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Articles in Mechanical Construction Cost Index

Mar 22, 2022 | Source: Hermanson Marketing Mechanical Construction Cost Index

Many of Hermanson’s clients – both owners and general contractors – continuously seek to understand the trends impacting Mechanical Construction Cost. For at least the first quarter of 2022 double-digit increases in mechanical construction costs took a break. Netting an overall increase of 1.1%, Q1-2022 benefitted from stabilized pricing in most cost components.  After significant increases in equipment pricing in Q4-2021, HVAC costs were up slightly, with both commodities and equipment remaining stable. Plumbing costs were up 1.8%, primariliy reflecting increases in PVC and Cast Iron. Scheduled regional labor rate increases are also incorporated into the overall uptick.  Continuing concerns about nternational unrest,... Read More


Jan 11, 2022 | Source: Hermanson Marketing Mechanical Construction Cost Index

Many of Hermanson’s clients – both owners and general contractors – continuously seek to understand the trends impacting Mechanical Construction Cost. 2021 has been extraordinary in the impact to construction costs. After seeing a reduction of 4.1% in 2020, mechanical contractors have been hit with a year-over-year net increase of 40% for a typical Pacific Northwest project.  With a 14.9% quarter-over-quarter increase, Q4 2021 was impacted by minor cost increases in almost every component of mechanical construction, however, equipment pricing has risen at unprecedented levels. Manufacturers have worked through their supplies and pricing now reflects commodities increases previously seen by other industries.... Read More


Sep 16, 2021 | Source: Hermanson Marketing Mechanical Construction Cost Index

Many of Hermanson’s clients – both owners and general contractors – continuously seek to understand the trends impacting Mechanical Construction Cost. Hermanson’s Estimating team has long tracked key construction cost indicators as part of our continuous effort to provide accurate costing information. Now, every quarter, we are publishing a basic Mechanical Construction Cost Index to help our clients understand mechanical market conditions and to plan their projects. After jaw dropping increases in the first two quarters of 2021, the mechanical market has stabilized in Q3 with a slight drop in the project costs from an all-time high in Q2 of 2021.  Supply... Read More


Jun 11, 2021 | Source: Hermanson Marketing Mechanical Construction Cost Index

Hermanson's Estimating Department began tracking mechanical construction cost indicators in 2017 to share quarterly with the AEC community. Based on costs to complete a comprehensive, representative PNW region project, this information assists general contractors, developers, and owners make informed decisions about project costs.  After posting the highest gain recorded since 2017 in Q1 2021, the construction cost index continued to rise in Q2 2021 at a quarter-over-quarter increase of 12.1%. This brings the total incurred cost increases for 2021 so far to 25.5%. These increases are being felt across the county.  Hermanson is in regular contact with a Peer Group made up... Read More


Apr 1, 2021 | Source: Hermanson Marketing Mechanical Construction Cost Index

Hermanson's Estimating Department works to compile the factors that influence quarterly mechanical construction costs and pass that information along to our clients (including general contractors, developers, and owners) to help them understand and plan for possible cost impacts to their projects.  Hermanson’s Mechanical Construction Cost Index is based on a comprehensive, representative PNW region project. A complete estimate for this baseline project was completed in Q4 2017 and is updated with current pricing each quarter. In 2020, economic impacts of COVID resulted in a year-over-year decrease, however that trend has reversed, and Q1 2021 saw a quarter-over-quarter increase of 13.4%. FACTORS: Significant commodity... Read More