Construction Inflation

Controlling costs when it comes to construction is a challenge. If you want it done now, such as a water main break, is more expensive then planning ahead for replacing water mains. Regardless we are trying to manage how construction costs through implementing the Asset Management Plan.

For us it seems like construction price index increases more than 10% per year. For example the walking trail bridge was budgeted for $100,000 and the lowest bid was $477,000. Due to connections amongst the Town Staff the project was completed for $100,000.

Below is a table I made based on data I found relating to expected construction inflation in and around Edmonton.

Cost	2013	2014	2015	2016
	Percentage of Change Over the Previous Year
Municipal Infrastructure	8% - 10%	10% - 12%	15%	20%
Building Infrastructure	6% - 8%	10% - 15%	15% - 30%	10% - 15%