The U.S. trade war with China is having a significant impact on the cost of building materials, as reported in a new study by Turner & Townsend.
New York City building contractors are adding between 5% to 10% onto the total construction costs due to tariffs on the prices of steel, aluminum, and other materials, according to the construction consulting firm. A cost study of a completed 90-story building at the Hudson Yards development showed that if the project was being built now, the cost of the core and shell construction alone would have increased by up to $150 million due to tariffs that are driving price increases on materials.
The company calculates that the cost difference of constructing some supertall buildings in New York could be up to $100 million for buildings with an overall cost of $1-1.5 billion.
Due to increased demand for domestic steel and recent reductions in production of steel made in China, the cost of domestic steel has risen an average of 22.4% over the last year. Turner & Townsend is warning owners that they should add up to a minimum of a 5% cost contingency on the total value of their core and shell steel framed buildings.
Owners should also consider early buyout packages and direct purchase of materials to lock in pricing on items such as steel and curtain wall as early as possible, the firm says.
Related Stories
Codes and Standards | Jun 21, 2017
Senate bill would prohibit tax money for sports stadium projects
Bipartisan legislation would prevent use of municipal bonds by pro teams.
Codes and Standards | Jun 19, 2017
Developer, architect hit with $10 million construction defect verdict
Case pertained to construction of condo development that was not fire code-compliant.
Codes and Standards | Jun 19, 2017
Green building advocates erect icehouses on Penn. state capitol steps to make point on codes
State’s codes have not been updated since 2009.
Codes and Standards | Jun 15, 2017
Cornell Tech unveils plans to reach Net Zero at The Bloomberg Center
Campus plans include photovoltaic arrays and geothermal ground source heat pumps.
Codes and Standards | Jun 13, 2017
Canada Green Building Council and Green Business Certification Inc. announce partnership
New joint venture will deliver enhanced services and support tools and programs throughout Canada.
Codes and Standards | Jun 8, 2017
Nail-Laminated Timber Design and Construction Guide released
New document focuses on design and construction considerations for horizontal NLT applications.
Codes and Standards | Jun 8, 2017
Car sharing popularity means parking zoning and codes may be promoting overbuilding of garages
Some designers look to modular designs in anticipation of alternate uses.
Codes and Standards | Jun 7, 2017
IAPMO advances toward new 2017 Water Efficiency and Sanitation Standard
Revised pipe-sizing method for residential applications will be included.
Codes and Standards | Jun 7, 2017
New Colorado law could stimulate stalled condo market
Construction defect law modifications could ease litigation risk and cut insurance rates.
Codes and Standards | Jun 6, 2017
New York City will require construction superintendents on buildings higher than three stories
New laws focus on construction safety.