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Strategies & Market Trends : ahhaha's ahs
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To: Ahda who wrote (1020)2/13/2001 2:50:53 PM
From: ahhahaRead Replies (2) of 24758
 
From what i am gathering cost containment on commercial construction caused by very competitive market has created too low bids which has inturn has created less durable.

Competitive in what? Certainly not in labor price where the previously high demand for labor is now translating into demand for rising wages. Construction firms don't submit low bids when there is high demand for construction. There is always a bid spread, but the median of that spread is rising ceteris paribus.

Due to this a tremendous need for maintenance has arisen in newer buildings. Simply put you can glue wood back together and it will hold but pressed board is not so easy. This applies to many interior products that can be used in lieu of higher price.

This is a statement that the total cost over time is higher than it appears.

A bumper crop of flashing red tiles from one supplier colours cant be matched. So it becomes a whole new floor or a piece meal design, either way it costs more on labor and traffic loss.

This isn't an issue because it is perceived that such added expenses can be absorbed. This perception is caused by a lenient FED.

This is inflation that is non future oriented.

The hidden cost you imply certainly is future oriented and the FED may have to let inflation rise even more to support the psychology that enables it.

It amounts to again backwards steps which are far more costly than up front higher costs. This is an era where labor cost increase and profits are harder to find.

How many times do you hear how evil profit is? Your profit, that is, so we will tax it away and give it to those who deserve it. You don't.
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