Navigating Market & Price Volatility During Preconstruction
Jun 24, 2021
As part of BELL Construction’s commitment to serving as a trusted advisor to our clients and industry partners, we’ll be sharing insights from our team and other experts each quarter that we hope will help you plan more effectively for your projects.
Given the current pricing trends and changing market conditions, we asked two of BELL Construction’s preconstruction managers for their perspectives and recommendations for how to ensure a successful project despite these challenges.
What does market and price volatility mean for developers?
Derek Brown, Preconstruction Manager, Building Operations:
Along with changing prices and lack of availability of materials, we’re finding that suppliers are unwilling to hold their quoted prices for very long. In fact, we’re seeing some with limits of 30 days or less, compared to anywhere from 60 to 90 days pre-pandemic, depending on the material/trade. Delays in decisions to proceed can result in further material delivery delays, as well as increased construction costs.
Schedules for projects without site work are being even more negatively affected than those that have extra months of activity built in before actual construction begins. However, the need to act quickly doesn't disappear if you do have site work planned because lead times can be several months for some materials.
How does BELL Construction help clients deal with market and price volatility in the preconstruction phase?
Glenn Moreland, Preconstruction Manager, Building Operations:
Take advantage of BELL’s preconstruction services. Bringing BELL on board early (in either a Design-Build or Construction Manager at Risk (CMAR) arrangement) allows our preconstruction team to make projects more efficient and cost-effective by:
- performing constructability reviews and value engineering/analysis services alongside your design team,
- determining whether alternative materials with lower costs can be used,
- securing pricing with vendors during the design process when budgets are being finalized, and
- getting a jump start on ordering long-lead items before the design is fully finalized.