A major problem has emerged, one that is saddling projects throughout Alabama and beyond: The building economy isn’t cooperating.
The frustrations are felt throughout Alabama, where local governments are scrambling to find solutions to save money without sacrificing big-ticket or even small-size developments and infrastructure improvement projects.
City administrators, managers, mayors, city councils and county commissioners have spent the past couple of years struggling to match project estimates with the realities of the project’s actual costs. In many cases, the estimates haven’t come close to matching up to the construction bids on each project, blowing budgets out of whack.
The resulting public debates focus on whether a city should be dipping into crucial tax reserves to pay for the rising costs to build parks, roads, parking garages, and buildings.
Government agencies are finding they are not immune from rising inflation, supply chain shortages and soaring labor costs that gripped the national economy since the pandemic.
Despite the costly realities, there is some hope that prices might have peaked and that a downturn could be coming.