Amid contractor competition and COVID-19, construction costs fall for the first time since 2010
A new report from Turner Construction Company highlights an unexpected trend that has taken shape in recent months: lower construction costs for non-residential projects. According to Turner's quarterly Building Cost Index, construction costs decreased during the second quarter of 2020 by 1.01%, reversing a nearly equal increase seen during the first quarter of 2020. Describing the contents of the report, Attilio Rivetti, the Turner vice president responsible for compiling the Cost Index, explains, “Trade contractor competition has increased in many areas as they work to secure backlog due to uncertainty they have about future opportunities. We expect the third quarter will serve to more clearly define the fluctuation of escalation of cost in the construction industry."
A new report from Turner Construction Company highlights an unexpected trend that has taken shape in recent months: lower construction costs for non-residential projects.
According to Turner's quarterly Building Cost Index, construction costs decreased during the second quarter of 2020 by 1.01%, reversing a nearly equal increase seen during the first quarter of 2020.
Describing the contents of the report, Attilio Rivetti, the Turner vice president responsible for compiling the Cost Index, explains, “Trade contractor competition has increased in many areas as they work to secure backlog due to uncertainty they have about future opportunities. We expect the third quarter will serve to more clearly define the fluctuation of escalation of cost in the construction industry."
