Quote:
Originally Posted by wacko
I'm not sure what could be done about spiralling construction costs, except to stop construction on everything else (i.e. to lower the demand).
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Wacko, I'm not sure what can be done either I guess I'm just being the messenger. But the cost of labour which is any businesses largest expense in Saskatoon & Regina certainly goes a long ways in explaining delays in this project.
And I can certainly see this as being a problem for River Landing in Saskatoon as well. These are both fairly big projects even for some of the larger urban centres in Canada.
So all I'm saying is that maybe for a lot of people hurling rocks at the developer for not getting this project off the ground by now. Should be a little more understanding that the developer is the one that writes the cheques and is the one taking all the risk.
When you see your labour costs spiraling up 26% in the last five years. Compared to major cities like Vancouver or Toronto which are only half that amount over the same period. It certainly affects your bottom line and tends make you pull your horns in and/or possibly looking at other centres where costs are cheaper.
So I ain't slagging on Regina & Saskatoon just reporting the facts as I seem them. I don't know what the reasons are for the higher costs in Saskatoon & Regina. Whether it's a shortage of workers or a higher reliance on unionized labour or maybe both.
Still I know that both these cities are enjoying record levels of construction. Makes me wonder if things could even be better. But the high costs of construction in Saskatchewan is certainly something I think could be prohibitive to new developments like this down the line.