BTY Group, a Vancouver-based cost and project management consultancy, believes 2011 will be a good year for the construction business.
"The message is clear – 2011 is the year to get solid value before pressure begins to push construction costs up again in 2012," said Joe Rekab, BTY’s managing partner. "In 2011 we expect balance – investments in roads, bridges and public buildings will push the market up, while construction will continue to stay cool and create downward pressure."
According to a report released this morning, BTY said B.C. has been "well cushioned" from recent declines in industrial and commercial building thanks to $62.8 billion of major projects that are underway.
The company also expects stabilization in the residential sector to help the construction industry and has said a moderate level of wage increases will help firm up costs.
"With moderate wage increases expected in 2011 and higher increases the year after, it’s clear that the coming year is an opportunity to get the best bang for your company’s construction buck," commented Philip Hochstein, president of the Independent Contractors and Businesses Association of B.C.
BTY expects construction costs to increase between 1% and 2% in both 2011 and 2012.