Not necessarily. On my current project, more than half of the budget overrun is in the mechanical/electrical systems category. Owners are often more reluctant to cut from here than the architectural design though, I think in part because they have less knowledge around technical aspects and what is/isn’t necessary for the project. Much easier to say “pull the wood paneling from the lobby.”
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im starting to think it starts when its supposed to
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Isn’t it ironic… I have followed Daniel Titchner for a few years now. He has a video of redesigning a small space. He calls out breaking the budget, but then Value Engineering down to meet his client’s priorities.
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A number of the jobs we’ve seen put on hold is because the mech & electrical systems were over budget. I agree with your thought that it’s easier for them to say “pull this and that” architectural feature.
On the budget front, changes while a project is under construction can have large affects on the cost. For example: a GC doesn’t double check framing measurements and the sizes are off. A quote we had for material that attaches to the framework and is $40 /lf might go to $300 /lf. This just happened on a job currently under construction in Raleigh. There’s no VE option available. It added almost $200k of just material cost increase. It’s a life safety product so they can’t opt to just not use it.
Extrapolate this across a whole slew of trades and now you’re looking at drastic facade / interior fit out changes to keep the job viable
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The Creamery’s site permits are being held up by the public utilities department. They have to submit something called an FIL for the replacement of a sanitary sewer line. Once they take care of that, they will get their site permits and can start site work.
Salisbury Square is still trying to get their site permits also. Though, they have not submitted anything since October I believe.
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Thank you Alan! 
Someone is in the know…lol 
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So a lon process wonder if Mary black, or Jane has something to do with it? I got the tinfoil hat on.
Nope. Someone correct me if I’m wrong, but the city council does not control the issuance of building permits.
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The retail spot that sits next to Heat Studios has a sign that it’s available for lease for up until September, with the possibility of December. Wonder if that’s a sign that we won’t see The Creamery project move forward until that time frame now?
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Sigh. Sounds about right for this project. Probably waiting for “market conditions and supply chains to improve” like everything else.
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What better market conditions than “Literally not enough current housing for the mass influx of people with money moving here literally every single day” could they ask for…?
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Would not surprise me if the 20 story office and parking tower will be revised for more apartments hence the long delay to get the design reworked.
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I know this was mostly facetious, but… constructions costs are still insane and have escalated to the degree that it’s a completely different climate to build than when many of these projects were designed. I’m not sure about the multi-family market but my parents are trying to build and if they pulled the trigger right now it’d probably be about 5 years before they even break even on their investment.
I think the next year is a big question mark in terms of what the market will do – most forecasts show construction costs leveling off but not decreasing much – and I think some developers might be waiting it out.
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Yeah construction costs are insane since the pandemic. I’ve been building an Airbnb out in Cali. If I had built it in 2019 I was looking at a $280K build, it’s now costing me close to $500K to finish this project up. This is for a small little 1200 Sq ft home btw.
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$500K build in anywheresville Cali is still a good investment, inflation be damned…
Cheers to the other side, when the property is renting and earning.
We’re seeing 400-500/sf for architect-designed modern builds here right now (a big step up from developer spec houses in terms of construction quality), which I think is cause for pause in NC depending on the specific circumstance.
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