DALLAS — The Turner Corporation, one of the nation’s largest construction firms, announced that construction costs in the first quarter of 2006 are projected to increase over the fourth quarter of 2005.
According to the Turner Building Cost Index, the first quarter 2006 index will rise to 766, showing a 2.68 percent increase over the fourth quarter 2005 index of 746 and a 10.85 percent increase over the first quarter 2005 index of 691.
“The volume of construction activity, cost pressure on materials associated with global demand and the availability of skilled labor are the primary elements driving the cost escalation in the domestic construction market,” says Karl F. Almstead, the Turner vice president responsible for the cost index.
“Concerns over energy costs remain in the background, along with questions of the impact and timing of rebuilding following Hurricane Katrina,” Almstead says.
The continuing evaluation of construction costs at both the local and national levels has enabled Turner, working with its clients, subcontractors and suppliers, to develop project strategies that deal proactively with the pressures of the volatile market conditions and provide successful project delivery.
Turner has made its quarterly forecast for more than 50 years. The Cost Index is determined by several factors considered on a nationwide basis—labor rates and productivity, material prices and the competitive condition of the marketplace.
During 2005, Turner completed $7.4 billion of construction. The construction company has 46 offices across the United States.