CHICAGO—Overall construction costs Chicago metropolitan area will increase by about 4.5% during 2015, according to the Mortenson Construction Index, a quarterly study published by Mortenson Construction Co., a family-owned firm. This pace is somewhat quicker than was expected at the start of the year when Mortenson predicted that overall Chicago costs would increase by 4.0%.

“Construction cost increases in Chicago generally trend higher in the 2^nd quarter as union wage and benefit increases take place on June 1^stof each year,” Dennis McGreal, chief estimator for Mortenson's Chicago office, tells GlobeSt.com. “Chicago commercial construction is having its busiest year since the recession began in 2008. There has been a gradual increase in the prices of some commodities and as subcontractors get busier, they are able to raise prices.”

The company calculates the index quarterly by pricing representative non-residential construction projects in various metropolitan areas, he adds. The representative model and inputs remain the same quarter to quarter. The index includes over 70 inputs comprising material, labor and equipment components included in most non-residential building projects.