Construction Costs

Primary Cost Influences  ▼

Construction costs are influenced by three major components: materials, labor and margins.

The total cost of a construction project can vary over time due to cost escalation, the change in the price of a specific good or service in a given economy. Between the years 2000 and 2018, the National Construction Cost Index saw an average increase in cost escalation of 2.4% per year. In 2018 alone, the increase in price was over 5%. Recently, the price of goods has escalated due to global commodity shortages and supply chain disruptions due to the COVID-19 pandemic. Despite this, FMD has been able to ensure the timely completion of various projects all over campus. As the effects of these circumstances begin to wane, CBRE forecasts commodity price growth will slow to a minimal, more predictble pace in the near future.

Locally, the cost of labor has increased due to the lack of skilled subcontractors and tradespeople available for work. Escalation has seen an upward trend of 2% per quarter, especially during peak project periods like the summer. 

Preliminary Cost Assessments  ▼

We employ various methods to produce preliminary cost assessments for our projects. Adjusted for escalation, detailed, historical cost data is gathered from sources like the yearly R.S Means, the leading national construction & renovation cost database. While project management is conducted free of charge by OUA and FMD, other project costs can include:

  • Design and Engineering
  • Asbestos and Hazmat testing/Abatement
  • Construction costs (whether contracted or in-house)
  • HVAC controls, fire alarms, fire sprinklers and other code required systems
  • Testing/Balancing and Commissioning
  • Data, AV, and IT costs
  • FFE (if included in project)
What We Do to Help Control Costs  ▼

UGA Facilities Management continually works to reduce construction costs while following regulations and maintaining campus standards. FMD has the ability to perform some renovation and construction projects with in-house labor forces executing over 50,000 minor reimbursable work orders annually. Because there can be a long waiting list for larger projects, utilization of in-house labor is one of many tools available to help control time and money spent on smaller projects.  Resources are limited, so work must often be contracted out to ensure projects are completed in a timely, cost-efficient manner. 

Facilities does not set construction prices -- rather, we routinely and competitively bid major construction work using the Ga State Procurement Registry for Public Bids, Quality Based Selections through Request for Qualifications/ Request for Proposals process (RFQ’s/ RFPs’). RFPs are advertised on a state database that markets projects to an extensive contracting community.  Maintenance Project Management (MPM) also utilizes a network of Task Order Contractors; these Construction Managers are competitively selected based through the public bidding process, which provide the greatest value to the university. Task Order Contractors are able to deliver construction services more quickly than those who engage in the project specific QBS process.

MPM has also recently begun leveraging Design/ Build project delivery. This allows us to bring on contractors early in the design phase to order early release packages and equipment to help combat the volatile nature of material procurement lead-time.  The design builders early interaction also allows for contractor input during design which can identify implementation efficiencies which often translates into overall project cost savings.

How We Compare to Our Peers  ▼
Category of Renovation University of Georgia University of Texas University of Arkansas
Administrative/Office: Basic Aesthetic Renewal $25/SF $27/SF Not Published
Administrative/Office: Minor Renovation $40 - 60/SF Not Published Not Published
Administrative/Office: Major Renovation $100 - 130/SF $150/SF $110/SF
Laboratory: Basic Aesthetic Renewal $50 - 145/SF $191/SF $130/SF
Laboratory: Minor Renovation $50/SF Not Published Not Published
Laboratory: Major Renovation $150 - 200/SF $276/SF $234/SF
Classroom Renovation $250 - 350/SF $580/SF $292/SF
University Project Management Fee (as a % of construction cost) 0% 3 - 5% 1.25%

Footnotes:

1. UT System: http://www.thecb.state.tx.us/reports/pdf/10612.PDF and http://uthscsa.edu/facilities/fixedprice.asp

2. University of Arkansas: https://vcfa.uark.edu/policies/fayetteville/fama/7051.php

3. Basic aesthetic renewal is defined as VCT or carpet replacement, painting one-for-one LED lighting retrofit and new ceiling tile. No HVAC or new electrical work. The space must be vacant and cleared by laboratory safety (if applicable).

4. Laboratory renovations are highly specific to the space, the type of science, and the infrastructure required to support to research being performed. Minor renovations do not include moving walls or significant HVAC/electrical infrastructure.