How Clients Can Deal with Fluctuating Construction Costs
It is no secret that the prices of construction materials and equipment have been skyrocketing. The costs of lumber, steel, copper, glass, and PVC, for example, have increased dramatically since the beginning of the COVID-19 pandemic and through the reopening of the global economy. Fear and uncertainty abound. Vendors are unwilling or unable to sell their materials at lower prices. Owners have no desire (and perhaps no funding) to exceed their project budgets and contractors and their subcontractors are wedged in the middle of the resulting storm. So, what are some things you can do to protect yourself from incurring large, unforeseen expenses on your next build?
For a time, lumber costs were the most notorious of the industry’s material cost issues. The industry has also seen new tariffs on steel and aluminum products from all but a few countries, along with a 10% tariff in Chinese industrial goods (quartz surfaces imported from China have been hit especially hard). Sometimes, the easiest solution to a product pricing issue, especially one related to tariffs, is to find a different source that can give a price closer to the owner’s expectations.
Contractors can directly procure the building materials at the moment the building project deal is closed. This secures them the calculated procurement price at the moment of closing the deal. They can agree on the price with a supplier and ensure delivery of the materials at the moment needed in the building process. Contractors can also buy the building materials directly, let them be delivered directly and store them until needed. This is also a remedy against impending material shortages.
Developing a schedule early is the best way to avoid higher costs. As a client, you will need to be mindful of making any last-minute changes that could disrupt progress. Ordering material at one price, then having to re-order it several months into a project, may subject you to higher pricing. Plus, it makes it harder to meet the final deadline.
Price Construction understands all the issues surrounding building costs and has experienced professionals to help ensure that all costs are made clear up front. Call Price Construction at (864) 578-1008 or use our online contact form to learn how to invest in a building that can best suit your needs today!