NEW YORK, June 15, 2011 /PRNewswire/ -- Turner Construction Company announced that the Second Quarter 2011 Turner Building Cost Index has slightly increased over the First Quarter of 2011. The Turner Building Cost Index measures costs in the non-residential building construction market in the United States. The Turner Building Cost Index of 811 reflects a 0.62% increase from the First Quarter 2011 and 1.63% increase from the Second Quarter 2010.
Karl F. Almstead, the Turner vice president responsible for the Turner Building Cost Index said, "The market dynamic of restrained demand and increasing material cost have been the major influencers on construction costs over the past three quarters and continues through the second quarter of 2011. Although commodity prices have appeared to ease since the end of the first quarter, the second quarter Index reflects the ongoing impact on increasing construction material costs. The level of construction activity is a factor limiting the influence of labor cost increases on the overall cost of construction."
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.
About Turner Construction Company
Turner Construction Company is one of the leading builders in the U.S. and internationally integrating Building Information Modeling into their business by implementing this and other advanced technologies on more $30 billion of building projects. Turner is dedicated to staying ahead of and capitalizing on emerging technologies and innovative construction practices in order to deliver greater value to its clients. 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 70,000 employees and a sales volume of EUR 20.16 billion in FY 2010, the company is represented in all the world's major markets. The Group's service offering in the fields of development, construction, services, concessions and operation covers the entire life cycle of infrastructure projects, real estate and facilities. 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. With its subsidiary Leighton (HOCHTIEF share around 55 percent), the Group is market leader in Australia. Because of its engagement for sustainability, HOCHTIEF has been listed in the Dow Jones Sustainability Indexes since 2006. Further information is available at www.hochtief.com/press.
SOURCE Turner Construction Company