DO THAT REMODELING BEFORE CONSTRUCTION COSTS SHOOT UP.

Byline: GREGORY J. WILCOX

Anyone planning a big remodeling project this year can probably save a sizable amount of money by doing it sooner rather than later.

Material costs in the year's first half should increase by 3 percent to 5 percent then shoot up into double digits when the reconstruction from last year's devastating hurricane season began in the Southeast, according to PinnacleOne, one of the nation's top construction consulting firms.

These increases will come on top of a 10 percent price spike last year, said John Dunkerley, the company's director of cost management services.

There probably won't be any price relief until 2008, either, he said.

That's because this is a rebuilding effort like no other.

``We have never see anything like this before. I don't think we can even realize the enormity of it, to be honest with you,'' he said.

Right now the Gulf Coast is in a cleanup mode that's taken longer than expected. Dunkerley thinks the rebuilding effort could take up to 15 years.

It could also be harder to find tradespeople for your project because rebuilding the Gulf Coast is going to be labor-intensive.

PinnacleOne's outlook calls for:

--On average, construction costs should increase approximately 7 percent to 9 percent for all of this year. It might take as long as 18 months to two years before supply and demand for these resources level off.

--The Gulf reconstruction will cause major labor shortages in the Southeast, Midwest and Southwest, including the Los Angeles area.

--Project delays. By 2007, rising material costs could force the postponement of many private projects and will force public agencies to increasingly prioritize projects to determine which can be delayed indefinitely.

That's because budgets are typically set well before construction starts and some agencies just won't have enough money to proceed.

Dunkerley also said high energy prices are contributing to the spike through transportation costs and the fact that petroleum is used in manufacturing some building materials.

Jack Kyser, chief economist at the Los Angeles County Economic Development Corp., said his agency is already hearing some buzz about projects being postponed in advance of the price spike.

For example, most analysts think new home construction is going to slow this year but that commercial and industrial building would increase because this sector, especially in the San Fernando Valley, has a low vacancy rate.

But now that may change, too.

``By the time you get all the costs factored in, it might not make economic sense anymore,'' Kyser said.

Gregory J. Wilcox, [phone]

greg.wilcox(at)dailynews.com