Reduce Commercial Building Construction Costs with ICF
Fox Blocks ICFs help commercial contractors lower building costs by reducing labor needs and combating increasing materials costs. Fox Blocks also provides stable and consistent pricing, unlike other volatile prices for wood and steel. Fox Blocks ICF commercial buildings also provide contractors with the advantage of offering the building owners long-term financial savings since they are durable, energy-efficient and disaster-resistant..
The Booming Commercial Building Market
Even with increasing construction costs, the commercial building market shows no signs of slowing down. In fact, one report predicts that by 2050 commercial building floor space will reach 126.1 billion square feet - a 36 percent increase from 2018. The booming commercial construction market provides many opportunities for builders; however, managing the fluctuating material costs, along with labor shortages, can make it difficult to estimate a project to ensure a reasonable profit.
Construction Costs for Commercial Building
Nationwide, constructing commercial buildings costs an average of $196.49 per square foot. However, the actual cost can vary significantly due to the price of land, permits, local labor, costs, and materials. Of concern, the steady increase in construction costs since 2014 continues to challenge builders. In 2018 alone, construction costs rose by 5.7 percent. Most building professionals attribute the increase in construction costs to material expenses and labor shortages.
Increasing Building Material Costs
Construction material prices continue to fluctuate and increase: in 2016, prices increased by 2 percent, in 2017 by 2.9 percent, in 2018 by 4.9 percent, and in 2019 by 1.7 percent. Many in the building trades blame the rising and volatile prices of steel, lumber, and conventional building products on the tariffs set by the Trump administration.
For example, in March of 2018, tariffs were implemented on steel (25 percent), aluminum (10 percent), and Canadian lumber (21 percent). In July of 2018, a 10 percent tariff was placed on certain residential building products - this was raised to 25 percent in May of 2019.
The unpredictable lumber and steel prices, along with increases in many finishing products (electrical - 6.0 percent, furnaces - 11.8 percent, and plumbing - 6.4 percent) make it difficult for contractors to provide commercial building clients with accurate estimates that hold up over the time span of the project, which may be 6 to 12 months or more.
Increasing Labor Construction Costs
In the United States, 80 percent of contractors report issues finding skilled hourly workers. Many in the building industry blame the labor shortages on the difficulty in recruiting younger workers, along with confusing immigration policies under the current administration.
To alleviate the problem of labor shortage, two-thirds of the contractors report increasing their workers base pay, and 29 percent of them report offering bonuses and incentives to attract skilled laborers - both of which increase construction costs.
How Fox Blocks ICFs can Reduce Commercial Building Construction Costs
Fox Blocks ICF construction offers an ideal solution to rising commercial construction costs.
Fox Blocks Lowers Labor Costs
Fox Blocks lessen labor costs for commercial building construction because they allow for faster and simpler construction over wood, steel, and CMU. Fox Blocks accomplishes this because of the all-in-one wall system that combines five steps into one, structure, vapor retarder, air barrier, insulation, and attachment. It saves money and quickens construction on the building envelope by removing the need to hire subcontractors or additional labor and coordinate multiple trades and material applications.
Reduce Labor for Foundations
Foundations are typically concrete or CMU and need to meet specific energy code standards. These systems also require - form removal, scaffolding, strapping, CI insulation, and a vapor barrier. Fox Blocks simplifies this application with less material and labor to provide a high-performance reinforced concrete foundation.
Reduce Material and Labor for Wood Construction
Wood-frame residential or commercial construction requires along with the framing a multitude of component materials to complete the building envelope - interior and exterior CI insulation, air barrier, air sealant, and vapor barrier. Fox Blocks all-in-one wall system eliminates the need for the application of these materials and their labor.
Reduces Labor Expenses over CMU Commercial Construction
Unlike Fox Blocks, a CMU wall needs an application of insulation and an air and moisture barrier, which adds multiple trades to the job site and more days of expensive labor to the project. Lightweight Fox Blocks ICFs quicken building time by eliminating these steps.
Reduces Labor Expenses over Steel Commercial Construction
The simplicity of installing Fox Blocks creates a safer and more efficient work environment compared to steel construction. Steel construction requires labor to tackle the hazardous and challenging task of cutting steel studs with a circular or miter saw that is equipped with a metal-cutting blade, and tin snips.
Like wood and CMU commercial construction, steel construction requires additional trades to apply insulation and weather-resistant barriers.
How Fox Blocks Manages Material Costs for Commercial Building Construction
The cost volatility of both wood and steel makes it challenging to estimate a commercial building project. Therefore, builders should consider an alternative structural wall product like Fox blocks reinforced concrete.. Fox Blocks provides stable pricing that ensures a more accurate estimate and a secure and profitable bottom line.
Fox Blocks Also Provides Long-Term Benefits to the Commercial Building Owner
The long-term financial benefits of Fox Blocks ICF commercial buildings further makes them the superior wall system for commercial construction:
Moisture-resistant commercial buildings require minimum maintenance and repair because they resist mold, mildew, rot and degradation over the life span of the building.
They stand up to natural disasters, which can save building owners money lessening, if not eliminating the need to repair and rebuild after storms, fires, or earthquakes.
They create energy-efficient commercial buildings, which saves money and the environment.
They produce commercial buildings with excellent indoor environmental quality, which improves the occupants comfort, productivity and reduces employee sick days.
High-performance commercial buildings, like those built with Fox Blocks, have improved occupancy rates, higher rents, and higher market values than less conventionally constructed buildings.
Commercial building contractors that want to save on increasing construction costs due to labor and material costs should choose Fox Blocks ICFs for their projects. The Fox Blocks wall system easily installs in less time and with less labor than traditional building methods, like wood, steel, and CMU. Fox Blocks also produce energy-efficient, disaster-resistant, durable, and healthy commercial buildings, that will provide long-term savings for the owner. Fox Blocks offers stable pricing, which allows for more confident estimates and assured profit.
As major asset and advantage not only for the contractor but the building owner, Fox Blocks has a proven track record in expediting the construction schedule resulting in faster occupancy over conventional construction systems.
Contact Fox Blocks for more on how to reduce the cost of building a commercial building.