The New York real estate market is flourishing making it a haven for investors and construction companies but this boom in the market comes with its own set of challenges.
Let’s take a look at some of them:
1. Shortage of Labor
The growth in construction activities in New York has caused a serious shortage of labor. In the last few years, construction activities have had a hard time finding skilled labor. The demand for laborers is way beyond the available supply.
It’s not just the laborers that are low on supply, there’s also a shortage of construction management personnel. Leading construction companies are on the lookout for experienced executives to oversee their ongoing projects.
2. Trade Policies
Tariffs will definitely affect the cost of construction in NYC. They’ve caused the prices of steel to rise which in turn has led to an increase in the cost of construction. In order to accommodate the rising cost of steel and other materials.
As of yet, the increase in price has been modest however this will likely increase in the coming years.
3. Construction Costs
Due to the differences in demand and supply, the trade policies and other factors, construction costs are a lot higher than they were previously. Construction companies and consultants have to work hard to find ways to reduce costs.
Architects design buildings keeping in mind their aesthetics but they often overlook at how it impacts the budget.
By having a team of construction consultants onboard, contractors can ensure that their projects don’t exceed their budgets. Value engineering is a core component of pre-construction. It involves analyzing all the phases of the projects. Right from the beginning construction teams have to think about how to reduce cost and increase efficiency.
A team of construction consultants should also include engineers that can peer review the engineers that are currently working on the project. Collaborating with other professionals makes it easier to come up with effective cost-cutting solutions without compromising design or quality.
KH Consultants have all the expertise you need to ensure that your construction project doesn’t go over its budget. We’re proud to be Brooklyn’s leading property consultants. As your partner, we’ll give you all the assistance you need during all phases of construction including complete construction management, property development and property management.
We rely on our in-house development departments to help our clients overcome obstacles in their project and make sure their projects are completed on time.