Better
to Build Sooner Than Later--
Being involved in all stages of construction can avoid unnecessary
expenses ?
by David B. South
Over the last three or four years, the Consumer Price Index has shown a slow rate of inflation. However, the Construction Price Index is climbing more quickly. Construction costs for schools, churches, commercial buildings and houses have been increasing by nine to ten percent per year for at least three years, and probably will continue doing so.
This is great news if you are selling a house, bad news if you are buying a house, and especially bad news if you are constructing school buildings.
The time it takes to build a school to the time the school is out for bid is generally one year. That one year can bring a 10% increase. That increase equals the cost of architecture and engineering.
I don't know what to advise about this, but if building is in your future, sooner is less expensive than later.
Fortunately, Monolithic Domes, a major part of many projects, are not going up at that same rate. We have seen an inflation rate of 3% to 5%, primarily caused by an increase in the cost of fuel, cement and labor.
Again, overall costs for commercial buildings are inflating at approximately 9% per year. This needs to be factored in by any entity looking at new structures.
Over Design
When commissioning an architectural or design firm to do a structure, always ask for "costs" and "cost alternatives." I have yet to have a project where the customer says, "Don't worry about the cost; just build me the fanciest structure you possibly can."
In general, budgets are important. So, it's extremely important not to over design. Here's a situation we often see: a Monolithic Dome as the main structure cuts the overall cost of a project. Compared to a conventional, same-size structure, the dome generally requires 50% less heating and ventilating equipment and therefore about a third less electrical. So a tremendous amount of money can be saved with proper selections.
But some people throw those savings away on what I call "goo-gaws", stuff that's added just because it's cute. For instance, a ceramic tile floor is an extremely valid, long term investment. On the other hand, a custom designed, ceramic tile floor, costing two or three times more, provides absolutely no more life and may even be a problem if maintenance is required.
Design Creep
Here's how design creep happens: The base project is laid out, and everybody agrees that: This is what we want. But, after the project is actually moving, we have those who want to add just a little bit here and a little bit there. That's design creep!
Generally, these little bits do not add much to the project, but they do add substantially to the price. Bigger changes, such as moving walls and altering design once a project is underway, need to be carefully analyzed. Such moves cost serious amounts of money, usually add nothing to the project, and often cause problems to the finished project.
Design creep is a budget's formidable enemy. It's best controlled by an owner who is involved and requires accountability throughout the complete design of a building.
After giving you a few warnings, let's take a look at the bright side: worldwide prosperity has never been better.
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