Turner Construction Company's third quarter Turner Building Cost Index shows a +2.21% annual increase in costs in the US non-residential building market. With a score of 832 on the company's Index scale, costs were up +0.73% from the second quarter results.
"A modest increase in construction costs over the last few months is driven by labour and material cost increases. Market optimism also contributes to the moderate increase in costs. However, any significant change in the market will require change in the overall economy," said Karl F. Almstead, Turner's vice president with responsibility for the Building Cost Index.
The long view of Turner's data shows that construction costs have risen steadily over the two years. In 2011, the average was 812 points, which represented a +1.6% increase of the low-point of 799 in 2010. The highest ever annual value for the Index was 908 points, the average for 2008.
Turner has been compiling construction cost date for more than 80 years. The Index takes into account factors such as labour costs, productivity, materials prices and competitive conditions in the market.