We've just finished a large job in Pasadena, CA and are set to begin another on 3/28/11.
I had a conversation with my lead foreman yesterday and he informed me that there are signs at one of the vendors we use that states "due to world events materials will be going up" or something along those lines.
Well, we should not be surprised since gas is around $4/gallon. It would stand to reason (I'm not sure who's reason) that most things will be going up in price.
We will work with it and include it in the cost of doing business, however, since we already had several bids out I had the presence of mind, following this discussion, to send an e-mail that if anyone wanted to do the work we'd bid on - even though it may not be until May - get a contract signed and at least allow us to purchase materials now prior to costs going up so we can keep our bid where it stands rather than having to raise the price in the next couple of weeks.
If any of you are thinking about doing a project and have a bid check with your contractor to find out how long this bid will be honored. Don't think for a minute that if you call in May, or for that matter, in April (right around the corner) that the price won't be higher. This may cause you to not be able to do the work at all.
The project we're starting on 3/28/11 - we got a deposit and my lead foreman is purchasing materials by week's end for this project as well as one we're beginning 4/1/11.
Stay on top of this communication. Don't be vague and expect things to stay the same. Even if the price stays the same, once the contractor goes to buy materials, they may find that the costs are such that they have to come back to you for more money.
This is one of the things that causes a remodel nightmare. Don't let that happen to you. This is one of the ways a nightmare CAN be avoided.