This is the Festival of Extras in the renovation |Jdm
Renovation projects of 30 to 35 % more expensive, sheds sold at a loss, constructions whose cost explodes...There is no shortage of examples to illustrate the impact of the price of materials.
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The general entrepreneur and real estate investigor Catherine Deschambault is at the forefront to note the phenomenon.
"It's a bit disturbing, we are really in a funny period," she said.
The Deschambault construction owner must provide more explanations than before its customers, even downright educate them on the subject.
"They are a bit in shock from the prices of the submissions," she notes.She now takes the time to do the exercise with them, to pass the submission to scrutinize in order to explain the costs to them."And it is not the workforce that has increased," says the entrepreneur.
For the price of wood, "it's even quite impressive".
A client who wants to enlarge a ground floor by combining two dwellings thought, for example, getting out for $ 200,000, but it will be closer to $ 300,000 with the current price of materials.
"A year ago, his project would have easily cost $ 60,000 less," she said.
Pull on the trigger
With the prices that keep climbing, the expert in renovations therefore recommends that customers be ready to take action when the time comes to ask for submissions.
"People have to understand the urgency.To the rhythm that things go, the submission that I do today will be obsolete in a month or two, "says the entrepreneur, who receives" almost every day "of the advice of increased part of his suppliers.
If it offered fixed prices until last year, it is no longer possible in the circumstances, since construction entrepreneurs cannot assume price increases alone.
"It is less dangerous to load the cost price, the workforce and the price of materials, plus 15 % for the administration," she said.
Other examples
In Mont-Saint-Hilaire, France Thibeault and its spouse also faced the increase in the price of wood.
The couple in their fifties embarked on the self -construction of a house in August 2020.If the site is advancing very well, the budget allocated to wood, it quickly exploded.For the frame, they had planned to spend $ 59,000, but they finally had to pay $ 81,000.
"From September to December, you could see a big difference in the price of wood from one day to the next," recalls the lady.
In Mont-Tremblant, a shed manufacturer had to sell many units at a loss due to the increase in the price of materials.
Martin Dionne had signed contracts in March and April 2020 for sheds that he was going to build during the summer.But the wood prices started to skyrocket in May.
"I lost up to $ 1,300 by shed, and I delivered it about sixty," he explains.
On average, he sold his sheds $ 4,000 and paid the materials $ 2000.
If some customers have agreed to pay 30 % more expensive, many others have held under the contract.
The entrepreneur of twenty years of experience decided, for 2021, to invest $ 35,000 in the construction of a warehouse.So, now, as soon as he signs a contract, he immediately buys the materials and can store them until the construction."I don't want to relive 2020," he drops.
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