Turner Construction Company announced that the Third Quarter 2011 Turner Building Cost Index has slightly increased over the Second Quarter of 2011. The index measures costs in the nonresidential building construction market in the United States. The cost index of 814 reflects a 0.37 percent increase from the Second Quarter 2011 and 2.01 percent increase from the Third Quarter 2010.
Karl F. Almstead, the Turner vice president responsible for the Turner Building Cost Index said, “Commodity and material prices have stabilized on decreasing global demand. Structural Steel and Reinforcing Bar prices are remaining stable for the near future. Although the average union wage settlements are up slightly from a year ago, the overall impact of increased labor costs generally has had a negligible impact on construction cost escalation.”
Approximately 90 percent of Turner’s business is performed under contract arrangements, where it provides extensive pre-construction 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
Turner is the leading general builder in the U.S., ranking first or second in the major segments of the building construction field. Turner annually completes $8 billion of construction. Turner is the only builder offering clients a nationwide network of offices across the U.S. Founded in 1902, 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, visit Turner’s website at www.turnerconstruction.com.
About HOCHTIEF
HOCHTIEF is one of the leading international providers of construction-related services. With more than 70,000 employees and a sales volume of EUR 20.16 billion in FY 2010, the company is represented in all the world’s major markets. The Group’s service offering in the fields of development, construction, services, concessions and operation covers the entire life cycle of infrastructure projects, real estate and facilities. 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. With its subsidiary Leighton (HOCHTIEF share around 53 percent), the Group is market leader in Australia. 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.
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