2006-03-13 Regular Meeting and Public Hearing

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2006 Labor & Materials - Cost Survey Results Average projected 2006 cost increases in Houston per division: CSI Division labor Cost Proiections Material Cost Proiections 02000 Site Work 4.75% 13.75% 03000 Concrete 4.0% 5.0% 04000 Masonry 3.33% 6.33% 05000 Metals 7.33% 10.33% 06000 Wood & Plastics 0% 0% 07000 Thermal/Moisture 9.0% 10.0% 08000 Doors & Windows 5.0% 9.5% 09000 Finishes 4.0% 7.4% 10000 Specialties 6.67% 12.83% 11000 Equipment No Response No Response 12000 Furnishings No Response No Response 13000 Special Construction 4.0% 4.5% 14000 Conveying Systems No response No response 15000 Mechanical 4.88% 10.11% 16000 Electrical 7.43% 9.38% PROJECTED 2006 AVERAGE 5.80% 9.55% Craft Shortages Projected The most often reported Craft Shortages continue to relate the need for more *skI1/ed~ "experienced" or .qus/llfed" workers across many crafts. Many respondents were also concerned about the need for more supervisors/suptHintendenfs and journeymen. Specific Trades most often reported were Iabon;ns. plumbers, electrfclans. and masons. Materials Shortages & COST Increases Projected Shortages and sharp price increases were most prevalent for concrete, metals, PVC pipe, insulation, and steel. PinnacleOne, one of the nation's leading construction consulting firms, predicts the following for 2006: "Full impact of the hurricanes will hit the industry by mid year. In the early part of 2006, there will be minimum escalation to construction costs while the cleanup in Louisiana, Mississippi, Texas and Florida is taking place. However, by mid year, once reconstruction starts, look for costs to rise rapidly as the demand for materials and labor will dramatically escalate. Increases could be as much as 10 percent to 15 percent across the country, and it may take as long as 18 months to 24 months before supply and demand for these resources level off. AGe Houston I 3825 Dacoma Street I Houston. Texas 77092 I Tel (713) 843-3700 I Fax (713) 843-3777 I www.~uston.org