The $6.9 Million Cap

By Ann O’Brien Ahmad

ASAK. In their August 7, 2012 letter to the community, the President and Vice President indicate that the main concern about the expansion plan is the cost of the project.

Cost is a main concern, but it is by no means the only concern. However, since that is the only issue addressed in detail in the letter, let’s look at their analysis. The letter states, “the optional plans proposed are less than half (50%) the size, but up to 72% of the cost of the plans actually unanimously approved by the IAGD BOD and BOT.” These numbers are derived from the Comparison of Expansion Plans shown below on this blog. However, that really isn’t comparing apples to apples. The estimated costs for Plan H, Option 1, and Option 2 are based on estimates that Br. Fasahat Hamzavi, Br. Sharif Gindy, and Br. Jukaku Tayeb obtained from a construction company.

Plans E and I, on the other hand, simply list the $6.9 million cap. Cap is another word for budget. Budget is another word for how much you want to spend, not how much something is going to cost. If you have a $40,000 budget for a new car, that budget is not going to allow you to purchase a brand new, top of the line Mercedes. Despite the fact that Plan E is essentially the same plan as the Expansion Committee started with in 2009, no price estimates have been obtained from construction companies. Rather than reiterate calculations that I have performed elsewhere on this blog, let’s look at the cost another way.

Of the estimated $5 million cost for Option 2, $1 million is for the parking lot, leaving $4 million for the structure. With Plan E, assuming $1 million for the parking lot and $1.5 million for the basement leaves $4.4 million for the first and second floors. Does it make sense that Option 1 will cost $4 million for 27,000 square feet, while Plan E will cost $4.4 million for 39,188 square feet, especially when Plan E has such a complicated footprint? If we use the cost per square foot for Option 1, the cost of the structure for Plan E looks like it will be at least $5.8 million, bringing the cost of the total project to $8.3 million. There is a huge difference between $8.3 million and $5 million.

The beauty of Plan H, Option 1, and Option 2 is that any of these plans can be built for $5.0 million or less in two years.

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2 responses to this post.

  1. Posted by Anonymous on August 9, 2012 at 10:58 pm

    I just wanted to add that the estimates for plan H ,option 1 and option 2 are the ones that are taken from professionals …from a construction company ,whereas the estimated cap for plan E and I are just an estimated cost by some non professional doctors and a lawyers from the BOD.
    Nobody can say whether it is going to be ,professionally,right or not.

    Reply

  2. Posted by BC on August 11, 2012 at 1:59 pm

    I believe Br Fasahat said he got a quote from a construction company for Plan E/I (whichever has 2 stories) for $6.7 million. (he said so at the Sunday meeting) He also pointed out that having many corners to the building (esp where the social hall and prayer hall meets the lobby) will increase the cost due to more masonry work on the outside.

    Reply

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