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 | Oct 7, 2020
More energy efficiency programs are encouraging zero-energy projects
At least 20 programs for new construction, major renovations emerge.
Codes and Standards | Oct 6, 2020
LEED, GBCI rating systems spur resilience-enhancing strategies
Expanded programs, resources address impact of climate change.
Codes and Standards | Oct 6, 2020
International Code Council to hold inaugural online education event
Week-long ICC Learn Live will include panel conversations, keynotes, and breakout sessions around key topics in building safety.
Codes and Standards | Oct 5, 2020
Guides addressing fenestration anchorage updated
First update to decade-old technical documents released.
Codes and Standards | Oct 1, 2020
Deadline extension for LEED 2009 project certifications
Delivery timeline delays due to COVID-19 pandemic prompt action.
Codes and Standards | Sep 29, 2020
New drinking water standard criteria further restricts lead leaching in plumbing products
Tightened standard applies to endpoint devices that dispense drinking water, and other plumbing components
Codes and Standards | Sep 29, 2020
Groups sue CDC over eviction moratorium
Natl. Apartment Assn. and New Civil Liberties Alliance want hearing by October.
Codes and Standards | Sep 24, 2020
Benefits of building enclosure commissioning include reduced costs
Savings achieved in less rework and fewer and shorter punch lists.
Codes and Standards | Sep 23, 2020
Intl. Code Council aims to stay ahead of new tech, efficiency trends, and resiliency
Passive survivability, social resiliency, and community health among the goals.
Codes and Standards | Sep 22, 2020
Air cleaners, chemical and UV treatments among tools to safeguard indoor air amid pandemic
Strategies augment social distancing, increased air flow to combat COVID-19 spread.