Some Chattanooga builders are backing out on promised projects, citing major increases in the expense of supplies.
A group of people who got the bad news from Pratt Homes has been talking with an attorney about their options.
A couple who signed up for an attached townhome on Mountain Creek Road was told that the project cannot be started now. The builder said it may be a year before construction would begin and it would be at a higher cost than first agreed.
"They said they are not going to sign the contract," said the couple involved, who had already inked the document on their end.
Doug Fisher, president of the Chattanooga Homebuilders Association, said, "Building supplies, especially lumber, have gone through the roof. Builders are seeing increases between 30-50 percent. A sheet of plywood that cost $39 is now $69."
Mr. Fisher said the main culprit appears to be that transport of building supplies got backed way up during the COVID epidemic. "They cannot move the materials fast enough." With supplies limited, the cost goes up.
He stated, "Some builders are able to complete the project based on the price agreed upon, but others are not able to."
He said the situation between the hamstrung builder and the eager homeowner "is different in about every case. It's all about what the contract says."
Mr. Fisher said, "Some contracts include an inflation clause, while others do not. Each individual case is different."