Turner Construction Co. announced that the Third Quarter 2019 Turner Building Cost Index—which measures costs in the non-residential building construction market in the U.S.—has increased to a value of 1162. This represents a 1.13 percent quarterly increase from the second quarter of 2019 and a 5.16 percent annual increase from the third quarter of 2018, respectively.
“Large project starts in a fairly busy construction market are continuing to impact availability of skilled labor. Many contractors are taking on work within the limits of their current in-house capacity. This has the potential to increase costs,” says Attilio Rivetti, the Turner vice president responsible for compiling the Cost Index. Attilio continues, “Raw material costs have been relatively stable in the third quarter of 2019. As we move into the fourth quarter, there will be some uncertainty in the markets until issues around tariffs become more firmly settled.”
Turner has prepared the construction cost forecast for more than 80 years. 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.