There are a lot of factors that go into determining the success of your bid estimate but arguably one of the more difficult elements to predict in 2018 has been the cost of materials because it has been a moving target. And this year, it’s generally moved in one direction.
According to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data, nonresidential construction input prices through July 2018 are up 9.6 percent year over year. The most significant driver of this increase has probably been a rise in softwood lumber prices which are up 19.5 percent from July 2017, while iron and steel prices are up 13.4 percent.