Construction Pricing Pressure Eases

-- Associated Construction Publications, 11/26/2008

Turner Construction Company, the nation’s leading general builder, today announced that the Fourth Quarter 2008 Turner Building Cost Index, which projects domestic commercial building construction costs, remains unchanged from the Third Quarter 2008. The Index number remains at 919 for the Fourth Quarter 2008. Over the past year, construction costs have increased 4.91 percent.  

According to Karl F. Almstead, the Turner vice president responsible for the Turner Building Cost Index said, “We have seen a global reduction in steel, copper, and aluminum prices. The drop in energy prices has also reduced industry cost pressure. In addition, the pace of construction starts has slowed and competition for small-scale projects has increased.”

“The decline in commodity and material costs is largely being offset by rising labor costs which is resulting in construction costs remaining steady,” said Almstead.

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.