A very detailed cost estimate for a construction project calculated by an engineering firm: €540k. A large part of the costs are earthmoving works. The firm’s track record is such that the total realized costs of projects have been within 5-8% of the estimate.
Road, excavations, external HVAC, etc., were done last year. €120k of the budget used. Short math leaves €420k in remaining costs.
Recalculation of the cost estimate at the end of last week. Minimum €550k, probably closer to €600k, in remaining costs. An increase of 30 - 40%. Pricing power, at least towards the consumer, seems to be there.
At least for now, there seem to be more than enough projects underway. Good workers are somewhat difficult to find / at least they don’t have to compete on pricing.
We’ll see how many projects are left unfinished as costs jump in the middle of everything, and whether in a year or two, workers will be short of jobs when new projects aren’t started at the usual pace.
I previously asked for the price of a sheet metal roof for three buildings. Installed €8k / piece.
Last week, the offer was “updated”. Now the roofs cost €15k / piece.
The current price list is valid until the end of the month, then prices will rise again.
So as I mentioned, pricing power, at least towards the consumer, seems to be there
