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Buildings

MIT's Stata Center Opens, Raises Questions about Cost Control

(archrecord.construction.com - 05/19/04)

By Ted Smalley Bowen

Image Courtesy Massachussetts Institute of Technology

MIT last week officially opened Frank Gehry's much-anticipated Stata Center for Computer, Information, and Intelligence Sciences, the keystone of the school's ambitious billion-dollar campus expansion.

Much has been made of the almost $300 million price tag for the sprawling deconstructivist complex, a figure once projected at $200 million. Together with Steven Holl's award-winning 2002 Simmons Hall dormitory, which at $95 million came in well over its $60 million budget, the marquee projects serve as case studies of institutional investment in serious architecture.

MIT is hardly alone in incurring cost overruns and expensive program changes. Rem Koolhaas' student center on the Illinois Institute of Technology campus ran into schedule and cost overruns.

Besides the obvious costs associated with the aesthetic risks (which, points out MIT Executive Vice President John Curry, introduce construction techniques unfamiliar to most contractors) and costly products associated with an architect like Gehry, MIT officials, Gehry, and Holl's project architect Tim Bade says their projects ran into a perfect storm of national and regional economic conditions. Having planned during the go-go '90s, MIT put several major projects up for bid just as the dot-com bubble burst and Boston's Central Artery Tunnel "Big Dig" project tied up much of the area's construction capacity. Hence construction costs jumped 25-percent at this time, according to Gilbane Construction Company’s 2000 review of MIT's construction plan, Curry says.

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Current trends in materials and fuel prices point to higher project costs, according to analysts, who blame the high cost of steel on a global shortage and US import tariffs.

The Stata Center evolved from an early-1990s scheme for a 150,000 square-foot, roughly $160 million building in keeping with MIT's rectilinear neo-classical main complex. A 1997 revision called for a 324,000 square-foot structure, at about $200 million.

But program changes (the addition of a below ground parking garage and 100,000 square feet for day care and fitness centers and pedestrian thoroughfare) and market conditions dramatically increased construction costs.

As of May, the official total for the 730,000 square-foot complex was $283.5 million, of which about $31 million went to design, says project manager Nancy Joyce, who noted that much of the project's contingency fund went to cover construction costs.

Nevertheless, the Stata Center project was "in the norm for this type of lab building in the US," says William Mitchell, former dean of the school of architecture and planning, now head of the media Arts and Sciences Program and architectural advisor to MIT president Charles Vest. On the Stata project, "we value-engineered, cut things, bit bullets," Gehry adds.

As of early May, MIT was reviewing Holl’s Simmons project for "errors and omissions," which are covered under the school's insurance policy, according to Curry. The university, meanwhile, has negotiated a guaranteed maximum price of about $95 million for the Fumihiko Maki-designed Media Lab extension, slated for a 2005 groundbreaking, according to Mitchell. In riding the late '90s investment wave and persevering through the downturn and project overruns, MIT's strategy has been one of "principled opportunism," says Mitchell. "It's an investment for a hundred years at the very least. You can't let short-term economic exigencies deter you."





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