Turner Construction Company has recently released their 2013 1st Quarter Building Cost Index Forecast that shows an increase of 1.19% in construction cost over last quarter and an increase of 3.41% since 1st Quarter 2012. Turner indicates construction activity has continued to inch upwards over the last year accompanied by small increases in material and equipment prices and a slight increase in labor rates. Wilson Estes Police Architects notes that the cost index has shown steady growth since mid-2010.
In comparison to the recent peak of construction cost in 2008, the price of construction remains down by approximately 6.5%. Although the rate of inflation for construction projects reached close to a historically typical rate of growth over the last year, discussions with construction professionals point to a belief that prices will continue to rise modestly but not yet at consistently typical rates. 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 Greg Younger.