Construction costs are currently skyrocketing

2022-04-11 09:04:14

Just spoke with the general contractor. Originally, roof tiles from Creaton were planned, but they no longer supply. Braas only accepts orders for concrete tiles now. Now tiles from Nelskamp are coming, but they also have several months of delivery time...

So the insider information was correct. A lot of nonsense is also told on the construction site; you always have to separate the wheat from the chaff.

Röben Tonbaustoffe has also massively reduced production. This message was already circulating internally weeks ago.

May I ask how much you pay per m2 for roof tiles?

2022-04-11 09:29:06

Just spoke with the general contractor. Originally, roof tiles from Creaton were planned, but they no longer supply them at all. Braas is only accepting orders for concrete tiles now. Now we will get tiles from Nelskamp, but they also have several months' delivery time...

We are also getting roof pockets from Creaton. However, we had already switched to concrete a while ago. We were not informed of any delivery failure.

2022-04-11 09:48:41

May I ask how much you pay per m2 of roof tile?

It's up to the general contractor. I have my fixed price ;)

We are also getting roof tiles from Creaton. However, we switched to concrete (tiles) some time ago. We were not told about any delivery failure.

You haven't even started yet, have you? By October the situation can change again and probably will.

2022-04-11 13:13:27

You haven't even started yet? The situation can still change by October and probably will.

That is correct. However, we spoke with the roofer again this morning because we had not yet agreed on a color. When asked whether there are CURRENTLY supply bottlenecks, the answer was a clear no, as the concrete tiles are not fired in a kiln but only cast.

2022-04-11 14:29:29

11.04.22, 14:08 | From Dow Jones News
Construction industry expects short-time work as a result of the Ukraine war

BERLIN (Dow Jones) - The German construction industry is preparing for short-time work soon as a consequence of the Ukraine war and the associated massive price increases and order cancellations. A survey by the Hauptverband der Deutschen Bauindustrie showed that for 90 percent of the companies price increases are among the main problems, for eight out of ten companies material delivery bottlenecks also count. Over 80 percent even stated that suppliers no longer give any price commitments at all. This ultimately leads to enormous economic risk and difficulties in calculating new offers.

"The situation is absurd. A few weeks ago the industry was desperately recruiting workers, today we have to consider how to keep those we have. We are preparing for companies to have to register short-time work soon," explained CEO Tim-Oliver Müller.

So far, it has only been possible to agree on so-called price escalations with about one third of the clients so that the companies do not have to bear the risks alone. As a consequence, over 30 percent of construction companies have stopped submitting new offers.

In addition to the price, material and energy risks, there is also a demand risk. About 40 percent of clients are postponing projects, 30 percent of clients are even canceling construction projects. "Combined with the statements of a large northern German association of the housing industry that a significant decline in new housing construction is to be expected, the danger is real that the economy in the construction industry can be severely affected," warned the construction industry.

More than 300 entrepreneurs participated in the survey from April 4 to 7. Of the surveyed companies, 27 percent source building materials from Russia or Ukraine.

Source: Guidants News

2022-04-11 15:07:32

11.04.22, 14:08 | From Dow Jones News The construction industry expects short-time work as a result of the Ukraine war BERLIN (Dow Jones) - As a result of the Ukraine war and the associated massive price increases and order cancellations, the German construction industry is preparing for short-time work soon. A survey conducted by the German Construction Industry Federation found that for 90 percent of companies, price increases are among the main problems, and for eight out of ten companies, material delivery bottlenecks are also included. Over 80 percent even indicated that suppliers no longer give any price commitments at all. This ultimately leads to enormous economic risks and difficulties in calculating new offers. "The situation is absurd. Weeks ago, the industry was desperately recruiting workers; today we have to think about how to keep those we have. We are preparing for companies to soon have to register short-time work," explained CEO Tim-Oliver Müller. So far, it has only been possible to agree on so-called price adjustments with about one-third of clients so that companies do not have to shoulder the risks alone. As a result, over 30 percent of construction companies have not submitted new offers anymore. In addition to price, material, and energy risks, there is also a demand risk. Around 40 percent of clients are postponing projects, and 30 percent of clients have even canceled construction projects. "Combined with statements from a large northern German association of the housing industry that a significant decline in new housing construction is to be expected, the risk is therefore real that the construction industry’s economy can be severely affected," warned the construction industry. More than 300 entrepreneurs participated in the survey from April 4 to 7. Of the companies surveyed, 27 percent source building materials from Russia or Ukraine. Source: Guidants News

If 30% have now canceled, then this !could! manifest in autumn in the form of lower demand for building materials. On the other hand, there are probably still sharply reduced production capacities. So this is now a gamble: order at the current price or wait for a slightly declining price in autumn. I would rather have the bird in the hand here, even if it costs as much as the pigeon.

Construction costs are currently skyrocketing

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