Many of Hermanson’s clients – both owners and general contractors – continuously seek to understand the trends impacting Mechanical Construction Cost.

2021 has been extraordinary in the impact to construction costs. After seeing a reduction of 4.1% in 2020, mechanical contractors have been hit with a year-over-year net increase of 40% for a typical Pacific Northwest project. 

With a 14.9% quarter-over-quarter increase, Q4 2021 was impacted by minor cost increases in almost every component of mechanical construction, however, equipment pricing has risen at unprecedented levels. Manufacturers have worked through their supplies and pricing now reflects commodities increases previously seen by other industries. The result is that equipment prices have risen significantly, in some case up to 100%. 

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