Don’t expect those record high prices to drop anytime soon
Since the pandemic hit the U.S hard like a knockout punch, contractors, their families, customers and employees across the country have had all had hurdles to jump. From a range of concerns including layoffs and projects forced to shutdown. And now the increased cost of construction materials and supplies.
With people spending so much time at home during the pandemic there has been a rise in the DIY at home remodeling NICHE. And these property owners have decide to move ahead full force and get those projects completed out of the way and done.
Soaring lumber prices have added $36,000 or more to the cost of a new home, and a fierce land grab is only making it worse. The surge in lumber prices in the past year has added up to and sometimes over $63,472 to the market value of an average new multifamily home.
According to a new survey that the Associated General Contractors of America (AGCA) released. Just over a year ago when the pandemic struck most construction firms were still battling with soaring material costs.
Lumber prices have continued to set an all time new record almost on the daily. Now up 67% this year and up 340% from a year ago, according to Random Lengths, a wood products industry tracking firm. And lumber doesn’t just go into framing a house. Those added costs hit cabinets, doors, windows and flooring just to name a few
Association officials from (AGCA) have urged the Congress administration to take steps to eliminate tariffs on key materials and boost funding for new infrastructure to help the industry recover.
Contractors can manage these risks and enhance profitability by taking affirmative steps to protect their rights and claims under their contracts. Active measures include asking for extensions of time, ensuring compliance with all contractual notice requirements, and carefully tracking all extra work and costs.
The building industry as we know it is woven into the fabric of New York, and working together, will build a better New York for all. #SAFETYONPURPOSE