{"id":3597,"date":"2022-06-01T10:24:25","date_gmt":"2022-06-01T15:24:25","guid":{"rendered":"https:\/\/mobilepunch.com\/?p=3597"},"modified":"2022-09-21T09:21:14","modified_gmt":"2022-09-21T14:21:14","slug":"how-to-protect-against-unexpected-increases-in-building-material-costs","status":"publish","type":"post","link":"https:\/\/mobilepunch.com\/en\/how-to-protect-against-unexpected-increases-in-building-material-costs\/","title":{"rendered":"How to protect against unexpected increases in building material costs?"},"content":{"rendered":"

The cost of building materials has risen considerably in the past two years. The construction industry was severely affected by the Covid-19 pandemic, and the austerity of current global events creates further instability in the market. The lumber industry, for example, is experiencing an unprecedented price increase.\u00a0<\/span><\/p>\n

Information published by the NASDAQ states that<\/span> the cost of lumber has more than doubled when comparing it to pre-pandemic values <\/span><\/i>(<\/span>source<\/span><\/a>). Lumber price reached its peak on May 7, 2021, when 1,000 board feet were valued at $ 1670.50 (<\/span>source<\/span><\/a>). Supply chain issues and general insecurity in the market will keep affecting these prices throughout 2022.<\/span><\/p>\n

When looking at the cost of steel, one can see a similar story. While the price of steel in 2022 has dropped in relation to 2021, its price remains higher than it\u2019s been in the last ten years (<\/span>source<\/span><\/a>). The last time steel prices reached current numbers was back in 2011 when the floods in Queensland impacted raw material prices on a global scale (<\/span>source<\/span><\/a>).<\/span><\/p>\n

Instability in the housing market and other fields critical to the success of the construction industry has also been impacted by military activity in Ukraine. According to the Canadian Construction Association, construction costs will most likely increase in 2022, as the rising price of oil and other commodities may have a harsh effect on inflation (<\/span>source<\/span><\/a>).<\/span><\/p>\n

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6 ways to mitigate construction material costs<\/strong><\/h2>\n

Here are 6 ways to mitigate the increase in construction material costs:<\/span><\/p>\n

    \n
  1. Assemble a solid team<\/span><\/li>\n
  2. Implement project management software<\/span><\/li>\n
  3. Diversify your material options<\/span><\/li>\n
  4. Optimize the material acquisition process<\/span><\/li>\n
  5. Include an escalation clause in contracts<\/span><\/li>\n
  6. Adopt lean construction practices<\/span><\/li>\n<\/ol>\n

    <\/h3>\n

    1. Assemble a solid team<\/strong><\/h3>\n

    A construction project requires the diverse set of skills of an expert team. Besides contractors, industrial, and residential projects require the expertise of architects, engineers, and interior designers. Bigger projects may also require cost estimators, landscape architects, construction managers, and other specialists.<\/span><\/p>\n

    The better a project team works together, the more efficient the construction process will be. Teams that operate at a higher efficiency save on overall costs. <\/span>To guarantee solid team synergy, a project team should be assembled during the early stages of development<\/b>.<\/span><\/p>\n

    When architects and contractors work hand-in-hand, they can devise more streamlined <\/span>strategies and schedules<\/span><\/a>. In addition, if a team communicates well, the need for expensive and time-consuming redesigns can be mitigated. A concise plan of action guarantees that effective use of resources will be implemented, saving on construction material costs.<\/span><\/p>\n

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    2. Implement project management software<\/strong><\/h3>\n

    Bad project planning is a significant driver of issues in a <\/span>construction project<\/span><\/a>. Poor initial planning may be directly responsible for the failure of a project. Even plans that incorporate the experience and expertise of the labor force may contain oversights. Mistakes and delays can diminish the efficiency of operations and have an impact on a team\u2019s capability of acquiring the construction materials it needs.<\/span><\/p>\n

    Thanks to recent advancements in technology, digital alternatives to traditional project management techniques have begun to emerge. Software solutions can be used to manage projects and optimize resource planning.<\/span> Mobile-Punch\u2019s <\/b>planning tools<\/b><\/a> offer an all-in-one software solution ideal for businesses in the construction industry<\/b>.<\/span><\/p>\n

    A centralized data approach built into the software ensures all staff can communicate in real-time, leading to constant awareness of project development processes. Both face-to-face and long-distance project management techniques are supported by <\/span>Mobile-Punch<\/span><\/a>, making the software effective for operations of all types and sizes. Thanks to instant reporting tools, managers can access crucial information about operations at any time.<\/span><\/p>\n

    Learn more<\/span><\/a><\/p>\n

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    3. Diversify your material options<\/strong><\/h3>\n

    It is possible to avoid high construction material costs by opting for alternative materials. This strategy allows a company to remain in business without relying on materials that are expensive or hard to obtain. <\/span>Expanding material options helps limit material waste, reduces labor costs, and streamlines the delivery of projects.<\/b><\/p>\n

    Alternate materials of interest include:<\/span><\/p>\n