Contractor License # 605294


Prevost Construction 

The Value of Good Pre-Con


Get ready San Diego; we’re in for a wild ride! With the arrival

of the new Title 24 requirements and increased market activity, tenant improvement costs are about to escalate dramatically over the next few months and those nice budgets that were created over the past couple of years will not be worth the paper they were written on.


It’s amazing to see how many potential lease deals are blown up by construction budgets that exceed expectations because those base budget assumptions were derived from historical cost data that was at its lowest point over the past ten years. Not too many of us were able to anticipate how Title 24 would contribute to these escalation of costs, but certainly labor and material costs that have been depressed for the past several years were destined to rebound and we are seeing these costs rise 5-10% across the board in 2014. Now we are expected to experience another 5-10% cost increase on a typical TI project to account for new Title 24 regulations and you have to wonder how that $30 per SF remodel budget for a typical 10,000-20,000 SF office is going to play out. As buildings in San Diego are aging and that mechanical and electrical infrastructure is being tested to provide the 3rd, 4th, 5th, or 6th generation of TI improvements, the mandates for Title 24 will become an even greater cost driver to address.


Even more concerning at this point is that building officials aren’t even sure how they are going to regulate or enforce Title 24 compliance on TI remodels where a majority portion of the suite remains untouched. We’ve heard that if you impact 10% of the ceiling, then you’ll be responsible to replace all light fixtures with compliant LED or dimmable fluorescent fixture, install motion sensors, daylight sensors, and integrate with expensive LCP’s that are connected to a Building Automation System. This is going to get interesting real quick!


For all you real estate professionals that are concerned about how to meet budget expectations in the 2nd half of 2014 and beyond, you have a resource here at Prevost Construction. We regularly provide pre-construction services for our clients that include site investigation, constructability review, value engineering, and design to budget collaboration with your architect or space planning firm.


Our experienced project managers can walk you through the proposed mandates and provide accurate budget forecasts that anticipate what may be required as we move through 2014 and beyond. Don’t let yourself get behind the curve. Rely on someone you trust that has experience and insight about the issues the drive costs. We are here to help and provide real value through our pre-construction services. We start with innovative thinking, we provide expert guidance, and we deliver superior results! I look forward to the opportunity to work with you.

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