NEW YORK CITY—The construction pipeline is filling up, withMcGraw-Hill Construction's Dodge Momentum Indexfor nonresidential projects in the planning stages showing itsthird consecutive monthly increase. And in the latest of a stringof positive reports from the Associated General Contractorsof America, the Arlington, VA-based trade association saidits analysis of the latest Census Bureau figures showed overallspending was up for the third month in a row.

However, one reason for the increase in spending may be a risein costs. Consulting firm Rider Levett Bucknallsays US construction costs rose 1.15% in the first quarter of 2014,the largest three-month increase since 2008.

Rider Levett Bucknall's research shows that overall constructioncosts have been relatively flat for the past six years and are nowbeginning to show signs of spiking. These increases result from avariety of factors including increased construction activity,easing of general contractor price compression and the availabilityof labor and sub-trades.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.