Contractors’ bid prices for constructing new nonresidential buildings finally caught up with soaring costs for the materials and service they buy in May, according to an analysis by the Associated General Contractors of America of government data released today. Association officials cautioned that contractors will have a hard time keeping pace with additional price spikes for many key construction materials.
“After enduring more than a year of runaway increases in the cost of items needed to build projects, contractors have finally raised their bid prices by an equivalent amount,” said Ken Simonson, the association’s chief economist. “But the runup in materials costs appears likely to continue to pressure contractors’ profit margins.”
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