Trade contractors to be more selective about the projects they
pursue.
NEW
YORK, July 6, 2022 /PRNewswire-PRWeb/ -- Turner
Construction Company announced that the Second Quarter 2022 Turner
Building Cost Index—which measures costs in the non-residential
building construction market in the United States—had increased to
the value of 1283. This represents a 2.23% quarterly increase from
the First Quarter 2022 and an 8.09% yearly increase from the Second
Quarter 2021.
"Material and labor cost escalation continues to be driven by
the impact of volatile fuel prices, instability in Europe, and global supply chain impacts. The
shortage of skilled labor is driving higher than usual labor rate
increases. Labor shortages and uncertainty of some key building
materials availability have pushed trade contractors to be more
selective about the projects they pursue, avoiding riskier jobs,
lessening competition, and ultimately impacting prices," said
Attilio Rivetti, the Turner vice
president responsible for compiling the Cost Index. Attilio
continued, "A project specific comprehensive procurement strategy
can reduce the risk of prolonged lead times and price
escalation."
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.
Media Contact
Christopher McFadden, Turner
Construction Company, 1 (212) 229-6145, cmcfadden@tcco.com
SOURCE Turner Construction Company