Many agree that Silicon Valley is once again a hot bed of activity for many types of businesses, including the construction market. This burst of economic development and growth is resulting in a plethora of construction activity, providing builders with a diverse mix of project types.
Tenant improvements, new developments and campus construction projects all demonstrate the progress that Silicon Valley (and greater Bay Area) has made toward an economic recovery from the great recession.
So what does all this mean to buyers? As the construction market continues to grow and unemployment rates decline, it is forecasted that a labor shortage may develop. If this shortage occurs, many believe that prices will increase as quality decreases.
To offset this shortage, project supervision and management may be spread thin to cover multiple jobs and project labor may be short on quality tradesmen/specialty contract workers. This approach can have the negative result of longer durations for projects (schedules), adding to buyers’ costs.
That is why it’s important to understand the construction minutia of your project. Ensure that your next project has the correct level of qualified supervision and management and that your contractor provides efficient resources for pre-job planning. Contactors must be accountable to the project plan and only reputable, financially stable subcontractors/vendors should work on your project, ensuring longer-term reliability. Above all, confirm your schedule! Without committing proper resources at the start of your project, lack of pre-planning, scheduling challenges and insufficient manpower are sure to follow.