The New York herald., 1921-02-13
Why That Big Drop in
City S Building Costs?

IN building costs recently when bids vere
opened for construction OF the INTERIOR
ough repair shops at 14sth street, be-
tween Lenox and Seventh avenues. Last
September low offer OF S456.19l was
rejected because the Commissioner coa-
sidered the estimate too high. About ten
days ago bids were again opened for
this work and the low estimate was
S31G.442. Three other bids were less than
s37S,000. These figures also indicated
reduction in building costs OF 90 per
cent. in four months.
Reviewing these figures the question
naturally arises: Why Is il that the
city can build from 20 to 25 per cent
cheaper to-day than private builders,
who. IL is assumed. desire to relieve the
pinch for living accommodations7
thorough analysis OF the various
items entering into the cost OF the work
upon which the city recently obtained
the above mentioned low estimates would
be interesting. At the office Of one con-
tracing firm II was stated that several
changes IN cost contributed toward the
reduction, and not the least OF these was
cheaper common labor. The speaker was
reluctant to give more detailed dc-
count, however.
Builders generally admit that the un-
employment situation will be a big fac
tor In lowering building costs, that COM
mon labor Is obtainable at figures very
much lower than six months ago and
that the future will bring further relief
In this direction. To some extent, how
ever. this advantage is offset by
dearth Of skilled mechanics.
According to one building authority
tho country has never known such a
scarcity OF artisans in the building
trades. During the war. he declares.
the building trades had practically no
apprenticeship class. the young men who
might ordinarily have gone into this
work having been attracted to other
commercial lines by the high wage scale.
There are to-day thousa nds Of so-cailed
bficklayers drawing union wages who
have not completed their apprenticeship.
hence the general incompetence and lack
OF production. IL Il the opinion OF this
expert that this very important feature
OF construction will delay tho return TO
normal building conditions and prove tho
principal drawback 10 the long hoped
for building boom.
Another intereeting question arises In
view Of the wide discrepancy between
the estimated saving in private and city
construction N Il Is true that private
builders cannot save moro than per
cent while the city can save 90 per
cent, and more. what combination is
operating against building movement
TO provide necessary living accommoda-
lions? The reason for continued build
ing inactivity in the residential field may
be found IN a statement made some
time ago By well advised real estate
broker:
Building costs will have to drop al
most 90 per cent. before speculative
builders will be lured back into the field.
In addition 20 placing their cxpensIvs
building products In competition with
the older and cheaper houses they have
In mind the possibility OF the enactment
OF further rent restricting measures.
The presen. laws exempted new build
ings from their provisions. but you never
can tell when The legislators will take u
into their heads TO resey.cs rents in new
buidings-