If you are thinking of building you have likely heard that lumber, fuel, and steel prices have been on the rise. Tariffs have increased steel costs around 10%. Lumber prices which generally increase once each year are looking at further increases this fall. Gas prices are increasing, as well. All of these costs factor into overall project price increases for construction projects taking place or those that might be in the planning phases now. How can you prepare or lessen negative effects on your project?
1) Increase your budget. If your project needs to match a particular specification, you are likely to need to plan for as much as a 10% increase in materials cost. If you are working with a commercial lender, be sure they are aware of construction market conditions and will be able to provide the capital needed to complete the planned project.
2) Decrease your plans. You may wish to review your plans carefully to determine where you can save on construction costs. This may lead you to choose different materials or finishes, leave some parts for future finishing, or to reconfigure your overall plan to a smaller footprint. Slight decreases as they fit your overall goals can help keep your budget to a specific total.
3) Become creative. Work with your Design-Build General Contractor (such as Derrick Building Solutions) to incorporate a combination of strategies to get the facility you need and want at the budget you need to meet. Our team is trained for and experienced in doing just that. We understand our industry and can present you with options to get the best overall value and best total cost of ownership on any type of commercial building from a wood framed facility up to a large pre-engineered or specialty commercial facility.
Our best advice to you is to utilize the talented team at Derrick Building Solutions to our full extent. Involve us early, be clear about your goals, and our creative problem-solving team will go to work for you to help deliver the project you want and need for your operations.