Building Cost Index Reflects Construction Activity Increase

Turner Construction Company announced that the Fourth Quarter 2015 Turner Building Cost Index – which measures costs in the nonresidential building construction market in the United States – has increased to a value of 959. This reflects a 1.05 percent increase from the Third Quarter 2015 and a 4.58 percent yearly increase from the Fourth Quarter 2014.

Overall construction activity remained stable through the Fourth Quarter, with slight increases in the West, and greater increases in the South and Southeast. The reduced cost of fuel is offsetting most material cost increases and fluctuations.

“The high volume of work underway continues to put upward pressure on skilled labor,” said Attilio Rivetti, the Turner vice president responsible for preparing the cost index. “As a result, we are seeing subcontractors and vendors being more selective in their pursuits, which has driven selective trade cost increases. We are also seeing continued increases in material delivery lead times in response to market demands and limited availability of production and fabrication facilities. As market demands continue to grow, the lead time for material will also continue to grow.”