Cost Analysis of a Mass Timber Building Project: Comparison of Budgeted and Actual Construction Cost

Mass timber is considered as a sustainable alternative to traditional building materials such as concrete and steel. However, due to a lack of sufficient mass timber construction projects, the US construction practitioners are not familiar with the cost details of mass timber buildings. Cost is an important parameter of any construction project, and the availability of adequate cost information from previous projects helps to tackle cost-related challenges associated with building construction. This study presents comprehensive cost information of a tall mass timber building construction located in Canada. The methodology of the study was developed by comparing the budgeted construction cost of the building to the actual construction cost of the building. The budgeted cost was estimated before commencing the construction, and the actual construction cost was calculated after the completion of all construction activities. The outcomes of the study show that the actual construction cost of the building was 1.2% ($473,758) higher than the budgeted cost, including a schedule delay of five months due to failures of elevators and storefront trades. Metalworks, furnishing, and utility activities were found higher for actual cost compared to budgeted cost. Contrarily, the cost of engineered wood and plastic, exterior improvement, and installation of mechanical facilities were found lower in actual construction cost. The actual construction cost also incorporated change orders that cost an additional $2,155,549. The study will help US industry practitioners and owners to make decisions regarding their initial investments in a mass timber building project.