September 13, 2002—The Turner Corporation, one of the nations largest general builders, announced that construction costs in the third quarter of 2002 are projected to increase 0.16 percent from the second quarter of 2002. According to the Turner Building Cost Index, the third quarter 2002 index will increase to 619, one point above the second quarter 2002 figure and 0.81 percent above the third quarter 2001 index of 614.
According to Karl F. Almstead, the Turner vice president responsible for the Building Cost Index: “In general, the market appears to be finding an equilibrium. The competitive market forces are offset by a slight upward pressure of increases in labor and materials. The industry is maintaining a cautious optimism, even though many market segments have not yet rebounded significantly. Several sectors, such as education and healthcare, have remained strong.”
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.
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