Building Costs Increase 7.6 Percent Compared To Second Quarter 2006
Active market conditions, shortage of labor and increases in material prices will contribute to construction cost increases, according to the Turner Building Cost Index.
Active market conditions, shortage of labor and increases in material prices will contribute to construction cost increases, according to the Turner Building Cost Index.
The second quarter 2007 index showed a 1.93 percent increase in construction costs over the First Quarter 2007 and a 7.62 percent increase compared to the second quarter 2006 index, according to the Cost Index.
“Construction costs continue to be driven by the increasing level of activity in the non-residential building sector and a lack of available skilled labor to deliver projects,” says Karl Almstead, vice president responsible for the Turner Building Cost Index. “In addition, volatility is creeping back into the materials markets. Although drywall prices have turned down, structural steel, copper and petroleum-based products are on the upswing again. Manufacturers and suppliers are also passing along increased transportation costs in their pricing structures.”
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.
Related Topics:
