Construction pricing hitting bottom

If you're thinking about starting a construction project, the next few months could be the best time, if national trends and expectations come true.

Nationwide, the cost of building a warehouse has dropped to $126 a square foot, the lowest it's been since September 2008, according to the U.S. Bureau of Labor.

It is important to note there are hundreds of factors that go into a price of an individual project, but when looking at a large scale view of construction pricing, there are four basic factors examined. They are:

• Volume
• Commodity Pricing
• Labor
• Contingency and fees

So far in 2009, nationally the industry has seen a decrease in all areas except labor, according to industry publication Tradeline. The labor portion actually increased as fewer workers were more productive. However, across the board, all four are showing signs of stabilizing.

What that means for you is that 2010 could start to see a growth pattern in construction and a national increase in price. The good news is that pricing is not expected to exceed the rate of inflation for at least three years.