Construction Costs Continue to Increase in Fourth Quarter 2012
Labor and material costs are inching up in the Fourth Quarter following a pattern in place since the end of 2010
NEW YORK, Dec. 11, 2012 /PRNewswire/ -- Turner Construction Company announced that the Fourth 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 839. This reflects a 0.84% increase from the Third Quarter 2012 and 2.57% yearly increase from the Fourth Quarter 2011.
Karl F. Almstead, the Turner vice president responsible for the Turner Building Cost Index, said, "Construction activity has been restrained awaiting the outcome of the U.S. election and negotiation to resolve the Fiscal Cliff. In the near term, Super Storm Sandy will have a regional impact on the residential and commercial construction markets as people and companies struggle to recover and rebuild. In the long term, the storm may have an impact if building owners and urban planners begin to make preventive changes in their public and private infrastructure."
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.
Turner is the leading general builder in the U.S., ranking first or second in the major segments of the building construction field. Turner annually completes $8 billion of construction. Turner is the only builder offering clients a nationwide network of offices across the U.S. Founded in 1902, the firm is a subsidiary of HOCHTIEF, a publicly traded company and one of the world's leading international construction service providers. For more information, visit Turner's website at www.turnerconstruction.com.
HOCHTIEF is one of the leading international providers of construction-related services. With more than 80,000 employees and a sales volume of EUR 23.28 billion in FY 2011, the company is represented in all the world's major markets. With its core competencies in development, building and operation, the Group delivers services for the entire life cycle of infrastructure projects, real estate and facilities. The focus of the related business activities is on four strategic areas: energy infrastructure, transportation infrastructure, major cities, and resources. With its subsidiary Leighton (HOCHTIEF share around 54 percent), the Group is market leader in Australia. In the USA, the biggest construction market in the world, HOCHTIEF is the No. 1 general builder via its subsidiary Turner and, with Group company Flatiron, ranks among the most important players in the field of transportation infrastructure construction. Because of its engagement for sustainability, HOCHTIEF has been listed in the Dow Jones Sustainability Indexes since 2006.
SOURCE Turner Construction Company
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