Seattle Contractors Struggle To Cope With Cost Escalation that Adds Risk
Seattle’s commercial building boom is making life interesting for area builders as they struggle to put together competitive bids and meet project budgets, knowing that materials and fuel prices will continue upward and owners are becoming more resistant to escalation adjustments.
The big issue for project managers is how to mitigate the risk of volatile material and fuel prices. The reality is that the days of stable prices for construction materials are over for the foreseeable future. The major factors are increased construction activity and demand for materials in Asia and the devaluation of the dollar relative to other currencies.