Carter delays Buckhead project to renegotiate

In November, Ben Carter, the developer of the $1.5 billion Streets of Buckhead project, announced that he was going to delay the opening from November 2009 to March 2010.

On Friday, Carter said he’ll use the construction slowdown to renegotiate contracts and potentially reap millions of dollars of savings.

“Rather than just continuing on, we’re going to sit down with our [subcontractors] and sharpen up our pencils and see where the market is today versus 2007 when we originally priced it,” said Carter on a phone interview from Jacksonville.

Balfour Beatty Construction, the general contractor, will meet with six or seven subcontractors next week to try and negotiate lower costs, said Jeff George, vice president of Balfour Beatty’s Atlanta commercial group.

Extending the deadline gives Ben Carter Properties several weeks to try to adjust prices, George said.

With material cheaper than it used to be, renegotiating costs is “a trend across the country,” George said. “The ‘07 prices aren’t in line with what the 2010 rents will be.”

CB Richard Ellis Investors, an equity partner in the project, backs Carter’s efforts to renegotiate prices.

Spokeswoman Pam Barnett said, “We are in full support of Ben Carter Properties’ approach to reduce the costs of the project and think that they have devised a solid strategy.”