ForConstructionPros.com

I was toying around with a couple of topics for this month’s column when I came across some articles about advances being made with IT and other electronic devices. Quite frankly, the products available today are outstanding, cost effective and easily adaptable to business people on the move — in other words, contractors.

Before I saw these articles, the topic I intended to cover was an outlook for 2006 and how to plan for it. After further thought, I decided I could kill two birds with one stone and cover both. Let’s cover the overview first.

Costs are on the upswing

As you know, the construction industry moves in cycles. You have all been there before. So what’s different now, and how will these variables affect 2006?

Construction activity and opportunities for new work should continue. Of course, there will be areas where this is not the case. But in general, they should remain on course.

Costs for many commodities are increasing, with some experiencing unusual highs and lows that are hard to track and/or project. Follow these swings weekly and make allowances for them in your contracts. Depending on what kind of work you do, these costs could eat up profits very quickly.