Major Construction Projects Being Delayed In North Texas

A price surge is part of the problem.

Video Transcript

DOUG DUNBAR: And so we've reported that construction projects and renovations are taking longer. They're costing more, shortage of supply. But we find out it's not just home projects. Major projects across DFW are also feeling the pressure now. And new at 5 o'clock, Ken Molestina with a closer look at some of the reasons why. Ken.

KEN MOLESTINA: Well, you know, that was a topic, Doug, of conversation today between stakeholders in the community and leaders from the Regional Hispanic Contractors Association. They say the price surge is real. And until things get better, you can expect delays in critical construction projects.

JOHN MARTINEZ: I have not seen it in my 30-year career that, um, everything is going up at the same time-- at the same time that everybody wants to get projects done.

KEN MOLESTINA: John Martinez is the president of the Regional Hispanic Contractors Association. His group hosted a virtual discussion with leaders from area school districts in the city of Dallas and even DFW Airport to name a few. Their concern, large scale projects now being affected by a historic spike in materials costs and a backlog in construction work.

JOHN MARTINEZ: This is going to impact us as consumers. Because whether you're remodeling a kitchen, or you're building a home, or you're trying to do some work done, or all the way up to schools and hospitals that are-- uh, need to be built and remodeled, um, the costs are gonna go up.

KEN MOLESTINA: Martinez says in some cases, up to 400% increases in lumber, for example.

What do you think is the message here then for everyone who's sitting waiting on these projects?

JOHN MARTINEZ: I think you better be prepared to pay more, wait longer, and get less until we get this material, uh, logistics tied up.

KEN MOLESTINA: For perspective, Dallas ISD says they have at least two dozen combined-- new construction and remodeling projects underway. Fort Worth ISD has at least 16. These kinds of large scale projects are the ones Martinez says could be at risk if expectations aren't changed.

JOHN MARTINEZ: When you're trying to build more projects, if these projects cost more, then you can only do less because your pot of money is not growing.

KEN MOLESTINA: And that means delays in starting or completing projects.

JOHN MARTINEZ: Unfortunately, we don't see a turnaround this year at all. We're talking about maybe 2022. And even that, I would think of it very conservatively.

KEN MOLESTINA: So strap in and be patient. You know, as we have reported folks in the past, experts say this pinch is due to manufacturing and supply chain logistics because of COVID and an explosion in demand for these kinds of projects. Doug.