Introduction In June 2025, construction cost managers (CMs) and project managers (PMs) face unprecedented inflation across material and labour markets. This trend isn’t seasonal—it stems from persistent global trade tensions, tariffs, labour shortages, and energy-price volatility. To safeguard budgets and programme stability, a recalibrated approach to cost forecasting, procurement, and contract flexibility is essential. 1.1 What’s Fueling Cost Increases? Tariff-Driven Price Spikes – New tariffs on key manufacturing nations, notably China and India, have pushed global material costs—including steel, aluminium, and HVAC components—upward. Supply‑Demand Strain – Post-pandemic recovery efforts and infrastructure investment in Asia and the Middle East face supply…
