In the Bay Area, residential construction costs have jumped 12% to 18% in the last two years, says Nibbi VP Joe Olla, speaking at last week's SPUR lunch. (Lag bolts are the new caviar.) What's partly to blame: Workforce contraction during the last downturn in 2008 in the A/E/C community has left the industry hard pressed to handle the bustling economy. Subcontractors can be more selective and are typically not as efficient due to a strained, skilled workforce. Less efficiency and more risk unfortunately has meant higher costs. So what can be done to lower costs? His solutions: partner with a GC early to maximize value and drive efficiency; engage design-build subcontractors early to collaborate and limit cost escalation risk; utilize BIM to identify and avoid conflicts; and evaluate prefab building framing and systems.
Nibbi Talks Construction Costs
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Joe Olla
