[quasi]

Originally Posted by stylez2k4

I'm looking at RBC commodities price monitor and I don't see the dramatic increase in raw materials (it is in US currency however)

http://www.rbc.com/economics/economi...eports/cpm.pdf

Lumbar prices is around the same it was back in mid-2008 and metals such as iron, aluminium, copper are less now than they were back in 2008.

Going off Bank of Canada's commodities price index both the forestry and metals and minerals component costs in 2014 are comparable to values in 2007-2008.

Commodity Price Index - Annual - Bank of Canada

The thing with construction is you bid projects based on the current market, sometimes it's 2 years before your on site depending on what your responsible for. A lot can change in 2 years, material and labour can cost you way more then anticipated.

I estimate commercial construction projects for a living, we've had a material increase every 6 months for the last year and a half 8-10% each time on all my materials. Labour is asking for more money now then they were 2 years ago by almost 25%. From my recollection 4 years ago we went over a year without an increase, it's a guessing game.

Historical prices don't really mean anything in the short term, you can only look at the fluctuation in costs from when a project was bid to when it's complete.

The margins that most subcontractors operate on are so low I don't know why anyone bothers. The market is so tight you can't allow any contingencies, if you do you won't be competitive so any mistakes or unforeseen it's coming out of your slim bottom line.