Steve Jobs' Requirements for 'Fit and Finish' Leading to Massive Cost Overruns for Apple's New Campus

[vigorblade]

The price may eclipse the new World Trade Center project cost ?

This looks like a beautiful piece of architecture, that will undoubtedly be on the cover of Architectural Digest and become a much visited and photographed land mark, but these prices are unbelievable.

 

[AaronEdwards]

I wonder if there is a clause in the contract that stipulates the construction company is barred from using any Samsung heavy machinery in the construction of the building?

That would explain some of the cost overruns.

According to the report, Apple is working to shave $1 billion from the cost of the project before beginning construction.

Good luck with that if they are going to stay true to Jobs' vision.

 

[iRockSteady]

In a world of normalcy, it's nice to see a company going beyond boundaries set by the rest of the world

 

[Larry-K]

It's pocket change for these guys.

 

[vaio1990]

Just abandon the plan already... Geez

 

[BaldiMac]

That money is stockholder money. It is wasteful to treat Apple corporate offices like Steve's yacht. I understand and promote having a nice working environment, but this is ridiculous.

Unless Apple and the BOD believe that this investment in the corporate HQ will create more shareholder value in the long term through the recruitment and retention of top talent, as well as fostering a more productive work environment.

Keep in mind, even with these reported overruns, we are still only talking about the amount of money that Apple brings in (revenue) in a week or so. One great month of profits.

 

[kas23]

This is art. And people ought to have it. If you stifle all art in the world for the sake of a few $$. The worse off the world will be.

Art doesn't have to mean expensive.

And this isn't about stifling art for the sake of a few bucks. Try a few billion. Plus, it's not the "art" that is proving to be expensive. It's what's inside and the choice of building materials. I'm sure there are less expensive alternatives that wouldn't look any different.

This is clearly part of dying Steve's cancer/drug-induced delusions, much like the "thermonuclear war" Tim Cook inherited. Apple's probably best killing this albatross before it become a symbol of Rome falling.

 

[UmbraDiaboli]

As if Apple didn't have cash and time for this.

 

[Carouser]

I'm laughing at all the ignorance being purported on tolerances. Please. Unless you have the specs to determine what material constraints this article is alluding to I suggest you stop hyperventilating on what it is you don't understand.

The spec requirements of the flooring is the same that were in NeXT. Nothing new.

Yeah, I'm glad there are so many civil engineers, seismologists, and HVAC aficionados on MR - they can tell just what will and won't work about this massive building from a few hundred words in a news article. It's amazing, really.

EDIT: ahaha and people are 'sure' that if something costs X, then you can always get something equivalent for X-1 dollars; and they dismiss the specs on the grounds of someone's illness and medication. A new low? Every day's an adventure on MR.

 

[TheSlush]

I'd be more inclined to sell my stock if they DON'T follow through on Steve's vision. $2 billion over budget is a drop in the bucket for Apple. How many of their iconic products over the years went over budget under Steve? Maybe ALL OF THEM??

Everyone calm down and let them build the thing.

 

[ChrisA]

I'd love to see the business case for this.

People who see perfection and clean design in their day to day lives are influenced by it and will design products that reflect the environment.

But a bunch of engineering in cheap rented cubicles and remind them every day that money in tight and they design cheap stuff. It is "psychology" and not "accounting"

Think about the Romans in the First Century. They build building of solid stone that still stand 2,000 years later. They built "for eternity" and they lived with thing they expected to last for 100 generations. This must have greatly effected their thinking and plans. You are a product of your environment. So if you have a chance to design an environment and you want to instill a sense of perfection and design what would you do?

 

[AaronEdwards]

Unless Apple and the BOD believe that this investment in the corporate HQ will create more shareholder value in the long term through the recruitment and retention of top talent, as well as fostering a more productive work environment.

Keep in mind, even with these reported overruns, we are still only talking about the amount of money that Apple brings in (revenue) in a week or so. One great month of profits.

But then that can be said about any kind of expenses.

If Apple believes that giving away 50% of its current assets to the poor.
If Apple believes that giving all female employees a paid year off if they become pregnant.
And so on.

It all depends on what Apple current believes is good for the company.

Whether it's building a new building, keeping its assets abroad, manufacturing iDevices abroad, and so on....

 

[Carouser]

But then that can be said about any kind of expenses.

Which is why it's not an issue. It's up to Apple to allocate resources as they see fit, to have the chance to perform, and to be evaluated appropriately. There's a reason why some people run a billion dollar company and others dribble on MR.

Also, your two suggestions would be a good start.

 

[BlueHusky]

Dat description

 

[2457282]

Frank Lloyd Wright, a very famous and Great American Architect said -- "If you ignore beauty, you will soon find yourself without it, but if youinvest in beauty, it will remain with you all the days of your life."

Steve got this, Jony still gets this. I hope Tim will not get in the way of this.

 

[BaldiMac]

But then that can be said about any kind of expenses.

If Apple believes that giving away 50% of its current assets to the poor.
If Apple believes that giving all female employees a paid year off if they become pregnant.
And so on.

It all depends on what Apple current believes is good for the company.

Whether it's building a new building, keeping its assets abroad, manufacturing iDevices abroad, and so on....

Yep. I'm not sure what you were disagreeing with.

 

[komodrone]

I wonder if the spaceship is modular where they can add a second ring on top

 

[TallManNY]

It's been years I don't write in this forum but I felt compelled to do this now, just to ask something none pointed out before.

Since when a glass tower is a better project than this? Come on, look at the green space. I would exchange that green space for any glass tower in a heartbeat. Such a lousy comparison. We need to fight this mindset, towers are a stupid solution in urbanism.

That green space is called "landscaping". It is all part of the design and was not there originally. It will be planted once the construction is done.

 

[frjonah]

I feel that Apple's headquarters should be amazing design-wise, as well as in terms of energy efficiency, facilitating designer collaboration, etc. It should be a monument. That said, however, it should not be a monument to bull-headedness and anal stupidity when "design requirements" don't provide any real benefit. The extraneous elements should, therefore, be scrapped while proceeding forward with the construction of a monument to Apple and the legacy of Steve Jobs.

To those who see a parallel between a "no compromise" approach on the building requirements and Apple's products... That analogy couldn't be further off. Apple employs breakthrough design and technology in all their products (except the 2012 Mac Pro, of course), but there is always a compromise on the cost front, driven by the business plan... The same should hold here. Of course, another "obvious" difference is that Apple's products have a customer focus whereas this does not.

Do the right thing and build rationally and beautifully.

 

[TallManNY]

Thing is, I don't think Steve intended it as a homage to himself (like some sort of everlasting Pyramid.)

I think Steve wanted it as a stage for himself. A massively impressive backdrop for him to stage his 'events' as he wooed the world's press, trendsetters and financial communities. It's something he excelled at and the building would've amplified his sales presentations magnificently.

Unfortunately he's not around and Tim just doesn't have the presence or chutzpah to strut around the way Steve did, selling everyone his vision of a better world.

The palace is still awesome in its undeniable excellence, just a bit pointless without its King.

Good point. But it will also remind folks of Steve in that folks that work there will be reminded that making something really really good should be the goal. I guess it will work for that. That is if it doesn't have some sort of fatal design flaw (like the tight seems crack during the expansion of the materials on a particular hot day).

 

[3282868]

Apple could save money by using the same adhesive for the seams and joints as they do on their iMacs. Billions saved, problem solved.

 

[Arran]

Apple could save money by using the same adhesive for the seams as they do on their iMacs. Billions saved, problem solved.

Or magnets. They like magnets.

 

[sailmac]

They should make it in the shape of a rounded square.

Image

One button to rule them all!

 

[jimaplus]

Don't cut back!!! Still be the best!!! Apple has always been the "best." Anything short of the best would be the start of Apple's downward spiral. When you start cutting back you become mediocre. Apple has never been mediocre and this is not the time to start in that direction.

 

[petsounds]

Unless Apple and the BOD believe that this investment in the corporate HQ will create more shareholder value in the long term through the recruitment and retention of top talent, as well as fostering a more productive work environment.

A "more productive work environment" looks more like the Googleplex (I've been there). Developers don't care about seam margins and the quality of glass, they care about things like 1) ergonomic spaces with natural lighting, 2) plenty of healthy (or not) snacks and meals available, 3) green spaces to get away and think, 4) areas to let off steam (exercise, videogames, ping-pong, etc). I don't know whether the Apple campus has these things or not, but how polished the cement columns are weigh much lower on the priority scale for most employees.