Following the trend established in the 4th quarter of 2010, construction costs are continuing to rise. While the increase is only about a half of one percent, it is a faster increase than we saw in the last quarter of 2010. After reaching a high in the third quarter of 2008 the index flattened and then fell for seven consecutive quarters, flattening again in the third quarter of 2010 and then rising for the last two quarters.
In the news release, Turner Construction, Vice President Karl F. Almstead said “The First Quarter forecast reflects price increases in select commodities, materials and equipment. A portion of these increases continue to be absorbed within the supply chain as the level of market demand continues to create an extremely competitive market environment. This is balancing the upward pricing pressure created by the increasing commodity and material costs. Labor costs have remained flat and are not contributing to the escalation in costs.Ó
For more than 80 years the Turner cost forecast has been widely used by the construction industry and Federal and State governments. The Turner Building Cost Index measures costs in the non-residential building construction market in the United States. The index of 806 reflects a 0.62% increase from the fourth quarter 2010 and 0.88% increase from the first quarter 2010.
For the time being, the increase in construction costs is being dampened by the competitive condition of the marketplace. Historically, coming out of a recession the increase in construction costs accelerate. For those that are planning a project and want to take advantage of the current lower construction costs, now is the time to get the project underway.
If you would like to explore the possibility of taking advantage of the current lower construction costs, please contact us at (425) 881-7506 or firstname.lastname@example.org.