In 2025, the construction industry is contending with a complex mix of cost pressures and logistical challenges. Skilled workers are scarce and increasingly mobile. And with job sites scattered across cities, states, and rural regions, keeping a handle on travel and expense (T&E) costs is a strategic advantage.
Recent industry data reveals that construction cost inflation rose by 4.69% year-over-year in 2024, with projections indicating a 5-7% increase globally in 2025 [1]. Yet many construction firms still struggle to accurately forecast travel and field expenses during the early stages of project planning. The result? Underestimated budgets for corporate travel, unexpected overages, and tighter margins.
When done right, business travel and expense forecasting supports:
- Smarter bidding
- More profitable execution
- Better risk planning
- Optimal resource allocation
Let’s explore what makes travel in construction so unique and how leading firms are tackling it in 2025.
What’s Driving Construction Travel Costs in 2025?
A software rep hopping on a plane for a two-day client visit is not the same as a crane operator heading to a job site for three months in a rural area. The demands, and therefore the costs, are fundamentally different.
Here are some factors driving construction travel costs:
1. Labor Mobility and Specialization
With an estimated shortage of 450,000 to 550,000 craft workers in 2025 [2], companies are forced to move specialized talent between job sites.
That mobility brings cost implications in corporate travel:
- Specialists command premium rates (wages + travel stipends)
- Longer assignments mean extended lodging and meal costs
- Special tools often require dedicated shipping
- Quality accommodations are essential for physical recovery
Construction unemployment is hovering around 4.4%, and wages have risen by more than 7% in several key roles [2] . These costs add up quickly.
2. Distributed Projects Across Diverse Regions
The Infrastructure Investment and Jobs Act has pumped billions into new projects, many spread across rural zones and multiple cities.
That’s created scenarios in business travel like:
- Crews rotating between job sites weekly
- Long-term housing needs in areas with few hotel options
- Complex logistics for transportation and supplies
- Scarcity pricing, where hotels or transport services are limited
Remote work sites, in particular, often have hidden costs: premium pricing, lower productivity during travel days, and limited local amenities.
3. Technology Roles Add New Travel Requirements
Ironically, even as remote coordination becomes more common, new corporate travel needs have emerged due to increased tech use on job sites. These include tech integration crew, BIM specialist, and more. These personnel often travel with specialized equipment and require fast response times, making travel for them both urgent and expensive.
Forecasting Travel Costs: What You Can’t Afford to Miss
In a volatile cost environment, having a precise view of your expected travel expenses is critical. Forecasting in construction requires a more layered, contextual understanding than traditional business travel budgeting.
Direct and Indirect Cost Categories
Travel in construction budgets often misses hidden costs. While direct expenses like flights and hotels are easy to track, indirect ones, like laundry, storage, or upgraded lodging for recovery, quietly add up. Ignoring them leads to under-budgeting and costly surprises later.
Regional Cost Variability
For Fiscal Year 2025, the General Services Administration (GSA) has updated standard per diem rates to $110 for lodging and $68 for meals and incidental expenses (M&IE), representing increases from the previous year’s $107 and $59, respectively [3]. Per diem rates in major cities tell only part of the story.
Here’s what 2025 business travel rates look like in some high-cost metro areas:
- NYC: $342 lodging, $92 M&IE
- Washington D.C.: $276 lodging, $92 M&IE
- San Francisco: $272 lodging, $92 M&IE
- Chicago: $223 lodging, $92 M&IE
Other factors further complicate regional budgeting include local gas prices, insurance differences, and inflationary construction rates
Seasonal and Market Timing
Spring and summer bring peak construction activity, and with it, steep increases in travel and lodging costs, often 20% to 40% higher. Tourist demand, events, and limited availability drive prices up. Storms, delays, or material shortages can further extend stays and inflate budgets. Early planning helps avoid costly surprises.
The Role of Technology in Modern Forecasting
Smart platforms and digitized tools have transformed how construction firms manage T&E. These tools along with corporate cards not only improve accuracy but also reduce manual errors and provide real-time visibility.
Expense Management Systems
Modern expense management platforms offer robust forecasting and cost-control capabilities. From live dashboards to project-level reporting, finance teams can allocate, monitor, and adjust budgets with greater precision.
Teams benefit from automated policy enforcement, streamlined approvals, and integration with accounting software. Historical project data feeds forecasting models and helps identify recurring issues, from overspend to underutilized budgets.
Corporate Card Authorization and Integration
Corporate card solutions specifically designed for the construction industry needs provide enhanced control over travel expenses while simplifying cost tracking and reporting.
Further, virtual corporate cards with cc authorization let employees make essential purchases like lodging, fuel, or equipment transport in real time, within pre-approved credit limits.
Control Features
- Per diem limit enforcement and spending category restrictions
- Real-time transaction monitoring and alerts
- Automatic expense allocation to projects and cost centers
- Detailed transaction data supporting accurate cost analysis
Why it matters for construction firms
- Keeps crews moving by eliminating approval delays with cc authorization.
- Removes the burden of out-of-pocket expenses, reducing stress for field teams.
- Ensures policy compliance through built-in controls, with no need for micromanagement.
- Prevents end-of-project chaos with real-time, categorized expense tracking.
Planning for the Unplanned: Contingency Budgeting
Travel in construction rarely unfolds without hiccups. Effective forecasting includes scenarios for what can, and often does, go wrong. Weather-related delays might require hotels for several extra days or alternative transport when flights are grounded.
Insurance costs also vary by state and job type. Workers’ comp, general liability, vehicle coverage, and professional indemnity for traveling consultants all need to be considered. Failing to account for these can create compliance risks and unplanned expenses during corporate travel.
Conclusion: Forecasting Isn’t Just Numbers, It’s Margin Protection
The most competitive firms in 2025 are those that treat expense control as a job-site priority, not an afterthought. They give their people what they need to act fast, without opening the door to financial chaos.
itilite helps construction leaders do exactly that. With built-in travel and expense forecasting tools and cc authorization controls, you get proactive insight, not reactive cleanup.
Because in this business, you don’t just build structures. You build trust, momentum, and long-term profitability. It starts with controlling what most can’t see, and scaling what others can’t manage.
References
[1] Corpay Lodging. (2024). “Navigating Bid Estimates and Construction Travel.” https://www.corpaylodging.com/news/travel-costs-in-the-construction-industry
[2] Dragone, John. (2025). “Outlook for Construction Costs in the Second Half of 2025.” LinkedIn. https://www.linkedin.com/pulse/outlook-construction-costs-second-half-2025-john-dragone-ctsfe
[3] Itilite. (2025). “A Guide to Travel Per Diem Rates in 2025.” https://www.itilite.com/blog/travel-per-diem-rates-in-2025/
[4] Paragon Estimating. (2025). “Step-by-Step Guide to Accurate Construction Estimating in 2025.” Medium. https://medium.com/@ParagonEstimating/step-by-step-guide-to-accurate-construction-estimating-in-2025-aff0a238a78b
[5] SAP Concur. (2025). “Travel & Expense 2025: 4 trends and predictions from industry experts.” https://www.concur.com/en-us/resource-center/ebooks/travel-expense-2025-4-trends-and-predictions-industry-experts
[6] RSMeans. (2023). “The Comprehensive Guide to Construction Cost Estimating.” https://www.rsmeans.com/resources/construction-cost-estimate-guide
