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.

Hermanson’s Mechanical Construction Cost Index is based on a comprehensive, representative PNW region project. A complete estimate for this baseline project was completed is Q4 2017, and is updated with current pricing following the end of each quarter. Through Q4 2019, an overall decrease of 1.6% was realized. Factors that influenced this decrease:

MATERIALS

• 10% Drop in Steel Pricing
• 10% Drop in Copper Pricing
• 6% Drop in Galvanized Sheet Metal
• 4% Increase in PVC Pricing
• Equipment & Fixtures remained Level

LABOR

• 2% Increase In Fitter & Plumber rates (Local 32)

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