Adjusting for location in and outside NYC, It is not surprising that Manhattan projects have the highest cost overruns given logistics and complexity. Bronx projects had delays largely due to the removal of dense rock during excavation. To provide greater perspective to our study we also included projects that were located outside of NYC.
Our data gives a small glimpse into actual timelines and costs for construction projects, and should be considered by any developer, big or small. New, small developers should research and attempt to prevent potential delays, and not tackle something too big from the beginning. Larger developers have likely accounted for delays as a cost of doing business, but can utilize the information to make sure that any delay or cost overrun doesn’t leave you in a dire state with a worried banker on the other end of the phone. If anything else can be gleaned from this, it is likely start early, find the right team, communicate often…and pray for good weather!
Kenneth F. Wille, PE and Lucas Giacalone are with KOW Building Consultants. KOW provides building and construction consultation services to traditional banks, private lenders, mortgage lending institutions, state housing agencies, city housing agencies, mezzanine lenders, other financial institutions, as well as owners and developers. The firm was founded in 1978 by Kenneth O. Wille, P.E., who provided construction loan monitoring and property condition assessment services for New York City projects. The company has grown to employ technical plan reviewers and construction monitors from various backgrounds including civil engineering, electrical engineering, architecture, building code inspectors, construction management and construction lending.