HOW ARE OWNERS , DEVELOPERS

MANAGING CONSTRUCTION COSTS ?

Contributed by JOHN FAREED , MANAGING DIRECTOR AND CHAIRMAN NORTH AMERICA , HORWATH HTL , NEW YORK CITY

The COVID-19 pandemic , along with other global issues , such as the Suez Canal shutdown , weather-caused production disruptions and geopolitical issues — think tensions , tariffs and conflicts — have collectively created sharp increases in the global costs of building materials , as well as significant delays in deliveries .

It seems no material has been immune from the increases either . Steel , lumber , glass , plumbing and electrical supplies , and even gypsum and acoustic insulation materials , have all seen significant cost increases . And unlike the disruptions caused by the 2008-2009 recession , economies are seemingly rebounding more quickly

48 hotelsmag . com September / October 2021