How National & Local Economic Conditions Impact Future Construction Costs

U.S. General Services Administration

OCMI’s market studies encompass national and local market conditions to determine overall cost escalation over a period of time.

The General Services Administration (GSA) – the real estate arm of the federal government – needs to understand how national and local economic conditions impact the future costs of their construction projects. In partnership with OCMI, we have completed several in-depth, comprehensive market studies for GSA-funded projects across the country, most recently in Texas, Louisiana, and Mississippi.

After receiving Congressional funding for their projects, GSA ascertains and tracks information on various topics that may affect construction costs. In assisting GSA, OCMI gathers and analyzes a variety of data points and information from a wide selection of sources, including industry-leading contractors and subcontractors, local business leaders, architects, engineers, and others.

To further assist GSA in making informed design and construction decisions on their projects, OCMI’s market studies provide GSA with an all-encompassing and clear picture of the national and local construction markets.

  • We evaluate overall market conditions and projections of future growth trends.
  • We review projects in progress or projected to be in progress during the period of GSA’s project construction, to determine the availability of labor and material resources.
  • We interview local A/E/C industry professionals to identify market sector factors that could influence the overall cost and schedule of the project.
  • We observe the physical site of the project to determine accessibility, mobility, and other related items.
  • We analyze the capacity of local and regional contractors (both large and small businesses) to bid on the project.

With this information, OCMI develops and documents our understanding of the existing markets and expectations at the time of the project’s bid through construction.

Ultimately, our market studies conclude the overall escalation of construction costs throughout the project’s anticipated period of performance.