Why-do projects cost so much

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					Why do projects cost so much? Design and Construction Issues: Demanding programs and design/construction standards require:   Highly experienced proven architects and engineers – technical excellence required given complex requirements Documents need to be coordinated reviewed and comply with multiple stakeholders and regulatory agencies ( including OEHS, Yale and City Fire Marshal, Yale Security, City Building officials, YSM Facilities Operations, Telecom, ITS, users) Projects often are complex technically in tight spaces and need to be densely planned to maximize space use Design firms must be large enough to meet demanding project schedules

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Building technically complex demanding programs in older existing and occupied buildings in a dense urban area in and around sensitive ongoing research and clinical activities requires:                High level of communication with occupants and Project Management Construction Managers and sub contractors with extensive institutional experience and high level organizational skills to manage trade work. Full time on site representation Stringent compliance with health and safety protocols e.g. dust control Carefully coordinated building system shutdowns such as electrical, mechanical and plumbing Additional effort/cost due to minimal space for material staging and construction / demolition debris removal Additional cost due to limited parking available Detailed field investigation to work with challenging infrastructure Challenging demolition activities in occupied environment Cost to abate hazardous material on most projects Multiple phases due to lack of swing space (on some projects) Off hour work due to low tolerance for noise/ disruption / dust from on going operation in buildings Sub contractors with high level of technical competence given complex projects typically requiring union labor Technically dense small projects -(cost more per sq foot when small due to high concentration of labor intensive construction) Stringent temperature, humidity and /or vibration control and high electrical loads (when specialized equipment is being installed)

Materials / Workmanship Issues Reliability and “risk management” decisions drive how and what is installed. Projects install components with lowest life cycle cost (first cost plus maintenance) a higher first cost often lowers life cycle cost. Yale standards require:  High quality components; systems such as double ended rather single ended electrical substations, direct digital control (DDC) of HVAC systems, smoke detectors in all spaces, fire sprinkler installation throughout the YSM campus, emergency power, addressable fire alarm systems. High quality materials such as epoxy counter tops, long life light fixtures, acid resistant waste lines, welded hollow metal door frames, long life carpet, premium hardware High quantity of components such as high density of electrical outlets and circuits, air gas vac outlets/plumbing, 100% outside air, case work ,data outlets, lab tech carrels Commissioning of all systems to insure operation as designed

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Schedule Issues Projects often have compressed schedule demands and require:  Individual projects be delivered as quickly as possible rather than aggregate with similar projects and undertaken as a group. Smaller projects result in higher cost per unit first cost relative to projects encompassing more square feet.  Larger budgets as time available for complete documentation and bidding is reduced Process Issues Yale University process and procedures require:  Specific and extensive contracting procedures, paperwork and insurance requirements  Contractors who complete timely and thorough paperwork to adhere to required financial management systems

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