The Turner Corporation announced that construction costs in the first quarter of 2003 are projected to remain the same as the fourth quarter of 2002. According to the Turner Building Cost Index, the first quarter 2003 index will hold at 620, showing a .49 percent increase from the first quarter 2002 index of 617.
Karl F. Almstead, the Turner vice president responsible for the Building Cost Index, said, "The reduced available non-residential construction markets, combined with the uncertainty about war, have continued to weaken pricing pressure. Although individual materials have shown price fluctuation, in general the pricing of materials and manufactured goods has remained flat. Labor costs have had some upward pressure but do not seem to be having significant influence. The increases in insurance and surety costs are, however, adding to the pricing pressure. In total, though, the market appears to be absorbing the increased cost factors because the overall business environment is becoming more competitive."
Turner has made its quarterly forecast for more than 50 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 -- 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.
For more information, visit Turner's Web site at www.TurnerConstruction.com