Caught by the inflation demon

[beowulf]

As an electrician i can say prices have gone nuts over last 6 months. On one recient project the price of underground wire went up 50% over the 2 weeks we worked on the job. Heck, a piece od 2” rigid conduit went from $48 last year to $197.00 last week.

i picked a good time to retire.

Yeah, I used to buy 2x4 studs for $1.97 and a few days ago I saw them for $7.13.
I should have mentioned - we negotiated an even lower home building price in September-October 2021 but they bumped that price twice before we worked out all the details and signed in November 2021. So in that sense, some of the pre-November 21 cost increases should have been built in.

Oh well, in the end it will all work out in some way or another. Actually, from our/their original home building budget we incrementally went up due to "wants" or "preferences" and so maybe now is an opportunity to reassess and get it done more realistically. Thanks for weighing in.

 

[BleedingOrange]

Try and get the contractor to reduce some of the additional 47K they are asking for, and kick in the 25,000, and call it an early inheritance. Would it be possible to get anyone else to give you a quote on the same plans ?

 

[jmc]

Disappointing time for builders too, I'd bet. A lot of work involved in (competitive) bidding, only to find the project is out of reach for the customer.

 

[Jstpssng]

The price of everything has gone up. Have you looked at buying schedule 40 pipe lately?
I had a septic put in last October. A couple of months ago the installer told me that it would have cost 30% more now, due to the price increase of fuel, pipe, and the concrete vault.

 

[2manyrocks]

I looked at a log home when house hunting 20 years ago. The realtor said they were nice to look at, but the maintenance on them was an ongoing problem. Probably some of the most honest real estate advice I've ever gotten.

 

[4570Man]

As an electrician i can say prices have gone nuts over last 6 months. On one recient project the price of underground wire went up 50% over the 2 weeks we worked on the job. Heck, a piece od 2” rigid conduit went from $48 last year to $197.00 last week.

i picked a good time to retire.

A roll of 12-2 250ft wire is $165 currently. It was at least $150 if not $160 6 months ago. An arc fault breaker is $54. They’ve always been $50 or so. Conduit went nuts 2 years ago and hasn’t changed much since then.

 

[plowhog]

$47k increase against $265 build cost is about 18%. But that's for six months, so figure a 36% annual increase. That seems high.

I'd set up a few sessions with the builder to go over all of the increases, line by line. This will give you an opportunity to know the numbers in the same detail as the builder.

You have 3 parties involved here. If they each contribute 1/3, thats about $16k apiece. The builder may not like it, but if he is staring down a non-performance lawsuit it may come into play.

Having said that, there is no way I would recommend insisting that the builder do the project on the original price. It isn't a house I would like to own.

Everyone needs to give a bit if this deal has a chance to come together. .....

 

[Hay Dude]

We are living in unprecedented times. No way a 6+ month old price would hold up today. Materials prices are insane now. The cost to deliver them is way up. Everyone is experiencing cost increases.

If the original contract price is your max, ask him is there are and features that can be deleted to reduce the cost? If you arent willing to cut out any features, maybe you can push them off into the future or do some yourself?
I would think his $47,000 proposed increase is negotiable. I have been in similar situations and usually able to come to a settlement of some kind.

 

[Raul-02]

The conract was signed in November '21 and has no escalation clauses entitling the builder to increase the price. I know I can sue to enforce the agreement (the builder said we what we signed is not a final binding agreement but from where I sit that is BS) but suing is acually not all together a satisfactory course to resolve issues - and would take a long time - during which we could not all get along with our otherwise peaceful lives.

Tell him you will accommodate him some but not all and offer him ten gees more - tops. If he turns you down, send him a letter he'll know is from you because it'll be framed as a summons and complaint.
The fact of you making an offer of accommodation should put you in a really fine position in court.

 

[ultrarunner]

Does the builder want out?

Maybe more lucrative jobs waiting?