Costs and Timelines of Construction Today: Why Waiting Isn’t Always a Safe Bet

The costs of construction are still high and timelines may feel long, but is waiting to start your project the right move? Maybe, maybe not. We’re here to say probably not if you have plans for a South Florida build.

Why Waiting Isn’t Always a Safe Bet

We’re living in a rapidly changing economic environment. Inflation remains high, and so does demand for construction labor and materials. If you have a project on the horizon and have started to get estimates on costs, you may feel like waiting until the market levels off might be a good bet.

As someone who is as in tune with construction market conditions as it gets, we can tell you that waiting is not always a safe bet. Here’s one such anecdote from a client of ours.

The owner came to us about a year ago to get estimates on their project. We provided them with numbers, and they passed on starting their project as they felt market costs were too high. Now, they’ve signed a new lease and have no choice but to build at a higher cost no matter what.

Much to their disappointment, the pricing for their project has gone up $34 a square foot in the 11 months since they initially declined the project. In their case, waiting did not help financial costs at all, plus their permitting process will now take longer.

While there’s risk in commercial construction no matter what, had this client started the process a year ago as originally planned, it would have been a better bet for them. Now they are further down the road of their own timeline and material costs could still change.

Our team at Seacoast Construction doesn’t have a crystal ball, but we do have extensive experience with commercial and luxury residential construction projects throughout South Florida. If you’re concerned about costs and timelines for your construction project, just ask us your questions. We’re happy to explain the state of the market and offer insight into what we do (and don’t yet) know.

Contact us today to schedule a free consultation to discuss your project.

 

 

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