Construction costs have decreased in the second quarter of 2020 as a result of the coronavirus pandemic, according to the new Turner Construction Co. cost index.
Turner Construction Co.' second quarter cost index measures the country's costs in the non-residential building construction market.
The report showed a value of 1177, which was a 1.01 percent quarterly reduction in the second quarter from the first quarter of 2020.
Attilio Rivetti, vice president at Turner Construction, attributed the drop to an increase in competition between trade contractors as they attempt to line up future opportunities.
As a result Rivetti said, Turner Construction expects the third quarter will show a clearer picture of the various fluctuating costs in the construction industry. Rivetti is responsible for compiling the cost index at Turner Construction Company.
The decrease in construction costs in the second quarter in the Turner cost index differs from what was seen earlier in July, as the increase of 500,000 construction jobs showed a stabilization of construction costs.
Turner Construction has published the construction cost forecast for the last 80 years. The building costs and price trends in the company's cost index may reflect regional conditions in a quarter, and is determined by various factors nationwide. The various factors include labor rates and productivity, material prices, and marketplace competition.
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