Construction Cost

Robust Economic Growth and Increased Demand for Labor Drive Strong End to 2015

Market Outlook 2015 Q4

Published 2-17-2016

The U.S. economy continued growing at a healthy rate in 2015, adding approximately 221,000 jobs per month over the year. Wage and profit increases in the construction sector are expected to pull new entrants into the labor force with some restructuring from other sectors of the economy, for example energy and exports. Construction prices increased nationally, trending toward 8 percent, depending on location.

Construction Costs

Continuous Mission Alignment with Facility Design Prevents Operational Failures

Transitional Services Keep Everyone on Track

Published 1-20-2016

Complex technology, expanding program, and increasingly specialized and segmented roles and responsibilities often create a disconnect in the process of designing and building sophisticated facilities. The result can be a research or diagnostic lab or high-containment animal building that becomes a burden to the owner, whether because it hasn’t been right-sized, is not energy efficient, or operates with sub-par reliability. The solution is to assign someone the task of aligning design decisions with the building’s ultimate scientific mission.

Reduced Energy and Commodity Prices Help Fuel Construction Growth, Driving Cost Escalation Regionally

Market Outlook 2015 Q3

Published 10-28-2015

Decreases in energy and commodity prices have driven growth and pricing increases in the non-residential construction market and other sectors of the economy. Year-over-year non-residential construction growth is currently at 25 percent. Combined with a total volume growth of 17 percent in 2014, the sector is approaching a 52 percent rebound in spending from its most recent bottom. Price increases for 2015 are trending toward 8 percent, depending on location.

Non-Residential Construction Costs Increase as Economic Expansion Achieves Sustainable Growth

Market Outlook 2015 Q1

Published 8-5-2015

Major economic indicators point to healthy growth for the remainder of 2015. Non-residential construction spending has rebounded nearly 50 percent from its most recent bottom in 2011, with a total volume growth of 17 percent in 2014. Year-over-year growth is currently 21 percent. Though commodity and energy prices were lower in the first quarter of 2015, the construction sector is nearing full employment, which will drive significant wage increases regionally.

UMass Amherst Employs Core and Shell Strategy for Life Science Laboratories

Phased Construction Lowers Costs, Speeds Build-Out

Published 6-10-2015

Using a phased, core-and-shell strategy to construct the 310,000-gsf Life Science Laboratories (LSL) building allowed the University of Massachusetts Amherst to obtain high-level research space and take advantage of the competitive bid market and economic incentives available in 2010. The approach also provided economies of scale and the advantage of postponing programming and occupancy decisions with subsequent fit-outs.