Intern Voice: Lucas Liang on Reducing Construction Costs Through Better Planning
Student intern Lucas Liang
Intern Voice features student interns in Supervisor Joel Engardio’s office who researched issues and wrote OpEds for their final project.
By Lucas Liang
It is no secret that building something on time and on budget in San Francisco is difficult, especially when the builder is the City and County of San Francisco. Unfortunately, there is no singular solution for this complex problem, but one clear place to start is better project planning.
A recent report by the Civil Grand Jury titled “Building San Francisco” sheds light on the Department of Public Works’ planning woes. The jury found several newly built capital projects that suffered from poor planning, including the Fire Department’s new fireboat station along the Embarcadero.
Fireboat Station #35 was originally budgeted at $38 million, however several unforeseen factors ultimately drove costs up to $51 million. This included mandated design changes and unplanned challenges from upgrading PG&E’s power grid.
On top of these oversights, poor planning during construction also resulted in additional costs. During a winter storm, construction crews left open the station’s bay doors. A power outage from the storm prevented the doors from closing. This resulted in water damage that required additional time—at additional labor costs–to fix.
Another capital project where poor planning contributed to cost overruns and delays was the $1.95 billion Central Subway. For instance, the SFMTA decided to do community outreach about a potential plaza above the Chinatown station after construction had already begun. When the SFMTA ultimately decided to build a plaza after this outreach, they had to reengineer the elevator to reach the rooftop plaza. This mid-construction change resulted in higher costs and delays, contributing to the $400 million overall cost overrun of the project.
Projects like the Central Subway and Fireboat Station #35 are essential for the city. They connect communities, relieve congestion, and provide necessary emergency service. And, with state mandated housing goals soon coming into force, the city will need to build much more of this type of infrastructure to support more residents. Coupled with the fact that the city is facing an alarming deficit, reducing construction costs is as critical as ever.
In its recent report, the Civil Grand Jury stresses the need for better planning to reach this goal. The jury notes that cost overruns lead to projects exceeding their original bond issuance, resulting in voters not receiving all that they might have expected. For example, the $13 million cost overruns of Fireboat Station #35 meant that less money went toward other projects from the 2014 Earthquake Safety and Emergency Response Bond approved by voters. The jury also reiterates that delays or significant design changes after the project has started result in higher costs.
Because of the fiscal impact of mid-construction changes and delays, the city should spend more up-front on planning that would reduce costs in the long run. Although this may be challenging due to the city’s budget issues, spending more on planning mitigates the risk of projects costing more due to these changes and associated costs such as higher interest expense from bonds and higher labor cost.
It is important to note, however, that better planning does not necessarily mean more planning. Unfortunately, the planning process often places unnecessary burdens on projects that lead to delays. Also, special interests and NIMBYs frequently abuse the planning process to stymie projects.
On the other hand, better planning that is undertaken in good-faith can make the unforeseen—such as the fireboat station’s required design changes—an anticipated cost. It can also minimize mid-construction changes—such as the Chinatown station plaza—by exploring proposed ideas before construction begins.
Solving San Francisco’s problem of ballooning building costs will undoubtedly be a challenge. However, as the city awaits an influx of new residents while staring down a fiscal hole, reducing construction costs is crucial and necessary for the city. One key element toward this goal is a smart investment in better project planning.
Lucas Liang is a junior at St. Ignatius College Preparatory in the Sunset and he’s a born and raised westside resident. At school, Lucas writes for the newspaper, competes with the mock trial team, and is a leader in the Asian Students’ Coalition. He is also passionate about community advocacy and golfing. Lucas is the youth commissioner for District 4, representing the Sunset, Parkside, and Lakeshore’s children and teens. In the future, he hopes to study politics and economics.
Student interns from left: Griffin Lee, Lucas Liang, (Supervisor Engardio), Evelyn Conboy, Sam Wolff
We had a talented class of interns this summer who worked in my City Hall office. Four assigned to my chief of staff focused on research. Their focus, talent, and ability to engage in critical thinking gives me hope for the next generation. As the saying goes, “the kids are alright!”
Read another OpEd by an intern in Supervisor Engardio’s office. Evelyn Conboy makes a case for reducing the number of city commissions.