Why AV Gets Cut First and Costs the Most to Add Back
The Budget Is Already Aging
Every large build reaches the moment when the numbers come back high and the team looks for something to cut. On the latest episode of Wired In: KONTEK Conversations, our own Marques Manning explained why AV so often lands on the chopping block, and why that decision tends to become one of the most expensive on the project.
On a $150 million building, AV might represent 10 to 15 percent of the budget, and closer to 20 percent for complex spaces. Budgets are usually set during design development or construction documents, long before anyone purchases materials. “So I budgeted, you know, in twenty twenty-three for a building that’s not gonna open until twenty twenty-seven,” Marques said. On projects like that, we have seen prices climb 15 to almost 30 percent between estimate and purchase order.
The Low Voltage Squeeze
Tariffs, conflict and federal policy ripple through the supply chain. Closer to home, data center build-outs and new industry across North Carolina, including $10.8 billion in life sciences manufacturing investment in 2024, are drawing on the same cabling, fiber and electricians that AV depends on.
The Building That Does Nothing
AV is an easy target because its value is hard to see on a drawing. The consequence shows up on opening day. “I can have an in-person meeting in this, this, oh, beautiful conference room,” Marques said, “but it’s for in-room only. Which, when’s the last time anyone had a in-room only meeting?”
Adding that capability back means core drilling through concrete and opening finished walls, “doubling and tripling what it should’ve been if you had just taken care of it at the very beginning.”
Defer the Display, Protect the Infrastructure
Marques has little patience for the phrase value engineering. “I always say, ‘What do you not wanna do?’” Start with what the space has to do when it opens, then decide what can wait.
Equipment can often be deferred. Infrastructure should not be. Leave the display off the wall if you must, but put in the back box, conduit and electrical while the walls are open. Waiting two or three years means paying for labor twice and buying materials at a higher price, because “today’s price is not yesterday’s price.” The bill reads like an overrun, but it reflects the budget the room needed from the start.
Plan for the Recurring Line Items
Platforms like Microsoft Teams and Zoom ship updates every year, and premium room experiences carry recurring licenses managed by IT. Moving from 10 standard conference rooms to 10 Teams Rooms with advanced features means 10 more annual licenses to budget for, on top of the hardware. That is why we work in lockstep with IT teams and define clearly where KONTEK stops and IT begins.
Choose a Partner for the Long Run
As the Triangle grows, more firms are offering AV services. A bid that saves 10 to 20 percent up front can still end in echo, flickering images and rework by another team. “There’s a price for experience,” Marques said.
The Easiest Rooms Take the Most Planning
In Marques’s words, “the easiest, most user-friendly experience requires the most planning on the back end.” Through our five-phase process, starting with Vision Discovery and Technical Translation, we reality-check every communication dream against budget and physics before the walls close.
Podcast Chapters
(00:00) Why AV gets cut first: rising material and labor prices are pushing AV to the back burner on construction projects.
(01:54) Budgets that age before construction: a budget set in 2023 for a 2027 opening, and price increases of 15 to almost 30 percent.
(03:36) The low voltage squeeze: data centers, tariffs and supply chains drive up cabling and fiber prices.
(05:01) The labor gap: why experienced technicians are scarce, and why the trades make the country work.
(07:00) The building that does nothing: what happens when AV is cut and has to be added back.
(07:47) Defer the display, not the infrastructure: rethinking value engineering around what a space needs on day one.
(08:40) A growing market: the Triangle’s life sciences boom and how to vet an AV partner.
(11:40) The long-term investment: software updates, AI and the licensing that keeps rooms running.
(13:23) Where AV stops and IT begins: budgeting for Microsoft Teams Rooms licenses and IT management.
(16:15) Behind the scenes: meeting routing, geofencing and deployment guides.
(17:42) Wrap-up: the easiest experience requires the most planning.
Related Questions
Why does AV get cut first when construction budgets tighten?
AV often looks like a line item that can wait, because its value is hard to see on a drawing and equipment can be added later. The catch is that the infrastructure behind it, such as conduit, floor boxes and power, is far more expensive to add once walls and concrete are finished.
How much of a construction budget goes to AV?
On a large commercial building, AV commonly represents around 10 to 15 percent of the overall budget, and it can approach 20 percent for complex, highly technical spaces. It deserves a place in the plan from design development onward.
What AV infrastructure should go in even if equipment is deferred?
Back boxes, conduit, floor boxes, conduit stubs above the ceiling and dedicated electrical should go in while the walls are open. Displays and devices can follow later without reopening walls or core drilling concrete.
How much more expensive is it to add AV infrastructure after construction?
Adding infrastructure after the fact can double or triple the original price. It means core drilling, reopening finished walls, paying for labor twice and buying materials at a higher price than when the project was budgeted.
Why do AV budgets rise between design and construction?
Budgets are often set during design development or construction documents, and purchasing may not happen for another year or two. In that window, we have seen project prices rise 15 to almost 30 percent, driven by demand for steel, lumber, cabling, fiber and skilled labor.
How are data centers affecting AV and low voltage projects?
Data center build-outs, including those supporting AI, are driving national demand for category cabling, fiber and the electricians who pull them. AV projects draw on the same materials and trades, so prices and lead times rise across the board.
What is value engineering in AV, and what should you protect?
Value engineering is the process of trimming scope to meet a budget. We recommend starting with what the space has to do when it opens, deferring equipment where needed, and protecting the infrastructure that would be expensive to add later.
Do Microsoft Teams Rooms need their own licenses?
Yes. Each Teams Room is licensed in your organization’s Microsoft 365 tenant, and the advanced features most organizations want come with a recurring per-room license that typically sits in the IT budget. Adding a Teams phone to the room can change the license level you need as well.
Who manages AV software and licensing, the AV integrator or IT?
Both, with a clear line between them. KONTEK designs, builds and supports the room systems, while licensing, passwords and the cloud configuration behind platforms like Teams Rooms live with your IT team, so defining that hand-off early keeps responsibilities and expenses clear.
How do you choose an AV partner for a large construction project?
Ask how long the firm has served your local market, whether it supports the type of building and spaces you are creating, and whether it can support the system for years after opening. A 10 to 20 percent savings up front can disappear quickly when another team has to fix echo, flicker or work that wasn’t done to standard.
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