Golf Inc - April 2008 - (Page 7)

opNews Top News Average new course price: over $8 million The average cost of building a new golf course in the United States continues to climb, topping $8 million in some regions, according to a recently released survey by the Golf Course Builders Association of America (GCBAA). The escalating cost of building materials, especially those of petroleum-related products, is the primary cause of the increase, according to GCBAA officials. Doug Long, vice president of construction for Heritage Links and chair— man of the cost guide committee of the GCBAA that prepared the survey, estimated that costs have risen between 10 and 15 percent since the organization’s last report in 2006. Though the volatility of oil prices has had a major impact on the cost of petroleum-based products such as plastic pipe and on transportation charges, Long said it’s difficult to point to a single reason for the rise. “The trend is that everything has increased a little at a time,” he said. The GCBAA study divided the country into four general regions — Central Plains, High Desert, High Piedmont and Coastal Lowlands — and pinpointed the average cost of golf course construction in each. The costs varied from region to region because of the differences in the types of construction required and the materials needed. For instance, Long said that in Southern California or Arizona, an irrigation system might need 3,000 sprinkler heads, compared to just 1,200 in the Southeast or 800 in the Midwest. That’s a primary reason that the average cost of an irrigation with a pump station in the High Desert is $2.5 million compared to just over $1.5 million in the Central Plains, the survey showed. It similarly reflects regional variations in commodity prices. “It’s very reflective of what’s going on in the marketplace,” said Justin Apel, executive assistant at the GCBAA. Estimating costs is one of the most difficult tasks for builders and others involved in golf course development. It’s es a special challenge when prices fluctuate er rapidly, as they have done over the GCBAA survey pinpoints costs for new construction, renovation projects past couple of years. Long cited a recent project in which the price of copper wiring went up by $30,000 between the time the bid was submitted and the time the materials were needed. Given those kinds of variations, Long said the survey can help those in the golf course industry keep costs down by providing more accurate estimates of the cost of projects. This year’s report represents responses from builder members and reflects actual quantities of materials used and prices paid over the past two years. It includes the average cost of more than 50 line items, including tee boxes, greens, bunkers, irrigation, cart paths and drainage. “It’s a valuable tool for anyone building or thinking about building a golf course,” Apel said. The cost guide is available from the GCBAA for $100 for non-members and $50 for members. It’s available by calling 402-476-4444 or on the organization Web site, www.gcbaa.com. —Keith Carter 2008 construction cost estimates Coastal Lowlands New course Full renovation Greens renovation Irrigation renovation $8,079,550 7,186,423 1,051,751 2,100,500 High Desert $8,544,192 8,444,871 1,133,340 2,715,000 High Central ntral Piedmont Plains ains $8,095,063 7,497,700 1,327,930 1,732,500 $7,364,439 64,439 5,933,729 3,729 1,067,546 7,546 1,613,750 3,750 0 Source: Golf Course Builders Association of America April 2008 www.GolfIncMagazine.com 7 http://www.gcbaa.com http://www.gcbaa.com http://www.GolfIncMagazine.com

Table of Contents Feed for the Digital Edition of Golf Inc - April 2008

Golf Inc - April 2008 Contents Editors Column Birney Takes NGCOA Helm Construction Costs on the Rise KemperSports Adds 14 Courses Americas: Fazio Designs St. Kitts Layout Europe/Africa: Seaside Resort Planned in Egypt Asia/Australis: Faldo Opens New Chinese Course High-Tech Tools: New Technologies that can Help Operators There's No Economic Slump at Still-Popular Reynolds Plantation Tim Moraghan Wants to Make Golf Fun Again Why a $1.5 Billion Resort has Made Environmental Protection a Top Priority Most Admired Operators Marketing Experts Make Their Pitch for Golf Courses From Korea, with Cash Last Word

Golf Inc - April 2008

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