On Monday, January 13th, CARW packed the conference room of Two-Fifty to learn about what to do as construction costs rise, delays occur and skilled trades are spread thin. Understanding how to handle this can mean the difference between a successful deal and bust. Roy Wagner, Partner and Leader of Construction Law Group with Michael Best and Friedrich LLP, lead the discussion along with our panelists:
Click here to view the video of the panel in its entirety.
Difficulties in the current state of construction include: rising costs, difficulty getting bids, labor shortage, the project development cycle is elongated, harder to manage the development phase then it used to be, construction costs up 5% – inflation only 2%, discrepancies between cost and appraisals, scheduling delays, difficulty with municipalities to get permitting (are they pro-business) and increased legal documentation.
Key takeaways to combat these difficulties:
- Bring together the BEST team
- Give full capability to your customers and give them options
- Stay flexible
- Don’t overreach, keep expectations aligned and put out realistic dates so there are no surprises
- Develop a TOTAL project budget including soft costs and technology
- Understand your municipality and how long it takes for permitting, approvals and rezoning
- Recognize the experience level of the people you are working with
- Pay more for good quality construction management