OWNER BUILT | TP OF THE MONTH

December

Construction Cost’s

The construction industry in Arizona as well as nationally has undergone major changes recently due to record-breaking demand for new homes. As a result of this increased demand and resulting material shortages, the cost’s to build a new home has skyrocketed. As always Darby Development and Owner Built Consulting strive to keep its clients informed of any issue’s that could impact their project. Recently we received information from 2 separate drywall suppliers concerning price increases. Unfortunately we receive faxes like these from suppliers on a regular basis.

Just since the beginning of this year concrete has risen 10%, copper (which is found in electrical wiring and plumbing) is up 20%, steel (which is found in stucco lath, concrete hold downs, framing connectors, and air conditioning equipment) is up 10%, insulation up 35% last year with new increases coming by the end of this year, and drywall is now up a total of 30%. This is to name a few, labor costs have also risen but at a more acceptable rate.

Most subcontractors will tell you they are having a difficult time keeping up with the demand, which translates to missed appointments and subsequent job delay’s. Darby Development over time has built solid, long-term relationships with many of our subs. This has helped us thru this period where everyone is stretched so thin. However the time to build a home from start to finish has increased by about 2 months over what it was just a few years ago, in most cases.

Although the cost of materials cannot be controlled by the homeowner, general contractor, or the subcontractors, there are ways to avoid unnecessary jobsite delays.

*Prior to signing a contract with a subcontractor talk to him about your concerns over delays and that it’s a personal priority to keep the project on schedule

*Notify your sub well in advance of the date you will need him on your job site, call at 6-8 weeks out with a tentative date, then call weekly to confirm or adjust this date, remember “the squeaky wheel gets the grease” be the squeaky wheel.

*Ask the sub what he needs done before his crew arrives, there’s nothing worse for a sub to send a crew out to a job that’s not ready, you may get rescheduled at the end of a long line.

*Pay subs for their work within a reasonable amount of time, if you make them wait 2 months to get paid, they may make you wait 2 months to come fix a warranted problem.

* The information contained in this “tips” section is to be used as a general guide only. When making decisions about your project a professional should be consulted using the specific information that is unique to your project.