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Hermanson Construction Cost Index - Q4 2021

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 icnreases in almost every component of mechanical construction, however, equipment pricing has risen at unprecedented levels. Manufacturers have worked through their supplies an dpricin gnow reflects commodities increaes previously seen by other industries. The results is that equipment prices have risen significantly, in some case up to 100%. 

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Hermanson’s baseline project estimate contains Puget Sound pricing the following components:

Plumbing

  • Labor

  • Material

    • PVC

    • Cast Iron

    • Copper & Steel Threaded Pipe

    • Restroom Fixtures

HVAC

  • Labor

  • Material

    • Ductwork

    • Pump

    • Copper & Steel Threaded Pipe

    • Exhaust Fan

    • Accessories