The demand for a backyard, socially distanced oasis has
skyrocketed. COVID-19 forced people to work from home, homeschool their
kids, and find entertainment in their own spaces. Commuting, dining out,
and vacations were all put on hold for more than a year and the result has been
money saved or money invested in the home. Customers want dream pools
with rocks and slides. They see photos of lazy rivers and islands with swim-up
tiki bars and decide they want to transform their backyards into staycation
wonderlands. While it is my job to make their dream a reality, I am beginning to love the simple, modern rectangle even more as costs soar.
So, who should bear the costs of productivity impacts on
projects? Construction costs are rising so quickly due to supply chain
issues. Factory workers must be distanced to diminish the risk of infection.
Some states have had to close factories to prevent the spread of the disease.
These measures are causing increased costs, shortages, and delays. These
are the common-sense conclusions, but I would like to see some actual
documentation showing exactly how much the costs and prices have increased and
the direct link to the pandemic.
Manufacturers and suppliers are using the force majeure
clauses in their contracts to pass the costs onto us. They are citing the
causes listed above with a shrug. Because they are using the clause to
avoid long-term pricing contracts, I hope to eventually see the pricing go back
down after the force majeure event (the pandemic) has ended. In the
meantime, I am considering using the option on my contracts sold before the new
price increases. The idea will be a hard sell to my clients but I’m
hoping that if I can show documentation and proof of the increases, they won’t
feel like they are being cheated.
COVID-19 has been challenging to say the least. I feel like
our industry has been lucky in that we are seeing increased demand for our
product. Pool construction permits are up 25%. The challenges we
face are small compared to other small businesses that have been
decimated by this event. My heart goes out to those people who lost their
businesses and their livelihoods due to the virus.