There’s no question that the Construction industry has been impacted by the events of the last few years but let’s talk about the reality of the effect it’s going to have on building your dream home.
The cost of building a home has gone up substantially in recent years, and it appears to be only going to continue rising. There are a few reasons for this. The materials used to build homes have become more expensive, and the labour that goes into building them has also increased considerably.
1. Builder's relationships with their trades & suppliers
A good custom home builder will have solid relationships with their trades and suppliers. These relationships mean there are open lines of communication when it comes to lead times on materials etc.
This is important for a few reasons.
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First, it allows the builder to ensure that materials are in place as needed and that any delays won’t have a negative impact on the overall timeline for the project.
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Second, it allows the builder to get a sense for potential shortages and price increases before they happen, which can save headaches down the road.
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Third, good communication between all parties leads to trust, which is essential for building a successful relationship.
2. Project Management
It’s up to your Project Manager & Construction Manager to be looking ahead at the schedule of works. Again, relying on the relationships built with suppliers and trades, your team should be able to forecast what is needed in the coming months and be ahead of any delayed lead times. A good custom home builder will always be ahead of the game.
It’s always a good idea to be ahead of any delays that might occur in your project. This is especially important when it comes to the schedule of works. You want to make sure that all of the necessary materials are on-hand and ready to go when needed, in order to minimise any delays or reconfigurations. Appropriate coordination with your suppliers and trades should help ensure this. By keeping your team forecasted and prepared, you can avoid any last-minute headaches and keep your project on track.
3. Pricing Increases
There’s no denying that the cost of building a home has increased. There isn’t a builder out there that wouldn't be affected.
We are seeing a cost increase across the board of between 30%-40%. This is important to consider when you’re thinking about budget.
No matter what your reasons for thinking that pricing increases are bad news, it’s important to remember that they will impact everyone differently. So if you’re planning on building a home in the near future, be prepared for increased prices.
4. Diversifying
A good custom builder will be able to work with you and your budget to build your dream home. They can support you through finding alternative materials and will be able to pivot and adapt to the changing market.
Most importantly, they should be honest with you about the costs and timelines associated with your project, so that you have a clear understanding of what’s involved before you make any decisions.