On May 31, 2007, the New York City-based Turner Construction Co., the nation's leading general builder, announced that construction costs increased in the second quarter. According to the Turner Building Cost Index, the second-quarter 2007 index showed a 1.93-percent increase in construction costs over first-quarter 2007 and a 7.62-percent increase over the second-quarter 2006 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, "Construction costs continue to be driven by the increasing level of activity in the non-residential building sector and a lack of available skilled labor to deliver projects. In addition, volatility is creeping back into the materials markets. Although drywall prices have turned down, structural steel, copper, and petroleum-based products are on the upswing again. Manufacturers and suppliers are also passing along increased transportation costs in their pricing structures."
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.
This information was provided by Turner Construction Co., a subsidiary of HOCHTIEF and the leading general builder in the United States, ranking firstor second in the major segments of the building construction field. For more information, visit Turner's website at(http://www.turnerconstruction.com/).
According to Karl F. Almstead, the Turner vice president responsible for the Turner Building Cost Index, "Construction costs continue to be driven by the increasing level of activity in the non-residential building sector and a lack of available skilled labor to deliver projects. In addition, volatility is creeping back into the materials markets. Although drywall prices have turned down, structural steel, copper, and petroleum-based products are on the upswing again. Manufacturers and suppliers are also passing along increased transportation costs in their pricing structures."
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.
This information was provided by Turner Construction Co., a subsidiary of HOCHTIEF and the leading general builder in the United States, ranking firstor second in the major segments of the building construction field. For more information, visit Turner's website at(http://www.turnerconstruction.com/).
