Dallas, Texas-based Turner Corp., the nation's leading general builder, announced that construction costs in the third quarter of 2000 are projected to increase 1.2 percent from the second quarter 2000. According to the Turner Building Cost Index, the third quarter 2000 index will increase to 599, seven points above the second quarter figure and 4.54 percent above the third quarter 1999 index of 573.

The company cited the pricing pressures of the past year as the reason building construction costs are being pushed higher. Also, the high demand for labor and the existing backlog in the commercial market remain the major factors in pricing structures.

Turner has made its quarterly forecast for more than 50 years. Used widely by the construction industry and federal and state governments, the building costs and price trends tracked by the Turner Building Cost Index may or may not reflect regional conditions in any given quarter. The Cost Index is determined by several factors considered on a nationwide basis-labor raters and productivity, material prices, and the competitive condition of the marketplace.