10/16/2026
Material costs are up 6.4% this year. Contractors have only passed 3.5% of that along in their pricing so far.
That gap, from JLL's midyear construction report, is worth sitting with. It means bid prices haven't fully caught up to what materials actually cost today. JLL expects that gap to close before the year is out.
For owners planning a project in the next six to twelve months, that's not a footnote. It's a reason to lock in scope and pricing sooner rather than later.
We've had this conversation with several Colorado clients this year. Waiting for costs to stabilize isn't a strategy right now. Getting ahead of the pricing curve is.
Preconstruction exists for exactly this reason: to make decisions early enough that shifts like this don't blow up a budget after the fact.
Source: https://www.bdcnetwork.com/construction-costs/article/55403614/contractors-expected-to-pass-more-of-their-rising-costs-on-to-owners