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Friday, March 19, 2010

How Philly L&I says it cut home demolition costs in half

It used to take 90 days to knock over a derelict rowhouse in Philadelphia, and three contracts - one for demolition, one for slapping stucco on the neighboring homes' walls, and one for fixing the adjoining roofs - says Frances Burns, the city's Licenses & Inspections chief. Average cost each year from 2006-09: $24,000 per house, according to L&I data.

Under newly revised L&I bidding procedures, it now takes thirty days and a single contract - and costs an average $13,000 - to knock down a rowhome, Burns told me over the growl of a front-end loader tearing into the rear of the first of four decaying three-story homes that city contractor William Pecarsky is knocking over in the 1700 block of North 21st St., in the North Philly neighborhood west of Temple University. The city typically pays the cost, and gets paid back when or if the properties are sold.

If the city budgets its usual $8 million to $10 million for demolitions when this year's budget gets through, crews will knock over 600 abandoned city homes this year -- up from 400 fewer in each of the past four years, according to L&I data.

Why so much cheaper? Partly it's the weak economy, which has made contractors willing to work for less. And partly it's reforms in the city's demolition process, according to Burns.

Under Burns, a Nutter appointee who held an L&I finance job in the first Street administration, the city has combined the three-part contracting process into a single deal, shortened the time frame to one month from three months, stoped allowing most contract change orders, and bid jobs including multiple, neighboring homes, instead of house by house, said Scott Mulderig, chief of L&I's Emergency Services and Abatement unit.

Lower demo costs are good for the taxpayers, and good for the shrunken city budget. Maybe not so good for contractors like Pekarsky. "It's a squeeze," he told me, watching his crew from across 17th St. "But it's a better system." 

For one thing, he says he's less likely to get sued by angry neighbors, because his men seal the neighboring houses quickly, instead of waiting for other specialized contractors to get around to it, as under the old system. "We'll stucco that house right away and fix the boards" along the neighboring roof.

Haven't lower payments driven contractors out of the business? No, says Mulderig: "We had 13 registered demolition contractors before, and we still have 13."
Posted by Joseph N. DiStefano @ 3:42 PM  Permalink | 3 comments
Comments   
  • 0 like this / 0 don't   •   Posted 5:06 PM, 03/19/2010
    It's nice to see at least some small steps taken to make projects more cost effective and user (or neighbor) friendly. I never thought I would see the day when L&I would be an example of good efficent government in Philadelphia.
    — lance71
  • 0 like this / 0 don't   •   Posted 7:28 AM, 03/20/2010
    At a rate of 600 houses a year, in a decade it will be 6000 houses and there are somewhere like 30K abandoned houses in Philly. The city gets to own the lots once the houses are demolished - lots are added to the city's land bank. We have not read of any lots being sold or made available to other agencies to build schools, police stations and the like. Hopefully, the city will get creative in making lots available for developers to build near Temple University so that college student and employees can have first dibs at purchasing the houses.
    — James
  • 0 like this / 0 don't   •   Posted 3:18 PM, 03/21/2010
    frances burns gets an atta boy for top notch performance
    — stangler


3 comments
About Joseph N. DiStefano
Joseph N. DiStefano writes this blog to feed his PhillyDeals column in the Philadelphia Inquirer. Joe has been a member of Bloomberg LP’s New York Finance Team, wrote the book “Comcasted,” taught writing at St. Joseph’s University, and studied economics and history at Penn. Reach Joe at 215-854-5194 and JoeD@phillynews.com
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