Turner Construction Company has recently released their 2013 2nd Quarter Building Cost Index Forecast that shows an increase of 1.18% in construction cost over last quarter and an increase of 4.00% since 2nd Quarter 2012. Turner indicates that demand in large urban markets is contributing to the recent increases in costs. With available resources to complete additional work, construction companies have the capacity to work on large complex projects which also is behind recent increases in construction costs.
In comparison to the recent peak of construction cost in 2008, the price of construction still remains low. The rate of inflation for construction projects reached a historical typical rate of growth over the last year and discussions with construction professionals point to a belief that prices will continue to rise modestly. Considering that the average building project takes over two years from planning and design through construction, a project initiated in the near future should still be able to realize cost savings from the lower cost of construction.
Wilson Estes Police Architects issues quarterly construction cost updates informed by published market conditions and observed trends in public safety facility construction activity.
Image courtesy of Mark Thompson.