Market Watch

[jyoutz]

I never did a construction project for a customer in over 25 years of construction full time and now 10 more years part time, that came in over budget, as long as the customer did not change anything.
Once I gave my word on price, that was IT.

So you can put that in your BLM folder.

What the hell is a BLM folder? Construction costs change all the time as projects drag out and costs change. I have never personally had cost overruns on my house projects because I sign fixed price contracts. But I hear these stories all the time on new housing construction. When I contract for goods or services at work, there is no provision for overruns because we get three bids, and award a fixed price contract to the low bidder. That’s the legal requirement for procurement of goods and services.

Construction contracts in both federal and state purchasing is a different thing. The prices are negotiated between the contractors and the project engineers. I have never understood doing business that way and I never have bid a construction contract on the job. State highway departments are notorious for cost overruns on these negotiated contracts. They say because the projects are long term and costs change. I think it’s no way to do business, but that’s how the engineers roll. They follow different procurement regulations for construction.

 

[2manyrocks]

I'm going to personally own up and admit to thread drift with my sincere apologies to all of you.

I think I'm seeing some softening in the equipment market in middle Tennessee but am not sure if it is seasonal or a market change? For one thing, I was able to get a kubota dealer salesman on the phone and he actually sounded like he wanted to make a sale.

 

[jyoutz]

I'm going to personally own up and admit to thread drift with my sincere apologies to all of you.

I think I'm seeing some softening in the equipment market in middle Tennessee but am not sure if it is seasonal or a market change? For one thing, I was able to get a kubota dealer salesman on the phone and he actually sounded like he wanted to make a sale.

Next spring will tell the tale (seasonal or demand softening).

 

[2manyrocks]

Now that you say it, that makes good sense to me.

 

[jyoutz]

Why do you assume the US flag isn't flying proudly above my Gadsden? Careful of that glass house there.

Glad to hear that.

 

[edgarrian]

What the hell is a BLM folder? Construction costs change all the time as projects drag out and costs change. I have never personally had cost overruns on my house projects because I sign fixed price contracts. But I hear these stories all the time on new housing construction. When I contract for goods or services at work, there is no provision for overruns because we get three bids, and award a fixed price contract to the low bidder. That’s the legal requirement for procurement of goods and services.

Construction contracts in both federal and state purchasing is a different thing. The prices are negotiated between the contractors and the project engineers. I have never understood doing business that way and I never have bid a construction contract on the job. State highway departments are notorious for cost overruns on these negotiated contracts. They say because the projects are long term and costs change. I think it’s no way to do business, but that’s how the engineers roll. They follow different procurement regulations for construction.

We purchased 8 acres of land about 9 years ago and built in 2015. The pole barn did not run over. Our 1800 sqft house and 3 car garage came in at what the contractor quoted us. In his bid he had say our HVAC with heat pump for say 15k for everything. Then he had price for geo thermal. So that way there was not any over runs. The only things I changed on the fly was to have speaker wire ran and speakers in the walls for home theatre. This I hired out myself. He as well gave me a bid and that was the price when it was said and done.

Couple of things where overruns cannot be predicted would be your well b/c you dont know how deep you may have to go. Drillers have a roundabout idea but its never for sure and sometimes the first hole doesn't hit and they have to drill another. Everything else should be standard pricing that each subcontractor should have accurate bids for. Its not hard to figure out. Building a driveway is another b/c you dont know how deep the top dirt is and sometime the ground can be bad in spots. This is the reason why I did my own driveway. And our 8 acres is all woods. I had a few companies give quotes on removing trees and they were all far apart. I can see where that could be problematic. Due to that expense I rented an excavator and did it myself. I save 25k just from the cheapest bid. Luckily Ive ran heavy equipment for years so I was able to avoid some high costs as I did all of my dirt work.

 

[Hay Dude]

I had plenty of line items building a home where the price was “unknown”, but that doesn’t mean it’s a cost overrun.
It’s not an overrun until you promise X and it turns out to be X+.

Price a water well by the foot or a driveway by the square foot and thats that.

 

[Muhammad]

Back on topic please.

 

[edgarrian]

I had plenty of line items building a home where the price was “unknown”, but that doesn’t mean it’s a cost overrun.
It’s not an overrun until you promise X and it turns out to be X+.

Price a water well by the foot or a driveway by the square foot and thats that.

There isn't a company in indiana that drills wells only by the foot. Like I said its not a for sure hit on the hole. Around here its an automatic 2500 for the dry run. Now if they hit, then yes its by the foot but also after so many feet its extra. Driveways for the most part you are right but there has been occasions where that didn't play out.

 

[CloverKnollFarms]

Our local Mahindra dealer has gotten another shipment. They didn't sell much of what they had on the lot last year, they just added another 5 units it appears. Interested to see what the next two months brings as winter breaks