Location: Next year is gonna be 05/06 all over again, PA Joined: 07.30.2010
Aug 10 @ 10:37 AM ET
Yes, a ~ 20% of the total budget increase this early though, mistakes were made. - washedup20
This is a very bad sign. Interest rates weren't supposed to stay at 7%. Developers can't afford to go back to the bank for more money at these rates. I've been a Civil Engineer in Site Development for over 20 years. I never had one of my projects die on the vine after construction started. One project is hanging on by a thread right now.
This is a very bad sign. Interest rates weren't supposed to stay at 7%. Developers can't afford to go back to the bank for more money at these rates. I've been a Civil Engineer in Site Development for over 20 years. I never had one of my projects die on the vine after construction started. One project is hanging on by a thread right now. - Hatboro_Swords
Impressive career, good analysis of the current environment.
This is a very bad sign. Interest rates weren't supposed to stay at 7%. Developers can't afford to go back to the bank for more money at these rates. I've been a Civil Engineer in Site Development for over 20 years. I never had one of my projects die on the vine after construction started. One project is hanging on by a thread right now. - Hatboro_Swords
new house subdivisions remain vacant down here because they can't get electrical transformers
So you'd know that this isn't always, and is only sometimes, true. - TheSabresTaco
Meh, supply chain latencies have lessened and that was the biggest hurdle for the past few years. Now that the ports are open, IMO, for a job that large, you shouldn't have these types of issues, at least with getting product. Delays on one or two things, sure, but talking about being 20-25% over budget is a shocking stat to me.
Location: For me. jack Eichel is bobby ryan….that's it. - Octavarium, NY Joined: 05.05.2011
Aug 10 @ 10:46 AM ET
Meh, supply chain latencies have lessened and that was the biggest hurdle for the past few years. Now that the ports are open, IMO, for a job that large, you shouldn't have these types of issues, at least with getting product. Delays on one or two things, sure, but talking about being 40% over budget is a shocking stat to me. - RhinoFan
Over budget doesn't necessarily mean the product isn't arriving on time.
There are still real problems with rising costs of plastics and steel.
Location: Next year is gonna be 05/06 all over again, PA Joined: 07.30.2010
Aug 10 @ 10:49 AM ET
new house subdivisions remain vacant down here because they can't get electrical transformers - homiedclown
YES!!!! It's (frank)in ridiculous. I got a huge Shopping Center project under construction. It's going to get done and luckily we already have all transformers and switch gear already installed. PECO told the contractor that they won't have a transformer for a school project they are working on for 2 years. WTF. Before pandemic, there weren't any supply chain issues. It's like we're a 3rd world country now.
Over budget doesn't necessarily mean the product isn't arriving on time.
There are still real problems with rising costs of plastics and steel. - TheSabresTaco
It's actually closer to 20%, sorry for the misinfo. I had seen 40% but it's 300M over a 1.4B budget, so like 22%.
And that's fair, but the supply chain issues are what was forcing a lot of companies to pay high premiums and see sharp increases in the overall cost of jobs. Being that this isn't the case any longer, they should be able to bid out a lot of this and if someone doesn't deliver...poof, onto the next one. Plastic I don't deal with, but the steel prices haven't gone up that much in a couple years. The big spike was back in 2021, so that should mostly be accounted for in the estimates.
Meh, supply chain latencies have lessened and that was the biggest hurdle for the past few years. Now that the ports are open, IMO, for a job that large, you shouldn't have these types of issues, at least with getting product. Delays on one or two things, sure, but talking about being 20-25% over budget is a shocking stat to me. - RhinoFan
It will get worse to when they start putting in the Electrical and the specialized chips and conductors are needed. Very hard to get specialized material and it will only get more expensive.