It's almost a perfect storm.
Wet weather making jobs harder, needing more hardstand areas created on site ($), or alternatively making the site a quagmire with increase in job difficult even if only minor ($).
Labour hard to get, and if you can get it the average skill level seems to have dropped and reworks are increased, or contractors are so stretched they are just doing enough at one site to satisfy one squeaky wheel prime contractor out of trouble then on to the next prime contractor, without actually achieving good, efficient work flow, so increasing costs.
Timber shortage (appears same issue worldwide), brick shortage (for quite sometime, but probably more so with some manufacturers closing due high gas prices), and these are really just the high volume component shortages. Is amazing how many items, or parts of items, were made in Ukrain which are now hard to source.
Time blow outs add costs to builders in overdraft payments, which of course are increased due to interest rate increases.
But how do builders put their prices up mid contract?
Even if their contracts allowed this, how is the customer going to fund a 25% cost increase when all their other personal costs are increasing as well?
They refinance?
But can they? Probaly already stretched to limit due to "splurging" on their dream house.
So what happens when customer can't pay? .........
Everyone loses.
