An article on Buildipedia.com addressed why construction costs are on the rise. It’s a good analysis, and echoes what we’ve been seeing here in Wisconsin and throughout the Midwest. With our nation sitting in an economic slump, you would think that construction costs would be decreasing, when in fact, just the opposite is true.
There are a number of factors at play. We live in a global world, where supply and demand in other parts of the world plays into our costs here at home for many of the materials used in local projects. The industry is also affected by transportation costs and crises in other countries.
Construction bidding is a complex process, particularly when so many variables influence our costs. I encourage you to check out the article, Why Are Construction Costs on the Rise?