Recently, the Post and Courier sounded off on the issue of higher ed construction spending:

Over the last four years, construction costs at our state's colleges have totalled about $1 billion, according to a recent report in The Greenville News. Since the recession began, building projects valued at $60 million have been approved.

College officials cite the necessity of keeping up with the demands for program improvements and growth. And they make the point that building expenses don't come from the same pot of money that colleges depend on for operating expenses.

Nevertheless, it is still reasonable to question whether a building boom is warranted during these tough economic times.

Vermeulens Cost Consultants in Toronto and Boston has conducted extensive analyses of pricing trends going back to 2005. The company’s data shows that between 2005 and 2008 construction costs increased 6 to 8 percent per year, which is double the average inflation trend of 3.5 percent per year.

However, their analysis also reveals that costs began to decrease in December 2008 and have continued a downward slide. The outlook for the future, according to Vermeulens, shows overall construction costs continuing to decline for the remainder of this year by 6 to 8 percent from 2008 levels.

Just as quickly as the window of opportunity opened, though, it could slam shut. In fact, Vermeulens’ cost-tracking studies conclude that costs should improve by 3 to 5 percent in 2010 and by 6 to 8 percent in 2011. The unpredictability of economic conditions and other variables makes it important for owners to take advantage of current conditions during what could be a narrow window of opportunity.

http://www.tradelineinc.com/reports/A8C91D68-D4E0-CDD2-CDCFB28340A3504A

One of our clients stated they were averaging around $800,000 for a new ground up facility, they now are paying around $600,000. Financing is tougher to find but with diligence you can develop new facilities at prices not seen in 20 years. General Contractors are bidding projects at or possibly below cost to cover staff without work. Keep in mind that those who are bold in times like these will turn adversity to advantage.

http://www.mrpdesign.com/blog/bid/31605/Construction-Opportunities-in-Bad-Economy

"At Baltimore-Washington International Marshall Airport, a recent project to reconstruct the area around Piers C and D received six bids instead of the usual two or three. The result: The estimated $50 million project will be built for $8 million less than was budgeted, and the savings will be allocated to other projects. There were 21 bidders for a $200,000 drainage project in Carroll County, more than anyone could remember."

http://www.planetizen.com/node/38242

Bullitt County Public Schools paid $12.5 million to build Roby more than a year ago, but spent nearly a million dollars less for Crossroads, which opened Wednesday — and the district has the depressed economy to thank.

“It’s a perfect example of what a difference a year and a lot more competition can make,” said Tom Rogers, the district’s project manager for new school construction. Ten companies bid on the Roby project, compared to a record 23 bidders for Crossroads, which helped lower the price, Rogers said.

And Bullitt isn’t the only district reaping the benefits. Across Kentucky, Indiana and the nation, the bad economy has been good for school construction projects, with lower costs resulting from more competition, lower prices for materials like steel and drywall and better bond rates.

http://www.courier-journal.com/article/20100813/NEWS0105/308130081/-1/rsslink

The weak U.S. economy had a pervasive effect on price movements in 1991; energy indexes plummeted at all stages of processing, after increasing sharply in the previous 2 years

Prices received by domestic producers turned down broadly in 1991, after registering substantial advances a year earlier.