Related Links: ENR: Fresh Hope for Homebuilders ENR Mountain States Multifamily construction is booming despite the slow economic recovery for commercial and single-family markets, but it is a very different market than it was 10 years ago. Like other segments of construction, the increasing number of firms in multifamily has driven profit margins down. As a result, bidding errors or unanticipated project costs, which were once part of doing business and could be absorbed within the contract price, can now wipe out all profits on a project and even threaten a company's overall financial strength.Multifamily's healthy backlog of work has
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.