We’ve been getting back bids in the past few months (summer/fall 2020) that were higher than expected.

Wow!

Why?

-Post pandemic factors include:

– material costs have risen dramatically (see lumber costs in the chart below)

-Supply chain factors (i.e lumber mill closures due to covid)

-Pent up demand (due to construction restrictions during covid moratoriums) lead to more work needed in the post covid world.

-As well as Contractors trying to make up for lost income during covid (sense a them here? )

-Tariffs- without getting into a political free-for-all , many goods have been tariffed at a higher rate. This increased price gets transferred to the consumer.

-Regulations concerning construction activities in the covid world creates limits to the amount or workers per square foot -that further escalates pricing because of diminished work-flow rates.

Before you send out the project for bid, watch this

Here’s a good viewpoint below from a noted construction manager:

http://www.turnerconstruction.com/cost-index

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Article by Steven Secon