New York City-based Turner Construction Co., the nation's leading general builder, announced on Jan. 3, 2007, that construction costs increased in the fourth quarter. According to the Turner Building Cost Index, the fourth-quarter 2006 index showed a 2.12-percent increase in construction costs over the third-quarter 2006 index and a 9.65-percent increase over the fourth-quarter 2005 index. Turner has issued this quarterly forecast for more than 75 years.
According to Karl F. Almstead, the Turner vice president responsible for the Turner Building Cost Index, "The underlying strength of the U.S. economy continues to support ongoing growth in the commercial construction market. In spite of stabilizing commodity prices and the downturn in the residential market, commercial construction costs continue to rise. The high volume of work in the commercial market in conjunction with a limited availability of skilled labor remains a major influence on the increased pricing from specialty contractors."
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 including 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.
The information was reprinted with permission from Turner Construction Co. Turner is the leading general builder in the U.S., ranking first or second in the major segments of the building construction field. For more information, visit Turner's website at (www.turnerconstruction.com).