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 price increases

• Union wage rate increase for the plumbers and pipe fitters