DUROTECH REPORTS: Annual Construction Costs Forecast

June 2023

The last two years have been difficult for Owners/Design Teams, and Contractors - for some, the most difficult and problematic ever encountered. Budgets have been stretched and broken, schedules delayed and extended by materials and covid issues, and only a handful of projects have emerged unscathed. After reviewing subcontractor survey results, this report will look at current local and global trends affecting local costs and potentially impacting costs for several years in an effort to provide some potential look ahead awareness. The Houston market is still very busy. It will be important to be aware of potential cost and delivery disruptions, but also to be able to explain them to constituencies in the event they occur.

The forecast will also attempt to identify some cost impactful wild cards as yet unfactored in the markets, and when they potentially could occur. We believe construction cost and materials markets will experience periodic choke point disruptions in the near and mid term. We will move very fast with many graphics to depict the basis of these potentialities. The forecast concludes with a construction cost projection for the next 3 years based on these circumstances.