Building costs remain steady, study shows

The Turner Corporation announced in June that construction costs are expected to remain steady in the second quarter of 2003. According to the Turner Building Cost Index, the second quarter 2003 index will hold at 620, showing a .32 percent increase from 2002's second quarter index of 618. This is the third quarter in a row that costs have been projected to remain level, the report stated.

"Despite a cautious optimism about the economy on the part of contractors, overall, the commercial construction market remain flat due to the even level of construction activity," said Karl F. Almstead, the Turner vice president responsible for the cost index, in a press release.

"The continued reduced commercial construction market activity has kept a cap on prices. However, the increasing insurance, bonding and labor cost are starting to create pricing pressure."

Turner has made its quarterly forecast for more than 50 years. The building cost and price trends tracked by the Turner Building Cost Index is determined by several factors considered on a nationwide basis 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.

The Turner Corporation, based in Dallas, completed $6.2 billion of construction in 2002.