The November 2021 AGC data shows there’s been an alarmingly large gap between construction input inflation and bid price inflation since April 2020, but it appears the bid price inflation is finally gaining ground. The bid price inflation rate sharply rose from 2.8% in May 2021 to 12% by October 2021. Industry analysts expect bid prices to continue trending upward as material prices and supply chain remain volatile and the cost of labor remains elevated. You don’t need a graph to validate these risks and impacts because you’ve likely experienced them firsthand on your projects over the last 18 months.??
Depending on your industry, a $3 million project that you did in 2018 could now cost $5 million or more! This is critical for owners and sureties to understand when qualifying contractors for new opportunities. Given the elevated risks, construction companies need a trusted surety bonding agent with a pulse on the industry now more important than ever.
Our purpose is steadfast in doing what’s best for our clients. Our expertise, industry knowledge and over 60 surety partners allow us to provide our clients with 5-star service and the most competitive programs in the market. Florida Surety Bonds will arm you with the best construction resources, educational opportunities, and counsel to secure your success. You can count on us to continuously improve your bonding program to support new opportunities and larger contracts. Reach out to us if we can be a resource to you!
