U.S. construction costs are set to increase by 3 percent to 6 percent in 2024, following an average increase of 4 percent in 2023. Cost escalation will challenge construction firms, which will need to develop new processes and capabilities to keep costs under control and projects on track.
The findings are shared in How to navigate 2024: Balancing challenge with opportunity, a report published by Currie & Brown, a provider of cost management, project management and advisory services.
Currie & Brown also forecasts significant variation in cost escalation between major cities. Construction costs in Chicago are predicted to rise 3.5 percent in 2024, compared with 6 percent in Phoenix. This means that a $10 million project built in Phoenix in 2023 will cost $10.6 million this year, while the same project built in Chicago will cost $10.35 million.
To help organizations navigate uncertainty and be more cost-effective, the report advises project teams
