Turner Construction Company announced that construction costs increased in the Fourth Quarter of 2006. According to the Turner Building Cost Index, the Fourth Quarter 2006 index showed a 2.12% increase in construction costs over the Third Quarter 2006 index and a 9.65% increase over the Fourth Quarter 2005 index.
According to Karl F. Almstead, the Turner vice president responsible for the Turner Building Cost Index, “The underlying strength of the U.S. economy continues to support ongoing growth in the commercial construction market. In spite of stabilizing commodity prices and the downturn in the residential market, commercial construction costs continue to rise. The high volume of work in the commercial market in conjunction with a limited availability of skilled labor remains a major influence on the increased pricing from specialty contractors.”
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.