QUESTION
How often will cost schedules be updated to reflect construction cost changes?
1:53:08
·
55 sec
The Department of Housing Preservation and Development intends to update cost schedules more frequently than in the past to reflect changes in construction costs.
- Cost schedules will be updated as needed based on fluctuations in construction costs.
- When costs rise quickly, as in the last couple years, more frequent updates would be useful to help owners address work.
- However, when costs do not change much, going through an update process would not make sense.
- The approach will be to update schedules regularly as appropriate given the observed construction cost changes.
Pierina Ana Sanchez
1:53:08
One piece of feedback that we received from advocates prior to the hearing is concerns about how regularly these cost schedule be updated.
1:53:17
So the bill right now, I believe, says just regularly, but what are what are what's the intent here?
Kim Darga
1:53:23
Yeah.
1:53:24
We definitely wanna do it more regularly than it has been in the past.
1:53:30
I mean, I I think we're gonna try to do it as often as make sense.
1:53:34
Right?
1:53:34
In the last couple of years, for example, costs went up very quickly.
1:53:40
And so being able to update more regularly would have been useful in terms of helping owners actually be able to address the work.
1:53:49
There have been times when costs have not changed very much at all, so going through an entire process to update would not have made sense.
1:53:56
So I think it is really as needed and as appropriate read it based on what we're seeing in terms of construction costs.
Pierina Ana Sanchez
1:54:03
Okay.