Turner Construction Company announced that the Second Quarter 2013 Turner Building Cost Index – which measures costs in the non-residential building construction market in the United States – has increased to a value of 859. This reflects a 1.18% increase from the First Quarter 2013 and 4.00% yearly increase from the Second Quarter 2012.
"Larger urban markets appear to be expanding more rapidly than other regions. Contributing to the increase in construction costs is the limited capacity among those trade contractors with the available resources to manage and work on large, complex projects," said Karl F. Almstead, the Turner vice president in charge of the Cost Index. He continued, "While lower global demand is maintaining downward pressure on material and equipment costs, there is upward pressure on specialty equipment and material costs in growing building types such as data centers."
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 is a North America-based, international construction services company. Founded in 1902, Turner first made its mark on the industry pioneering the use of steel-reinforced concrete for general building, which enabled the company to deliver safer, stronger, and more efficient buildings to clients. The company continues to embrace emerging technologies and offers an increasingly diverse set of services. With an annual construction volume of $9 billion Turner is the largest builder in the United States, ranking first or second in the major market segments of the building construction field, including healthcare, education, sports, commercial, and green building. 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 please visit www.turnerconstruction.com.
About HOCHTIEF
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. Further information is available at www.hochtief.com/press.
Related Stories
| Feb 7, 2012
Kawneer and Traco combine portfolios
Portfolio includes curtain wall systems, windows, entrances and framing systems.
| Feb 7, 2012
Lubbers promoted to creative director at Wight & Co.
Lubbers has been instrumental in many recent high profile Wight projects, including the College of DuPage Student Resource Center, Seaton Computing Center, The Adler Planetarium Sky Theater transformation and UNO Charter Schools.
| Feb 7, 2012
Shepley Bulfinch opens San Francisco office
This expansion establishes a physical presence that builds on a portfolio of work for institutional clients on the West Coast, dating to the development of the original Stanford University campus in 1891
| Feb 7, 2012
Thornton Tomasetti opens new office in Denver
The firm, which now has 25 offices internationally, opened the new office to better serve current and potential clients in the western Central region and Mountain States.
| Feb 6, 2012
Slight increase in nonres construction spending expected in 2012, growth projected for 2013
Commercial sector expected to lead real estate recovery.
| Feb 6, 2012
FMI releases 2012 Construction Productivity Report
Downsizing has resulted in retaining the most experienced and best-trained personnel who are the most capable of working more efficiently and harder.
| Feb 6, 2012
Kirchhoff-Consigli begins Phase 2 renovations at FDR Presidential Library and Museum
EYP Architecture & Engineering is architect for the $35 million National Archives Administration project.
| Feb 6, 2012
Batson-Cook announces the appointment of Hall as president
Hall will manage and direct all aspects of the firm’s day-to-day operations. He will be based in Batson-Cook’s Atlanta office.
| Feb 6, 2012
Siemens gifts Worcester Polytechnic Institute $100,000 for fire protection lab renovation
Siemens support is earmarked for the school’s Fire Protection Engineering Lab, a facility that has been forwarding engineering and other advanced degrees, graduating fire protection engineers since 1979.
