California City Scoop: Construction Starts in Los Angeles
Caleigh Raymer Vice President and Director of Operations Lendlease
Los Angeles
The Los Angeles construction market remains resilient, with backlog remaining close to pre-pandemic highs, says Raymer. But raw materials sourcing is triggering escalation concerns. Lumber prices have surged more than 20% this year due to lack of supply. As a result, subcontractors are padding budgets to absorb future risks. “Balancing the material pricing are contractors’ fears of potentially reduced backlogs through 2022,” she says. “Most megaprojects that have shaped L.A. over the past few years will wrap up in 2021, and many future non-entitled jobs are being delayed, driving down fees and construction costs overall.”