Commercial building construction costs decreased 5.77 percent in the first quarter of 2009 compared with the fourth quarter of 2008, according to Turner Construction Co.

Since the first quarter of 2008, construction costs have dropped 2.59 percent, according to the index.

“The cost of construction has come down as construction spending has decreased and competition in the industry has increased,” said Karl Almstead, a vice president at Turner.

However, construction activity in the education, health care and public sectors have continued to show strength, he said. Almstead said investments are also up in ‘green’ building across all segments. Green building projects could potentially benefit from the federal $787 billion stimulus package signed into law last month.

The index is determined by several nationwide factors, including labor rates, productivity, material prices and the competitive condition of the marketplace.

In the second half of 2008, commodity and material prices fell from recent highs. Material prices are now stabilizing thanks to production cut-backs and a reduction in inventory.

Turner has prepared the construction cost index for more than 80 years. It is used widely by the construction industry and federal and state governments.

Based in New York City, Turner is the one of the biggest commercial builders in the U.S. The company has offices in Tampa, Orlando, and Miami.