Labor and material prices slowly increase in Second Quarter 2012

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Turner  Construction Company announced that the Second Quarter 2012 Turner Building Cost Index– which measures costs in the non-residential building construction market in  the United States – has increased to a value of 826. This reflects a 0.61%  increase from the First Quarter 2012 and 1.85% yearly increase from the Second  Quarter 2011.

Karl F. Almstead, the Turner vice president responsible for the Turner Building  Cost Index, said, “Optimism for growth in Turner’s markets in the United States  is balanced by uncertainty in the global economy. This has resulted in a  relatively stable level of market activity. In spite of pressure from  competition, labor and material prices slowly continue to increase. ”

Approximately 90% of Turner’s business is performed under contract arrangements  where Turner provides extensive preconstruction planning services before the  contract price is fixed and before construction starts. By providing  preconstruction services and utilizing enhanced procurement strategies, Turner  effectively manages the market risks associated with cost-related issues.

Turner has prepared the construction cost forecast for more than 80 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, 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.  Read More.

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