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What Do You Think is a weekly CSI conversation starter to help you share your experiences, insights, and observations about the work you do was introduced last month on the CSIResources.org CSI-Connect Community.

This week’s post asked: Are Increases in Construction Material Costs Impacting Your Work?

As one of our members stated frankly: Yes, it is.

How?

I am currently reviewing a cost estimate we just had done for an upcoming project.

The scope of renovation work is very similar to a recent project that is just wrapping up.

The project that is just coming to completion was priced out at around $125/sf three years ago. The final cost, including all changes is around $135/sf.

The cost estimate for a nearly identical scope of work that is now being planned is almost $200/sf. This raised eyebrows and we dug in to the numbers to see what was going on.

Here are some of the reasons we were given for increases in cost, and also some of our thoughts about what is happening, in no particular order.

1. Tariffs. The cost of aluminum and steel is being estimated much higher than it was just last year.

2. Lumber is at an all-time high in my area (Northeast).

3. The available pool of applicants for skilled and unskilled labor is shrinking, but construction starts are up. Prices are escalating on key skilled-labor trades (MEP) higher than historical averages.

4. Escalation costs typically do not reflect progressive code changes, and we have very progressive codes, particularly around energy. You literally cannot (by law) build the same building now that you could 3 years ago. Even if the cost of labor and materials was unchanged, the cost would be higher because you need more insulation, more sensors for lighting systems, etc.

We also got preliminary costs back on new construction at around $350/sf. Five years ago, the number we were carrying for similar work at a similar scale was $250/sf.

Cam Featherstonhaugh CSI, CDT, AIA
Associate, TruexCullins
Chair, Member Connection Committee

Read more replies, then add your own insight, right here