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Cost Oversights add $1.3MM+ to 156k GSF Market Rate Multifamily Residential Development

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This image may not display the actual project to keep the development anonymous.

EST. $51,000,000

Initial Budget

$1,375,000

Total Saved

>2% Hard Costs

Total Cost Reduction

MARKET SECTOR

Multifamily

STRUCTURE

Podium

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Structure costs are not something structural engineers measure, making it impossible for them to understand the cost implications of the design decisions they make day in and day out. The reality is small, seemingly insignificant design decisions greatly impact the bottom line. With the H+O Cost Index, you no longer need to accept this blind risk. We leverage technology and cost data to inform structural design so you don’t overspend.

Commercial real estate design and construction are of the most mature industries in the world. Why is that important?

It means these services are easily commoditized where clients perceive two competitors to be more or less the SAME. When a customer can’t quantify the difference in value between two companies, they defer to LOW PRICE.

They believe the outcome of working with either company will be the same.

A close contractor partner asked H+O for a second look at a 156k GSF, 5-on-1 podium project they were engaged in. To them, the design seemed extremely expensive….and they were right.

Here’s what we found:

  • Reduce composite steel podium tonnage = +/- $510,000
  • Remove unnecessary slab edge detailing = +/- $115,000
  • Reduce footings, piers and lowest level slab thickness = +/-$90,000
  • Reduce wood studs, shear walls, hold downs and omit double sheathed shear walls = +/- $380,000
    • Improve acoustic performance, MEP installation, trade clashes, etc.
  • Reduce wood truss spans = $280,000

Total potential structure savings exceeded $1,375,000, which would reduce hard costs by more than 2%. Not quantified are the additional savings from MEP install premiums, critical path schedule acceleration and reduced change order risk.

See what customers are saying...

We’re proud to support nationally recognized developers and architects.

“I have been fortunate to work with H+O on several wood-framed projects. I have found them to have a good understanding of how to effectively utilize offsite components in a way that brings great value to their clients. They do a great job designing cost-effective projects that are easily constructed. I would give them a high recommendation.”

Tom Dixon
MiTek

“I can confidently say they’ve been an invaluable partner. They aren’t afraid to think outside the box, which has helped us optimize our structural designs and achieve greater efficiency on each project. I highly recommend H+O to anyone looking for a reliable, innovative and collaborative partner.”

Rob Simmons
Cathartes

“Really efficient, great communication and follow-up. They explain the options and impacts in a way that is easy for everyone to understand their value and make decisions.”

Robert Harbeson
Market Square Architects

“I can say with confidence H+O executes at a high level, regardless of the project type or location, and consistently does so in a timely manner.”

Ryan Noone
EMBARC

“I believe that most, if not all, of their structural engineers are trained to deliver a similar result that looks and feels the same. They have their systems down.”

Parker Snyder
ARCO National Construction

“They work with us, not against us. They don’t complain, bring a negative attitude, or “this is how I do it” ego. They are fresh thinking, can-do collaborators, in which we enjoy their presence as ‘designers’ on the team.”

Mike DelleFave
RODE Architects