When considering construction expenses, most would assume that the architectural design would be the most costly to a client; however, mechanical, electrical, and plumbing (MEP) systems may constitute 25-40% of the overall construction costs, often representing the most significant portion of the budget. Failure to address these MEP costs in early planning and design stages can lead to budget challenges before construction even begins, resulting in unnecessary complications for the client. To circumvent potential issues, RQAW|DCCM’s MEP team has implemented a simple yet effective strategy, focusing on proactive planning and communication. This approach aims to align project parameters with the budget and ensure client satisfaction. What ultimately impacts MEP construction costs? BUILDING TYPE The building type will largely determine the complexity of the MEP system. For example, a retail building would have a much more simplistic MEP system compared to a county jail, resulting in lower costs per square foot. CONSTRUCTION TYPE On average, MEP systems cost 15% more for a full renovation than new construction due to various factors. One factor, for example, is the renovation of a multi-story building will require additional coordination for new MEP penetrations versus new construction, such as x-ray scanning to avoid existing post-tension cables. There are many things to consider with each construction type, so the architects and engineers must collaborate with key stakeholders early in the planning process to build consensus on the client’s budget. OWNER PREFERENCES Some organizations and communities establish building standards that guide and inform engineers and architects about the design requirements of their specific facilities. Understanding how these unique specifications differ from standard specifications is critical to assessing budget impacts. MARKET COSTS & LEAD TIMES Before the pandemic, construction bids used to be guaranteed for 3-6 months and lead times on materials were rarely an issue. Now that we are post-COVID, bid guarantees are only locked-in for a maximum of 30 days and lead times for materials can vary on a weekly basis. Due to these changes, it has become more vital for engineers and architects to better understand market dynamics to properly inform construction managers and key stakeholders of potential impacts to their project. The Causes of Budget Issues Traditionally, engineers and architects are subject matter experts in the design and specification of their respective fields; they are not cost estimators. Because of that, cost estimation is widely recognized as a persuasive problem in the A/E and construction industries, but RQAW’s MEP team is doing everything to remedy that notion. Every project starts with the client’s vision and a meeting with the architects to brainstorm ideas, collect data, and develop a solid understanding of project goals. Following that meeting, a schematic design narrative is documented which includes initial design assumptions by all disciplines involved. The client then takes the schematic design and validates it with loose cost per square foot numbers and gives the green light to the designers. Where most budget issues begin to develop is when a design development set is not properly price-checked, and the architects/engineers continue the design to construction documents. This breakdown in communication typically results in construction bids coming in that exceed the budget. How RQAW is Breaking the Cycle The scenario above can be remedied in a variety of ways. Project delivery methods like Design-Build, Profit Sharing, and Build, Operate, Transfer (BOT) have become popular alternatives to the traditional Design-Bid-Build delivery method. These methods work to solve several issues with the Design-Bid-Build method. To varying degrees, these methods tackle issues such as funding strategies, competitive pricing, and shifting of construction liability. RQAW has found that the best delivery method achieves what would seem to be an obvious solution, yet many firms continually get wrong: active communication. As a key piece to the puzzle, it is vital that engineers participate in developing and meeting the construction budget. When RQAW launched our MEP department five years ago, we asked ourselves how we could best differentiate ourselves from our competition. From past experience, we recognized there had been a significant gap in communication between the engineer and the owner/owners’ representative, as well as a gap between the MEP engineer and the mechanical/electrical contractors building the project. To bridge this gap between all parties, RQAW has established an approach that focuses on effective communication, mindfulness of project parameters, awareness of design changes, and a commitment to fostering a culture of collaboration. COMMUNICATION Effective communication is the linchpin of our strategy at RQAW. Our engineering team has honed its communication skills, ensuring timely and transparent communication of both challenges and successes throughout the project lifecycle. This approach enables all stakeholders to collaborate more efficiently, adjusting as needed and minimizing surprises at later stages. MINDFULNESS OF PROJECT PARAMETERS Engineers are creative problem solvers, and their contributions to a project can significantly impact its success. However, it’s crucial to emphasize that a project is not merely the engineer’s playground; rather, it involves a collaborative effort where creative solutions must align with the overall project goals. When our MEP team approaches a project, we are mindful of the unique aspects of each one and understand that our design choices influence the entire construction process. Ultimately, listening to the client and understanding their specific needs is what drives our designs. AWARENESS OF DESIGN CHANGES Our MEP team is cognizant of the cost implications associated with design changes, and we recognize how crucial it is to understand the broader impact as it relates to a client’s budget. The ability to adapt and make informed decisions throughout the design process is key.