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The answer definitely is – it depends.  Since the great recession started in October, 2008 prices have gone down.  Statistically speaking, the recovery began six months ago, though our industry always lags.  The good news is that we are seeing banks begin to lend, and clients are calling to ask what has happened to their prices on projects bid one to three years ago. 

The best way to answer this question is to check the prices.  This can be done by calling the low bidders and verifying, or if the project looks imminent, rebidding it.  Here’s what we found:

1. In recent months, selected material prices have and are increasing.  Most subcontractors are willing to offset this and hold their price.
2. Many low bidders from a year or so ago are out of business, so the low prices from that time are not around.  With the accelerating demise of many subcontractors and even general contractors, this is expected to be a bigger issue.  One industry expert has stated that as many as 50% of all construction companies will be out of business by mid-2011, a staggering number.

In general, we are able to hold prices.  We are not seeing much reduction because of the above, however.  So the answer is – it depends.