Turner’s Building Cost Index: Large Projects Drive Construction Cost Escalation

Turner Construction Company announced that the First Quarter 2014 Turner Building Cost Index — which measures costs in the non-residential building construction market in the United States — has increased to a value of 885. This reflects a 0.80 percent increase from the fourth quarter 2013 and 4.24 percent yearly increase from the first quarter 2013.

The increase in construction costs is the reflection of various market factors, including constrained availability of labor, stability in commodity prices and competition in the market. Large projects in urban centers have witnessed an increased level of cost escalation, while competition for small- and medium-sized projects is working to restrain increase in construction costs.

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.