions, the ongoing impact of the pandemic, and the war in Ukraine. CBRE forecasts a... View full entry
Turner and Townsend’s latest annual International Construction Market Survey names disruptions in the global supply chain, triggered in part by lockdowns in China due to COVID-19, and rising commodity costs following the invasion of Ukraine as key stress factors for construction markets... View full entry
The momentum behind the proposed new Royal British Columbia Museum project said to be Canada’s most expensive in modern history appears to be slowing after Premier John Horgan’s recent announcement “landed with a thud” in political circles and the news media. The Art Newspaper is reporting... View full entry
Months of isolation made people rethink the way they wanted to live. That meant their buildings would change. That meant construction, and architects became useful again, after being abandoned. But the craziness of a new era has made all builders and architects simultaneously empowered by their new in-demand status while fully threatened by costs and availability of all the products and people necessary to build. — CT Insider
Earlier in the year, labor and supply chain issues had caused markets in steel and timber to skyrocket, delaying many commercial and residential projects industry-wide, in addition to triggering what some think will be a boom in demand once the pandemic subsides. However bright the prospects are... View full entry
Tokyo ranks as the most expensive city to build in the world, driven by the extensive pipeline of real estate and infrastructure projects pushing up demand for construction resources, according to the report. Following Tokyo are Hong Kong, San Francisco and New York. Boston and Los Angeles rank seventh and ninth, respectively, as both of these markets generally have high labor costs for construction. — Construction Dive
According to Turner and Townsend’s 2021 International Construction Market Survey, the top 10 most expensive cities to build, in order, are: TokyoHong KongSan FranciscoNew York CityGenevaZurichBostonLondonLos AngelesMacau With increased activity levels in construction markets in 2021 as the... View full entry
A new report details how construction costs have changed across 12 U.S. cities since the coronavirus pandemic began. Broken down by market, all of the U.S. cities in the Rider Levett Bucknall report saw at least small gains, except for Chicago, which experienced a 1.29% decrease in comparative costs from October 2019 to October 2020. — Construction Dive
According to Construction Dive, the new report by construction consultancy firm Rider Levett Bucknall signals a 2.03% increase of the national average for construction costs. The survey tracks the RLB Comparative Cost Index for major cities across the United States and found the biggest cost... View full entry
A new report from Turner Construction Company highlights an unexpected trend that has taken shape in recent months: lower construction costs for non-residential projects. According to Turner's quarterly Building Cost Index, construction costs decreased during the second quarter of 2020 by 1.01%... View full entry
According to The Wall Street Journal, President Donald Trump is moving to escalate America's trade war with China by imposing new tariffs on all Chinese-made products imported into the country. Currently, the administration's tariff-loving trade policy has been limited mostly to... View full entry
California communities are approving residential building permits at a slower rate than they did last year, a sign Gov. Gavin Newsom faces an even bigger hurdle to reach his housing goals than when he took office in January.
In the first five months of 2019, cities and counties issued permits for an average of 111,000 residential building units per year, according to data released Friday by the California Department of Finance.
That’s a decrease of 12.2 percent from the same period in 2018.
— The Sacramento Bee
The news is mostly bad for California governor Gavin Newsom's plan to build 3.5 million new housing units by 2025, as high land costs, a labor shortage, the effects of President Trump's tax cuts, and virulent NIMBYism threaten to stamp out regulatory reforms enacted over recent years. ... View full entry
Elon Musk, the CEO of Tesla and SpaceX, is back at it again with more outlandish ideas to solve Los Angeles' traffic. Earlier this month, Musk's latest venture–The Boring Company–resuscitated its flawed proposal to dig new car tunnels for Los Angeles, this time to connect the Red Line subway with Dodger Stadium [...] The Chicago tunnel idea is bad enough, but the Dodger Stadium plan is exceptionally poor even if one takes Musk's promises at face value. — urbanize.la
Alon Levy pokes holes in Elon Musk's public transit plans for Los Angeles. Musk's plan involves tunneling under Sunset Boulevard between the Dodger Stadium and one of three Red Line stops: Vermont/Sunset, Vermont/Santa Monica, or Vermont/Beverly. Levy cites major issues with construction... View full entry
With Frick and her book [Remaking the San Francisco-Oakland Bay Bridge] as guide, CityLab tracked bridge expenses over time to get some sense of how the project that Herbert Hoover once called “the greatest bridge yet constructed in the world” became yet another example of a major public works project in which the cost ended outrageously higher than it began—and some ideas for what to do about it. — CityLab
Zaha Hadid isn't the only one who has suffered from hugely inflated construction estimates: back in 1995, Caltrans estimated that it would only cost $250 million to retrofit the earthquake-damaged Bay Bridge. Eleven years and several construction estimates later, that figure had swollen to $... View full entry
The architecture and engineering teams fought to keep up. As the terminal ballooned from 200,000 to 340,000 square meters (dwarfing Frankfurt’s 240,000 and just shy of Heathrow Terminal 5’s 353,000), they parceled out the work to seven contractors. That soon grew to 35, and they brought in hundreds of subcontractors, says Delius. [...]
At the very moment Merkel and her allies are hectoring the Greeks about their profligacy, the airport’s cost, borne by taxpayers, has tripled to €5.4 billion.
— bloomberg.com
According to a statement issued on Zaha Hadid's website, the project-ending cost of the New National Stadium is not the fault of the design, but rather the "inflated costs of construction in Tokyo, a restricted and uncompetitive approach to appointing construction contractors, and a restriction on... View full entry
