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B.C. Building Costs down, thanks to Recession
VANCOUVER — Last year`s recession dried up enough plans to build new buildings and erased enough construction jobs to take a substantial bite out of the cost to build new buildings that will last until at least 2010, according to a new survey.
For almost five years, double-digit annual inflation in construction costs was the norm, but those days are gone.
From a peak in 2008, construction costs fell in 2009 from around five to six per cent at the low point to more than 20 per cent, depending on building type, the survey — which was conducted by quantity surveyors BTY Group in conjunction with the Independent Contractors and Business Association of B.C. — found.
With a smaller pool of available work, more companies are competing for each job, Philip Hochstein, president of the independent contractors association, said in an interview.
Also, with less work, contractors have laid off their least experienced and less productive workers, and don`t need to pay experienced tradespeople the huge incentives and overtime that were required in the boom period.
"It`s the productivity improvement that has reduced the labour costs more than reduction in wages," Hochstein said.
Read the full article here.
VANCOUVER — Last year`s recession dried up enough plans to build new buildings and erased enough construction jobs to take a substantial bite out of the cost to build new buildings that will last until at least 2010, according to a new survey.
For almost five years, double-digit annual inflation in construction costs was the norm, but those days are gone.
From a peak in 2008, construction costs fell in 2009 from around five to six per cent at the low point to more than 20 per cent, depending on building type, the survey — which was conducted by quantity surveyors BTY Group in conjunction with the Independent Contractors and Business Association of B.C. — found.
With a smaller pool of available work, more companies are competing for each job, Philip Hochstein, president of the independent contractors association, said in an interview.
Also, with less work, contractors have laid off their least experienced and less productive workers, and don`t need to pay experienced tradespeople the huge incentives and overtime that were required in the boom period.
"It`s the productivity improvement that has reduced the labour costs more than reduction in wages," Hochstein said.
Read the full article here.