Two-year construction cost outlook and bid strategies:

With tariff policy and energy costs in flux and the Federal Reserve continuing rate changes, capital planners face a pressing question: How much escalation should owners budget for projects breaking ground in the next few years? The Vermeulens team analyzes leading indicators—equities, GDP, job creation, oil, lumber, copper, and steel—alongside construction volumes and labor productivity to model how tariff and monetary policy will reshape pricing structures. They deliver a regional construction labor weather map identifying where capacity is tightest, and two-year escalation scenarios by region. They illustrate practical methods for setting design, escalation, bidding, and construction contingencies and controlling delivered costs across micro and macroeconomic environments.