HOW TO NAVIGATE THE VOLATILE WORLD OF CONSTRUCTION CHALLENGES IN THE ALBERTA NEW HOME MARKET
The decision to embark on a new home building project is an exciting one! Whether you’re an investor looking to build a small multi-family project, or an aspiring homeowner looking to create your dream home, everyone is experiencing time, cost and completion challenges these days. How can people understand enough about the potential obstacles, so they can plan more effectively and avoid unwelcome surprises down the road?
In Alberta, the construction industry is facing a number of challenges (but really these exist all over Canada).
- Materials’ Cost. For the previous few years, fluctuating material costs have been driving builders and developers bonkers! We barely finish a quote, and the supplier pricing has changed! Fortunately, 2024 is bringing some stability to this area. However, if your buddy built his dream home before 2019, you won’t want to be comparing square foot costs to build. Inflation hasn’t merely affected the grocery stores.
- Material Shortages. This one can truly be a wild card in any project. Hopefully there are no more port strikes in the near future? Hopefully torrential rains don’t take out all 3 highways from BC to Alberta –ever again. But honestly we still see this problem with some specific products. The solution for homeowners or investors? Pick a different product if you run into this issue. Remembering you have choices, even after a project has commenced, can save a TON of time. Every reputable builder or contractor has the ability to write a change order or amend a contract. Easy peasy.
- Skilled Labour Shortages. In contrast, this headache is near impossible to solve in Canada today. Let us be clear. The lack of skilled tradespeople is NOT just a headline or a political football; this is a very real issue facing every builder in Alberta today. And remember, skilled trades can work in residential construction, on huge commercial projects, or even in other industries – we’re all competing for the same workers. Tell the new high school graduate in your life: there will be jobs a-plenty in the trades for decades to come, and at great wages!
- Mother nature sometimes has a twisted sense of humour. But beyond her tantrums, it’s good to remind anyone looking to build homes that there are very real weather limits to building in Canada. Concrete needs some warmth to cure properly –ah but not too much or it can crack. Wind or silly-cold temperatures can also shut down a jobsite, for everyone’s safety. The fact is that Alberta is known for its unpredictable weather; extreme conditions can impact the progress of any project. It’s no one’s fault, and temporary weather delays should be built into any project timeline. They’re going to happen!
- Complexities of permits, inspections and building codes. A smoother building process begins with experienced builders. AND, builders with a track record of solving problems. The permit process is slightly different in every jurisdiction, and it works like a pilot’s checklist before takeoff. If EVERY item isn’t checked off the list = no takeoff. No discussion. No begging. Fix what the Permit Office doesn’t like or approve of, or don’t build. Having an architect or a builder who can work through the permitting process with you or for you can be a godsend. Headaches abound in this area, but forward progress is possible with the right team.
Did we scare you away yet?
The entire country needs more homes! But investors and homeowners deserve to be realistic with their expectations. We can almost guarantee that there will be delays at some point in every project. No need to panic. Just a good time for conversations and problem-solving. Even fixed-price contracts may only be valid for 30 or 60 days. The simple solution is to build a financial buffer into your planning; this is often called a contingency fund. A second solution is to always remember you still have the ability to make some choices after a project begins.
By being aware of potential challenges, this helps every homeowner and real estate investor to plan more effectively, and hopefully experience a smoother building process. When obstacles arise, they can be recognized as temporary—not a conspiracy, and nothing to get overly emotional about. Our apologies to all the project managers out there: stuff is going sidetrack your schedules.
After many years, https://mountainsedgerenovations.com/ is thrilled to be able to offer custom home building as our expanded area of expertise. We specialize in new dream home projects in Bragg Creek, Cochrane, Springbank, and Bearspaw. We can work with your architect/design team, or we can start with a doodle on a napkin!
Ready to take the next step to plan and build your new home? Connect with us through the website, or follow us @MtnEdgeRenos to see our current projects evolve and complete.
