The days of wine and roses are over...or are they?

The days of wine and roses have faded away. Everyone in the industry has become concerned over the last few years about the rapid escalation of construction costs.

The biggest driver of higher costs is the price of materials. In many instances, material costs have doubled and even tripled. Over the last 18 months, steel prices skyrocketed more than 50 percent. Not to mention, this year prices are very likely to rise on oil-, plastic-, and copper-based products.

Investors are tightening their proverbial money belts. Many projects in the public and private sectors are being put on hold or shelved all together and new projects face a tough and skeptical path to financing. Many invested in the US construction industry are starting to show signs of a mild, but ever increasing panic. But is the panic a result of a real or imagined dreary forecast? The safest bet is to assume the worst case scenario and prepare for it.

Tightening the flow of money out is a good first step. Start with well coordinated and accurate contract documents. When the construction documents are not up to par, change orders during construction promote delays and cost overruns which place a tremendous strain on resources. Fixing the problems on paper, prior to breaking ground, is a fantastic way to reduce unexpected large expenditures.

Take the first step. Contact us for more information about our coordination reviews.