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Q2 construction costs up 5.6% this year

Dive Brief:

  • Turner Construction's Second Quarter 2018 Turner Building Cost Index reflects a 5.63% increase in construction costs since the second quarter of 2017 and a quarter-over-quarter increase of 1.68%.
  • The index, which, as of the second quarter, sits at a value of 1089, measures non-residential U.S. construction costs and, according to Turner, has been rising steadily since at least 2014 in the wake of increased building activity. More expensive raw materials and the labor shortage are both contributors to higher costs.
  • When compiling data for the index, Turner takes into consideration U.S. labor rates and productivity, material prices and the state of competition in the construction market. Turner said that other similar indices do not take all of these factors into account, setting its Building Cost Index apart.  

To read the full article, click here. 

Why Commercial Brokers Should Recommend Design Build to Their Clients

Design Build Will Make You Look Like A Hero

Giving a client a recommendation is always something that should be done with care. There is nothing worse than referring someone – especially a construction or architectural firm – to your client, and they end up as a big disappointment. This makes you look bad in the end. Special consideration should be placed on who you recommend to your clients. However, when you give a client a recommendation and it turns out to be a valuable relationship, you end up looking like the hero. You gain more trust with that client, and it helps strengthen your relationship. Design-build is the best recommendation you can give a client looking to do a construction project.

Why Recommend Design Build

Single-source design and construction have long been a cornerstone of our economy. This fact has led to the natural evolution of design build within commercial construction. With the design-build approach, the design builder accepts full responsibility for the project, integrating conceptual design with the logistical challenges of the construction process.

The United States government, the largest purchaser of construction in the world, has a stated goal of 75-80% of their work being designed and constructed by this method. In MILCON conferences throughout the Southeast, the reasons given to support this goal are that design build saves time, saves money, and in the end, entails less litigation. Simply put, design build creates a team working together to deliver a product on time and within budget.

Advantages of Design Build

The advantages of time savings, monetary savings and reduced litigation are achieved through the early involvement of the design build professional in the project. The building owner/occupant, designers and constructors can work together to develop a plan that meets your clients’ needs today and into the future – and do it at an affordable price. Early cost input helps with the decision process.


Throughout the design process – from the initial program outline through the conceptual plans, preliminary plans, construction drawings and permitting – the design-build professional can provide valuable input on land selection, material selection and construction methods, and can provide cost information to assist with the decision-making process. To effectively manage your clients project, the design-build professional will provide the resources, ranging from other design specialists, engineers, specialty contractors and suppliers, who can provide the necessary input and expertise to ensure success.

Single Source

Since most building owners do not have a staff to dedicate to the project design, working with a single source can keep the project from becoming overwhelming. The design-build professional will integrate the design elements, regulatory requirements and budgetary requirements into a cohesive plan. With a single source, there is a greater feeling of teamwork and less opportunity for finger pointing.

How to Select a Design-Build Professional

Once the decision has been made by your client to use design build as the process to renovate their existing space or construct a new building, their next question is how to select a design-build professional. In their evaluation, several factors should be considered:

Experience – Look for a design-build professional who has a proven track record of successfully delivering similar projects on time and within budget.

Financial Stability – Even as the economy improves, it is essential to work with a partner that has the financial strength to complete your project, pay their bills and fulfill their warranty.

References – Ask to see their completed project experience and obtain references and contact information.

Qualified Subcontractors – A good indicator of the quality and integrity of the design-build professional is the subcontractors they use. When quality subcontractors are on the job, projects will be well managed, and job sites remain clean and safe. Subcontractor financial stability and dependability ensures they will be around after the project is complete to address any warranty or service issues that may arise.

In the end, what matters is that your clients have partnered with a design-build professional who has the capability and wherewithal to complete their project on time, within budget and in a manner that exceeds their expectations. The Bobbitt Design Build team cares about the success of your client's project, and we want them to be so pleased that it makes you look like a hero for recommending us. With Bobbitt in your corner, your client will get the facility they want at the best value, giving them the greatest long-term return on their investment.