Construction costs in for non-residential buildings were up +2.12% year-on-year in the fourth quarter of 2011, according to the Turner Building Cost Index, produced by Turner Construction Company, a subsidiary of Hochtief. Costs were up +0.49% in the fourth quarter of the year, compared to the previous three months.
According to Turner, this was the first time construction costs have risen since 2008, following two years of declines in 2009 and 2010. Karl Almstead, Turner's vice president responsible for the Index said, "Commodity and material prices, although stable, are putting slight upward pressure on construction prices. There are some indications of material prices increases in the first part of 2012. However, price increases predicted by producers have not materialised."
Averaged across the year, costs for 2011 were +1.6% higher than the mean for 2010. This put costs at a similar level to those seen in 2007, and still some -10.5% lower than the peak seen in 2008.
The index takes into account labour costs, productivity, materials prices and competitive conditions across the US.