Menu

Hermanson Construction Cost Index - Q3 2021

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 chain issues remain, but manufacturers are beginning to catch up with demand. Overall, mechanical costs remain up over 25% in 2021.

FACTORS:

  • Equipment & Labor: Prices remained relatively stable, with only slight increases

  • Commodity Costs: Commodities have also stabilized with slight decreases in copper and steel prices from Q2 2021.

Blog-Charts-Q3.21.B12iqrb7t.png

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