Supply Chain Issues Affecting My Investments
I recently received this notice from the developer of one of the pre-construction condos I purchased:
The Canadian construction industry has encountered numerous obstacles in recent years due to the complications surrounding the Covid-19 global pandemic. While a great deal of the pandemic is behind us, the lingering impacts, specifically on the global supply chain, continue to affect many industries. Across North America, homebuilders and construction companies have faced a drastic increase in the prices of building materials, combined with low supply and availability.
One of the biggest backlogs has been for finishes, particularly with strong or dark pigments. Across the country, certain brick, cabinet colours, dyes and stains have been temporarily discontinued. In light of this and wanting to provide quality products, we will offer one curated finishing package. Our Design Team has selected coordinated materials which are available and reflect modern trends with resale value in mind. Renderings displaying the finishes are included below.
In this instance the colour selections for unit finishings have now been reduced down to just 1 option and it’s take it or leave it. Luckily the designers have done a great job and the available package was going to be my top choice anyways
My Unit’s Colour Finishing Package - What Do You Think?
Your Contractual Rights
The Purchase Agreement normally allows developers to swap out finishings for goods of equal or greater value. Unfortunately you often don’t get the choice of the replacement but trust me that the developer is trying to find a good solution to the situation - they want the quality of their units to be high and to look amazing because happy clients will buy from them again. Trust me, a developer does not want to be mocked in the media and they are not trying to save a few bucks - instead they’re trying to keep the project on schedule so that they don’t have to delay occupancy/closing.
Most developers are being very open and honest about the struggles they are facing which I appreciate it. In developments, I have seen appliances swapped out for other brands, entire communities delayed because there were no sewer pipe available in the entire province, and even closings delayed because kitchen cabinets could not be sourced.
I appreciate the developers that are being honest and openly communicating, so kudos to you! Many companies are still facing these challenges - does anyone know if Ikea Pax Wardrobes are back in stock yet?