Builders are currently reporting a shortage in adequate labor to help build new homes for their customers. There are also reported delays in getting some materials. The Superior, Louisville and Marshall areas are also starting to rebuild homes burned down by the Marshall fire putting another strain on the current new build market. Some construction companies are attempting to renegotiate their contracts with buyers to provide for the delays and ask for more money as prices go up. Many builders are behind schedule in getting homes ready for closing. Still others are behind in addressing punch list or warranty work.
From the buyer’s perspective, many buyers signed contracts allowing for delays in closing due to unexpected circumstances including the need to substitute materials or labor shortages but had been told that construction would be expected to be finished by an earlier date. Many buyers have incurred unexpected costs in renting substitute housing while their homes are being built, storing their possessions, and increased costs where builders have submitted new prices to them either because they had to change subcontractors midway or because they had to substitute materials due to delays. Interest rates can change as well. The current situation can be frustrating for both the builder sellers and the buyers. Remodeling and other construction contracts have also been affected by the times.
Builders or other construction professionals needing assistance on how to draft their contracts or deal with problems or buyers needing their contracts reviewed or experiencing problems can contact attorney Cindy Manzano.
Construction professionals that have not been paid for their work and need to consider mechanics liens can also contact Cindy Manzano.