The contractor Consigli Construction has released its latest breakdown of predictions about materials and labor pricing for 21 categories, based on the firm’s survey of more than 200 subcontractors working in the Northeast.
From that polling, Consigli considers HVAC and electrical trades to be at the greatest risk for price increases, based on their projected percentage of a project’s total cost. The firm elaborates that there is potential for price hikes in copper tubing and small-bore pipe, as well as lighting fixtures, copper and PVC, and distribution equipment.
Consigli breaks down pricing risks by 21 categories. Image: Consigli
The good news is that 56% of the subs polled said they were experiencing no major increases in lead times as a result of the coronavirus pandemic. That being said, “subcontractors are continuing to place focus on ordering materials as soon as possible to prevent schedule delays,” says Peter Capone, Consigli’s Director of Purchasing.
The firm singles out glass and aluminum, lumber, distribution and transportation issues, electrical lighting/PVC, and custom fabricated materials as “risks to watch for” in the future. Concerning lumber, which has been in short supply across North America, the report states that suppliers “should catch up” with demand by this winter and next Spring, when homebuilding shifts into a higher gear.
WORKER AVAILABILITY SHOULDN’T HAMPER PROJECTS
More than half of the subs polled weren't having lead time problems. Image: Consigli Construction
Consigli notes that, lately, it has experienced “better than normal” bid coverage and aggressive pricing in nearly every trade. Despite their healthy backlogs, subs are still looking to book work for next year and beyond. And most of the subs polled—93%—are confident they will be able to hire more workers to meet work demand.
“There is potential when the COVID-19 vaccine is developed, the construction market may start trending back toward pre-COVID-19 levels of activity,” which could add product and labor costs. “Therefore, now is the time to move forward with upcoming projects,” writes Capone.
Related Stories
Senior Living Design | Apr 24, 2024
Nation's largest Passive House senior living facility completed in Portland, Ore.
Construction of Parkview, a high-rise expansion of a Continuing Care Retirement Community (CCRC) in Portland, Ore., completed recently. The senior living facility is touted as the largest Passive House structure on the West Coast, and the largest Passive House senior living building in the country.
Hotel Facilities | Apr 24, 2024
The U.S. hotel construction market sees record highs in the first quarter of 2024
As seen in the Q1 2024 U.S. Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), at the end of the first quarter, there are 6,065 projects with 702,990 rooms in the pipeline. This new all-time high represents a 9% year-over-year (YOY) increase in projects and a 7% YOY increase in rooms compared to last year.
ProConnect Events | Apr 23, 2024
5 more ProConnect events scheduled for 2024, including all-new 'AEC Giants'
SGC Horizon present 7 ProConnect events in 2024.
75 Top Building Products | Apr 22, 2024
Enter today! BD+C's 75 Top Building Products for 2024
BD+C editors are now accepting submissions for the annual 75 Top Building Products awards. The winners will be featured in the November/December 2024 issue of Building Design+Construction.
Resiliency | Apr 22, 2024
Controversy erupts in Florida over how homes are being rebuilt after Hurricane Ian
The Federal Emergency Management Agency recently sent a letter to officials in Lee County, Florida alleging that hundreds of homes were rebuilt in violation of the agency’s rules following Hurricane Ian. The letter provoked a sharp backlash as homeowners struggle to rebuild following the devastating 2022 storm that destroyed a large swath of the county.
Mass Timber | Apr 22, 2024
British Columbia changing building code to allow mass timber structures of up to 18 stories
The Canadian Province of British Columbia is updating its building code to expand the use of mass timber in building construction. The code will allow for encapsulated mass-timber construction (EMTC) buildings as tall as 18 stories for residential and office buildings, an increase from the previous 12-story limit.
Standards | Apr 22, 2024
Design guide offers details on rain loads and ponding on roofs
The American Institute of Steel Construction and the Steel Joist Institute recently released a comprehensive roof design guide addressing rain loads and ponding. Design Guide 40, Rain Loads and Ponding provides guidance for designing roof systems to avoid or resist water accumulation and any resulting instability.
Building Materials | Apr 22, 2024
Tacoma, Wash., investigating policy to reuse and recycle building materials
Tacoma, Wash., recently initiated a study to find ways to increase building material reuse through deconstruction and salvage. The city council unanimously voted to direct the city manager to investigate deconstruction options and estimate costs.
Student Housing | Apr 19, 2024
$115 million Cal State Long Beach student housing project will add 424 beds
A new $115 million project recently broke ground at California State University, Long Beach (CSULB) that will add housing for 424 students at below-market rates. The 108,000 sf La Playa Residence Hall, funded by the State of California’s Higher Education Student Housing Grant Program, will consist of three five-story structures connected by bridges.
Construction Costs | Apr 18, 2024
New download: BD+C's April 2024 Market Intelligence Report
Building Design+Construction's monthly Market Intelligence Report offers a snapshot of the health of the U.S. building construction industry, including the commercial, multifamily, institutional, and industrial building sectors. This report tracks the latest metrics related to construction spending, demand for design services, contractor backlogs, and material price trends.
