Turner’s Second Quarter Building Cost Index Reflects Busy Construction Market

Turner Construction Company announced that the Second Quarter 2017 Turner Building Cost Index—which measures costs in the nonresidential building construction market in the United States—has increased to a value of 1031. This represents a 1.18 percent quarterly increase from the first quarter 2017 and a 4.88 percent yearly increase from the second quarter 2016.

The second quarter has seen relatively consistent cost increases across the country, with raw material prices continuing to make moderate gains – particularly among aluminum materials. Engineered products have also seen moderate gains. Additionally, fuel costs have remained relatively flat, having little effect on costs.

“The steady pace of construction starts across the country is continuing to have an impact on the skilled labor workforce,” said Attilio Rivetti, the Turner vice president who prepares the cost index. “As a result, we are seeing subcontractors exercise greater caution in their pursuits. Their selective approach to bidding—so as not to become overburdened—also contributes to increased prices.”