Smallest Quarter-to-Quarter Increase in Construction Index Since First Quarter of 2004
Turner Construction Company, New York, announced last month that construction costs are projected to increase in the first quarter of 2007. According to the Turner Building Cost Index, the first quarter 2007 index will show a 1.59% increase in construction costs over the fourth quarter 2006 index and an 8.49% increase over the first quarter 2006 index. This represents the 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."