Construction Costs Surge 12.4% Globally Due to Uncertainty

Uncertainty has significantly impacted global construction costs, adding an average of 12.4% to project pipelines over the past year. This increase translates to nearly $2 trillion in additional expenditures for 2026, according to the latest Construction Certainty Index published by Currie & Brown.

What Happened
Currie & Brown's annual report highlights the growing financial burden on the construction industry caused by uncertainty. The Construction Certainty Index, a benchmark for measuring the confidence of construction project pipelines worldwide, reveals that higher-maturity organizations—those with more advanced risk management and planning capabilities—are better equipped to withstand these disruptions. The report underscores the importance of resilience in the face of geopolitical instability, supply chain disruptions, and fluctuating market demands. It also indicates that organizations with mature operational structures are leveraging technology and strategic planning to mitigate risks and control costs more effectively.

What This Means for Your Business
For industry leaders in architecture, engineering, construction, and manufacturing (AECM), understanding and adapting to these cost escalations is crucial. Companies must consider enhancing their risk management frameworks and investing in technologies like data analytics and project management software to improve project predictability and cost control. Additionally, aligning with federal compliance requirements such as the Cybersecurity Maturity Model Certification (CMMC) and adhering to NIST standards can further safeguard operations against unforeseen disruptions. This strategic focus not only aids in maintaining competitive positioning but also maximizes return on investment by minimizing unexpected expenses.

What US Operators Should Watch
US operators should closely monitor federal funding opportunities and procurement windows, as government contracts may offer some relief from rising costs. Staying informed about upcoming regulation timelines and deadlines for compliance audits can also help organizations remain compliant and competitive. Furthermore, tracking advancements in construction technology and incorporating these innovations into project plans can enhance operational resilience and efficiency.

Source: Currie & Brown's Construction Certainty Index Reveals How Higher-Maturity Organizations Are Building Resilience Through Disruption