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Labor and Material Prices Slowly Increase in Second Quarter 2012 According to Turner Building Cost Index - Market activity and competition result in modest escalation in cost of construction - TurnerConstruction.com
Labor and Material Prices Slowly Increase in Second Quarter 2012 According to Turner Building Cost Index

 

PRZOOM - /newswire/ - Detroit, MI, United States, 2012/06/12 - Market activity and competition result in modest escalation in cost of construction - TurnerConstruction.com.

   
 
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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 (turnerconstruction.com) 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.

 
 
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Labor and Material Prices Slowly Increase in Second Quarter 2012 According to Turner Building Cost Index

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