Smallest quarter-to-quarter percentage increase in the Index since first quarter of 2004
According to Karl F. Almstead, the Turner vice president responsible for the Turner Building Cost Index, "The volume of available work and limited availability of skilled labor in the commercial construction market continue to drive increased pricing from specialty contractors. The concrete, curtain wall, elevators, mechanical and electrical trades remain influenced by these factors in most geographic markets."
"In spite of the high domestic demand, the availability of materials does not seem to be a concern," said Almstead. "Generally, commodity and material price escalation has slowed over the past quarter and appears to be following that pattern into 2007."
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 high quality pre-construction phase services and utilizing alternative procurement strategies, Turner continues to effectively serve its clients and manage the market risks associated with the cost escalation issues.
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-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. Turner has issued this quarterly forecast for more than 75 years.
Turner is the leading general builder in the U.S., ranking first or second in the major segments of the building construction field. During 2006, Turner completed $8.6 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, 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 41,000 employees and a sales volume of EUR 13.65 billion in FY 2005, the company is represented in all the world's major markets. In the USA, the biggest construction market in the world, HOCHTIEF is the No. 1 general builder via its subsidiary Turner. With its Group company Leighton, HOCHTIEF is market leader in Australia. The HOCHTIEF service offering in the fields of development, construction, services, concessions and operation covers the entire value chain of projects. Further information is available at www.hochtief.com.
Web site: http://www.turnerconstruction.com/