ᐅ Sign now or wait? Concerns about construction halts and material shortages
Created on: 31 May 2021 08:55
T
Thomas88
Hello dear homebuilding enthusiasts,
we are approaching the signing of the contract for our solid (masonry) house. However, we are concerned about the shortage of raw materials and worried that our construction might come to a halt. The planned start of construction is not until August 2022. Given the current situation, would you sign a contract now or rather wait one to two years until the situation possibly improves?
Best regards,
Thomas88
we are approaching the signing of the contract for our solid (masonry) house. However, we are concerned about the shortage of raw materials and worried that our construction might come to a halt. The planned start of construction is not until August 2022. Given the current situation, would you sign a contract now or rather wait one to two years until the situation possibly improves?
Best regards,
Thomas88
H
hampshire11 Jun 2021 21:39There are two risks that may occur:
a) Construction delays due to delivery delays
b) Material prices increasing due to material shortages
Risk a is currently happening on some construction sites. If you are aware of this risk, you can approach the project with a different schedule. So it is manageable. Betting on a "better" situation in two years is more uncertain.
Risk b is also occurring at the moment. You can plan for higher costs. The cost situation is unlikely to improve in two years.
So what argues in favor of waiting, other than avoiding fear? The alternative to waiting out of fear is not “waiting,” but “not building.”
a) Construction delays due to delivery delays
b) Material prices increasing due to material shortages
Risk a is currently happening on some construction sites. If you are aware of this risk, you can approach the project with a different schedule. So it is manageable. Betting on a "better" situation in two years is more uncertain.
Risk b is also occurring at the moment. You can plan for higher costs. The cost situation is unlikely to improve in two years.
So what argues in favor of waiting, other than avoiding fear? The alternative to waiting out of fear is not “waiting,” but “not building.”