The elevated building material costs is a current headwind for the industry. However, understanding where the rise comes from, building close relationships with dealers and transparency with clients can help you keep your projects on track.
According to analysis from Associated Builders and Contractors (ABC) construction input prices are 2.8% higher than a year ago. For small and mid-sized firms, simply absorbing these costs is not an option. Many ABC Carolinas members reported their projects were cancelled, rebid or significantly scaled back after updated quotes with higher budgets.
“Start with two or three changes,” advises ABC Carolinas. “Add a tariff/escalation addendum to standard subcontracts, hold quarterly pricing reviews with key suppliers and pilot early procurement on one major project.”
