With 2013 only a few days away, it seems like everyone’s looking ahead. Here’s a snapshot of what we’re seeing going into next year. Fewer subcontractors and vendors. This is a direct result of the Recession. I can say with certainty that those who have survived are stronger. Pricing pressure. If the economy expands next [Read More]
Save Cost and Carbon Onsite
In this economy, reusing, repurposing and recycling construction material can make the difference in meeting a budget. Additionally, our experience shows that a portion of customers, whether they be landlords or tenants, are placing an increased value on green label buildings. In the right applications, repurposing materials makes economic sense . This article by Bill [Read More]
Construction Costs Headed Up in ’12…But How Much?
Economics of construction cost can be confounding at times. Just when we think pricing should stabilize, it moves in the opposite direction. Knowing the current cost for a project maybe painful, but it sure beats the alternative. This Construction Executive article summarizes the “why” behind the materials aspect. Factors impacting cost are: *Supply/demand balance; *The amount [Read More]
In Construction, Are Bells and Whistles Worth Added Costs?
In short, sometimes. Last week, I was reading an article in Engineering News Record titled, “When Does It Pay to Use Innovative Concrete Construction Products?” The piece details a study by the Construction Industry Institute where three recent innovations in concrete were investigated, comparing them to traditional counterparts. The article explains the “why” behind their [Read More]
Hot Gas Reheat: Worth the Extra Cost?
Last week, I was having a conversation about pricing on an HVAC system with Heath Cather in our office. Why had the mechanical engineer chosen hot gas reheat? It’s more expensive and sometimes unnecessary, I offered. He mentioned a trend he’s noticed. With all the mold law suits lately, we are seeing recommendations for a [Read More]
Looking Ahead at Construction Materials
As the economy continues to improve, construction demand is slowly increasing. As a result, the demand for construction materials is also increasing and one has to assume those costs will continue to go up throughout 2011. Recently, I was talking with one of our fabricators who supplies steel for projects throughout the nation and he [Read More]
Construction Material Costs Are Defying the Laws of Economics: Why?
The short answer: To me, nobody knows. If we compare the normal demand for commercial projects in the United States to our current climate, the market is down 30-50 percent. The laws of supply and demand tell us commodities prices should decrease in order to level things out. The opposite is happening. On average, we [Read More]
Current Pricing Trends Are Good News for Construction Relationships, But How Long Can Costs Stay Down?
Because of the current imbalance of supply and demand in the commodities market, the cost of construction has been trending downward over the last year or so. Some of our projects take years to develop, and before this correction, the previous several years saw 3-4% increases annually. It’s hard to come back to your customer [Read More]
