It isn't a billion $ cost over run. There are a couple of very old buildings under the renovation project. Initial 2019 estimates were $1.9 Billion for both. Now estimates are $2.5 Billion to complete the work. 2.5-1.9 = 0.6 which is less than 1. So about .6 Billion or $600 Million.
The final cost isn't in yet. It will probably top a $billion after its completed.
The project has had:
- Design changes for based on historical building preservation
- Since the original estimate we had COVID which during the pandemic and post pandemic caused spikes in material and labor costs
- More remediation for toxic materials used in original construction such as asbestos and lead than was originally anticipated
- More deep foundation work than was originally anticipated because - well - Washington was originally built in a swampy area
So the flat statement "there has to be corruption" is false. There are plenty of non-corruption factors that have come into play in an increase in 2026 of about 31.5% ($2.5 Billion current to $1.9 Billion in 2019) when about 24% of that is due to post pandemic COVID cost increases in materials and labor.
Design changes are costs the architect should have included in the review process before the project was bid.
The first thing an architect does is have an RRP (Renovation, Repair, and Painting) survey done for any building built before 1978.
Saying "more remediation" was found than anticipated is bullshit. I call bullshit on remediation extras.
Part of the design process is "core borings" to determine the U/G conditions, I call bullshit on foundation extras
This isn't about 4.5% cost increases per year over 7 years, it's about Trump being pissed that the FED did it's job as an independent agency and not just a rubber stamp for Trump Decree's. The FED renovation is subject to OIG audit, one was conducted in 2021, and Chairman Powell has called for another to lay open the books to review. WW
It's painfully obvious the Fed has no clue how to run a major renovation project.
The major phases of a project are:
Plan, Detailed Design, Review/Approve, Bid, Build
."Finding" lead paint & asbestos shouldn't happen
EPA rules say that the (RRP) asbestos and lead paint surveys have to be done and remediated before work begins.
Is incompetence and getting screwed by contractors criminal? Should be.
For construction to take 5-years for a building renovation is ridiculous, so is the $2.5b price tag.
Nuclear powerplants can be built for less and quicker.