Dallas-based Turner Corp., the nation's leading general builder, announced on June 2 that construction costs in the second quarter of 2005 are projected to increase over the first quarter of 2005. According to the Turner Building Cost Index, the second quarter 2005 index will rise to 704, showing a 1.88-percent increase over the first quarter 2005 index of 691 and a 9.15-percent increase over the second quarter 2004 index of 645.
According to Karl F. Almstead, the Turner vice president responsible for the Cost Index: "Overall the market has gained strength, with healthcare and education maintaining their intensity. The residential condominium market that had its roots in the Southeast has spread across the domestic markets. Retail and hospitality work have also shown signs of growth. In addition, the industry optimism reflects increased levels of activity in the design community."
He continues, "Although the material cost escalation spikes that echoed through the industry in 2004 have eased, concerns remain over what is seen as the unpredictability of cement, drywall, and oil-based products."
Turner has made its quarterly forecast for more than 50 years. 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 reprinted with permission from the Turner Corp. Turner is the leading general builder in the United States, ranking first or second in the major segments of the building construction field. For more information, visit Turner's website at (www.turnerconstruction.com).