Here’s Why Construction Cost is Higher these Days
Construction cost is higher these days.
We’ve warned people about this.
Everyone’s affected – from contractors like us to of course our clients. Unfortunately, there’s really nothing we can do about it.
However, knowing the reasons why it’s higher these days can help people understand so they can still push through with their project.
Why Construction Cost is Higher
Here are some of the reasons:
- Increase in cost of materials
It’s the law of supply and demand. Economics 101 taught us about this. Governments all over the world, including our very own, are ramping up infrastructure projects. There’s an increase in demand so supply is limited. Therefore, the higher cost of materials.
Besides, construction materials generally increase in cost year after year.
- The present pandemic
It’s tougher for contractors to move these days. The present pandemic brought upon lockdowns which made it harder for our workers to travel. There are also the increased expenses because of PPEs, medical certificates, swab tests, and the likes.
Delivery of materials has been more challenging as well.
The reality is things are more expensive nowadays no thanks to inflation.
- Higher labor cost
The construction industry is highly dependent on labor. There’s an increase in the cost of labor because of additional expenses brought upon by the pandemic. Times have been tough on them as well and they rightfully require higher wages.
- Challenges in getting permits
City halls are operating on a skeletal workforce. This is why permits sometimes get delayed.
What should You Do?
With the higher construction cost, should you hold off on constructing your dream home?
The best time to do it was pre-pandemic. The second-best time to do it is RIGHT NOW.
We don’t really know when the pandemic will end. We don’t know how long these challenges will last. Judging from the trend, the construction cost will get higher and higher.
This is why provided that you already have the resources for it, you should still push through with your dream property.
In case you missed it: How to Save Money For a House
Of course, with a contractor that has proven its capability in designing and building amidst a pandemic.
Contact Us Today!
We have designed and built several residential and commercial properties even with the present challenges. We can do the same for you. With our experience doing so, we can get you the best cost commensurate to your dream property.
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