
Cory Salisbury
Founder & Fractional CFO • Salisbury Bookkeeping
What Does Inflation Mean for Your Construction Bids in 2026?
Material prices up about 2-3% year-over-year. Enough to destroy tight margins on fixed-price contracts.
How to Estimate When Prices Keep Moving
- Separate Locked and Exposed Costs
- Add a 3-5% Pad to Exposed Costs
- Use Escalation Clauses on Large/Long Projects (over $100K or 90 days)
- Get Written Quotes with Expiration Dates
What If You Are Locked Into a Fixed-Price Contract?
- Document everything
- Identify scope changes for change order opportunities
- Communicate early rather than at final invoice
Should You Raise Prices Across the Board?
No blanket increases. Analyze your last 5-10 jobs. Test new pricing on three bids. Winning 30-50% of bids indicates proper pricing.
Cash Flow Protection
- Move to progress billing with more milestones
- Watch material ordering timing
- Track cash flow weekly, not monthly
Ready to see your numbers?
Book a free 30-minute call.
You walk away with a list of leaks in your books. Free. No pitch.
Book a free call