A residential tower under construction at 212 Stuart St. in Boston is seen in this undated handout photo. Photo courtesy of Sasaki and Höweler + Yoon

The Russian invasion of Ukraine and new spending driven by the $110 billion Infrastructure Investment and Jobs Act will place more price pressure on construction projects in the coming months, according to a pair of industry reports.

Milford-based Consigli Construction predicts costs of key building materials including roofing membranes, electrical equipment and duct piping will rise 10 to 15 percent in 2022. Overall construction costs are expected to rise 7 to 9 percent, the report said.

The Ukraine war is choking off supplies of aluminum, iron ore, nickel and copper from eastern Europe and straining production and delivery of European-manufactured items such as security glass.

Boston’s busy construction climate is generating demand for out-of-state labor, with union pipefitters, sheet metal workers and insulators using close to 500 traveling workers from throughout the East Coast.

“These strong backlogs will challenge workforce availability and continue to drive prices up,” the report stated.

Meanwhile, construction consultant Rider Levett Bucknall said project spending driven by the $110 billion Infrastructure Investment and Jobs Act could compound inflationary pressures.

Greater Boston already has the nation’s second-highest construction cost escalation between January 2021 and January 2022, according to the firm. Costs rose 9.9 percent, trailing only Seattle’s 10.8 percent.

Supply chain delays are plaguing all levels of the industry from raw materials to finished products, creating pent-up demand for building supplies, according to the report.

“A spike in fuel prices and a shortage of truck drivers are still slowing overland transit of goods, a condition exacerbated by lack of warehouse space,” Rider Levett Bucknall reported.

Ukraine War, Infrastructure Bill Compound Construction Cost Hikes

by Steve Adams time to read: 1 min
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