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
| Feb 6, 2013
CEIR seeks public input on draft of PV racking and attachment document
The Center for Environmental Innovation in Roofing (CEIR) has released the first public draft of PV Racking and Attachment Criteria for Effective Low Slope Metal Panel Roof System Integrationfor an initial round of public comment.
| Feb 6, 2013
Insurance Institute demonstration shows advantages of following wind resistance standards
A demonstration by the Insurance Institute for Business and Home Safety shows how powerful winds affect concrete-and-steel buildings built with different techniques.
| Jan 31, 2013
Proposed ASHRAE legionellosis prevention standard open for third public comment
Changes to a proposed ASHRAE legionellosis prevention standard associated with building water systems are open for public comment.
| Jan 31, 2013
More severe wind storms should prompt nationwide reexamination of building codes, says insurance expert
The increased number and severity of storms with high winds nationally should prompt a reexamination of building codes in every community, says Mory Katz, vice president, Verisk Insurance Solutions Commercial Property, Jersey City, N.J.
| Jan 31, 2013
California Building Standards Commission adopts 2013 code update
The California Building Standards Commission adopted the new 2013 state standards code that includes new energy code provisions, accessibility standards, green building and water use modifications.
| Jan 25, 2013
D.C. authority wants to halt sewer tunnel projects while investigating green stormwater alternatives
The District of Columbia Water and Sewer Authority has proposed suspending a tunnel-building project.
| Jan 25, 2013
Energy modeling needed to overcome ‘plug load problem’ to meet high green standards
Plug loads illustrate how much end-users impact overall building energy use.
| Jan 25, 2013
ASHRAE publishes revised filtration standard, combines Standard 52.1 and 52.2
A newly revised filtration standard from ASHRAE combines two standards aimed at improving the technical accuracy of filter testing.
| Jan 25, 2013
AISC 206-13 standard for structural steel erectors available for review
AISC 206-13, a quality management system standard for structural steel erectors, is now available for public review.
| Jan 25, 2013
Builders Hardware Manufacturers Assn. revises five ANSI hardware standards
The Builders Hardware Manufacturers Association (BHMA) has released five revisions to ANSI/BHMA standards recently been approved by ANSI (American National Standards Institute).
