New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-01-04
By John c. Hegeman

President Heaeman-Ha,ris Com
pony. mo, Builders, Neso York
The question that is asked many
times day Of every architect and
builder is, "Are building costs coming
down, and If SO. when?" The demand is
urgent, ard to those interested it is a
question uppermost in their minds
The answer. addressed to every bust
ness man. is: Building costs will come
down st the same time. or, perhaps q
uttie earlier, than the cost of products
handled by you will como down. If you
can estimate when the costs of your
own raw material, or your own labor
charges or own expenses of doing
business will come down, you can. with
fair accuracy, approximate the arrival
OF the day that building costs will be-
distant happy day, known as "pre-
war times" which l consider are gone
and will be forever forgotten.
Why should building costs come
down when prices of all other indus
tries are leaping upward day by day
Ihere 10 no mysterious exception to
the building business which warrants
any one to expect that the cost OF
building may be kept down while all
other industries are being operated at
higher cost.
Not Until Cost Comes Down" Talk
Manufacturers come to. the architect
and builder and tell of enormous in
crease in demand for their products.
They will frankly say that their bust
ness has outgrown their present build
ing and that space cannot be leased or
bought for any consideration. They
Will complain that unless they can find
increased facilities for production the
development of their business will be
retarded. Through all their talk will
run the story now so familiar, Of ris-
mounting demands of their workers.
despite all Of which their business has
grown faster than they can keep pace
with. The demand for their goods at
any price was never so strong.
In their own business they know
that rising costs must be reckoned
with; but these same men. when they
come 70 the architect or builder, expect
things to be different. They cry out in
dignantly when they study the esti-
mates OF cost on their proposed new
to wait until building costs come
down."
We have heard those decisions in the
early spring. We have heard them
through the summer. We are hearing
them to-day. The costs have not come
down in the building business any
moro than they have in any other. 1t
is interesting to know, as q matter Of
fact, that the cost Of building is not
necessities Of life. Statistics show
that whereas building costs have risen
116 per cent since 1912, the average Of
twenty-six necessities Of life shows an
increase Of 1913 per cent It Is not for
me to prophesy when our we'll adj
vertised friend, "The high cost Of liv-
ing" Will be reduced. When it does,
l know that building costs will be re-
duced, and not before.
II the desire or necessity for new
building arises would most certainly
recommend that steps be taken to start
the work as soon as possible.
Lump Sum Contract Is Not Best +
Should the owner Of tho proposed
the forms Of contract according to
which his building might be built
would be most advantageous to him.
A few years ago the building business,
to the average prospective owner, was
something mysterious-somethin that
could not be understood by the lay
mind. The ordinary procedure was
to engage the services Of an architect
and after the plans were drawn have
him send out broadcast to obtain esti-
mates as to the cost Of doing the work.
Without regard to the problem cover
ing his special work a contract is
finally entered into with the builder
to build his building for certain fixed
sum known as the dump sum con-
tract"
It scarcely seems necessary now to
point out the disadvantages Of this
form Of contract. Under it the owner
and architect were r&aged against the
builder. The selfish interest of the