NEW YORK, June 14 /PRNewswire/ -- Turner Construction Company announced that the Second Quarter 2010 Turner Building Cost Index continues to show declining costs in the non-residential building construction market in the United States. The Turner Building Cost Index is forecasting a decrease in construction costs of 0.13% from the First Quarter 2010 and a decrease of 4.66% from the Second Quarter 2009. Since its peak at the end of 2008, construction costs have fallen by 13.16%. The Turner Building Cost Index value for Second Quarter of 2010 is 798, the index's lowest level since the Third Quarter of 2006.
Karl F. Almstead, the Turner vice president responsible for the Turner Building Cost Index said, "While commercial and institutional markets continue to be restrained, the demand for construction-related commodities in the global market, combined with manufacturers' efforts to remain profitable, has resulted in the upward pricing pressure on selective materials. The cost of labor in the commercial and institutional markets has generally remained steady in most areas of the country."
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. During 2009, Turner completed $8.2 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 66,000 employees and a sales volume of EUR 18.17 billion in FY 2009, 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