The price of materials and services used in nonresidential construction increased 0.4 percent from March to April, while an index that measures contractors’ bid prices inched up by 0.1 percent, according to an analysis by the Associated General Contractors of America of government data released today. Association officials cited a new survey of highway contractors that indicated inflexible federal Buy America mandates could lead to future price escalations and other disruptions to highway projects.
“Prices for construction inputs have risen faster than contractors’ bids every month so far in 2024,” said Ken Simonson, the association’s chief economist. “In addition, persistently long lead times for electrical equipment are adding to the cost of many building and infrastructure projects. Meanwhile, inflexible rules for sourcing materials could drive up prices for federally aided projects such as highways.”
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