Editor’s Note: The design and construction industry is no stranger to challenges, but few have been as pervasive — or as frustrating — as recent pricing volatility. This issue, driven by inflation and economic uncertainty, has emerged as the top frustration for clients in the built environment, according to ThinkLab’s latest research. In Episode 4 of Design Nerds Anonymous, titled “The Number 1 Issue Frustrating Your Clients Today,” Amanda Schneider and a panel of experts explore how pricing instability creates ripple effects throughout project timelines. More than just a numbers game, this volatility impacts trust, collaboration, and decision-making in profound ways.
The Big Idea: It’s Not About the Cost — It’s About the Unpredictability
During ThinkLab’s live research sessions, a simple “would you rather” question revealed a surprising insight: 60% of participants would prefer to know that prices would double rather than face the uncertainty of fluctuating costs. Why? Because it’s not just about the price itself; it’s the rework, delays, and credibility challenges caused by unpredictability that frustrate clients the most.
“The volatility has made it difficult to maintain credibility with our leadership,” said Jason Soileau, assistant vice chancellor for planning, design and construction at Texas Christian University. “We set expectations for what we think something will cost, and almost every time, it’s over budget. Then we’re left trying to explain why.”
While lack of pricing transparency –especially on product- is not new, the recent volatility has elevated this issue to the forefront even more. This underscores the need for proactive strategies to address pricing challenges head-on.
Proactive Collaboration: A Path Forward
The panelists agree that fostering earlier and more open collaboration among stakeholders is one way to mitigate the effects of pricing volatility.
Bring Everyone to the Table Sooner. Luke Roberts, Creative Director at LG Group, described a shift to a design-build approach where trades and vendors are involved earlier. “Let’s lift the curtain and work this out in real time,” Roberts said. “It cuts out unnecessary rounds of revisions and builds trust.”
Strengthen Relationships with Service Providers. Julie Deignan, Practice Lead at CBRE Furniture Advisory Services, emphasized the importance of relationship-building in reducing tension when costs inevitably shift. “When service providers are involved earlier, clients gain visibility into why prices move and feel less vulnerable when addressing leadership,” she said.
Provide Creative, Transparent Solutions. Soileau called on vendors and architects to offer actionable strategies—not just higher price tags. “Don’t just tell me it costs more,” he urged. “Come to me with solutions to get costs back into the box without compromising quality.
Shifting Mindsets: From Value Engineering to Value Enhancement
While value engineering has long been a part of project workflows, it can also be seen by some as a “dirty word.” This panel highlighted a need to reframe it as a natural and necessary process. “It’s not a bad thing,” Roberts explained. “It’s part of the project lifecycle. By setting that expectation early, clients view it as a collaborative tool rather than a compromise.”
Deignan also noted that transparency around pricing, including clear metrics like cost per square foot, is vital for aligning expectations between stakeholders.
What’s Next?
Companies who want to win in the future are adapting. From leveraging technology to improving communication, there are signs of resilience and growth. As Deignan put it, “Scalability is becoming achievable as technology transforms traditionally antiquated processes.”
If this interests you, dive deeper into these findings by listening to episode 4 of season 6 of Design Nerds Anonymous, “The Number 1 Issue Frustrating Your Clients Today,” and if you would like to be included in ThinkLab’s next research study, join ThinkLab’s research community to share your perspective and help shape future insights. Sign up here to contribute your expertise and stay connected.