(PRWEB) October 02, 2013
Turner Construction Company announced that the Third Quarter 2013 Turner Building Cost Index which measures costs in the non-residential building construction market in the United States has increased to a value of 868. This reflects a 1.05% increase from the Second Quarter 2013 and 4.33% annual increase from the Third Quarter 2012.
The design and construction industry has been recovering over the past several quarters and pent up demand is resulting in increased activity in design firms, said Karl F. Almstead, the Turner vice president in charge of the Cost Index. He added, Material prices are increasing, but generally off their highs of the year and labor costs remain constrained. The increase in construction activity has enabled pricing to cautiously increase among specialty and trade contractors as their order backlog grows.
Approximately 90% of Turners 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 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 Construction Company
Turner is a North America-based, international construction services company. Founded in 1902, Turner first made its mark on the industry pioneering the use of steel-reinforced concrete for general building, which enabled the company to deliver safer, stronger, and more efficient buildings to clients. The company continues to embrace emerging technologies and offers an increasingly diverse set of services. With an annual construction volume of $ 9 billion Turner is the largest builder in the United States, ranking first or second in the major market segments of the building construction field, including healthcare, education, sports, commercial, and green building. The firm is a subsidiary of HOCHTIEF, a publicly traded company, and one of the worlds leading international construction service providers. For more information please visit http://www.turnerconstruction.com.
HOCHTIEF is one of the most international construction groups worldwide. The company delivers complex infrastructure projects, in some cases on the basis of concession models. The Group operates in the transportation infrastructure, energy infrastructure and social/urban infrastructure segments as well as in the contract mining business. With nearly 80,000 employees and a sales volume of more than EUR 25 billion in FY 2012, HOCHTIEF is represented in all the worlds major markets. With its subsidiary Leighton, 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. Further information is available at http://www.hochtief.com/press.