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BHS Building 100 Bid Package 2.0 and 3.0

Explore the impact of trade tensions, labor shortages, and inflation on the construction industry. Get insights into the rising costs of materials, steel tariffs, labor issues, and global tensions affecting construction projects.

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BHS Building 100 Bid Package 2.0 and 3.0

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  1. BHS Building 100Bid Package 2.0 and 3.0

  2. BHS 100 Building Bid Package 2 & 3 6.27.19 BHS Building 100Construction Documents

  3. Recent Developments Affecting theConstruction Industry’s Risk BHS 100 Building Bid Package 2 & 3 6.27.19 Strong Economy = Labor Shortages and Premiums for SubcontractorsTariffs on Trade = Higher Cost of GoodsTariffs on Steel = Higher Costs to Building StructureMiddle East/Iran Conflict = Increase in fuel = increase of building materials, technology, furniture and equipment In addition to anticipated escalation, the construction industry is experiencing the continuation of unprecedented inflation:

  4. BHS 100 Building Bid Package 2 & 3 6.27.19

  5. Trade BHS 100 Building Bid Package 2 & 3 6.27.19 “Many things were protected initially because there were already supplies in the U.S. or contractors had locked in the prices of items,” he said, “but those supplies … will pretty much be depleted by 2019,” at which point the full brunt of tariffs will come down on product buyers. Cost of Inputs to construction up 6.6% over 2018 1. Trade Tensions Cost of Diesel Fuel up 7.9% over 2018 The cost of materials that contractors put into projects and goods that they consume, like diesel fuel, is up 7.9% over the last near, nearly triple the rate of the overall producer price index. Cristian deRitis Senior director, Moody's Analytics

  6. Steel Tariff BHS 100 Building Bid Package 2 & 3 6.27.19 Raw steel is used in the construction of a number of different building components including reinforcing steel in structural concrete, structural steel framing, and miscellaneous metal framing and supports. Although the tariff will affect all these components, the single biggest impact will be on structural steel in steel framed buildings. 25% steel tariff 43% cost to construction 2. Steel Trade Tariff Posted By: MGAC Research Group | Category: Blog • Cost and Risk Management • Research

  7. Deficit BHS 100 Building Bid Package 2 & 3 6.27.19 Government is expected to borrow $1 trillion to compensate for decrease in revenue from the tax cuts Higher interest rates 3. Federal Deficit Increased cost of construction materials Total deficit and debt of $21.8 trillion Wright Hassall Nov. 2017 JugdeepChaggar Construction lawyer Cristian deRitis Senior director, Moody's Analytics

  8. Labor BHS 100 Building Bid Package 2 & 3 6.27.19 Current Unemployment 3.7% 4. Labor Fewer bids and increased sub bid costs Sub-trade/craft shortages Underscore Career and Technical education $1.5 Trillion Federal Investment in Infrastructure Cristian deRitis Senior director, Moody's Analytics

  9. Price of Oil BHS 100 Building Bid Package 2 & 3 6.27.19 “Many things were protected initially because there were already supplies in the U.S. or contractors had locked in the prices of items,” he said, “but those supplies … will pretty much be depleted by 2019,” at which point the full brunt of tariffs will come down on product buyers. Price of oil increases 5. Middle East (Iran) Tensions Cost of Diesel Fuel up 7.9% over 2018 The cost of materials that contractors put into projects and goods that they consume, like diesel fuel, is up 7.9% over the last near, nearly triple the rate of the overall producer price index. Cristian deRitis Senior director, Moody's Analytics

  10. BHS 100 Building Bid Package 2 & 3 6.27.19

  11. BHS 100 Building Bid Package 2 & 3 6.27.19

  12. BHS 100 Building Bid Package 2 & 3 6.27.19 BHS 100 BUILDING REPLACEMENT Bid Package 2 Structural & Demo Variable Cost Factors Volatile Market Conditions Construction Schedule | Phasing Compressed Schedule Complex Remodel Bid Timing Multiple Bidders = Competition Bainbridge Island Occupied Site Complications

  13. BHS 100 Building Bid Package 2 & 3 6.27.19 BHS 100 BUILDING REPLACEMENT Bid Package 3 Civil Variable Cost Factors Volatile Market Conditions Construction Schedule | Phasing Compressed Schedule Complex Remodel Bid Timing Multiple Bidders = Competition Bainbridge Island Occupied Site Complications

  14. BHS 100 Building Bid Package 2 & 3 6.27.19 BHS 100 BUILDING REPLACEMENT Bid Package 1.0 300 Building Renovation Guaranteed Maximum Price Amendment #1 Bid Package 1.0 300 Building $ 974,630.00 Deductive Alternate #1 Flooring $ (9,000.00) Deductive Alternate #2 Casework $ (27,898.00) Total Subcontracts $ 937,732.00 GC/CM Contingency (3%) $ 28,131.96 Negotiated Support Services (NSS) $ 53,235.42 GC/CM Fee (5.931%) $ 55,616.88 Specified General Conditions $ 56,826.24 Total (GMP) Amendment #1 $ 1,131,542.50

  15. BHS 100 Building Bid Package 2 & 3 6.27.19 BHS 100 BUILDING REPLACEMENT Bid Package 1.0 300 Building Renovation Board Approval - Guaranteed Maximum Price (GMP) Design Development (DD) Est. $ 27,832,388.00 Guaranteed Maximum Price (GMP) Amendment #1 $ 1,131,542.50 Remaining Balance to Bid $ 26,700,845.50

  16. BHS 100 BUILDING REPLACEMENT Bid Package 1.0 300 Building Renovation Value Engineering Considerations Demolition Bid Revision FORMA Self Performance Grout Modifications in Door Frames Remove Perforated Gyp Ceiling Drywall Bid Revision ACT Bid Revision Fire Suppression Bid Revision Lighting Controls Bid Revision

  17. BHS 100 Building Bid Package 2 & 3 6.27.19 Value Engineering (VE) Applied • Transform Commons into performing arts environment • Lowered the building height by 2’ • Reduced the number of vestibules • Removed the loading dock • Removed the lower bioretention area (north of the 200 Building Commons) • Reduced the glazing • Reduced the brick • Maximized the square footage

  18. BHS 100 Building Bid Package 2 & 3 6.27.19 Value Engineering (VE) Considerations • Remove innovation labs • Remove paint/spray booth • Replace classroom sliding doors with fixed doors • Reduce plywood wall interior with wallboard/sheetrock • Eliminate security

  19. BHS 100 Building Bid Package 2 & 3 6.27.19 Value Engineering (VE) • Replace ornamental fencing with chain link fencing • Replace display case with HM relite between band and commons • ACT modifications • Reduce acoustic deck • Reuse skylights from Blakely • Replace light monitor at server with two skylights • Reduce glazing at art light monitor • Reduce plywood • Reduce double doors to single doors at storage rooms

  20. BHS 100 Building Bid Package 2 & 3 6.27.19 Value Engineering (VE) • Replace concrete panels with alternate siding type • Remove/reduce weathered steel • Remove casework at 200 bldg. greenroom – include in furniture package • Reduce WD-3 floor at 200 bldg. and replace with WD-2 buildup and carpet • Remove wallcovering at lightlocks • Remove skylight shades at the commons • Use single doors instead of double doors at vestibules • Delete deep shelf at innovation lab

  21. BHS 100 Building Bid Package 2 & 3 6.27.19 Value Engineering (VE) • Eliminate the wall between advanced technology and innovation Lab • Correct plywood locations at commons • Canopy detail switch from tube steel to wide flange • Carry the ACT grid to the walls at band • Project lab-reduce height of curtain wall by 4’ • PVC,PEX plumbing systems • Reduce production lighting

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