As the Russian invasion of Ukraine drives up commodity prices, and similarly, materials costs, many contractors may have unrealistic expectations about their ability to pass along the increases to project owners, warns Anirban Basu, CEO of Sage Policy Group and chief economist for the Associated Builders and Contractors.
The conflict is exacerbating pre-existing issues for job owners and suppliers that are elevating bids and delivery costs, Basu told the Construction Users Roundtable (CURT) in a presentation April 1. But despite those rising costs, he added that recent surveys of ABC members have shown that they expect sales, employment and profit margins to rise in the coming year.