The Cost of Building in a Pandemic
Many of us have been in our homes for well over a year working, working out, home schooling amongst many other home uses. As a consequence, home improvement and home expansion projects have gone through the roof in cost and sheer volume. A common refrain I hear when the bids come back is “Wow, why is this so expensive? Is this just Marin pricing?” Actually, the answer is “yes and no”.
Supply Chain Issues
When the pandemic began last year, production at factories ground to a halt creating very real supply chain issues in all types of materials and products. Lumber prices have soared dramatically to 120% or more of pre pandemic levels. The same goes for steel, windows, finishes and pretty much any other product. I was recently delayed 4 weeks for subway tile on a remodel for a listing and almost missed my deadline.
The Permitting Process
Another cost inhibitor is the permitting process. Many municipalities are not open to the public and getting plans approved or permitted can now be a tortuous process when one can’t go down to the local building/planning department for an over the counter approval. In addition, staffing has been cut back so less people can review projects stringing out the timing further. The saying “time is money” applies here.
Subcontractors
Finally, with all the many home improvement and remodeling projects out there both nationally and all over Marin county, subcontractors and skilled workers are in very short supply thereby driving up costs and further lengthening projects. I have heard stories of subs driving in from other states to camp out and work on projects here in Marin because of the huge amount of demand for skilled and unskilled workers.
So,when you see that your $500/square foot project has now risen to $700+/square foot, you can begin to understand where the increased costs are coming from.
How can you attempt to control the cost of your project? Here are a few steps you can take:
Choose design-build to get accurate price estimates during the design phase. Don’t put yourself in a situation where you have sticker shock when you take your beautiful architect-designed building plans to a general contractor and find the real-world price to build is much higher than you expected.
Make decisions during the design phase and stick with them. Avoid change orders, which can add cost and increase delays.
Choose a remodeler who can offer a fixed price contract, so you aren’t surprised by increasing prices during the construction phase.
Work with an experienced interior designer or architect who can maximize the utility and aesthetics of finishes and features to give your project a high-end look with the judicious use of high end materials.
Combine projects if possible. If you are remodeling your kitchen, try to also remodel the bathroom at the same time.
You can still drive the outcome. It takes some up front planning, understanding of the obstacles, patience and flexibility and you may still be able to keep control of your home improvement project.