Supply Chain Disruptions in Construction: How Estimators Protect Material Costs

With supply chain disruptions in construction and rising supplier prices, now is the time for estimators to reevaluate their bidding process to ensure they’re still able to win jobs and maximize their profits.

The current uncertainty surrounding tariffs has already led to price increases across the industry.

According to Associated Builders and Contractors’ (ABC) analysis of U.S. Bureau of Labor Statistics’ Producer Price Index, construction input prices increased 0.5% in March of 2025. These rising costs can affect your bid preparation, project budgeting and, ultimately, eat into your profit margins.

Supply chain disruptions in construction cause material shortages and delivery delays.

Here’s how you can keep winning jobs and building strong bids when faced with material and pricing struggles caused by economic uncertainty.

Key Takeaways:

• Supply chain disruptions force construction estimators to revise bidding strategies.
• Estimators should identify gaps in their process and address them to reduce the effects of cost increases on their business.
• Many estimators are investing in construction estimating software to help them mitigate rising costs.
• Contingencies serve as a powerful financial buffer to offset concerns surrounding rising costs.
• Estimators are turning to McCormick — all-in-one takeoff and estimating software — to help them build better bids in the face of rising material costs.

Understand the Current Bidding Landscape

With the constantly changing economic factors surrounding material prices and availability, it’s important to stay informed, especially about tariffs and the resulting supply chain disruptions.

There are tariffs that are in effect, others that are paused for adjustments and some are pending, so it’s crucial to review trade publications — like Construction Dive — and construction organizations’ websites — like ABC — to stay current on cost changes and how they can impact your estimates.

Review Your Current Quantity Takeoff and Estimating Processes

Construction supply chain disruptions require contractors to reassess estimating and material takeoff processes and identify alternative material sourcing strategies that maintain project viability.

For example, you may be able to order alternative materials or source them from a different, more cost-effective supplier.

In addition to reviewing how you source materials, you should also look for other areas of improvement or gaps you need to address. Common problem areas include:

• Incomplete scope coverage
• Incorrect quantities
• Unclear specifications
• Missing labor or equipment costs
• No allowances for contingencies

Ultimately, by identifying and addressing these concerns, you can improve your bids to insulate areas of your business from rising material costs.

Invest in Construction Estimating Software

Supply chain disruptions in construction create estimating challenges that require real-time material tracking and automated procurement adjustments to maintain accuracy.

Manual estimating, paired with rising material costs, only exacerbates these issues. Estimators may miss a measurement or calculation, which can throw off the entire bid.

Many construction estimators are addressing these concerns by modernizing their approach with construction estimating software to automate measurements, calculations and improve visibility at every step of the estimating process. Some construction estimating software can:

• Allow you to perform takeoff and estimates on the same screen
• Perform real-time updates to keep your project manager, stakeholders and project owners on the same page
• Access trade-specific material databases to get real-time costs and availability
• Improve construction change order management to avoid cost overruns

While construction estimating software can seem like a costly upfront investment, it’s well worth it for many estimators who are looking to minimize the effects of rising costs.

Construction estimating software does this in three simple ways:

1. Review real-time costs of trade-specific materials and find the right supplier in minutes.
2. Perform accurate measurements and calculations to reduce material waste or excess.
3. Many construction estimating software platforms integrate with accounting software, allowing you to see the full impact of material costs and other job costs and adjust in an instant.

By leveraging construction estimating software, you’re able to see the full impact of rising material costs on your estimate and adjust as needed before submitting your bid.

Factor in Rising Costs to Your Estimates

One way to address rising costs is by creating contingencies, or financial buffers that should account for cost increases or project delays. Contingencies combine cost analysis and risk assessment to limit the effects of rising costs on your bids.

By providing contingencies, your company reduces its exposure to price increases. However, it’s important to do research and calculations on the front end to determine the right way to handle your construction cost management.

Contingencies that are too large can lead to misallocations, while not having enough set aside may result in overruns or significant project delays.

Contractors should review data and contingencies from past projects and combine that with their understanding of the current landscape to create contingencies that shield themselves from rising material costs.  

Mitigate Supply Chain Disruptions With McCormick

Supply chain disruptions in construction and economic uncertainty are expected to continue — at least in the short term. Construction estimators need to review and refine their approach to estimating to limit their company’s exposure to rising material costs and continue being competitive.

Many mechanical, electrical and plumbing estimators are turning to McCormick — all-in-one takeoff and estimating software. With McCormick you can:

• Access trade-specific database with real-time material costs
• Automate measuring and counting with a built-in takeoff tool
• Improve change order management to monitor actual vs. estimates
• Combine and split costs with a bid summary section for more clarity

For more information about how McCormick can help you combat rising material costs, speak with an expert today.