Unfortunately, more and more, we are seeing a disconnect between the anticipated cost of construction projects and the actual cost. This oftentimes happens on our end as contractors as well.
Material and labor prices are currently extremely volatile and are up on average of 30% across the board from last year due to a number of factors affecting the world economy. These range from supply shortages, material shortages, labor shortages, increased fuel costs, war in Europe, and inflation. All industries are being affected.
The current climate also necessitates the need to have a budget in mind at the start of the pricing portion of the project. This budget should be separate from what you, as the homeowner, anticipate the cost of the project to be. It should simply be the amount of money you are willing to spend, in total, on whatever project or projects you are considering.
Having this budget number ahead of time will allow you and your trusted contractor to determine, sometimes immediately, whether a project is feasible to complete within the budget that you have set out in today's market. A budget will also allow your contractor to work with you to change or modify the details of the project to fit within your budget. It is our goal to help you to complete a project that you will fulfill your needs, desires, and that you will be happy with.
No one likes to get excited about a project about which they have hopes and dreams only to be let down when they find out that the cost is beyond what they can afford or are willing to pay. Worse yet would be to start the project without having understood the true cost only to run amok of major financial issues in the middle of it. We as contractors do not like to disappoint the customer or be the bearers of bad news but it is our job to provide honest and clear pricing and to protect you as the customer.
This is why it is more important now than ever to make sure the proper research is done to price a project accurately. This will give the best chance to avoid cost overruns while in the middle of a project leading either to unsatisfied customers, unsatisfied contractors, unfinished projects, and ruined relationships.
CBLLC does this via a Pre Construction cost analysis. When we are done you have a complete detailed outline of the scope of work, materials, and pricing required to complete your project. You can literally take this number to the bank. This level of detail and accuracy is why CBLLC is validated with seven different financial institutions to work on bank funded projects. This work comes with a cost as it is actual work and depending on the size of the project can take weeks to complete.
Whoever your contractor of choice is, please make sure that you and most importantly, your contractor, both do your research to accurately price your project before you begin. Things are a little crazy out there right now and we hate to see homeowners getting hurt due to poor preparation on the contractors part.
Chad Montalvo
Project Manager
Coppola Brothers, LLC