Economic Cycles

As we move into the rainy season, it’s important to revisit best practices of protecting wood from the elements during construction. Previously, we used to rely on just-in-time deliveries which would limit the amount of time our framing materials were subject to the weather prior to being covered up. With today’s market environment, we find ourselves ordering materials early and storing them on site so that we can be productive as we start building and not run out of material along the way. This has led to lumber being stored for longer periods than we are used to.  It’s important that this is taken into consideration as we construct our projects and that we don’t allow deterioration of our building products to occur. 

First, develop a plan early to deal with these issues in order to reduce the risk of mold and product deterioration. Ensure that your storage area is well...

Everywhere I go people are asking what’s going to happen with construction prices, and they are right to ask.  I visited with a prospective client this month and he told me that construction prices on his prototype increased 46% in two years, which was shocking to him and a little surprising to me.  We are tracking prices in our Florida office and our records indicate costs are up 30% in 14 months, 2% per month, so I guess I shouldn’t have been surprised.  Everywhere we look subcontractors are backing out of quotes and/or raising prices, and even once under contract don’t always honor prices.  Materials and labor availability is a whole other issue.  It’s hard to believe these increases can continue, but I don’t see any signs of relief. 

The above doesn’t make our jobs any easier or more enjoyable.  We hate giving bad news to our clients on costs, but...