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
| Jul 28, 2014
Reconstruction Sector Construction Firms [2014 Giants 300 Report]
Structure Tone, Turner, and Gilbane top Building Design+Construction's 2014 ranking of the largest reconstruction contractor and construction management firms in the U.S.
| Jul 28, 2014
Reconstruction Sector Engineering Firms [2014 Giants 300 Report]
Jacobs, URS, and Wiss, Janney, Elstner top Building Design+Construction's 2014 ranking of the largest reconstruction engineering and engineering/architecture firms in the U.S.
| Jul 28, 2014
Reconstruction Sector Architecture Firms [2014 Giants 300 Report]
Stantec, HDR, and HOK top Building Design+Construction's 2014 ranking of the largest reconstruction architecture and architecture/engineering firms in the U.S.
| Jul 27, 2014
Top Data Center Construction Firms [2014 Giants 300 Report]
Holder, Turner, and DPR head Building Design+Construction's 2014 ranking of the largest data center contractors and construction management firms in the U.S.
| Jul 27, 2014
Top Data Center Engineering Firms [2014 Giants 300 Report]
Fluor, Jacobs, and Syska Hennessy top Building Design+Construction's 2014 ranking of the largest data center engineering and engineering/architecture firms in the U.S.
| Jul 27, 2014
Top Data Center Architecture Firms [2014 Giants 300 Report]
Gensler, Corgan, and HDR head Building Design+Construction's 2014 ranking of the largest data center architecture and architecture/engineering firms in the U.S.
| Jul 25, 2014
Grocery stores choosing Green Globes for building sustainability certification
The Green Building Initiative (GBI) has announced a wave of Green Globes certifications for new grocery stores, including New Seasons Markets, Whole Foods, Price Chopper, Aldi’s, Harris Teeter, Wegmans, and Publix.
| Jul 24, 2014
MIT researchers explore how to make wood composite-like blocks of bamboo
The concept behind the research is to slice the stalk of bamboo grass into smaller pieces to bond together and form sturdy blocks, much like conventional wood composites.
| Jul 23, 2014
Meet Acquario Ceará: The giant crustacean-shaped aquarium that's causing concerns
A new aquarium on Brazil's northeastern coast is designed, engineered, constructed and financed by U.S. firms and institutions.