Accounting for Rising Construction Costs

Controlling construction costs is always a prime concern for churches, and even more so during the current recession. Those costs continue to rise in 2010, which church leaders should note as they seek a loan, bonds, or other form of funding for a pending project.

As of September, the cost of construction was up 3.1 percent compared with the same point in 2009, according to the Engineering News Record. The main culprits: higher costs for materials due to cutbacks in production and increased global demand for materials.

"Between hurricanes, earthquakes, wars, and other things, we have shifted a lot of our materials to other places," says construction consultant Tim Cool. "That has created a supply-and-demand issue."

The labor situation remains in flux. The recession claimed many contractors and subcontractors and forced some of the survivors to enter markets they wouldn't otherwise consider, including the church market.

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Posted: November 28, 2010
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