Why One World Trade Center is the World’s Most Expensive Project (guest post)

One World Trade CenterToday, we have a *very* informative guest post by Mike Freiberg.  Mike is a staff writer for HomeDaddys, a resource for stay-at-home dads, work-at-home dads, and everything in between. He’s a handyman, an amateur astronomer, and a tech junkie, who loves being home with his two kids. He lives in Austin.

It isn’t the biggest, or the flashiest—but it’s definitely the priciest

The new One World Trade Center (or Freedom Tower)  has been a difficult project to get moving since it was announced nearly twelve years ago. Numerous architects and dozens of possible designs were considered, and ultimately scrapped, as the project underwent one reinvention after another. The project was finally completed May 10th of this year, rising to a symbolic 1,776 feet, and running up a bill of just under $4 billion—making it (by far) the most expensive skyscraper ever built.

For comparison, the Burj Khalifa, currently the tallest building in the world, dwarfs One WTC by over 1,000 feet, and is much more lavishly appointed—but was built for less than half the price ($1.5 billion). So where did One World Trade Center’s nearly $4 billion price tag come from?

The world’s first fortress skyscraper

The Freedom Tower designers had to juggle several competing priorities. The tower shouldered a heavy rhetorical burden, as a symbol of fortitude and resilience—but it also had to meet the pragmatic needs of a global financial hub on an extremely valuable piece of real estate. It was a tall order; but by far the most expensive and challenging aspect of Freedom Tower’s design was security—demonstrating that the lessons of the 9/11 attacks would be taken seriously.

From the exterior, One World Trade Center looks like any other skyscraper. Inside, though, it’s built like a tank—and incorporating (and concealing) these features was the greatest source of cost overruns during the tower’s seven-year build. Here are a few of the most impressive innovations.

A towering concrete base

Unlike most skyscrapers, One World Trade Center is set on a 20-story, windowless podium of highly reinforced concrete, built to withstand a 1,500 lb. truck bomb of the type used in the 1993 World Trade Center bombing. When completed, the podium will be sheathed in prismatic glass to conceal the blast walls. The podium uses 720,000 cubic feet of “iCrete”, an expensive designer concrete mixture capable of withstanding 14,000 pounds per square inch of pressure—nearly three times the compressive strength of normal high-rise concrete.

A colossal air-quality apparatus

While the exterior is fortified against explosions and impact, designers also considered the threat of biological and chemical attacks, as well as fire, sparing no expense for One World Trade Center’s internal air system. Each stairwell is composed of reinforced concrete, with a separate, pressurized air supply to keep them operational in the event of an emergency.

The building is also dotted with biological and chemical filters and detectors, as well as ventilation shafts that can quickly expel contaminants as soon as they are detected.

Fortified, secure elevator shafts

One World Trade Center’s elevators are encased in three feet of concrete, and serve as an internal “spine” for the building, to prevent collapse in the event that the steel exoskeleton gives way (as it did in the September 11th attacks). The tower contains 71 elevators, none of which have buttons—instead, the car identifies each passenger, and will only bring them to the floor for which they are authorized, at an impressive 23 miles per hour. It remains to be seen how smoothly this system will operate—the building will open late this year.

An integrated security and safety network

Perhaps unsurprisingly, Freedom Tower will feature over 400 closed-circuit surveillance cameras, networked security doors, temperature and air quality monitors, and automated elevators connected via a huge web of shielded communications cables. Security teams will have a constant stream of richly-detailed status reports from across the building, so that even minor problems like electrical failures or a buzzing smoke detector reach security instantaneously. Early on, this security grid will also incorporate airport-style checkpoints and electrified fencing on the tower grounds, but those measures will be phased out after several months of normal operation.

Of course, these mammoth security expenses have been highly controversial—what seems like an appropriate symbol of vigilance to some, manifests paranoia to others—but however you interpret them, it’s not all that surprising that One World Trade Center is now the world’s most expensive skyscraper.

Thanks, Mike, for the detailed information on the newest symbol in the NYC skyline. 

What do you think about the Freedom Tower?  Is it money well spent?  Over-engineered to death?  Share in the comments section, below.

 

Adding an “Additional Insured” in the Professional Services Agreement: an exercise in futility! (law note)

As an architect or engineer,  you may be asked to sign a contract that has a requirement of adding the Owner (or Contractor, in a design-build project) to your own insurance as an “additional insured”.  This is usually a fall out of the fact that the Owner is treating you like a contractor and using “stock” contract language.  It is not appropriate, nor sometimes even possible, to add the Owner to your professional liability policy.

This is beacuse professional liability insurance only provides coverage for “professional services”.  That is, if it is even possible to buy such coverage, it won’t work to avoid any risks the Owner is seeking to avoid, because the Owner is not providing licensed architectural or engineering services on the Project.

In fact, because of the way professional liability policies are generally written, naming the project Owner as an additional insured essentially voids any coverage for the owner for your Firm’s design errors & omissions.

What should you do with a stubborn Owner who insists he wants to be an additional insured under your E&O policy?  Explain the facts to him, and point out he is risking voiding coverage all together.  Tell him to call me, or point out this post to him.  Also, several insurance brokers, agents, and companies have simple one or two page information sheets that you can provide to the Owner to help with his education.

Remember, having an “Additional Insured” in an Errors & Omissions policy is a true exercise in futility.  It may not be what the Owner wants to hear, but such is life!not want to hear

 

Question time:  have you ever been asked to add an Owner to your E&O insurance?  How did you handle it?  Share in the comments section, below. 

And if you haven’t already, be sure to download your free white paper on the 7 Critical Mistakes that Architects & Engineers make– it’s in the box on the top right hand side of the blog.

 

Photo credit.

LEED Lasts in Latest NC Bill (news note)

stack of woodAs many of you may be aware, the North Carolina legislature was considering a bill that would effectively take away the option of LEED certification for public projects.  In a misguided effort to protect the NC timber industry, the original bill would essentially take away the option of using LEED for public projects.

Thanks to the strong potests from many industry groups, and the great coverage of the issue by Bob Kruhm and the folks at his paper NC Construction News, the NC Senate passed an amended version of House Bill 628 on Monday night that retains the option of LEED certifciation for State construction projects.  Read the full story here.  [For the original bill and other versions, click here].

 

Preparing for the Tax Man: Tips for Architects, Engineers, and other small business owners (guest post)

Miss me yet?  No, I’m “not dead yet” (for you Monty Python fans).  Nor have I fled to Hong Kong (a la Edward Snowden).  And no, contrary to rumors, I am not working on a Middle Eastern documentary with Jon Stewart.  Ahem.  My MIA status was simply due to too much work.  Good problem to have, right? 

Regular posting will resume next week.  In the meantime, since it is, once again, tax time for quarterly filers, I thought this guest post on tax issues particularly appropriate.  Even if you don’t file quarterlies, pay attention now to save heart ache at the end of the year!

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If you own your own architectural or engineering firm, tax time provides a unique advantage for you. Small businesses have ample opportunities to take advantage of deductions and tax-saving steps that maximize refunds and business profit.
money

Looking for a few small-business tax tips? Consider this shortlist to help streamline your process:

1. Proper record-keeping: Year-round record keeping ensures that come tax time, your paperwork will be in order. Make sure that you save all documents relating to deductions in case your business is audited. Because tax credits and deductions change from year-to-year, keeping excellent records allows you to adapt while being able to reference previous years simply by checking your filing.

2. Keep two Acts in mind: Both the Small Business Jobs Act and the Patient Protection and Affordable Care Act (aka “Obamacare”) help you manage your tax burden. The first has over 17 tax provisions that decrease taxes for small businesses, all of which can win your business great savings. The Affordable Care Act allows small businesses to cover 35 percent of the health care premiums that they pay to provide health insurance to employees. In 2014, the amount will increase to 50 percent.

3. Avoid an audit: Audit traps are indicators to the IRS that they need to investigate your business dealings further. Avoid this scenario by keeping the following details straight:

  • Home Office Deduction rules: Know what qualifies a home office and make sure yours abides by the IRS definition before claiming one. Not all home-based businesses qualify for this deduction.

  • Properly classify your employees: Independent contractors and employees are not one and the same from an IRS perspective and should not be treated as such. Non-compliance with proper classification is a red flag to the IRS that your business may be attempting to avoid payroll taxes and can result in back taxes and penalties.

  • Miscellaneous deductions: Be cautious with your deductions, as a large amount of itemized deductions can raise suspicion. Be sure that you have all of your paperwork to support any deductions and claim them in a clear and specific manner.

  • Business and personal expenses do not mix: While Turbotax encourages freelancers to combine business with pleasure and write off the expenses, the IRS does not welcome this blended method and will scrutinize individuals who combine their business and personal expenses too often. Maintain separate bank accounts for your personal life and business and maintain meticulous records to ensure that your actions do not require further attention.

Whether you have an accountant or do your business taxes yourself, knowing the proper way to file is an excellent policy for a small and growing business. By maintaining clean records and staying aware of IRS policies, you can make the most of business deductions and enjoy a penalty-free tax season.

Chelsea Terris provides online content for Meticulous Plumbing, a family owned company located in Portland, OR. Chelsea is passionate about helping small businesses thrive. 

Thanks Chelsea for the tax tips!

 

Design-Build Advantages for Construction Projects (guest post)

Design-Build where contractors and designers work togetherToday we have a guest post from the folks at McCree General Contractors and Architects, located in Orlando.  The McCree folks, naturally enough, think Design-Build has many features that make it advantageous over the traditional Design-Bid-Build method.  Here are their thoughts:

Many construction projects are designed by an architect, and once the client is happy with the design a contractor is then hired to build it. While the client may have been told one estimate by the architect, once the contractor gets the plans the costs may change. There may be aspects of the design execution the architect didn’t think about, or parts that won’t work with the landscape of the construction site. This can result in changes to the original design, higher costs, and delaying of the project. Not to mention the frustration this can create for everyone involved.

Because of these obstacles that often arise between architecture firm and contractor firm, many people are now turning to a Design-Build Construction Firm. At these firms, the architects, designers, and contractors work together from the beginning. The firm takes responsibility for the project in its entirety, from design to execution. If the architect makes and adjustment to a design, the contractor will be right there to let him know if this may violate a regulation or if it won’t work with the topography of the site. Adjustments can be made without ever involving the client. The price quoted is more likely to be accurate, because a contractor and project manager will have also agreed that this design can be executed in the space allotted. There is no finger pointing and blaming the other firm, leaving the client in the middle, frustrated and spending more money than he originally thought. A Design-Build firm is also easier on the client because he only needs to contact one project manager. This streamlined process leads to a more efficiently run project, and efficiently run projects typically cost less and are finished quicker.

A Design-Build firm is advantageous for the client also because these firms typically allow the client to be as involved as he wants. As the design is developed and changed according to the client’s specifications, the contractor will be on hand to let the client and architect know if these changes are possible. There is no need for ordering design changes, which an architect working on his own would charge the client for. Because the contractor works for the firm, and not for himself, he is not looking to protect his own self-interest once building starts. Since the contractor has been involved from the beginning, there should be no surprises or setbacks once ground is broken. If there are, the Design-Build firm should take responsibility, instead of the contractor telling the client to go back to the architect.

All the decisions regarding the design and building of a project will be taken into account from the very beginning with a Design-Build firm. When using separate design and contractor firms, an architect will simply tell the client what will be the most cost effective design, and then a contractor will decide the most cost effective way to build this design. The schedule of the contractor’s team is not on the architect’s mind, and the contractor may not know the most cost effective materials needed to execute the design. These problems are also eliminated with a Design-Build firm. The experience of the team, quality and availability of materials and schedule of the contractor and construction crews are also taken into consideration from the very beginning of the project. This further streamlines the process, making it quicker and more painless for everyone involved.

Melissa again:  Design-Build projects definitely present unique opportunities, and unique challenges.  If you are considering entering into a design-build contract, considering a joint venture with a contractor on a project, or otherwise undertaking a corporate organizational change, make sure you have a good lawyer (or three) on board for the myriad issues that such ventures present. 

Now it’s your turn:  What do you think?  Is Design-Build the next best thing since sliced bread? Have you had issues, problems, or good results as part of a Design-Build team?  Share your thoughts below.

Copyright Info for Shutterstock Photo: Image ID: 61778761  Copyright: sam100