Material Price Spikes Impacting Construction Projects Nationwide

The U.S. is experiencing dramatic cost escalation and material pricing pressures, both locally and abroad. Prices for lumber, brick, steel and aluminum have soared, and costs for cement and rebar may also be rising. Higher prices for copper have affected electrical wiring costs and availability. Orders for engineered wood products such as I-beams and flooring (both medium density fiber and engineered hardwood) are backed up for months due to price increases of 50 percent or more. The lattermost shortage is particularly acute for larger commercial projects.

In general, these cost increases will likely lead to more construction claims, downstream disputes, and delayed start dates as owners rethink project timing due to escalating bids. Costs are also being exacerbated by tariffs on imported lumber, steel and aluminum. Additionally, increasing material costs from China have created questions about shifting production costs and contracts from other areas of the world —