In terms of construction, Florida has a unique landscape. This creates challenges in construction estimating, takeoffs, and project execution. Its topography is mainly flat, low-lying, and water-rich, requiring attention to drainage, foundations, and environmental regulation. Some of the issues faced by contractors, engineers and project planners in Florida are:
High Insurance Cost
- In Florida, due to the high risk of floods and hurricanes in coastal cities, contractors have to pay high insurance premiums in case of structural damage.
- This affects the overhead price and increases the budget for a project.
- Contractors are more affected by insurance payments, which lowers their profit from the project.
Weather Risk: Hurricanes and Wind
In September 2022, Southwest Florida was hit by Hurricane Ian, which resulted in the loss of many lives. Hurricanes and wind caused the local estimating issue in Florida. The reasons behind estimating and takeoff are:
- Reconstruction costs can be much higher than the insured’s estimated amount for storms.
- The construction demand becomes higher, which increases the price of subcontractors.
- After each hurricane, the Florida Building Commission implements more stringent building codes.
Material Cost Volatility
In Florida, there are a few reasons for the unstable prices of materials
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- In Florida, the prices of essential materials stayed high due to tariffs, import reliance and production slowdowns.
- Contractors of big projects buy material in bulk from suppliers at a discount, which leaves residential contractors with either a material shortage or a higher price.
- The cost of materials changes with fuel prices as the transportation price increases.
Labour Shortage and Uncertain Production Rates
It is the major problem in estimating in Florida. Labour shortages affect construction estimates, and the reason behind it is
- Unavailability of skilled labourers, such as electricians and plumbers.
- The wages for labour increase to $70-$100 per day.
- Labour takeoff is easy, but estimation is more difficult due to worker unavailability and unsustainable wages.
Out of State Buyers
Florida is a place of interest for outsiders. People came from other states to buy land and build homes and other constructions.
- The increase in the price of land and construction work has been seen.
- The locals of Florida are forced out or compete with wealthy outsiders as the prices increase.
- Even as the region begins to cool down, these prices are sustained. These instabilities in prices affect construction estimation.
Product Approval and NOA/FPA documentation
Due to hurricanes, it is necessary to prove that building components meet the Florida Building Codes. How does it affect construction estimates and takeoff in Florida?
- It can result in a permit delay.
- The estimated and takeoff components may not meet the building code; then they will be revised again, which takes time.
- The total amount of the budget may increase because of the prices of those building components.
Permitting Delays
Like Texas, Florida has its own building code, which has to be followed in any construction project. It can affect estimating and takeoff as well
- The rental time of the equipment increases.
- Prices of materials can fluctuate; it is a serious problem in Florida.
- The estimate becomes outdated.
- The availability of skilled workers could be a serious problem, as Florida already lacks skilled workers.