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Skyrocketing Construction Costs Leave HOAs to Cope with Underfunded Projects
Tackling the uncertainties: best practices for bidding, budgeting, and contracting in HOA projects.
By Regan Brown and Chris Sigler, B.S.C.E., CDT
This article first appeared in The Communicator, Spring 2021. To read more, click here.
Over the past four years, skyrocketing construction costs have created various forms of havoc throughout the construction industry, to the surprise of many HOAs in need of project work. The increases have taken on various forms. In 2017-18, a strong economy and a demand for housing fueled a labor shortage, showing an overall increase of almost 30 percent in construction costs nationwide; in 2019, political tariffs and multiple natural disasters fueled the next wave of increases, this time affecting material costs.
The Pandemic’s Impact On Cost Increases
2020, the year that will go down in history for the global pandemic, brought several new factors creating price changes that we had not experienced before. When the...