Agenda - 09-27-2004-1 - Laserfiche WebLink

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Further, many U.S. steel mills shut down earlier this decade during a market slump. The closures have added to significant supply shortages. The rising costs of steel and oil have also created a ripple effect as builders have tried to find substitute construction materials to cut costs. How a district handles cost increases often depends on timing: If construction has begun, it could be more expensive to make changes than to absorb extra costs. "If it's been on the board for a couple of years, then they may have to go back and make cuts in the project, said Judy Marks, the associate director of the National Clearinghouse for Educational Facilities, located in Washington. "Some districts are just delaying their projects, hoping the costs will go down." "Most people have found ways to work around it," Leslie Loudon, an architect, said of the rise in costs. Most often, architects respond by finding ways to downsize projects or by asking districts to come up with more money, said Ms. Loudon, who is with Little Diversified Architectural Consulting, an Arlington, Va. -based firm that specializes in K- 12 and higher education facilities. For example, Ms. Loudon is revamping a current project, a dormitory for Shepherd University in Shepherdstown, W.Va. The project ran over budget in part because of rising materials costs, so Ms. Loudon is simplifying the floor plan and looking for more cost - effective materials. Break Ahead? So far, Nevada's Clark County district, which includes Las Vegas, hasn't had to make drastic changes, mostly because the district factors in potential price increases when it draws up budgets for its projects, Mr. Scheideman said. As a result, Clark County has actually saved money on constriction costs in the past two years. Florida's Broward County, which includes Fort Lauderdale, has seen some delays on its projects, particularly when there have been no bids, Mr. Garretson said. The delays are complicating efforts to build more classrooms to meet a state class- size - reduction mandate. The district will lose state aid if it doesn't comply with the law. "Therefore, we can't delay some of these new schools," Mr. Garretson said. "You pay one way or another." School officials and construction experts are hopeful that the inflation in construction costs will soon ease, or at least become more predictable. Mr. Garretson, for one, believes a rise in interest rates will dampen the home - building market and lessen demand for materials.