top of page

Mitigating the Rise in Construction Costs: Why Early Decisions Matter

Mitigating rising construction costs: Cost versus influence chart created by Cella Building Co

Steve Achram, Cella Building Company

Feb 19, 2026

More projects are stalling today, not because they lack vision, but because projects that once “penciled” simply don’t anymore.

Since 2020, construction costs across West Michigan have risen sharply. Tariffs, material inflation, labor shortages, supply chain disruption, and higher lending rates have reshaped what’s feasible.


Yet despite these headwinds, we continue to see projects move forward successfully. The difference isn’t luck; it’s when and how cost decisions are made.


Cost versus influence chart
Cost versus influence chart

The Power of Early Influence

Decades of experience have reinforced a simple truth: The earlier you involve the experts closest to the cost, the more control you have over your budget.


The cost influence curve illustrates this clearly. During concept planning and early design, teams have the greatest ability to influence cost with the lowest financial commitment. As a project moves into construction and operations, costs rise rapidly while your ability to influence them drops just as fast.


In other words, waiting to “value engineer” later is often too late.


Designing to Peak Efficiency

True cost control doesn’t come from cutting corners; it comes from designing smarter from day one.


For some projects, this means:

  • All-electric systems that reduce infrastructure complexity

  • Simplified mechanical systems that reduce upfront capital expense

  • Designs that achieve 50%+ operating cost savings over conventional systems

  • Right-sized buildings; no excess square footage

  • High-performance envelopes and efficient lighting strategies

  • Site planning and material choices that balance cost, durability, and design intent


Lower complexity not only saves money today, but also reduces long-term maintenance risk and operational volatility.


Right-Sizing Matters More Than You Think

One of the most overlooked cost drivers is square footage.


It is critically important to scrutinize every room, hallway, and mechanical space to ensure it’s right-sized and not oversized “just in case.” Reducing even a few hundred square feet can easily save $50,000 or more, before long-term operating costs are factored in.


Small decisions, made early, compound into meaningful savings.


Risk Reduction Through Experience

Those closest to the cost aren’t just better estimators; they’re experts at identifying risks associated with cost.


Having lived through budget overruns, scope gaps, and unforeseen conditions, experienced teams are best equipped to identify risks early, before they become expensive surprises. Thorough due diligence, paired with early conversations with local planning officials and subcontractors, often uncovers constraints and opportunities that can materially affect budget and schedule.


The Bottom Line

Rising construction costs aren’t going away. But projects don’t fail because costs increase; they fail because teams wait too long to confront them.


The developers and building owners who succeed in this market engage the right expertise early, aligning design, budget, and risk before momentum and capital are locked in.


About Cella Building Company

Cella Building Company partners with developers and building owners to bring disciplined planning, design alignment, and owner-level accountability to every project. By integrating cost insight early, Cella helps teams reduce risk, protect long-term value, and build with clarity in an increasingly complex market.


bottom of page