Turner Construction Company finds Non-Residential Markets Maintain Growth in Q2
Turner Construction Company announced that the Second Quarter 2014 Turner Building Cost Index – which measures costs in the non-residential building construction market in the United States – has increased to a value of 896: a 1.24 percent increase from the First Quarter 2014 and 4.31 percent increase year-on-year from the Second Quarter 2013.
Growth in non-residential construction costs continues in the second quarter in virtually all domestic markets. Construction cost escalation is greater in urban centers that are experiencing high levels of construction activity and in markets with mega projects.
Turner has prepared the construction cost forecast for more than 80 years. Used widely by the construction industry and Federal and State governments, the Index is determined by several factors considered on a nationwide basis, including labour rates and productivity, material prices and the competitive condition of the marketplace.
Turner said the labour cost component in markets experiencing increased volumes of construction activity and tight labour availability is adding to the upward pressure on construction costs, and that while raw material prices remain flat, costs of manufactured and engineered construction components continue to increase slightly.
Approximately 90 percent of Turner’s business is performed under contract arrangements where it provides extensive preconstruction planning services before the contract price is fixed and before construction starts.
Turner said it is able to manage the market risks associated with cost-related issues by providing preconstruction services and utilising “enhanced procurement strategies”.