Press Release
April 19 2018
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Addressing Rising Lumber Prices

A Case Study for Smarter Building Material Sourcing

In recent months the price of softwood lumber has skyrocketed more than 30 percent, adding pressure to a building market already challenged by labor productivity issues and cost overruns.

Builders face a difficult choice: pass the added costs onto customers, cut costs by choosing lower quality materials and/or reducing product offerings, delay projects indefinitely while monitoring prices, or cancel projects altogether. The unprecedented rise in construction materials costs, including softwood lumber, steel and concrete, due in large part to new import tariffs, underscores how conventional buying of building materials leaves developers exposed to unnecessary risk.

 

Katerra’s innovative, end-to-end construction process, which offers a fixed price per project for materials in advance, provides developers increased project certainty and competitiveness.

 

Our entirely new model for construction integrates expertise in development, design, technology, material sourcing, manufacturing and construction, within a single offering to deliver superior, fully-componentized, energy efficient buildings. 

 

Grounded in the development of a revolutionary end-to-end software solution, the Katerra approach encompasses site selection and configuration, building design, optimization for manufacturing, price quoting, and project tracking from concept through completion.

Automating many of these functions, in addition to financial modeling and zoning and building code compliance analysis, unlock new opportunities for speed, collaboration, and assurance for all parties. This platform is made possible through Katerra’s vertically integrated model, supported by a robust technology infrastructure that includes global enterprise deployment of SAP, linking design and construction activities directly to our manufacturing and supply chain operations.

 

As a result of these innovations, Katerra can commit to offering fixed prices up front without charging contingency fees, something not typically seen in the construction industry. Regardless of price changes, Katerra keeps its commitment to customers. 

Katerra customers have the protection from sudden price increases in materials that isn't possible when purchasing the traditional way. Katerra’s unique fixed price offering provides significant benefits to developers, including cost and time savings, project certainty, and better quality assurance.