By Derek Brase, Empire Works
Most community Board of Directors have already experienced the moment…
A roof proposal comes in higher than expected. They hope the asphalt paving can make it one more season. A siding, waterproofing, or concrete repair project gets moved from “this year” to “next year” because the estimated prices feel uncomfortable.
Boards are supposed to be cautious and diligent with community funds, so delaying projects can feel responsible at the moment. But in the current construction market, waiting is not always the safer choice. In many cases, it simply moves the same project into a more expensive year.
Oil volatility, fuel costs, tariffs, material escalation, labor pressure, and transportation costs are all showing up in contractor pricing. For associations responsible for common area assets, these cost factors are becoming evident in the bids their community receives.
Construction Costs Continue to Climb
According to Associated Builders and Contractors, direct construction prices rose at a 12.6% annualized rate during the first quarter of 2026. Overall direct construction prices were up 3.1% from February 2025 to February 2026, but the early-year acceleration shows how quickly costs can increase when fuel, metals, transportation, and supply chain issues hit at the same time.
Why Oil Costs Matter to Your Association
Oil and fuel costs are heavily tied to construction in several ways. Many materials used in association projects are petroleum-based or highly affected by petroleum pricing. Asphalt, sealants, roofing products, waterproofing materials, coatings, insulation, and PVC piping all rely on oil or petroleum inputs in some form.
Even when crude prices pull back after a spike, suppliers and contractors may price cautiously because replacement inventory, delivery costs, and future fuel expenses remain uncertain.
Transportation and Mobilization
Construction is a delivery-heavy business. Materials, equipment, crews, and specialty products all must get to the property, and these costs are directly affected by diesel fuel.
In February 2026, diesel fuel prices increased 20.3% from the prior month and were 3.1% higher year over year, according to the Associated General Contractors of America. That kind of short-term jump can show up quickly in trucking, delivery, mobilization, and supplier pricing.
Energy-Intensive Materials
Many construction materials require significant energy to produce. Concrete, steel, aluminum, glass, roofing materials, and manufactured components all depend on energy-intensive production. That is one reason metal-related increases have been so noticeable. AGC reported that aluminum mill costs were up 39.1% year over year as of February 2026 and steel mill products were up 20.9%.
These increases can affect railings, fencing, flashing, gutters, structural repairs, electrical components, mechanical systems, and window or door systems.
What Boards Can Do Now
If a project has already been approved and included in the reserve plan, postponing it may create more risk than savings. The community maintenance or repair project will still be there next year and in most cases, it will be worse resulting in project cost increases.
Preventive maintenance is rarely exciting, but it is often where associations save the most money. A small repair today can turn into a replacement project if overlooked. A manageable reserve expense can quickly become a special assessment conversation.
Bid Earlier Than You Think You Need To
Boards should start the bidding process well before a project becomes urgent. Early bidding gives the association time to compare scopes, ask questions, review contractor qualifications, and understand the real market price.
It also gives the Board more flexibility. When a project is urgent, the association may have fewer contractor options, less negotiating room, and a shorter window to make decisions.
Starting early does not obligate the Board to move forward immediately. It simply gives the Board better information to make more informed decisions.
Ask About Price Holds
Boards should ask vendors and contractors how long pricing can be held. Some contractors may only honor a proposal for a short window, especially when material costs are unstable. Others may be able to hold pricing for a defined period if the scope is clear and the contract is signed promptly. Any price hold terms should be in writing.
The Bottom Line
Waiting can feel conservative and sometimes it is. But in today’s construction market, waiting can also be more expensive.
Oil volatility, fuel costs, tariffs, labor pressure, and transportation costs are all affecting community association projects. Boards that plan early, update their reserve assumptions, communicate clearly, and move forward with necessary work are in a stronger position than boards that defer and hope for a better market.
The Board’s job is to preserve, protect, and maintain the association’s common assets. Right now, that means treating timing as part of the financial decision.
About the Author: Derek is Vice President of EmpireWorks Reconstruction and a construction industry veteran with over 20 years of experience. He has spent 14 of those years specializing in HOA reconstruction, bringing deep expertise as a Senior Project Manager, Cost Estimator, and Consulting Expert. Since joining EmpireWorks in 2015, Derek has helped establish the company as an industry leader in reconstruction services.
