Material prices move faster than most estimating systems can track. When prices rise sharply, estimates go stale before bid day. This guide explains how to handle volatility and availability in your pricing.
Confirm Pricing Near Bid Day
Price critical materials as close to bid day as possible. Confirm quotes with suppliers and note validity dates. For long projects, revisit material pricing at regular intervals so the estimate reflects the market.
Use Escalation for Future Work
When delivery is months away, build escalation into the price. Escalation covers expected price movement between bid and purchase. Base it on published indices and supplier guidance rather than guesswork.
Plan for Availability Risk
Some materials face long lead times or shortages. Identify long-lead items early, confirm availability with suppliers, and price alternatives in case the primary choice cannot be delivered. The material cost guide covers pricing trends across major commodities.
Document the Assumptions
Record the pricing date, supplier, and validity for each major material. Documentation lets you defend the bid and adjust cleanly if prices change before award. It also protects you if a supplier quote expires.
For current material trends and pricing updates, follow the USA estimating blog.
