The $71 million Herald Examiner Building development project in downtown Los Angeles consisted of the historic rehabilitation of the Herald Examiner building, and the development of two seven-story residential and mixed-used buildings on either side of the historic building. The buildings included 391 residential apartments and 16,000 square feet of retail space on the ground floor.
Spire’s consultants assisted the owner by developing a cost review report to provide an opinion of probable costs for the projects based on the then current design. The cost review consisted of performing a conceptual level quantity takeoff for major project quantifiers (e.g., building gross square feet, units, site square feet, etc.), preparing an independent conceptual cost estimate based on these quantities, project information provided by the client (drawings, etc.), past cost models, and knowledge of the current construction market, reconciling and comparing Spire’s cost estimate with the contractor’s project budgets and client’s design and construction cost summary, and delivering the cost review report, including attachments summarizing Spire’s analysis and findings.
Based on the analysis, Spire concluded the contractor’s price was low given the market conditions at the time. However, the client’s adjustments brought the price into a reasonable and competitive range.