I’m sure you’re all a little drained from reading the constant flurry of stories about the housing crisis and construction industry.  Yes, there’s something in the media every other hour and although predominantly focused on the residential sector, commercial property is certainly getting a slice of the pie.

It’s a great problem to have – to be so busy and in demand (we keep reminding ourselves of this) but the pressure on the industry is something I wanted to raise.  It’s not only affecting contractors and subcontractors; it is also impacting us as turnkey designers and has a knock-on effect to our clients.

So, I’m keen to reflect on this somewhat for commercial design companies.  Basically, it’s a supply and demand issue and simply put, contractors are all faced with a dearth of subcontractors who are able to complete projects on time and within budget.  If the original price submitted has been underestimated due to increased prices during the course of the project, then someone has to take the hit and it’s usually the meat in the sandwich that does.

If you hear about the residential sector under pressure, spare a thought for ‘team commercial’ because simply put there are not enough building contractors available to fulfill the jobs currently in demand.  We’re hearing of subbies not wanting to price up jobs for over a year and so many others are simply not interested.

What’s important here, are the relationships built on past experience and reliability but even then, the situation is still having an impact on us and everyone we work with and for.  Project timelines are being pushed out and pricing increased, not by us – it’s simply out of our hands for the most part.  This then becomes a comms issue and we need to spread the word because we are all working incredibly hard in the industry to just do the best we can in topsy-turvy world.

 

Melanie Spencer
General Manager