Tuesday, April 12, 2011

Consultant: arena remains ahead of schedule, but substantial completion date nudged back, final completion date pushed back

According the 4/4/11 Site Observation Report on the Barclays Center arena construction, produced by Merritt & Harris, consultants to the real estate lending and investment community, the arena is still ahead of schedule.

Indeed, as the graphic indicates, actual spending (white dot) exceeds projected spending (black dot), though construction remains in an early phase.

Falling behind?

However, other data, which have changed since the previous month, indicate that the arena is falling behind earlier predictions:
  • the substantial completion date has been nudged back two weeks from 8/12/12 to 8/27/12
  • a final completion date, involving punch list work and subcontractor close-outs, has been pushed back three-and-a-half months, from 2/28/13 to 6/14/13.
None of this jeopardizes the announced arena grand opening date of 9/28/12, a month after the substantial completion date. However, if additional glitches crop up, it may get tougher for arena promoters to fulfill this plan, as stated in a 4/5/11 press release:
Prior to the official Grand Opening on September 28, the Barclays Center plans to use the first several weeks of September 2012 to host public events and tours to welcome and introduce the Brooklyn community to its new building.
From this month's report

The report states:
Scheduled Completion

The original High Level Arena Summary Construction Schedule, dated July 16, 2010, had been provided for our review. We have now received the Executive Level Summary for Schedule 12M, dated February 10, 2011, prepared by Hunt, which indicates that substantial completion is anticipated to be by August 27, 2012. The Developer is currently reviewing that schedule and is working with Hunt to reach an agreement. A resolution is expected by May 2011.

The EMP provides for an early completion bonus, which under Schedule 12M, would be earned in July 2012. The following criteria would need to be met:
a. Owner may use and occupy the Arena
b. Only punch list items remain
c. The Architect of Record has issued a Certificate of Substantial Completion
d. A TCO has been issued

Punch list work and Subcontractor close-outs may extend the construction term to a final completion date of June 14, 2013.

Based on our computerized progress chart which compares the cash flow amount to the projected construction progress, the project is currently slightly ahead of schedule.
Last month's prediction

From the 3/3/11 Site Observation Report:
Scheduled Completion

The original High Level Arena Summary Construction Schedule, dated July 16, 2010, has been provided for our review. The current schedule, prepared by Hunt, indicates that substantial completion is anticipated to be by August 12, 2012. The Developer is currently reviewing that schedule and is working with Hunt to resolve current schedule disputes. A resolution is expected over the next few months.

An early substantial completion date of June 1, 2012, has been established with the following criteria to be met:
a. Owner may use and occupy the Arena
b. Only punch list items remain
c. The Architect of Record has issued a Certificate of Substantial Completion
d. A TCO has been issued

Punch list work and Subcontractor close-outs may extend the construction term to a final completion date of February 28, 2013.

Based on our computerized progress chart which compares the cash flow amount to the projected construction progress, the project is currently slightly ahead of schedule.

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