Something that seems like it should be straightforward, clear, + objective but is most definitely not: construction pricing. There are many reasons for this. (PS I was a estimator/PM at a construction co. before I was an Architect, so my thoughts are informed by that experience):

Construction materials like lumber are commodities, meaning their price fluctuates daily. When supply chain issues (COVID) and forest fires cause disruptions, prices can dramatically increase (50-100%) in a matter of days. 2/x

Construction products like appliances, HVAC equipment, light fixtures, etc are global - their raw materials, assembly, distribution are spread across the world. Tariffs, trade agreements, pandemics, or any other disruption the flow of material/product cause price increases. 3/x

Construction relies on functioning local government, as building codes, inspections, zoning hearings, etc are all administered locally. If your local building dept is short staffed or overworked, expect wait times for inspections or permits to balloon. 4/x

Some clients are indecisive, causing delays in design or construction. The *single most important thing* a client can do to save $$ is keep things moving by being decisive/not going back on decisions. Rework costs money, can't be predicted, + is the ruination of many budgets. 5/x

When the GC meets a client for the first time, they are assessing the project AND the client. If a client seems like they'll be a pain (ie nickel and diming, not having a clear design, being indecisive, being unpleasant or mean), the price *will* be higher. 6/x

Construction is done by people. They get sick, they have families. In times like these, juggling child care and job uncertainty during a pandemic means crews are less reliable, through no fault of their own. This costs the project extra $$. 7/x

Weather. If it rains/snows/is very cold or hot, crews slow down. Some work can't be done during certain types of weather (ie painting outside in the rain), + it slows down the job, costing $$. Smart GCs rotate work based on weather, but there's only so much they can do. 8/x

Incomplete drawings. If the client is unwilling to pay for complete drawings to "save $$," they'll pay for it many times over to their GC, who will take longer to do the job. When a GC sees incomplete drwgs, they know they'll have a lot more work to do, so the price goes up. 9/x

Overdrawn drawings. Conversely, if the Architect/designer has *overdrawn* the project, or obsessed over a million details that don't matter, or filled their set with stuff that shows they don't know how to build, the price will also be higher. Again, more hassle for the GC. 10/x

Ok let's talk about phasing - every client's favorite idea for saving $$. Well, ramp-up costs for a GC means that it's more cost effective to do as much work as possible all at once. If they have to mobilize twice, it'll cost you. It's so much hassle. Hassle costs $$. 11/x

That said, *smart* phasing is a great way to save $$. Pulling apart a project into sensible chunks with as little trade overlap as possible can save $$. So, doing one bathroom at a time? Stupid. But doing the exterior work first and then the interior? Likely works out great! 12/x

This is bc GCs don't price things in the same chunks clients think things. Clients think "kitchen, bathroom, bedroom" and GCs think about trades. A kitchen costs less to do if we're already there doing a bunch of other stuff, than it does as a standalone project. 13/x

Subs. Good GCs treat their subs well, + get good pricing based on longstanding relationships. This means upfront cost may be higher, but longer term costs (ie you're not repairing shoddy work a year later) are lower. Not all GCs use the same caliber subs, so their bids vary. 14/x

Literally every GC uses a different format to present numbers, so it's very hard to compare bids apples to apples. Using Masterformat (the old 16 divisions, currently like 876 divisions now) helps, but it's still a mess. This means it's hard to tell if a bid is complete. 15/x

Construction is emotional. Ppl say it's only like that in custom residential, but my clients in *all* sectors (commercial, retail, multifamily, industrial) react emotionally. It's bc we're *human*, + chances are, the project is the most expensive thing in their lives. 16/x

Things change during construction. Even if everyone planned everything perfectly, shit happens. Pandemic, change of zoning, economy, life stuff, financing, etc can impact projects at any time and cause delays and cost issues. 17/x

Ok these are just SOME reasons why it's rly hard to give straightforward answers on construction pricing. It's usually abt the fact that there is *a lot* of stuff the proj team can't control. I'll prob keep adding as I think of more, interested to hear others' thoughts too! 18/x