Continued Increase in Construction Costs is Expected

Oct. 9, 2007
The third quarter in 2007 shows a 1.89-percent increase in construction costs over the second quarter of 2007

Turner Construction Co. recently published its Building Cost Index, forecasting that construction costs in the U.S. building industry are continuing to increase in the third quarter.

According to the index, the third quarter in 2007 shows a 1.89-percent increase in construction costs over the second quarter of 2007, and a 7.74-percent increase over the third-quarter 2006 index. Experts link the looming shortage of skilled labor and talent in the industry to the pressure on material prices in the United States. Karl F. Almstead, Tuner vice president, adds, "In spite of this upward pressure on construction pricing, the forecast for the market continues to appear strong. The non-residential building market activity grew 5 percent over the past 12 months."

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 index is determined by several factors considered on a nationwide basis - labor rates and productivity, material prices, and the competitive condition of the marketplace.

Voice your opinion!

To join the conversation, and become an exclusive member of Buildings, create an account today!

Sponsored Recommendations

Building Better Schools

Download this digital resource to better understand the challenges and opportunities in designing and operating educational facilities for safety, sustainability, and performance...

Tips to Keep Facility Management on Track

How do you plan to fill the knowledge gap as seasoned facility managers retire or leave for new opportunities? Learn about the latest strategies including FM tech innovations ...

The Beauty & Benefits of Biophilic Design in the Built Environment

Biophilic design is a hot trend in design, but what is it and how can building professionals incorporate these strategies for the benefits of occupants? This eHandbook offers ...

The Benefits of Migrating from Analog to DMR Two-Way Radios

Are you still using analog two-way radios? Download this white paper and discover the simple and cost-effective migration path to digital DMR radios that deliver improved audio...