Over the last six months, the deepening recession its accompanying credit crisis have dramatically changed the construction industry’s cost picture. Construction inflation has gone from the double-digit realm just last summer to between 2% and 6% this quarter. Ten of the 14 major industry cost indexes collected by ENR for this report posted declines during the first quarter, ranging from 0.5% to 8.4%. Slide Show Photo: Michael Moore Related Links: Renegotiations Make Bad Times Worse Labor Deals with Uncertainties Finding Cost Data on the Internet What Drives ENR’s Cost Indexes How To Use ENR’s Cost Indexes View Complete Report with
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.