Posted by 
Bryon Killian on Monday, May 4, 2026
Over the past several years, construction costs have been at the center of nearly every project discussion. Inflation spikes, material volatility, labor shortages, and funding uncertainty have made many owners hesitate.
The question we at Entech continue to hear is: “Should we wait or should we build now?” Our Ed Pietroski, PE, first visited this topic in 2022, during the post-COVID supply chain crunch, which you can read here, but have the answered changed? I was curious, so I wanted to revisit this question.
As engineers, we don’t make decisions based on headlines or gut feelings. We look at data. Specifically, the Engineering News-Record (ENR) Construction Cost Index (CCI) has tracked national construction costs for nearly a century.
And the data tells a clear story.
What does the data tell us?
The ENR Construction Cost Index has increased steadily over time. In fact, looking back over nearly 100 years, costs have risen almost every year, with only rare exceptions during significant economic downturns.
Over the past five years, we saw elevated annual increases as inflation surged across the broader economy. However, more recent data show that while costs remain higher than they were historically, the rate of increase has moderated.
In other words:
- Construction costs have reset at a higher level.
- Extreme volatility has eased.
- The long-term trajectory remains upward.
This isn’t a short-term spike correcting itself. It’s a long-term trend continuing.
Waiting for prices to “return to where they were” is unlikely to be a winning strategy.
What can we learn?
- Lesson #1 - Costs Rarely Go Backward
History shows that construction costs tend to rise over time. Even when the rate of increase slows, the baseline rarely drops meaningfully.
If your project is needed, whether for regulatory compliance, operational reliability, deferred maintenance, or growth, postponing it typically results in:
- Higher future construction costs
- Increased repair and emergency risk
- Escalating operational inefficiencies
- Lost funding opportunities
Delaying necessary infrastructure often compounds costs, rather than reducing it. - Lesson #2 – Planning Takes Time — Be Strategic
Major infrastructure and building projects don’t happen overnight.
Engineering, permitting, funding applications, stakeholder engagement, and bidding all require significant lead time. Smaller projects can take months to prepare. Larger projects can take 12–24 months before construction even begins.
That planning window can work in your favor.
While construction costs may continue to rise gradually, thoughtful planning allows you to:
- Phase improvements strategically
- Lock in funding opportunities
- Conduct life-cycle cost evaluations
- Prioritize highest-risk assets first
- Engage operators and stakeholders early
A well-prepared, “shovel-ready” project, supported by strong data and a clear justification, is far more competitive for state and federal funding programs. - Lesson #3 – Interest Rates & Funding Are Part of the Equation Financing conditions have shifted over the past few years, but historically, borrowing costs have remained within normal long-term ranges.
More importantly, unprecedented levels of infrastructure funding are still flowing through programs such as: - PENNVEST
- USDA Rural Development
- State H2O programs
- Federal infrastructure initiatives
- Lead service line and PFAS funding programs
For many municipal and utility clients, grant and low-interest loan packages can significantly offset increases in capital costs.
When evaluated holistically, construction cost trends, funding availability, asset condition, and regulatory requirements, the equation often still favors moving forward.
The Bigger Picture: Infrastructure Can’t Wait
Across Pennsylvania and beyond, infrastructure systems are aging:
- Water and wastewater facilities are reaching their end of life
- Lead service line replacement mandates Nutrient and PFAS regulations tightening
- Energy systems operating inefficiently
- Deferred maintenance compounding risk
The longer critical assets operate beyond their intended lifespan, the more unpredictable and expensive failures become. We've developed a downloadable infrastructure risk and planning checklist to help you assess your system(s) and support honest discussions and long-term planning.
At Entech, our mission is to help clients make more informed decisions to confidently build, operate, and improve their infrastructure. That means looking beyond short-term cost headlines and evaluating the full life-cycle impact.
The real question often isn’t: “Will costs go down?”
It’s: “What is the cost of doing nothing?”
Categories: Municipal Infrastructure | Entech, Engineering, & Beyond
Tagged: Potable Water | Wastewater | Municipal Engineering | Stormwater | Budgeting & Funding | Engineering