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
| May 7, 2012
2012 BUILDING TEAM AWARDS: TD Ameritrade Park
The new stadium for the College World Series in Omaha combines big-league amenities within a traditional minor league atmosphere.
| May 7, 2012
2012 BUILDING TEAM AWARDS: Fort Belvoir Community Hospital
A new military hospital invokes evidence-based design to create a LEED-certified facility for the nation’s soldiers and their families.
| May 7, 2012
2012 BUILDING TEAM AWARDS: Audie L. Murphy VA Hospital
How a Building Team created a high-tech rehabilitation center for wounded veterans of the conflicts in Iraq and Afghanistan.
| May 3, 2012
2012 BUILDING TEAM AWARDS: Rush University Medical Center
This fully integrated Building Team opted for a multi-prime contracting strategy to keep construction going on Chicago’s Rush University Medical Center, despite the economic meltdown.
| May 3, 2012
U of Michigan team looking to create highly efficient building envelope designs
The system combines the use of sensors, novel construction materials, and utility control software in an effort to create technology capable of reducing a building’s carbon footprint.
| May 3, 2012
Best commercial modular buildings and marketing programs recognized
Judges scored entries on architectural excellence, technical innovation, cost effectiveness, energy efficiency, and calendar days to complete.
| May 3, 2012
Zero Energy Research Lab opens at North Texas
The living lab—the only one of its kind in Texas—is designed to test various technologies and systems in order to achieve a net-zero consumption of energy.
| May 3, 2012
NSF publishes ANSI standard evaluating the sustainability of single ply roofing membranes
New NSF Standard provides manufacturers, specifiers and building industry with verifiable, objective criteria to identify sustainable roofing products.
| May 3, 2012
Gilbane to provide CM services for North Reading’s integrated middle/high school
The project scope includes a wastewater treatment plant, demolition of the existing high school and extensive athletic fieldwork.