The best time to get your project bid may be right now! Forget the goofy low bidder, it will only create headaches. Think about what may be happening in the construction market in the next few months.
Material prices are now increasing. Copper prices today (October 2009) are back to the yearly highs and appear to be climbing. Demand may be increasing in the next few months due to the federal stimulus spending. This can create price spikes in materials such as asphalt, concrete and rebar due to the nature of projects being heavy and highway.
Taxes are going up. Payroll taxes, sales taxes, property taxes are increasing around the country. Contractor prices will need to be increased to cover these costs.
Interest rates for financing the projects the projects may increase due to demand if the lending/borrowing market works it out of the current gridlock.
Labor costs are going to follow commodity prices. Commodities prices, besides construction materials, will affect durable goods and food.
Profit – I hope profit margins will increase – at least for the good contractors. Profit levels are such that construction firms cannot keep their knowledge base. Losing key people will lead to inefficiencies that increase costs.
The turmoil in the industry has created a time to build. The costs at this time, and into the near future, can be the least expensive for some time.
