The construction marketplace in the US experienced dramatic changes from 2002through 2011. From 2002 to 2006, overall construction spending increased by 35%, an average ofalmost 7% per year. After the peak year of 2006, spending then decreased by 35% through the endof 2011. The period of 2002 – 2011 has recorded the most significant upward and then downwardchange to have occurred in the last 40 years. As a result of the dramatic reduction in constructionvolume, exceptional competition has dropped bid prices 10%, 20% to even 40%. Constructionvolume remains constrained and bid prices remain very low. This paper expands on one presentedin 2011 that addressed how construction volume affects competition, how competition affectsprice, how to react to very low bids/prices and how to properly enhance competition. This paperfurther explores reasons why construction volume expands and contracts, presents an analysis ofthe latest data and pricing (2012) and offers projections on the construction marketplace to budgetprojects for the future.
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