We’ve been getting back bids in the past few months (summer/fall 2020) that were higher than expected.
-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.
Here’s a good viewpoint below from a noted construction manager: