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PUC staff defend VE work on 525 administrative building after $62M estimate gap
Summary
Deputy GM Tony Irons told commissioners value-engineering has narrowed a $62 million gap between the contractor's design estimate and the project's construction budget; staff proposed eliminating the on-site child-development center, removing rooftop turbines and pursuing a concrete, post-tension structure to control costs while preserving seismic and operational requirements.
Tony Irons, deputy general manager, updated the San Francisco Public Utilities Commission on the May Gate / 525 administrative building on April 22, outlining contract awards, preconstruction status and an ongoing value-engineering (VE) effort to reconcile design and budget differences.
Irons said Webcor has received notices to proceed for preconstruction activity and that construction documents should begin in the next few months. He reported a construction budget of $133,000,000 plus $15,000,000 in contingencies; at design development Webcor’s cost estimate was $195,000,000 — a $62,000,000…
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