Flexibility Trumps Volatile Pricing
With the price of construction materials on the rise, Granger Construction Co. President Glenn Granger said those looking to build will have to be more thoughtful about the process, both in the wake of the hurricanes and in the future.
“Prices are going to be volatile at best and probably on the higher side,” he said.
This could cause problems for many builders, contractors and investors unless they are cautious, Granger said.
“It’s going to be a little bit different trying to reach a moving target as it develops,” he said.
Owners are going to have to think more about the projects in the planning stages, weighing more concerns and being prepared for different scenarios, Granger said.
“Fortunately, this all coincides with a real emphasis on green building leadership so people are using a lot more renewable sources,” he said. “It’s a more thoughtful, complete development process for projects that are getting done.”
Granger said that when developers start a construction project, they should consider the use and environmental impact of the building, as well as their business plan and access to material. Along with more forethought, there will have to be more cooperation throughout the process, with more team construction efforts, he said.
“We’re really going to have to put our heads together and make sure we mitigate some of the volatility that’s related to the pricing and material shortage,” he said.
If contractors, subcontractors and developers are not paying attention, it could damage their business.
“It will absolutely hurt unless people figure out ways to prepare and mitigate for that risk and plan multiple scenarios for what might work,” Granger said. “The plus side is for firms that have the willingness and ability to prioritize and manage their risk and work through it.”