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.Â
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
| Nov 26, 2014
Cheyenne, Wyoming City Council kills downtown design standards proposal
The Cheyenne, Wyoming City Council voted down a measure that would have implemented design standards for new construction and building additions downtown.
| Nov 26, 2014
ASTM International develops first product category rules for asphalt roofing industry
The Asphalt Roofing Manufacturers Association (ARMA) and ASTM International have developed Product Category Rules (PCR) for asphalt roofing in North America.
| Nov 26, 2014
International Green Construction Code will include option for outcome-based approach
The outcome-based approach requires the building owner to provide the building’s utility bills for a 12-month period within three years.Â
| Nov 20, 2014
Pentagon is reviewing hospital construction standards
An independent review panel of military specialists met with healthcare leaders Nov. 12 to consider whether construction standards for medical centers should be strengthened to align with industry best practices.
| Nov 20, 2014
ConsensusDocs releases first standard agreement for commissioning contracting
The new standard contract provides a contractual vehicle for owners to save significant money from operation and maintenance costs regarding energy performance.
| Nov 20, 2014
Revamped zoning is transforming several New Jersey downtowns
The zoning policy shift could produce the biggest transformation of North New Jersey’s downtowns since the arrival of malls pulled shoppers away from town centers in the 1960s and 1970s.
| Nov 20, 2014
ANSI approves 2015 Wood-Frame Construction Manual standard
The American Wood Council's 2015 “Wood-Frame Construction Manual for One- and Two-Family Dwellings” (WFCM ) has been approved as an American National Standard by the American National Standards Institute (ANSI).
| Nov 17, 2014
AAMA releases new blast hazard mitigation specifications for vertical fenestration systems
This document provides a guide for manufacturers, architects/specifiers, contractors, and building owners for specifying types of systems and services to meet the requirements of blast hazard mitigation.
| Nov 17, 2014
National Roofing Contractors Assn. offers guide for LEED v4 provisions
National Roofing Contractors Association has released LEED v4: Roofing-related Provisions, a document that examines the roofing-related provisions of LEED v4.
| Nov 14, 2014
Army net-zero initiative moving past pilot stage
The U.S Army's ambitious net-zero initiative has had several successful pilot trials, and planners are prepared to expand the nine-part demonstration field to scores of other Army facilities.