The construction market has shifted for schools over the last year or two. On this week’s Tuesday Tips, Michael Soh, Director of Construction and Development at Grow Schools, joins to break down what’s gotten more expensive, where the lead time traps are, and how to budget for a project in this market. Watch the full conversation below.
Top 3 Tips
- Plan HVAC and electrical equipment 2 to 3 years out. Data center construction nationwide has pulled so much HVAC and electrical equipment out of the supply chain that lead times now run 28 to 48 months for larger jobs.
- Budget 15 to 20 percent contingency, on both cost and schedule. Start high while scope is still uncertain, and expect timelines to run longer than planned, not just budgets.
- Don’t forget soft costs, furniture, and low-voltage tech. Design, permits, and owner’s rep fees can add 15 to 20 percent on top of construction, and furniture or technology like cameras and internet often gets left out unless you ask for it upfront.
FAQ
Why have school construction costs gone up so much recently? Mainly two things: tariffs have driven up the cost of metal and aluminum products (up to 50 percent on some items), and nationwide data center construction has pulled HVAC and electrical equipment out of the supply chain, driving both costs and lead times higher.
How far in advance should a school plan for HVAC or electrical equipment? 28 to 48 months, depending on size and complexity. Custom HVAC equipment alone can take 16 to 28 weeks, and sometimes up to six months, to fabricate.
If a school only has budget for one project this year, where should it go? Roof first, then envelope, then HVAC, in that order. Cosmetic work can wait, since the main cost of delay is material escalation, generally 5 to 7 percent.
What do schools most often forget to budget for? Soft costs (design, permits, commissioning, and owner’s rep fees, typically 15 to 20 percent on top of construction), capital replacement reserves, and furniture, fixtures, and low-voltage technology like cameras and internet infrastructure.
Catch Tuesday Tips live every Tuesday at 10 a.m. Pacific and 1 p.m. Eastern, and find more resources at growschools.com.
