Material prices rising again
Construction material prices ticked up in February as oil and supply-chain pressure pushed costs for copper, wire, and conduit higher—tenders rose modestly but construction inputs are under short-term pressure. This continues a trend toward building contingencies into bids and using escalation clauses on larger jobs. (enr.com)
The U.S. Producer Price Index data show construction material prices rose 3.1% year‑over‑year in February and 1.3% since January, with construction inputs 45.3% higher than in February 2020. (enr.com) Copper wire and cable prices climbed 27.1% versus February 2025, steel mill products increased 20.9%, and iron and steel jumped 15.3% year‑over‑year, according to the ENR analysis of BLS data. (enr.com) Energy inputs also moved sharply: natural gas was up about 30% since February 2025 and crude oil traded near $100 per barrel in mid‑March, amplifying diesel and freight cost pressure across supply chains. (enr.com) ABC calculated material input prices rose at a 12.6% annualized rate during January–February 2026 and warned that pace could become a “real headwind” for construction activity. (abc.org) Trade groups reported rapid month‑to‑month fuel and metals moves—diesel jumped over 20% from January—and AGC flagged that owners may delay projects if volatility persists. (agc.org) Public owners are formalizing protection: state DOT guidance and spec packages (including Florida’s Material Price Adjustment specs and municipal price‑adjustment rules) show copper, PVC, aluminum and diesel frequently covered by contract price‑adjustment mechanisms. (fdot.gov) (mass.gov) Contracting practice is shifting toward index‑based or hybrid escalation clauses tied to BLS PPI series for metals and lumber, with common activation thresholds in the 3–5% range and caps often set around 10–15% in hybrid structures. (constructionbids.ai) (costestimation.us)
