Building Material Costs – HOA Decisions and Roofing Construction Questions for 2011

Not long ago, I was discussing with an acquaintance the issues with increasing building material costs as we head into 2011. Everything points to rapid cost increases, and wholesale inflation in the construction sector. Labor, fuel for delivery, commodities, environmental regulation, and all the supply and demand economic issues which go with economic expansion, which is where we are headed in 2011.
Now then, should an HOA consider the timing if they are going to for example make a decision whether or not to spend on refurbishing such a painting, or roofing? Okay so let’s talk about this shall we, let’s talk about costs and future increases.
For instance, we know that transportation Costs to deliver building (roofing) materials – as oil is going to $100/ barrel mid-year 2011, I’d say a trading range of $95-$109 in 2011- which equates to higher pump prices, and building materials are heavy, and must be transported. This could add an additional 10% and another ten percent in production of that material. Not even touching on the raw materials and commodity markets of so much of the building material supplies. I also recently talked to a semi-retired floor tile wholesaler, he said prices were already rising and expected them to continue to rise, even their Chinese building products.
In essence what I am saying is that ALL indicators that I can see point to higher building material and Electrician Job Description Pdf related costs, and those price increases will far outpace sticking the HOA’s money in a money-market or interest bearing account. I just do not see any rational argument against you ascertain that now is the time to invest.
Also consider the 2010-2011 roofing tax credits, which will be expiring, that ought to pique the interest of a Home Owners Association right about now? Why not take advantage of those savings too? And Reed Construction Data forecasts show semi-favorable supply issues, but increasing wholesale costs for materials throughout 2011. Allied Building Materials has put out a letter to all their customers of interior construction materials price increase effective January 1, yes, that’s interior not exterior, but it tells the same story. RPM announced its second quarter results, with this little tid-bit from a shareholder’s report from:
“Our industrial segment should continue its strong performance in the back half of this fiscal year, with signs of improvement in the depressed commercial construction market this spring, while consumer sales are expected to be relatively flat as they face very strong prior-year comparisons, combined with consumer uncertainty. We anticipate that raw material challenges will persist through the remainder of this fiscal year,” Sullivan stated.”
Which suggests that they may not be able to pass on those increased raw material costs, and this company does make: “RPM’s industrial products include roofing systems, sealants, corrosion control coatings, flooring coatings and specialty chemicals.” Now then, regarding my comments in a previous article about How To Hire A Contractor For My Business Labor Costs in 2011, and the construction environmental …

Follow the 100 Percent Rule to Cut Your Costs

The current state of the economy and very high fuel prices has many contractors looking for additional cost savings in what are already very small profit margins. It’s difficult to land new projects these days and when you do get one, the last thing you want is to lose money on the job. One technique that may help you operate more efficiently and save on labor and fuel costs is to ask your crews to practice the 100 percent rule.
Make Sure Everything is 100 Percent Ready and 100 Percent Complete
The 100 percent rule works for home builders, commercial general contractors, sub-contractors, and just about any trade that performs work in the construction industry. The technique is very simple, but it may take some time to fully implement it into your daily operations. Depending on the type of company you have, all three parts of the rule may not apply, but in general:
• Job site 100 Percent Ready – don’t send your crews to a job site unless it’s 100 percent ready for their phase of work and all materials needed to do their job are present on site. If you’re a trim carpenter, don’t What Is An Apprentice In Construction send your crews to a house when the crown molding is backordered or the sheetrock is still being finished in the basement. Making trips back to a job site to take care of loose ends incurs additional labor and fuel costs
• Job 100 Percent Complete – If your crews need to stay on a project an hour past quitting time to complete the job, it can save sending crews back in the morning and allow you to move to the next job. When a crew completes their phase of work, have them walk the home or building to ensure it is 100 percent complete. A quick walk through can ensure they haven’t missed anything that might result in a call from the How To Renovate A House Yourself manager and a return trip to the site
• 100 Percent Complete before Occupancy – don’t allow occupancy of the home or building you’re constructing until it’s 100 percent complete. This can be difficult if you’re being pressured by your customer, but once they move in you’re stuck with working around their schedule. Simple tasks can take twice as long and several trips when you have to schedule an appointment to complete your job.
As with everything in the construction industry, there are exceptions to just about every rule and the 100 percent rule may not be appropriate in some situations. However, trying to stick with the rule should help you reduce labor and fuel costs and may even improve the morale of your crews.…

How to Manage Sub-Contractors and Keep Costs Down

As we all know money isn’t just growing on trees in this current financial climate. So extending, repairing or renovating your place of residency can be quite a daunting and expensive process. Ill share with you how to manage projects so you pay the absolute minimum for contractors and materials.
Before you start any project around the home, DO YOUR RESEARCH. Be thorough and research what materials you will need to use, what council/government House Plan 4382 restrictions and codes you must abide to, whether the project has to be engineer designed and lastly the process of how the project is constructed.
There are many factors why project costs can be considerably higher if a contractor is used. They include, operating Nominated Subcontractor and overheads for the business, risk, insurances, licensing, tools and tool maintenance and the list goes on.
If you employ a primary contractor to carry out a project he/she will generally add 10-15 percent of every sub-contractors fee onto their quote. eg. You employ a builder to renovate your kitchen, he/she will get quotes from plumbers/ electricians/ cabinet makers etc. After the builder receives these quotes he/she will add 10-15% to this quote as a fee for managing the Builder will also add 10-15% to all materials he/she sources for the project also.
I am a qualified bricklayer so ill give you an example of how you would micro manage the construction of a retaining wall.
Firstly I would contact the local council and verify that I am permitted to build the retaining wall in the location I am planning to build. Then I would contact my local, or state building authority and verify if the retaining wall needs to be engineer designed. If so then I would contact several engineers or engineering companies and arrange quotes.
Lets just say the job requires an engineer designed construction.
Once an engineer has drawn up a detailed construction plan, you should write out a plan or schedule for the trades required in this construction process, and the materials and quantities required. This can be calculated off the plans supplied by the engineer. For this job it would be something like this:
Excavator operator-dig Footing and back fill the wall.
Steel fixers- To construct steel reinforcment cage.
Concretors- To pour and level concrete footing.
Brick or Blocklayer- Lay Bricks or Blocks and insert horizontal and verticle steel reinforcement.
Concrete pump (if building a block wall)- Fill wall.
Water proofer- Water proof the back of wall to prevent moisture coming through wall.
renderer or painter- If required.
Never just get one quote. You should aim to get 3 quotes from every trade as prices will vary from hundreds to thousands of dollars. Ask for quotes for labour only, and for labour and materials. Some sub-contractors will have trade accounts with suppliers and be able to get materials at a discounted rate.
If the subcontractor can get the materials cheaper than you, obviously sign them on a labour and materials contract but …