The reality of construction pricing in 2014
- 2014 Construction Price Inflation -
Our current projects have been experiencing serious challenges with sub-contractor availability and acceptable pricing. With the housing market recovering so quickly in the Denver region, the available skilled workers have not been able to fill the gap. As a result, smaller projects don't get the attention they need and pricing has been inflated 20-40%. That magnitude of inflation can be devastating for a small project.
Some in the industry thought the peak was mid-July, however we have not seen significant reduction in the project load that subs are dealing with yet and it's November. From our experience, the smaller jobs are not a priority - and become filler during "off" hours - evenings and weekends and the schedule suffers from this.
To respond to this reality, two of our projects have been delayed until multiple sub-contractor quotes could be obtained, to ensure that we were getting fair pricing.
Frequently subs can't make it to a job site for pricing, so a good drawing set helps immensely by giving them the confidence to price it appropriately (and not inflating it due to vagueness of scope).
Right now is a good time to work out any design challenges for a project, however for getting anything built affordably, we think it would be prudent to wait until winter sets in for good or get in the queue for next spring when hopefully more skilled craftsmen and women have entered the building industry.