Current market conditions are leading architects to rethink how they approach multifamily construction projects. Inflation, fluctuating tariffs and federal spending cuts have created an environment where pricing uncertainty has started to surface earlier in the design phase rather than later in the construction process.
With market shifts driving up costs and affecting material availability and lead times, architects are having to pivot mid-project and revisit earlier design decisions with new logistical and budgetary parameters. These midstream adjustments can end up stalling progress, interrupting workflow and make it challenging to align with client expectations.
Preselecting a multifamily contractor can help avoid many of these scenarios and bring a more profitable approach to early design and budget planning. It also gives the team a more grounded starting point by anchoring design direction in what’s feasible, what’s available and where the pricing trends are heading.
As multifamily construction projects grow more complex and less predictable, early contractor collaboration can mean the difference between a project that works in lockstep or one that gets weighed down by costly back-and-forth revisions.
Here's how architects can capture more profitability in multifamily construction right from the start.
Financial Control & Predictability
When architects have access to real-time field insights, they’re better positioned to maintain financial control over the course of the project. Multifamily contractors can offer cost input based on active jobs and current vendor pricing, which can be different from general square-footage benchmarks. Getting direct visibility into the day-to-day field conditions can help architects refine their specs to keep projects profitable in ways standard estimating models cannot.
In the first five months of 2025 alone, input prices rose at a 6% annualized rate, driven largely by steep cost increases for tariff-sensitive materials like iron and steel. This kind of movement means that even standard assemblies, such as cold-formed mental framing for partitions or stair towers, can see price swings of 15% or more between design and procurement. On a large podium project, that delta by itself can add over $250,000 to structural framing costs.
Or, in something as straightforward as switching from standard vinyl plank flooring to a thicker, acoustic-rated alternative can introduce changes beyond material cost. Subfloor prep, door undercuts, trim adjustments and longer install time all contribute to added labor costs. So, while the material price difference may only be a few dollars per square foot, the labor impacts multiplied across dozens of units can be a quick budget shift. And, like many sectors, a majority of contractors and subcontractors have reported an increase in overhead costs in the last 12 months, with more than a third citing increases in the double-digits, which means the budget shift could be much more than expected.
Early contractor input allows these trade-offs to be assessed while adjustments are still fluid, ultimately before they prompt redesign, rebidding or permitting delays. The benefits tend to extend across the entire project planning process, including:
When clients see that their architect has taken proactive steps to ensure cost predictability, it builds confidence and often leads to repeat business and referrals.
Risk Mitigation
Early contractor involvement can also help insulate a project from risks that commonly impact budget and schedule, particularly those tied to labor and material availability.
Nearly 56% of professionals identify labor-related challenges as a top concern, citing both rising costs and ongoing shortages of skilled trades. Inexperienced crews often require more oversight, work at a slower pace or introduce quality issues that lead to rework. When contractor coordination happens earlier in the process, schedules can be adjusted to reflect labor availability, and designs can be aligned with the capabilities of reliable trade partners, alleviating any last-minute scramble to find experienced partners.
Supply chain volatility presents a similar risk to the budget and timeline. What began as a pandemic-related disruption has now become a permanent planning consideration, with many in the industry recalibrating their approach to project delivery. Data shows that 73% of subcontractors are modifying their estimating practices and 62% of general contractors adjusting pricing models. And more than 40% of contractors are now using purchase agreements to lock in material costs and diversifying suppliers to solidify access and reduce exposure to lead time uncertainties. Rather than discovering long lead times or that a specific material is unavailable, multifamily contractors can weigh in on market availability in the design phase to avoid any disruptions later in the schedule.
In addition to labor and material availability, early input can help architects stay ahead of risks in several other ways, including:
Operational Efficiency
Scheduling is one of the most vulnerable aspects of multifamily construction, with a number of delays tied to factors that are outside the team’s control. Weather setbacks, permit backlogs and material delays can be difficult to anticipate and even harder to recover from. But when contractors connect with architects during design development, they bring scheduling perspectives that can absorb the impact, such as identifying tasks with float, sequencing trades more efficiently and flagging scope items that often cause bottlenecks.
In addition, contractors can run procurement in parallel with design instead of waiting for one phase to finish before starting the next. Meaning, materials get ordered while drawings are being refined, permits get submitted with contractor input from the start and potential conflicts get identified before they become expensive field problems. These workflow improvements dramatically reduce change orders, which can increase costs by an average of 10%.
The integration of technology can refine operations even further. Multifamily contractors using predictive scheduling tools within project management platforms can forecast potential delays using real-time analytics. They can account for factors such as shifting lead times, labor availability and weather issues with live data feeds, making it easier to fine-tune schedules and reallocate resources before issues affect the project timeline and budget.
Working with multifamily contractors who bring operational expertise helps architects deliver projects more efficiently through:
Start Planning
ETI knows that successful projects start long before breaking ground. We work with architects during the design phase to share current market insights and constructability knowledge that helps increase the profitability of projects.
As a Chicago-based multifamily contractor with a proven track record in integrated project delivery, we're here to support your vision from the ground up.
Contact us at (773) 299-6574 or get in touch online to explore how early partnership can strengthen your next project.