March 5, 2007—Turner Construction Company, a leading general builder, says construction costs are projected to increase in the First Quarter of 2007.
According to the Turner Building Cost Index, the First Quarter 2007 index will show a 1.59 percent increase in construction costs over the Fourth Quarter 2006 index and an 8.49 percent increase over the First Quarter 2006 index. This represents the smallest quarter-to-quarter percentage increase in the Index since first quarter of 2004.
According to Karl F. Almstead, the Turner vice president responsible for the Turner Building Cost Index, “The volume of available work and limited availability of skilled labor in the commercial construction market continue to drive increased pricing from specialty contractors. The concrete, curtain wall, elevators, mechanical and electrical trades remain influenced by these factors in most geographic markets.”
Used widely by the construction industry and Federal and State governments, the building costs and price trends tracked by The Turner Building Cost Index may or may not reflect regional conditions in any given quarter. The Cost Index is determined by several factors considered on a nationwide basis-labor rates and productivity, material prices and the competitive condition of the marketplace. This index does not necessarily conform to other published indices because others do not generally take all of these factors into account. Turner has issued this quarterly forecast for more than 75 years.
For more information, visit Turner’s Web site.
