In our last article, we discussed the impending supply chain crisis and how that can start to cause major havoc and disruptions to many sectors, in particular the construction industry. The rippling effects of the supply chain disruptions are now well underway with many builders feeling the painful pinch of having to honour fixed price contracts whilst basic materials such as timber skyrocket in prices.
As a customer, how can you navigate through this challenging landscape in what seems to be currently a tipping point into a rise on cost across the board? Below are 3 key considerations to keep in mind whilst deciding on the next move:
1. If you are looking to build, ensure that right amount of due-diligence has been completed and the builder is reputable. Try to lock into pricing before the increase. Many of the bigger builders are right now in the middle of revising and increasing base price of builds due to material shortage and raw material cost increase globally.
2. If you are looking to do a renovation, much the same strategy applies. It is inevitable that some have already factored in the price increase whilst generally bigger companies have more leeway both in terms of time and also pricing. Locking a price in before or after a price increase could mean a difference in savings of hundreds or thousands of dollars, so it is worthy to consider whether works planned for later should be moved forward to take advantage of the lower prices.
3. Another strategy to consider is whether the particular works being carried out can have a viable material substitute. For example, there are many types of pool fencing, and even though traditionally frameless glass fencing will cost a lot more than its timber alternative, due to the sharp increase in price for timber, the gap between the two may be much closer than initially. The idea is to keep an open mind and explore all options, as volatile pricing for various raw materials throws traditional pricing structures into disarray.
Stay vigilant on all new engagements with builders or tradies, and ensure you take advantage of what could be the last chance to lock in pre-crisis pricing on many works that require use of raw materials. Talk to us and see how we can help with glass solutions that adds value to your home or build.