Collaboration On World Trade Center Renewal

Redevelopment of the World Trade Center site forms the largest current construction undertaking in the United States.

Taken together, the proposals of the Lower Manhattan Development Corporation, Silverstein Properties and the Port Authority of New York and New Jersey for redevelopment of the World Trade Center site form the largest current construction undertaking in the United States.

Based on the innovative master plan produced by Studio Daniel Libeskind, the project will consist of the Freedom Tower intended as the world's tallest building and the Memorial Foundation recording the names of the victims of the attacks on 2001-09-11.

There is however another important component of the rebuild, commissioned by the Port Authority as an enduring monument to the events of 9/11, which the architect Santiago Calatrava has described as a lamp of hope in the middle of Lower Manhattan.

This is the World Trade Center Transportation Hub which includes the new Trans-Hudson PATH terminal and the proposed Wedge of Light Plaza.

As Tom Jaske, vice-president of the New York construction cost consultant firm Hanscomb Faithful and Gould, reminded people in a presentation sponsored by the RICS Foundation, on that day of heroism and tragedy three office towers consisting of 1.2 million square metres of office space collapsed within five hours, a subway line was severed and a 100,000 plus riders per day commuter line was buried.

He explained that between them three principal parties are charged with the renewal process: the Lower Manhattan Development Corporation with its oversight mandate from New York City and State; the Port Authority as the owner of the site; Silverstein Properties with its agreement governing office leaseholds on the site has the responsibility to replace the bulk of the property lost.

As to funding, the Development Corporation and the Port Authority between them have received Federal grants in excess of $4 billion.

Silverstein is currently involved in legal proceedings to determine the amount of replacement cost coverage to be paid by the insurance consortium.

So, said Mr Jaske, each of these funding sources has its own limitations and eligibility requirements.

Mr Jaske's company has been retained by LMDC to provide cost estimating and pre-construction services for the rebuild.

He is the project executive appointed to lead that operation.

The first comprehensive estimate for the entire redevelopment, he said, confirmed earlier guesses that the cost would exceed committed funding by several billion dollars.

As a result, a series of reconciliation meetings was set in motion between the three parties which as Mr Jaske put it was used not only to validate each other's work but to educate the principal players to the cost situation and to create a common language basis from which to address the problem.

"The estimating process", he said, "utilised no breakthrough methods.

The cost professionals' skills were stretched through the sheer volume of the effort.

Over 1,000 pages of detail were generated from 25 conceptual drawings and the design guidelines of Studio Daniel Libeskind." The estimators, he said, were also forced to 'play designer' by utilising the team's experience to extrapolate from expected quantities and pricing how the design might develop.

The Port Authority's consultant team generated a similar level of detail; Silverstein's construction manager by contrast made up his estimate on the basis of dollars per square foot for different types of construction.

Three-way exchange of ideas.

The reconciliation meetings, said Mr Jaske, produced benefits and pricing methods for all parties.

The principals did not attempt to force agreement among their consultants but moved on to the next stage, finding value for the project as a whole.

The current phase of the costing project involves a three way exchange of cost reduction ideas and refinements of valuation as the designs develop, as well as considering how these changes will affect the construction packaging.

Numerous suggestions for restraining costs have been shared between the three principal parties.

This process has also led to evolution of the client/consultant relationship.

"Whereas earlier tasks were assigned and competed, LMDC now is consulting HF and G about what steps should come next and how to structure them.

A more collaborative relationship is being developed over time." As the outcome of these deliberations, the proposed revisions were compiled by the Port Authority as site owner to be formally incorporated into the master plan, after which a second round of estimating will take place.

The overall result is that the scope has been reduced and simplified.

Meanwhile, Skidmore Owings and Merrill, retained by Silverstein Properties to design the Freedom Tower, have advanced the design and the incorporation of the memorial, allowing the cultural buildings to be reduced in scope and creating a much more open feel to the site.

Sorting out who builds what.

"The project value process" said Mr Jaske, "is reflected in the current negotiations regarding who builds what.

At sub-grade level there are many common elements such as the below grade roadway network that links parking areas and delivery docks.

"The below grade roadway network will be used by all parties.

A common chiller plant and steam distribution networks will be built to capitalise on economies of scale.

Office tower cores are adjacent to the PATH passenger corridors passing through parking areas.

The immediate negotiations are untangling these structures into sensible building packages.

"Once the building packages are assigned among the three principals, common costs must be allocated to the parties and funding source.

The methodologies for these allocations are now being developed.

Here the consultants are playing a more leading and collaborative role." He added that his firm working in tandem with the Lower Manhattan Development Corporation has outlined a research and negotiating process prior to being retained for the work without competition.

HF and G, he said, had been able to follow the progression to the client value zone as set out in Sheth and Sobel's book Clients for Life.

The client value zone is entered in the 'trusted adviser' status growing out of a collaborative relationship, an evolution from 'expert for hire' to 'steady supplier' and - in this case - joint design of the cost allocation project.

"The redevelopment of the World Trade Center site", he said, "presents many challenges to all the professionals involved.

The process to date has been remarkably free of rancour.

The three principal parties to the redevelopment have wisely kept their deliberations outside of the media and the courts.

The search for project value is reaching a sensitive phase as construction scope and cost sharing are beginning to be negotiated.

"Consultants to such a public process need to provide fact-based support to their clients by informing, strategising and participating whilst being mindful of their place and staying away from policy.

The rewards will be evident in establishing a productive, long-term relationship on the largest current construction undertaking in the United States.".

Back to top