CRAICSConstruction cost verification
Method note

The market figure, and how it is built.

The Craics site states that $170B+ of construction change orders are negotiated in the United States each year between parties with asymmetric information. This note records how the figure is built.

The arithmetic

StepFigureBasis
US construction put in place, annually$2.1TUS Census construction spending
Contract value arriving as change orders8 to 14%Industry change order studies
Implied annual change order volume$170B to $290BThe product of the two figures above

Applying the published change rate range to annual put in place yields roughly $170B at the low end and $290B at the high end. The site anchors on the low end and writes the figure as $170B+.

Why the conservative end

Craics assesses submitted numbers downward for a living. Its own headline number is held to the same standard: the anchor is the figure that survives the least generous reading of the sources, so a reader who checks the arithmetic finds the claim under-stated rather than over-stated.

Limits of the figure

Put in place measures work performed in a year, which is not identical to contract value formed in a year; the change rate range spans studies with differing scopes and delivery methods; and change order volume includes both additions and credits. The figure is directional, and it is presented as such. It is not derived from any client's data.