Construction Costs Forecast to Decline Further in Fourth Quarter
Non-residential building construction costs in the United States have decreased by 2.07 percent from the third quarter, continuing the decline which began in the first quarter of 2009.
Non-residential building construction costs in the United States have decreased by 2.07 percent from the third quarter, continuing the decline which began in the first quarter of 2009.
The Turner Construction Company also found that construction costs have decreased by 12.62 percent since the beginning of the year, according to the Fourth Quarter 2009 Turner Building Cost Index.
"The decrease in construction costs is reflective of decreased private sector development and investment,” says Karl Almstead, the Turner vice president responsible for the Turner Building Cost Index. “Commodity prices have slightly increased due to global demand, but have not resulted in upward pressure on construction pricing. The competitive condition in the building construction industry is driving labor to increase productivity, therefore, reducing labor costs."
Turner has prepared the construction cost forecast for more than 80 years. 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.
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