Response
Staying in control
Volatile energy prices and the resulting increased risk and uncertainty are likely to keep pushing construction costs up over the coming months. The impact will vary by market, sector and project type, but few projects will escape the impact.
The direct cost of materials is only part of the picture. Changes in energy markets can influence manufacturing, transportation, equipment availability, supplier pricing and lead times. Those effects can work their way through a project long before they become visible on site.
The projects best placed to respond are already taking action.
They’re using market data and benchmarking to understand where they are most exposed. They’re testing different scenarios before major decisions are made. They’re identifying critical materials, equipment and suppliers early, securing capacity where needed and keeping flexibility in design and procurement where it adds value.
They are also bringing key decisions forward. Requirements, scope, phasing and long-lead items become much harder to change once projects are underway. Decisions made early often create more options later.
Risk needs to be managed across the whole project team. Owners, designers, contractors and suppliers each see different parts of the picture. Bringing those perspectives together early helps identify issues sooner, reduce unnecessary contingencies and avoid problems that become more expensive to solve later.
Construction markets will continue to change. Energy prices will move. Supply chains will adapt. New risks will emerge and others will fade.
The advantage will belong to those who understand where they are exposed, make informed decisions early and retain enough flexibility to respond as conditions evolve. That’s how projects maintain momentum, protect value and move forward with confidence, even when the market around them remains uncertain.
The advantage will belong to those who understand where they are exposed, make informed decisions early and retain enough flexibility to respond as conditions evolve.