CAI-NJ September 2021

BUDGETING... from page 15.

Expect Few Choices In other cases, limited material avail- ability is resulting in communities hav- ing to switch products altogether. At one re-pipe project in Virginia, the job was specified and estimated to be completed using PEX (cross- linked polyethylene) plastic piping. However, due to resin shortages lim- iting the manufacturers’ ability to pro- duce plastic pipe, the material simply wasn’t available at the start of the project. In particular, the wait time for larger diameter piping required for the main supply lines was 4-8 weeks out according to the manu- facturer. As a result, the community switched gears on the fly and ended up choosing to use copper instead of PEX for their pipe replacement project. Maintaining flexibility when there are material choices is critical during this time, and worth discussing if your community is facing similar challenges. Expect to Wait Longer In addition to price increases for project materials, communities are also facing price increases on the labor side. The labor shortage is real, and companies cannot hire enough workers to keep up with demand, particularly in the home renovation market focused on replacing aging infrastructure. Labor shortages are not only driving up prices (like materials shortages) but they are impacting schedules. Construction companies are booked out for months and are unable to acquire the required labor to meet demand. As such, they are

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