The Tuesday 3Pack 2024/04/02

Here to help you impress.

3Pack of building goodness:

1. Building News Story, 1. Lesson, 1. Technology Showcase.

Powered By IrisCX - Ai Warranty Solution for Home builders

Today's Newsletter:

1. Q1 2024 Material Costs & Labour Trends
2. The Hidden Cost of Ghost Lists for Residential Homebuilders
3. ResVR: Make upgrades easy

Steadying the Scales: Navigating Material Costs and Labor Trends in Q1 2024 Home Building?

Gordian's Q1 2024 Construction Cost Insights Report reveals a stabilization in construction material prices, hinting at a hopeful period ahead for home builders. Insights from leading construction firms underscore a collective move towards normalcy in supply chains and pricing, despite challenges in certain sectors like drywall and electrical equipment.

With detailed analyses from industry experts, the report anticipates material costs and labor trends, advising builders on strategic planning. The emphasis on sustainability and innovations in material sourcing further positions the industry for resilience against future uncertainties. (Gordian Q1 Report)

How will this affect your planning for Q2/3/4?

Data

• Construction material prices are stabilizing, with less dramatic changes recently.
• Drywall prices have decreased by 11% in six months after a persistent rise.
• Electrical equipment, especially transformers and circuit breakers, face long lead times.?
• Softening in several commodities' costs, but volatility expected from geopolitical events.
• HVAC and electrical equipment costs are more predictable; however, lead times for these items remain high.
• Skilled labor availability concerns grow, with some material lead times returning to normal but exceptions in electrical systems and custom HVAC items.

The Big Picture

For residential home builders, the report signals a hopeful trend of material cost stabilization after years of volatility, promising a more predictable planning horizon. It notes, however, that challenges such as long lead times for electrical equipment and skilled labor shortages remain.?

The Bottom Line

Builders are advised to plan for a 3-5% annual cost escalation, navigating through a landscape shaped by global uncertainties and labor market dynamics with strategic resilience. This scenario suggests an opportunity for efficient project planning and execution amidst evolving market conditions. (Gordion )

The Hidden Cost of Ghost Lists for Residential Homebuilders

In the realm of residential construction, ghost lists represent a hidden threat that can undermine project success and client satisfaction, ultimately affecting your bottom line.

Through enhancing project transparency, leveraging technology, and fostering a culture of quality and accountability, discover how to eliminate these hidden obstacles, ensuring each home built stands as a testament to your commitment to excellence.?

1. Ghost Lists Demystified: Discover the essence of ghost lists and the systemic issues driving their presence in residential construction.
2. Financial Impact: Uncover the financial repercussions, from rework expenses to warranty claims, linked to ghost lists.
3. Quality and Safety Concerns: Learn how ghost lists jeopardize building integrity and overall project quality, posing risks to homeowners.
4. Unveiling Hidden Defects: See how ghost lists mask recurring supplier and material issues, affecting decision-making and project quality.
5. Transparency and Trust: Understand the critical role of transparency in building client trust and safeguarding your reputation.
6. Elimination Tactics: Master effective strategies to eradicate ghost lists, including leveraging technology, adjusting incentives, and fostering a quality-focused team environment.

Read more

ResVR: Make upgrades easy

ResVR leverages virtual reality (VR) technology to transform the building experience, focusing on enhancing project visualization, planning, and customer collaboration. Their approach addresses common construction challenges, including inefficiencies and communication gaps, reducing project timelines and costs, increasing upsell opportunities, while also improving overall project outcomes. (ResVR .)

• Who They Are: ResVR is innovating in the construction industry, using Virtual Reality technology to streamline and improve the building & selection process.
• The Problem They Solve: ResVR addresses the inefficiencies and communication gaps in home building sales & selection process.
• The Impact of the Problem: These inefficiencies lead to delays, change orders,? increased costs, and missed upsell revenue.
• The Cost of Not Solving the Problem: Failing to address these issues inflate project costs and timelines, miss upsell opportunities, and affect overall profitability and customer satisfaction.
• The Solution: Through virtual reality technology, ResVR enhances visualization, planning, and collaboration, mitigating the risks and reducing the costs associated with traditional construction processes

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