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OutlookThe rebound in the stock market is helping endowments recover. “Most people seem to think that this year we will not see a dramatic uptick but things will start to loosen,” RMJM’s Dordai says. “Probably next year you will see a greater increase.”
ST. MAURO
In New York City the future looks promising. New York University, Columbia and Fordham are planning large projects. “There is going to be a lot of work coming up very soon,” says WSP Cantor Seinuk’s AbiDargham. “It is just a question of when they pull the trigger.”
Columbia has started some work on its Manhattanville campus, its 6.2 million-sq.-ft. expansion on the Upper West Side. WSP Cantor Seinuk is also working with Fordham University on a new law school that includes a residence hall on the upper floors.
CALCADO
“If you keep your ear to the ground there is work happening in the higher education sector,” AbiDargham says. “Probably not enough to keep everyone busy but there is quite a bit of work.”
Silver LiningFor institutions with funding, now is a great time to buy design and construction services.
Since the college and university market is healthier than the commercial and residential markets, it has attracted more competition, Dordai says. “We are seeing 50, 60 and 70 firms competing for publically bid projects.”
During a recent RFP process CUNY asked architects for their credentials. “We got back 67 responses,” Weinshall says.
BRADLEY
The very competitive buyer’s market is driving down prices. “Our bids are coming in under budget,” Whang explains. “Typically they are 10 to 15 percent below budget. Right now it is probably the best time to buy construction.”
“Most people are quoting around a 20% discount compared to a couple of years ago,” Dordai says.
Whang notes another benefit of the competitive environment. “Projects are sailing along pretty smoothly without a lot of conflict. It has been a refreshing period of time in the construction industry.”
