Portland’s iconic Veterans Memorial Coliseum (VMC), nestled in the vibrant Rose Quarter, is set to undergo a significant transformation. Scheduled to close this summer and again in 2025, the arena will see a wave of improvements as part of a comprehensive renovation project.
In this blog, we will explore how JLD Cost Consulting rightly estimated the cost of this project and why having a trusted cost consulting partner is a wise move for the construction sector.
What JLD Had Estimated
The VMC renovation project in Portland has seen a notable evolution in its estimated costs. Initially forecasted by JLD at $63.4 million, including design, in September 2020, the project’s current realization stands at $59.5 million, as reported in the Daily Journal of Commerce (DJC). Interestingly, a working cost estimate for the VMC projected a complete renovation cost of $176 million, serving as a comprehensive guideline for the Portland Office of Management and Finance (OMF) department.
Despite the significant variance between the initial and actual costs, the JLD forecast was remarkably close, with only a 6% difference from the final design and construction expenses, even four years down the line.
This precision highlights the expertise of the JLD team in construction costs and financial forecasting, reaffirming their credibility in handling such intricate and high-stakes projects.
What the DJC Says
The DJC reports all about the renovation by mentioning a 2015 study by OMF which led to the undertaking of this comprehensive renovation project. The study highlighted the financial feasibility of revamping the multipurpose arena, focusing on essential system upgrades and enhancements to elevate its appeal across a wide spectrum of events.
The DJC further reports that this renovation will address critical deferred maintenance, modernize the seating bowl, and introduce a host of enhancements. These include electrical and plumbing upgrades, concourse and restroom improvements, scoreboard and audio system replacements, as well as seismic and safety enhancements. The revamped seating bowl will feature accessible seating areas, premium sections, and group seating options.
With a design budget capped at $6.1 million and a construction budget of $53.4 million, the project aims to breathe new life into this historic venue while ensuring a modern, functional, and safe environment for visitors and event attendees.
JLD was miles ahead in rightly estimating the project cost, that too, four years earlier than the undertaking of the project.
Benefits of Having a Reliable Forecasting Partner
Teaming up with a reputable cost consulting partner for your high-stakes construction projects offers multiple benefits that can significantly impact project success and financial outcomes.
Here are the top five advantages:
1. Accurate Estimations: A seasoned cost consulting partner like JLD brings expertise in conducting thorough research and analysis, ensuring accurate estimations of project costs. For instance, in the healthcare sector, precise estimations are crucial for budgeting medical facility expansions or upgrades, including equipment procurement and infrastructure enhancements.
2. Optimized Cost Management: Expert cost consultants like JLD help in optimizing cost management throughout the project lifecycle, identifying potential cost-saving opportunities without compromising quality. In the education sector, this can involve efficient budget allocation for campus expansions or renovations, including classroom upgrades, technology integration, and facility enhancements.
3. Comprehensive Budget Planning: With a cost consulting partner like JLD, you gain access to comprehensive budget planning services tailored to your specific industry needs. For example, in the public works sector, budget planning for infrastructure projects like roads, bridges, and utilities requires meticulous cost assessments to ensure efficient resource allocation and project completion within budgetary constraints.
4. Improved Project Oversight: Cost consulting partners provide robust project oversight, conducting regular audits and evaluations to monitor budget adherence and identify potential cost overruns early on. In the industrial sector, this oversight extends to large-scale construction projects like manufacturing plants or distribution centers, ensuring cost efficiency and timely delivery.
5. Risk Mitigation: Collaborating with a cost consulting partner like JLD helps in mitigating financial risks associated with complex construction projects. For instance, in the aviation sector, where airport expansions or terminal constructions are common, cost consultants play a crucial role in risk assessment and mitigation strategies, ensuring projects stay on track and within budget despite unforeseen challenges.
By leveraging the expertise of a reputable cost consulting partner, industries ranging from healthcare and education to public works, industrial, and aviation can navigate the intricacies of important construction projects with confidence, achieving cost-effective outcomes and project success.
The JLD Expertise
JLD stands out as a trusted partner in the realm of cost estimating and consulting. Our expertise extends across diverse project delivery methods, from design-build to construction manager general contractor (CMGC) and design-bid-build, enabling us to develop objective estimates of fair market value.
By collaborating with architects and owners, we establish crucial benchmarks for contractor labor efficiency and material rates, ultimately lowering the risk associated with project cost uncertainties. For expert cost consulting advice tailored to your construction project planning and budgeting needs, contact us today and embark on a journey towards optimized project outcomes.
