Posted: December 16, 2022 | Cost Trends
Housing continues its slide, joined by declines in both office and hospitality construction. However, this is offset by just about everything else to lodge a healthy 12 percent increase in overall construction spending. Much of this increase is due to elevated material costs, but the net effect is still a 2 to 3 percent actual gain. Inflation remains high but has begun to level off — still something to watch. The labor shortage is holding back the commercial rise, with no solution on the horizon. Nevertheless, it’s still a good time to feel positive about the future for commercial construction.
Posted: November 25, 2022 | Cost Trends
Davis-Bacon wage rates are required for contractors or subcontractors performing on federally funded or assisted contracts in excess of $2,000. These wage rates are based on up-to-date data from the Department of Labor.
Posted: November 4, 2022 | Cost Trends
The housing market continues to slow down, offsetting a steady rise in commercial and public works activity. The overall effect translates to modest gains for this quarter. Inflation remains high, and though it seems to be waning it is still at a very high level— so caution is recommended. The labor shortage may be holding back the commercial rise, and the lack of qualified professionals does not seem solvable in the near future. Nevertheless, it’s a good time to feel positive about the future for construction, despite some pitfalls we will have to work around.
Posted: September 23, 2022 | Cost Trends
Asphalt is up 12% for the last twelve months, but it now seems to be slowing down. Twelve months ago it was up 6% and six months before that down 6%. Looking at the graph we see that it remains a virtual roller coaster. Economists were seeing crude oil becoming weaker for the rest of this year, and it looks like they may have been right, but with continued geopolitical uncertainty, it's anyone's guess. As before, asphalt will follow the price of oil.
In a comment letter filed on May 17, Associated Builders and Contractors urged President Biden’s U.S. Department of Labor to withdraw an inflationary and flawed proposed rule revising Davis-Bacon Act and Related Acts regulations that apply to federal and federally assisted construction projects funded by taxpayers.