The project is located on a major interstate intersection and while the location provided excellent visibility, convenience and access to the community, the site grade conditions and existing soil conditions were less than ideal for the new building. The Owner's budget for the project was developed prior to site selection; therefore, the site conditions were not reflected in the project budget.
Northstar recognized the project budget variance early on in the design process prior to major project expenditures. Northstar led the discussions with the Owner to revise the business proforma with the additional capital needed for the project. The updated business proforma allowed the Owner to determine the investment would remain positive; therefore, the Owner reallocated capital to fund the project budget variance.