US builders cut bid times

While they would normally fix their bid prices for 60 days, the average is now 15 days.

The trend is a direct result of Hurricane Katrina, according to Chris Soffe, head of Gleeds in the US.

“Contractors will give you a price for doing their trade over the next 12 months but they will only fix it for 15 days, so in 45 days it could be very different. It shows how nervous they are,” said Soffe.

He said that a new business line had emerged as a result, with clients all over the US asking for Gleeds’ impartial view on whether they were getting a fair price from contractors. The firm is also bidding for business from loss adjusters, insurers and companies with damaged facilities. “So far we have won a couple of commissions but we have yet to be cut loose,” said Soffe.

He added: “We are concerned about nervousness in the market and how demand is being affected, plus how the cost of materials, labour and transport is being affected.”

The region was already experiencing a building boom before Katrina struck, as large numbers of apartments and mixed-use developments had been underway.

Soffe said that no changes would be made to building techniques and materials in New Orleans in the aftermath of the disaster. “Storm surges and air-born missiles are forces of nature that you can’t design against.”

Storm surges and air-born missiles are forces of nature that you can’t design against

Chris Soffe, head of Gleeds in the US

He added that there were already hurricane building codes in place, which did “offer an amount of protection”.

The rebuilding effort will address two types of damage, said Soffe:

• “Normal hurricane damage”, such as torn-off roves and smashed windows, seen in the areas surrounding New Orleans, and
• “Extreme hurricane damage”, particularly resulting from the flood, which has contaminated land and buildings with a sludge containing sewage, petrochemicals, rubbish and germs from dead bodies, seen in New Orleans.

He said there was no question of not recreating New Orleans due to both its cultural significance and its links to the oil industry, which will act as an economic driver for the reconstruction effort. But he added that it would be ten to 15 years before the city was back to full capacity.

A major part of the reconstruction effort is focused on around 75 oil rigs damaged in the storm. UK firm Stapleton International is among the QSs assessing the repairs required.