Construction Costs Continue to Increase in Fourth Quarter 2012
Labor and material costs are inching up in the Fourth Quarter following a
pattern in place since the end of 2010
NEW YORK, Dec. 11, 2012
NEW YORK, Dec. 11, 2012 /PRNewswire/ -- Turner Construction Company announced
that the Fourth Quarter 2012 Turner Building Cost Index – which measures costs
in the non-residential building construction market in the United States – has
increased to a value of 839. This reflects a 0.84% increase from the Third
Quarter 2012 and 2.57% yearly increase from the Fourth Quarter 2011.
Karl F. Almstead, the Turner vice president responsible for the Turner
Building Cost Index, said, "Construction activity has been restrained awaiting
the outcome of the U.S. election and negotiation to resolve the Fiscal Cliff.
In the near term, Super Storm Sandy will have a regional impact on the
residential and commercial construction markets as people and companies
struggle to recover and rebuild. In the long term, the storm may have an
impact if building owners and urban planners begin to make preventive changes
in their public and private infrastructure."
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
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
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.
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.
SOURCE Turner Construction Company
Contact: Chris McFadden, +1-212-229-6145
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