Chip,
Since I couldn't access the link to the article (showed up blank unless I subscribed) I appreciate the info. I have sat in the grill room and heard wild exaggeration going on all around like the kids party game where you repeat the same thing all around the table. One new course, which had been bid at $4.8M, was reported in the local papers (by fierce opponents) at gradually increasing amounts, with the topper being $10 Mil, LOL.
Mark,
I did greens and tees only on a public course in (bid 2013) for just under $2M, and probably underfunded by 10% so we made some sacrifices. That $2M would be about $2.2Mil when the Cape Fear project was built out, and I presume they had more of everything (although Ross greens tend to be small) As you say, we really don't know the scope of work. And, there were probably up to 10% in soft costs, including, architects fees which might or may not have been included in the reported number. Cost reporting seems to be all over the map. So, it makes sense that the other items brought the budget up.
That said, I have seen reports of $20Mil renovations in Florida, which are hard to fathom, but the very high end clubs don't spare the expense. I have done cost estimates in high labor areas like Chicago and MSP, and they are at least 20% higher than the national averages. In fact, I am finalizing one now, and I am having trouble believing the numbers.
After many years of stagnant construction pricing, things really have jumped with the return of the roaring economy. It probably ends up being about 3% average per year, but construction costs seemed to be level, level, level, level, level, level and then up 20-25% in the last two years. That has actually been typical in my career, but its always a shock.
And, I typically add 3% knowing it will take a project at least a year to get going, but should I now, with both an oil war (holding down trucking costs) and the pandemic (holding down construction demand?) In 2009 I estimated a project using unit cost from the previous two years worth of projects and the final bids came in 15% under the estimate.
So, yeah, it is pretty unfair to judge the $5Mil here without a broader background and knowledge of the work scope.