international construction cost survey 2012€¦ · [email protected] for further...

making the difference

International

construction

cost survey

2012

making the difference 1

Introduction 2

Country profiles

Australia 8

Canada 10

China 12

Germany 14

India 16

Ireland 18

Japan 20

Malaysia 22

Russia 24

Singapore 26

South Africa 28

South Korea 30

UAE 32

UK 34

US 36

Vietnam 38

Contributors 40

In this survey, trade, labour and material prices and prices per square metre are indicative, and should not be relied on. Costs are dependent on building design, inclusions, exclusions and site conditions. Cost comparisons between countries are subject to different interpretations, building methods, and standards for costing, measurement and construction. Costs may vary substantially between countries within regions. Professional advice should always be sought.

Comparative values are based on average exchange rates for the calendar year 2011.

© Turner & Townsend plc 2012

Contents

International construction cost survey 2012

2 Turner & Townsend

All the cost data presented here has come

from our own professionals working in the

commercial construction sector across the

globe at the end of 2011. Our thanks go

to them for their invaluable input.

We welcome your feedback on ways we

can improve it in future. If you have any

comments on this survey or would like

any further information, please contact:

[email protected]

For further information on our services,

please visit www.turnerandtownsend.com

or contact your nearest office.

What’s happened since the last survey? 2011 was a tough year for construction

businesses in many countries. 2012 looks

like being a similar story but there are some

reasons to be optimistic.

At the beginning of 2012 most economies are still

feeling the fallout from the global financial crisis

(GFC) and recovery is still some years away.

But the US economy is showing signs of working

through its problems of spiralling budget deficits

and housing oversupply, even though there

is still much to be done. US unemployment is

showing signs of easing and was at 8.5 percent

in December 2011.

Introduction

Welcome to the 2012 edition of our International construction cost survey. In this survey you can find and compare construction, materials and labour costs and market conditions across many of the countries in which we operate.

London Bridge Quarter, the Shard

The focal point for a major commercial development in the heart

of London, the Shard will be the tallest building in western Europe.

Construction costs in most

regions are expected to stay

moderate during 2012.

Barring natural disasters and

other surprises, 2012 offers

a window of opportunity to

build your project on time

and perhaps under budget.


In Europe the problems that started in Ireland

and Greece have spread to Portugal, Italy and

Spain. Falling asset values, high unemployment

and crippling government debt in several of

the Euro member countries are likely to result

in economic weakness in 2012.

In the US and Europe, governments are

running out of policy levers, be they monetary

stimulus or austerity measures such as higher

taxes and pay cuts. Politically difficult as

austerity measures are, they also prolong and

exacerbate the downturn, as demand and

consumption falls. This sets the retail, property

and construction sectors on a downwards spiral.

Those countries which introduced stimulus

measures to boost their economies and

construction sectors have mostly spent their

stimulus budgets and there are few remaining

policy levers or alternative stimuli to help their

economies achieve self-sustaining growth.

But with time businesses restructure, reduce

their cost base, recapitalise and prepare for

the future. The US seems to be at this stage

of recovery in many sectors including the

construction sector. The US went into the

GFC first and so logically it will emerge first.

In 2012 the US construction data should start

to improve.

The effects of the continuing difficulties

in the developed economies are being felt

everywhere, even in the growth economies

of Asia, South America and Africa, through

reduced international trade, tightening credit

markets, falling share markets, lower retirement

fund balances and lower house prices. Public

infrastructure budgets have been cut, public

works projects delayed and consumers are

saving more, paying off debt, consuming less,

and exercising caution. These are all good

virtues after years of credit-fuelled growth,

but demand is lower, and the construction

sector struggles to find projects.

However, worldwide there are many reasons to

be optimistic. The Chinese, Indian, Vietnamese

and African economies are on long-term

growth paths that will improve living standards,

creating jobs and opportunities for their

people and the economies which supply them.

There is still a long way to go so the demand

for resources and skills will grow.

The demand for energy and resources is driving

the growth of many new projects in natural

resources, gas, coal shale and renewable

energies in countries as diverse as Australia,

Kazakhstan, Mauritania, Brazil and the US,

creating jobs, driving construction and wealth.

South Africa is transforming its power sector

with major investments in power stations.

Australia has introduced a carbon tax that

will eventually force the replacement of coal

power stations with cleaner alternatives.

Communications networks are being built, or

upgraded as high-speed internet becomes global.

Siemens City, Vienna

World-class, energy-efficient construction, delivered to meticulously

engineered costs, certified to US Green Building Gold standard.


4 Turner & Townsend

Worldwide, these projects add up to a

substantial portfolio of long-term construction

work. It is a good time to build. Construction

costs are generally benign as shown by our

surveys. In most regions the markets are not

overheated like they were in the last decade.

That means projects are more likely to be

built on time and budget. Contractors have

retained their most skilled labour and many of

the casuals employed when work is plentiful

have left to pursue other opportunities.

In many countries the construction sector

is now very competitive and tendered prices

often come in below budget. The surveys

show that construction costs in half of the

countries surveyed are still below 2008

levels. Most of our respondents indicated

that labour rates were well under control.

Materials prices are also competitive. Commodity

prices increased alarmingly in early 2011 but

have now fallen. Steel prices fell in late 2011.

Lower coking coal and iron ore prices indicate

that steel could be cheaper in 2012. Copper

prices have also fallen by 20 percent since March

2011 which should mean cheaper costs for some

electrical and plumbing materials in 2012.

All of this bodes well for construction costs in

2012 with forecast cost increases in line with

2011. In other words, construction costs in

most regions are expected to stay moderate

during 2012. Barring natural disasters and

other surprises, 2012 offers a window of

opportunity to build your project on time

and perhaps under budget.

Part of the reason why construction markets

are so competitive is that housing and

non-residential building construction is hardly

increasing in most developed economies,

because there is little, if any, price growth.

Eventually, this cyclical downturn will end as the

fundamentals of supply and demand reassert.

Housing markets will recover, consumers will

start to borrow and spend again. The cycle

will turn, and when it does costs will increase

again as building, resources and infrastructure

projects compete for resources and skills.

Alstom Hydro, China

Multiform energy-saving technologies are helping to make this

146,000 m2 hydropower manufacturing facility fully carbon neutral.

King Edward VII Memorial Hospital, Bermuda

The first P3 (PPP) project in Bermuda is being delivered using

local contractors for stakeholders in the US, Europe and Bermuda.


Cost index – high-rise apartments

Cost Index 2008=100

2008 2009 2010 2011

Australia 100 96 94 96

Canada 100 95 94 100

China 100 78 80 81

Germany 100 101 101 104

India 100 100 117 150

Ireland 100 92 85 83

Malaysia 100 98 111 130

Russia 100 105 98 100

Singapore 100 74 79 79

South Africa 100 107 107 107

South Korea 100 99 99 99

UAE 100 94 89 72

UK 100 98 98 101

US 100 99 97 101

Vietnam 100 117 125 141

Cost index – CBD offices

Cost Index 2008=100

2008 2009 2010 2011

Australia 100 96 96 97

Canada 100 96 95 98

China 100 82 84 89

Germany 100 101 101 104

India 100 105 112 140

Ireland 100 78 72 71

Malaysia 100 97 101 117

Russia 100 105 99 100

Singapore 100 83 83 83

South Africa 100 121 121 121

South Korea 100 99 99 99

UAE 100 96 92 83

UK 100 91 91 94

US 100 97 94 97

Vietnam 100 117 125 141

The above two charts show construction costs indexed to 2008=100 for each region in the survey (except Japan). The indices are based on nominal costs in $/m2 in the currency of the country. The indices show the increase or fall from year to year. The data indicates that in most regions construction costs have recovered to 2008 levels although China, Ireland, Singapore and the UAE are still substantially below. Between 2010 and 2011 India, Vietnam and Malaysia saw costs increase strongly. Conversely, the UAE has experienced quite strong price falls between 2010 and 2011.

Moderate cost escalation is expected once again in 2012 following only moderate cost increases

in most regions during 2011. The exceptions are India and South Africa where higher escalation

is forecast by our teams on the ground. In Japan prices are forecast to fall slightly.

0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

Estimated cost escalation 2012

CanadaAustralia

ChinaGermany

IndiaIreland

JapanMalaysiaRussiaSingapore

South AfricaSouth Korea

UAEUK

USVietnam


6 Turner & Townsend

Key economic indicators

Inflation 2011

GDP 2011

GDP forecast 2012

Unemployment rate

Australia 2.6 2.1 3.3 5.2

Canada 2.5 2.1 1.9 7.6

China 4.0 9.5 9.0 4.0

Germany 2.5 2.7 1.3 6.0

India 10.6 7.8 7.5 9.5

Ireland 2.2 0.4 1.5 14.3

Japan –0.4 –0.5 2.3 4.9

Malaysia 3.3 5.2 5.1 3.2

Russia 7.5 4.3 4.1 7.3

Singapore 5.5 5.3 4.3 2.3

South Africa 6.0 3.4 3.6 24.5

South Korea 4.3 3.9 4.4 3.3

UAE 2.5 3.3 3.8 4.3

UK 4.5 1.1 1.6 7.8

US 3.9 1.5 1.8 9.1

Vietnam 22.0 5.8 6.3 5.0

Cold Lukewarm Warm Hot Overheating Ireland Australia Germany South Korea Canada India UK China South Africa Japan Malaysia Russia Singapore UAE US Vietnam

Cooler Staying the same Warmer Canada Australia Germany China Ireland India Vietnam Japan Russia Malaysia Singapore South Africa South Korea UAE UK US

The information from which this

survey is compiled has been provided

by Turner & Townsend professionals

based in 16 countries and regions.

Our respondents have also provided

their views on current and anticipated

market conditions.

How would you describe current market tendering conditions?

Is the construction market getting warmer, cooler or staying the same?


Typical preliminaries as a percentage of total costs

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

Canada

Australia

China

Germany

India

Ireland

Japan

Malaysia

Russia

Singapore

South Africa

South Korea

UAE

UK

US

Vietnam

Contractor’s margin has been squeezed in those countries where work volumes have fallen and

contractors have to compete more vigorously. With fewer jobs contractors will often submit

very competitive prices just to keep work flowing. Often sub-contractor prices may be equally

competitive allowing head contractors to claw back some lost margin during the job.

Preliminaries include job set-up costs, such as scaffolding, approvals, insurances, power and

water, cleaning and handover, and work supervision. Typically, higher cost countries have higher

preliminaries. In many countries costs of power and water are increasing. Also regulatory

compliance adds further preliminary costs.

Typical contractor’s margin on medium commercial job (5000m2 GFA)

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0%

Canada

Australia

China

Germany

India

Ireland

Japan

Malaysia

Russia

SingaporeSouth Africa

South Korea

UAE

UK

US

Vietnam


8 Turner & Townsend

AustraliaThe Australian construction market is lukewarm at best with weak consumer confidence and

falling house prices deterring residential construction in most states. Commercial construction

is also weak with some oversupply from the previous boom. Tendering is competitive for the

limited number of new private construction projects coming to the market. However, construction

of an unprecedented pipeline of resources and energy projects is ramping up. Gradually, this is

expected to increase construction costs as shortages of trade skills, engineering and management

worsen. Further adding to costs, a carbon tax was recently legislated and a mining profits tax

is currently in the final stages of debate prior to passing into legislation.

Country profiles

Australia – international building costs per m2 of internal area

2008 2009 2010 2011 2011 AUD AUD AUD AUD USD

Residential

Detached house – medium standard 1,518 1,445 1,445 1,474 1,517Detached house – prestige 2,250 2,150 2,100 2,142 2,205 Townhouse – medium standard 1,715 1,640 1,650 1,683 1,732Apartments – private medium density 2,050 1,950 1,900 1,938 1,995Apartments – high rise 2,500 2,400 2,350 2,397 2,467Aged care/affordable unit 2,400 2,300 2,260 2,305 2,373

Commercial

Offices – business park 1,895 1,820 1,820 1,838 1,892CBD offices up to 20 floors – medium 3,000 2,880 2,880 2,909 2,994CBD offices – prestige 3,360 3,200 3,200 3,232 3,327

Warehouses

Warehouse/factory unit – basic 830 750 760 768 790Large warehouse distribution centre 640 590 600 606 624 High-tech factory/laboratory 1,540 1,500 1,500 1,515 1,559

Retail

Large shopping centre including mall 2,200 2,150 2,150 2,172 2,235Neighbourhood including supermarket 1,810 1,750 1,750 1,768 1,819Prestige car showroom 4,400 4,200 4,200 4,242 4,366

Hotels

Three-star travellers 2,840 2,800 3,247 3,279 3,376Five-star luxury 3,850 3,750 3,750 3,788 3,899Resort style 4,185 4,000 4,000 4,040 4,158

Hospitals

Day centre 2,900 2,900 2,900 2,929 3,015Regional hospital 3,300 3,270 3,270 3,303 3,400General hospital 5,500 5,300 5,134 5,185 5,337

Schools

Primary and secondary 1,985 1,900 1,900 1,919 1,975University 3,130 3,050 3,050 3,081 3,171

Carparks

Multistorey – above ground 850 832 800 808 832 Multistorey – below ground 1,250 1,235 1,173 1,185 1,219

Airports

Airport terminal 8,000 7,000 6,500 6,565 6,757


Australia – major projects

AUD

Chevron Gorgon 43bnChevron Wheatstone 30bnAPLNG Gladstone 16bnBHP Olympic Dam 30bnSantos GLNG 16bn

Australia – hourly cost of labour (including overheads)

2010 2011 2011 AUD AUD USD

Group 1 tradesman – eg plumber, electrician 65 68 70Group 2 tradesman – eg carpenter, bricklayer 55 57 59Group 3 tradesman – eg carpet layer, tiler, plasterer 53 55 57General labourer 37 38 40 Site foreman 69 72 75

Australia – costs of materials

Concrete 30 mpa (m3) (1,500m3 job) 186 186 191Reinforcement bar 16mm (tonne) (120 tonne job) 1,300 1,250 1,286Concrete block (400 x 200) per 1,000 (>10,000 block job) 3,360 3,360 3,459Standard brick per 1,000 541 541 557Structural steel beams (tonne) (>100 tonne job) 2,955 2,955 3,042Glass pane 6mm (m2) 47 47 48Softwood timber for framing 100mm x 50mm (m) 29 29 30Plasterboard 13mm (m2) 39 39 40 Emulsion paint (litre) 15 15 15Copper pipe 15mm (m) (>1,000m job) 12 12 12Copper cable (m) (3C + E, 2.5mm PVC) (>100,000m job) 5 5 5

Australia – key trades (excluding preliminaries and builders’ margins)

Excavate basement (m3) (1,800m3 job) 29 29 30Excavate footings (m) 71 71 73Concrete in slab (m3) (1,500m3 job) 256 256 264Reinforcement in beams (tonne) 2,442 2,442 2,514Formwork to soffit of slab (m2) 120 120 124Blockwork in wall (m2) (10,000 block job) 131 131 135Structural steel beams (tonne) 6,298 6,298 6,483Pre-cast concrete wall (m2) 299 299 308Curtain wall glazing incl support system (m2) (1,000m2 job) 1,051 1,051 1,082Plasterboard 13mm thick to stud wall (m2) (3,000m2 job) 30 30 31Single solid core door incl frame and hardware (no) (50 door job) 765 765 787Painting to walls primer + 2 coats (m2) 15 15 15Ceramic tiling (m2) (1,000m2 job) 109 109 112Vinyl flooring to wet areas (m2) (500m2 job) 71 71 73Carpet medium tufted (m2) (4,500m2 job) 80 80 82Lighting installation (m2) (>5,000m2 job) 81 81 83Copper pipe 15mm to wall (m) (>1,000m job) 60 60 62Fire sprinklers (per m2) (5,000m2 job) 46 46 47Air conditioning incl main plant (m2) (>5,000m2 job) 300 300 309


10 Turner & Townsend

CanadaAt present the construction market in Canada is moderate to slow. Public investment in

infrastructure and rail projects is the dominant construction type, whereas private sector

development is quite weak. The housing construction market is slowing. Tendering is

competitive and wage increases have remained moderate on a weaker outlook and concerns

over Europe. Gradually, the economy will be boosted by strong mining investment helping to

stimulate ancillary businesses and the resumption of stronger building construction levels.

Canada – international building costs per m2 of internal area

2008 2009 2010 2011 2011 CAD CAD CAD CAD USD

Residential

Detached house – medium standard 3,000 2,750 2,700 2,800 2,836Detached house – prestige 4,000 3,750 3,700 3,800 3,849Townhouse – medium standard 1,379 1,313 1,300 1,400 1,418Apartments – private medium density 1,909 1,818 1,800 1,900 1,925Apartments – high rise 1,697 1,616 1,600 1,700 1,722Aged care/affordable units 2,057 1,959 1,940 2,000 2,026

Commercial


Warehouses

Warehouse/factory unit – basic 912 869 860 900 912 Large warehouse distribution centre 1,007 960 950 1,000 1,013 High-tech factory/laboratory 1,378 1,313 1,300 1,400 1,418

Retail


Hotels


Hospitals


Schools


Carparks

Multistorey – above ground 795 758 750 800 810 Multistorey – below ground 1,060 1,010 1,000 1,100 1,114

Airports



Canada – major projects

CAD

Halton Region Hospital 1bnHumber River Regional Hospital 1bnAir Rail Link 310mUnion Station Revitalisation 640mToronto-York Spadina Subway Extension 2.6bn

Canada – hourly cost of labour (including overheads)

2010 2011 2011 CAD CAD USD


Canada – costs of materials

Concrete 30 mpa (m3) (1,500m3 job) 150 165 167Reinforcement bar 16mm (tonne) (120 tonne job) 1,200 1,350 1,368Concrete block (400 x 200) per 1,000 (>10,000 block job) 700 725 734Standard brick per 1,000 900 900 912Structural steel beams (tonne) (>100 tonne job) 2,000 2,100 2,127Glass pane 6mm (m2) 165 165 167Softwood timber for framing 100mm x 50mm (m) 25 25 25Plasterboard 13mm (m2) 10 10 10 Emulsion paint (litre) 10 10 10Copper pipe 15mm (m) (>1,000m job) 6 10 10Copper cable (m) (3C + E, 2.5mm PVC) (>100,000m job) 4 7 7

Canada – key trades (excluding preliminaries and builders’ margins)

Excavate basement (m3) (1,800m3 job) 15 15 15Excavate footings (m) 20 20 20Concrete in slab (m3) (1,500m3 job) 190 190 192Reinforcement in beams (tonne) 1,800 1,900 1,925Formwork to soffit of slab (m2) 140 140 142 Blockwork in wall (m2) (10,000 block job) 120 120 122 Structural steel beams (tonne) 3,000 3,250 3,292 Pre-cast concrete wall (m2) 300 325 329Curtain wall glazing incl support system (m2) (1,000m2 job) 900 925 937Plasterboard 13mm thick to stud wall (m2) (3,000m2 job) 25 25 25Single solid core door incl frame and hardware (no) (50 door job) 1,500 1,600 1,621Painting to walls primer + 2 coats (m2) 8 10 10Ceramic tiling (m2) (1,000m2 job) 85 85 86Vinyl flooring to wet areas (m2) (500m2 job) 60 65 66Carpet medium tufted (m2) (4,500m2 job) 55 55 56Lighting installation (m2) (>5,000m2 job) 50 50 51 Copper pipe 15mm to wall (m) (>1,000m job) 65 65 66Fire sprinklers (per m2) (5,000m2 job) 35 35 35Air conditioning incl main plant (m2) (>5,000m2 job) 310 310 314



ChinaConstruction demand in China fell by as much as ten percent over the last six months because of

government measures introduced late last year to moderate growth to more sustainable levels, curb

the sharp spike in property prices and reduce inflationary pressures. These included restrictions on

pre-sales, restrictions on loans for purchases of third homes, higher minimum mortgage rates and

tighter financing for second-home purchases. Property transactions in the key cities of Beijing,

Shanghai and Shenzen have fallen strongly in response. Weaker demand for Chinese exports

threatens to slow manufacturing growth in 2012, however the Chinese Government has strong

reserves and policies to stimulate the economy if the global economy does deteriorate further.

China – international building costs per m2 of internal area

2008 2009 2010 2011 2011 CNY CNY CNY CNY USD

Residential

Detached house – medium standard 5,800 4,400 4,480 4,540 699Detached house – prestige 6,500 5,100 5,170 5,240 806 Townhouse – medium standard 4,800 4,000 4,050 4,110 632 Apartments – private medium density 4,500 3,200 3,290 3,330 512Apartments – high rise 5,000 3,900 3,980 4,030 620Aged care/affordable units 3,700 2,600 2,670 2,710 417

Commercial

Offices – business park 5,500 4,400 4,500 4,690 722CBD offices up to 20 floors – medium 8,400 6,900 7,090 7,450 1,146CBD offices – prestige 10,500 8,900 9,140 9,300 1,431

Warehouses

Warehouse/factory unit – basic 3,000 2,300 2,360 2,580 397Large warehouse distribution centre 3,300 2,700 2,780 3,050 469High-tech factory/laboratory 6,100 5,300 5,450 5,870 903

Retail

Large shopping centre including mall 7,500 5,900 6,080 6,180 951Neighbourhood including supermarket 5,100 4,000 4,120 4,220 649Prestige car showroom 3,900 3,400 3,500 3,650 562

Hotels

Three-star travellers 6,800 5,500 5,660 5,780 889Five-star luxury 11,300 10,000 10,300 10,540 1,622Resort style 9,100 8,300 8,550 8,750 1,346

Hospitals

Day centre 4,500 4,200 4,320 4,410 679Regional hospital 5,500 5,100 5,250 5,350 823General hospital 6,100 5,700 5,870 5,980 920

Schools

Primary and secondary 3,800 3,500 3,610 3,640 560University 5,700 5,200 5,350 5,390 829

Carparks

Multistorey – above ground 2,200 2,000 2,080 2,140 329 Multistorey – below ground 5,300 4,500 4,640 4,780 736

Airports



China – major projects

CNY

National Trunk Road Network 900bnSouth–North Water Transfer 500bnSilk Road Renaissance 330bnTianjin Binhai New Area 1tnChina’s Renewable Energy Development Plan 2tn

China – hourly cost of labour (including overheads)

2010 2011 2011 CNY CNY USD


China – costs of materials

Concrete 30 mpa (m3) (1,500m3 job) 370 430 66Reinforcement bar 16mm (tonne) (120 tonne job) 3,400 4,500 692Concrete block (400 x 200) per 1,000 (>10,000 block job) 18 32 5Standard brick per 1,000 365 450 69 Structural steel beams (tonne) (>100 tonne job) 7,400 8,600 1,323Glass pane 6mm (m2) 460 530 82Softwood timber for framing 100mm x 50mm (m) 53 62 10Plasterboard 13mm (m2) 32 38 6 Emulsion paint (litre) 60 65 10Copper pipe 15mm (m) (>1,000m job) 64 53 8Copper cable (m) (3C + E, 2.5mm PVC) (>100,000m job) 15 18 3

China – key trades (excluding preliminaries and builders’ margins)

Excavate basement (m3) (1,800m3 job) 20 34 5Excavate footings (m) 34 54 8Concrete in slab (m3) (1,500m3 job) 420 560 86Reinforcement in beams (tonne) 5,200 6,500 1,000Formwork to soffit of slab (m2) 90 90 14Blockwork in wall (m2) (10,000 block job) 150 155 24 Structural steel beams (tonne) 9,000 9,800 1,508Pre-cast concrete wall (m2) 155 210 32 Curtain wall glazing incl support system (m2) (1,000m2 job) 1,600 1,600 246 Plasterboard 13mm thick to stud wall (m2) (3,000m2 job) 130 180 28Single solid core door incl frame and hardware (no) (50 door job) 2,200 2,670 411Painting to walls primer + 2 coats (m2) 42 48 7 Ceramic tiling (m2) (1,000m2 job) 180 210 32Vinyl flooring to wet areas (m2) (500m2 job) 385 385 59 Carpet medium tufted (m2) (4,500m2 job) 390 390 60Lighting installation (m2) (>5,000m2 job) 660 320 49Copper pipe 15mm to wall (m) (>1,000m job) 82 85 13Fire sprinklers (per m2) (5,000m2 job) 210 280 43Air conditioning incl main plant (m2) (>5,000m2 job) 490 490 75



Germany Construction orders grew at a moderate two percent year-on-year according to The German

Construction Industry Federation. However, housing grew at a more robust 6.6 percent higher

than 2010, based on positive income expectations and low interest rates. Maintenance and

expansion projects have also injected some further positivity into the construction market with

an increase in turnover of seven percent year-on-year. However, this year has seen demand

for public construction decline with a decrease in orders of two percent. Despite the continuing

European sovereign debt woes and the weakness in neighbouring trading partners, the German

economy has shown considerable resilience. Construction levels in 2012 should remain positive,

tendering competitive and escalation moderate.

Germany – international building costs per m2 of internal area

2008 2009 2010 2011 2011 EUR EUR EUR EUR USD

Residential

Detached house – medium standard 820 830 833 857 1,192Detached house – prestige 1,160 1,170 1,174 1,208 1,680 Townhouse – medium standard 1,740 1,760 1,766 1,817 2,528 Apartments – private medium density 670 680 682 702 977Apartments – high rise 640 645 647 666 926Aged care/affordable units 660 670 672 692 962

Commercial


Warehouses

Warehouse/factory unit – basic 340 345 345 356 495Large warehouse distribution centre 320 325 325 334 465High-tech factory/laboratory 1,560 1,575 1,575 1,626 2,262

Retail

Large shopping centre including mall 895 900 903 929 1,292Neighbourhood including supermarket 895 900 903 929 1,292Prestige car showroom 870 880 883 908 1,263

Hotels


Hospitals


Schools


Carparks

Multistorey – above ground 524 526 533 548 762 Multistorey – below ground 597 599 607 624 868

Airports



Germany – major projects

USD

Trans Europa Naturgas Pipeline (TENP) Upgrade 120m Frankfurt Chlor-Alkali Plant Expansion 140mStuttgart 21 5.2bn

Germany – hourly cost of labour (including overheads)

2010 2011 2011 EUR EUR USD


Germany – costs of materials

Concrete 30 mpa (m3) (1,500m3 job) 118 122 170Reinforcement bar 16mm (tonne) (120 tonne job) 760 786 1,094Concrete block (400 x 200) per 1,000 (>10,000 block job) 4,400 4,553 6,333Standard brick per 1,000 550 569 792Structural steel beams (tonne) (>100 tonne job) 2,850 2,949 4,102Glass pane 6mm (m2) 53 55 76Softwood timber for framing 100mm x 50mm (m) 3 3 4Plasterboard 13mm (m2) 4 4 5 Emulsion paint (litre) 5 5 6Copper pipe 15mm (m) (>1,000m job) 9 9 13Copper cable (m) (3C + E, 2.5mm PVC) (>100,000m job) 4 4 6

Germany – key trades (excluding preliminaries and builders’ margins)

Excavate basement (m3) (1,800m3 job) 13 13 19Excavate footings (m) 25 26 36Concrete in slab (m3) (1,500m3 job) 133 137 190Reinforcement in beams (tonne) 1,800 1,852 2,575Formwork to soffit of slab (m2) 35 36 50Blockwork in wall (m2) (10,000 block job) 63 65 90 Structural steel beams (tonne) 3,020 3,106 4,320Pre-cast concrete wall (m2) 90 93 129 Curtain wall glazing incl support system (m2) (1,000m2 job) 435 447 622Plasterboard 13mm thick to stud wall (m2) (3,000m2 job) 50 51 72Single solid core door incl frame and hardware (no) (50 door job) 820 843 1,173Painting to walls primer + 2 coats (m2) 5 5 7Ceramic tiling (m2) (1,000m2 job) 50 51 72Vinyl flooring to wet areas (m2) (500m2 job) 33 34 47 Carpet medium tufted (m2) (4,500m2 job) 25 26 36Lighting installation (m2) (>5,000m2 job) 53 55 76Copper pipe 15mm to wall (m) (>1,000m job) 28 29 40Fire sprinklers (per m2) (5,000m2 job) 75 77 107Air conditioning incl main plant (m2) (>5,000m2 job) 30 31 43



India Construction growth is expected to accelerate during 2012. The government is focusing on

infrastructure creation and this is having an impact on the industrial and infrastructure construction

segments. This sector is forecast to grow by 21.5 percent in 2012. The high-rise construction

sector is also strong with numerous mixed-use, high-rise buildings under construction and strong

escalation experienced. The expanded presence of overseas contractors in this segment has

increased costs by as much as 30 percent for high-rise construction in the past 12–18 months.

During 2012 construction costs are expected to grow by up to seven percent, one of the highest

escalation rates globally.

India – international building costs per m2 of internal area

2008 2009 2010 2011 2011 INR INR INR INR USD

Residential

Detached house – medium standard 14,850 16,500 28,000 30,000 655Detached house – prestige 19,350 21,500 35,000 37,500 818 Townhouse – medium standard 18,000 20,000 22,000 25,000 546Apartments – private medium density 17,100 19,000 18,000 20,000 436Apartments – high rise 30,000 32,500 35,000 45,000 982Aged care/affordable units 12,600 14,000 16,000 18,000 393

Commercial

Offices – business park 21,600 27,000 25,000 30,000 655CBD offices up to 20 floors – medium 25,000 26,250 28,000 35,000 764CBD offices – prestige 30,000 32,500 35,000 38,000 829

Warehouses

Warehouse/factory unit – basic 27,000 30,000 35,000 26,500 578Large warehouse distribution centre 31,500 35,000 37,000 33,500 731 High-tech factory/laboratory 33,300 37,000 38,000 40,000 873

Retail

Large shopping centre including mall 24,300 27,000 35,000 38,000 829Neighbourhood including supermarket 20,700 23,000 26,000 26,000 567Prestige car showroom 13,500 15,000 16,000 17,500 382

Hotels

Three-star travellers 32,130 35,700 35,000 38,000 829Five-star luxury 75,735 84,150 70,000 75,000 1,637Resort style 29,835 33,150 38,000 48,000 1,048

Hospitals


Schools

Primary and secondary 9,000 10,000 15,000 18,000 393University 22,500 25,000 35,000 38,000 829

Carparks


Airports



India – major projects

USD

Delhi Mumbai Industrial Corridor (DMIC) 100bnInformation Technology Investment Region (ITIR – Bangalore) 50bnJawaharlal Nehru National Solar Mission (JNNSM) 75bnNational Highways Development Programme 75bnLavasa Hill City 31bn

India – hourly cost of labour (including overheads)

2010 2011 2011 INR INR USD

Group 1 tradesman – eg plumber, electrician 45 56 1.2Group 2 tradesman – eg carpenter, bricklayer 45 50 1.1Group 3 tradesman – eg carpet layer, tiler, plasterer 40 38 0.8General labourer 18 20 0.4 Site foreman 80 80 1.7

India – costs of materials

Concrete 30 mpa (m3) (1,500m3 job) 3,500 5,000 109Reinforcement bar 16mm (tonne) (120 tonne job) 35,000 40,500 884Concrete block (400 x 200) per 1,000 (>10,000 block job) 20,000 35,000 764Standard brick per 1,000 7,000 6,250 136Structural steel beams (tonne) (>100 tonne job) 65,000 50,000 1,091Glass pane 6mm (m2) 500 500 11Softwood timber for framing 100mm x 50mm (m) 150 275 6Plasterboard 13mm (m2) 250 280 6 Emulsion paint (litre) 300 340 7Copper pipe 15mm (m) (>1,000m job) 1,400 1,300 28Copper cable (m) (3C + E, 2.5mm PVC) (>100,000m job) 2,200 2,450 53

India – key trades (excluding preliminaries and builders’ margins)

Excavate basement (m3) (1,800m3 job) 900 750 16Excavate footings (m) 400 475 10Concrete in slab (m3) (1,500m3 job) 5,500 6,500 142Reinforcement in beams (tonne) 55,000 56,000 1,222Formwork to soffit of slab (m2) 500 525 11Blockwork in wall (m2) (10,000 block job) 1,000 1,075 23Structural steel beams (tonne) 65,000 82,500 1,801Pre-cast concrete wall (m2) 6,000 8,250 180Curtain wall glazing incl support system (m2) (1,000m2 job) 7,000 9,250 202Plasterboard 13mm thick to stud wall (m2) (3,000m2 job) 3,500 2,250 49Single solid core door incl frame and hardware (no) (50 door job) 30,000 27,500 600Painting to walls primer + 2 coats (m2) 200 200 4Ceramic tiling (m2) (1,000m2 job) 2,800 2,800 61Vinyl flooring to wet areas (m2) (500m2 job) 1,800 2,100 46Carpet medium tufted (m2) (4,500m2 job) 1,500 2,350 51Lighting installation (m2) (>5,000m2 job) 2,800 2,900 63Copper pipe 15mm to wall (m) (>1,000m job) 1,500 1,775 39Fire sprinklers (per m2) (5,000m2 job) 1,200 825 18Air conditioning incl main plant (m2) (>5,000m2 job) 5,000 3,625 79



Ireland Tender prices stabilised for the first time in four years by mid 2011. However, severe shortages of work

in all sectors will cause tender prices to remain very competitive in 2012. A recent survey highlighted

the dangerous situation where nearly half of all tenders are below realistic levels. Construction labour

rates have not increased during 2011. Some material prices have risen slightly due to smaller levels

of production volumes and less economies of scale. The pharmaceutical and hi-tech sectors continue

to attract high levels of construction investment encouraged by the activities of the Irish Development

Authority and the attractive corporate tax environment. Public sector investment is being concentrated

in previously neglected education and health sectors. Further cuts in public-funded capital

expenditure are likely to satisfy the requirements of the IMF/ECB/ESFS bail-out conditions.

Ireland – international building costs per m2 of internal area

2008 2009 2010 2011 2011 EUR EUR EUR EUR USD

Residential

Detached house – medium standard 1,500 1,100 1,000 1,000 1,391Detached house – prestige 2,200 1,800 1,700 1,600 2,225 Townhouse – medium standard 1,400 1,080 1,000 1,000 1,391Apartments – private medium density 1,750 1,500 1,375 1,350 1,878Apartments – high rise 1,800 1,650 1,525 1,500 2,086Aged care/affordable units 2,500 2,000 1,850 1,825 2,538

Commercial


Warehouses

Warehouse/factory unit – basic 650 550 500 500 695Large warehouse distribution centre 1,100 975 900 875 1,217 High-tech factory/laboratory 1,800 1,650 1,550 1,525 2,121

Retail


Hotels


Hospitals


Schools


Carparks

Multistorey – above ground 570 570 525 500 695 Multistorey – below ground 960 960 875 875 1,217

Airports



Ireland – major projects

EUR

INTEL 200m+Rapid Schools – Bundle 2 (Lots 1–4 Primary/Post Primary Schools) 100m+National Paediatric Hospital at Mater Hospital 400m+Pfizer 100–200mGoogle Data Centre 50–100m

Ireland – hourly cost of labour (including overheads)

2010 2011 2011 EUR EUR USD


Ireland – costs of materials

Concrete 30 mpa (m3) (1,500m3 job) 54 60 83Reinforcement bar 16mm (tonne) (120 tonne job) 650 700 974Concrete block (400 x 200) per 1,000 (>10,000 block job) 420 400 556 Standard brick per 1,000 410 420 584Structural steel beams (tonne) (>100 tonne job) 990 1,020 1,419Glass pane 6mm (m2) 41 42 58Softwood timber for framing 100mm x 50mm (m) 1 1 1Plasterboard 13mm (m2) 3 3 4 Emulsion paint (litre) 4 4 6 Copper pipe 15mm (m) (>1,000m job) 2 3 4Copper cable (m) (3C + E, 2.5mm PVC) (>100,000m job) 1 1 1

Ireland – key trades (excluding preliminaries and builders’ margins)

Excavate basement (m3) (1,800m3 job) 11 9 13Excavate footings (m) 18 18 25 Concrete in slab (m3) (1,500m3 job) 67 72 100Reinforcement in beams (tonne) 825 900 1,252Formwork to soffit of slab (m2) 30 28 39Blockwork in wall (m2) (10,000 block job) 22 22 31Structural steel beams (tonne) 1,875 1,900 2,642Pre-cast concrete wall (m2) 50 48 67Curtain wall glazing incl support system (m2) (1,000m2 job) 470 420 584Plasterboard 13mm thick to stud wall (m2) (3,000m2 job) 55 50 70Single solid core door incl frame and hardware (no) (50 door job) 750 720 1,001Painting to walls primer + 2 coats (m2) 4 5 7Ceramic tiling (m2) (1,000m2 job) 58 55 76Vinyl flooring to wet areas (m2) (500m2 job) 35 32 45Carpet medium tufted (m2) (4,500m2 job) 25 25 35Lighting installation (m2) (>5,000m2 job) 14 14 19Copper pipe 15mm to wall (m) (>1,000m job) 28 28 39Fire sprinklers (per m2) (5,000m2 job) 70 70 97Air conditioning incl main plant (m2) (>5,000m2 job) 300 300 417



Japan After nearly two decades of economic stagnation the construction industry displayed signs

of recovery during late 2010 and 2011. However, the devastating earthquake and tsunami in

March 2011 temporarily halted this improvement. More than 300,000 houses were destroyed

in the disaster along with roads, ports and energy facilities. In April 2011 the government

announced an aid package to assist with the reconstruction. Construction demand is forecast

to grow by 2.6 percent in 2012 to 45.3tn Japanese yen, assisted substantially by the reconstruction

package. The restoration projects are likely to cover infrastructure, residential construction and the

restoration of various production facilities damaged in the disaster.

Japan – international building costs per m2 of internal area

2011 2011 Yen USD

Residential

Detached house – medium standard 201,500 2,506Detached house – prestige 235,800 2,933Townhouse – medium standard 186,700 2,322Apartments – private medium density 189,300 2,355 Apartments – high rise 284,000 3,533Aged care/affordable units 164,800 2,050

Commercial

Offices – business park 230,500 2,867CBD offices up to 20 floors – medium 266,500 3,315 CBD offices – prestige 303,800 3,779

Warehouses

Warehouse/factory unit – basic 154,500 1,922Large warehouse distribution centre 207,900 2,586 High-tech factory/laboratory 455,000 5,660

Retail

Large shopping centre including mall 304,000 3,781Neighbourhood including supermarket 368,400 4,582 Prestige car showroom 485,000 6,033

Hotels

Three-star travellers 349,000 4,341Five-star luxury 523,400 6,510 Resort style 289,500 3,601

Hospitals

Day centre 164,000 2,040 Regional hospital 164,000 2,040 General hospital 247,800 3,082

Schools

Primary and secondary 202,400 2,518University 186,300 2,317

Carparks

Multistorey – above ground 205,300 2,554 Multistorey – below ground 444,800 5,533

Airports

Airport terminal 370,000 4,602


Japan – hourly cost of labour (including overheads)

2011 2011 Yen USD

Group 1 tradesman – eg plumber, electrician 2,400 30Group 2 tradesman – eg carpenter, bricklayer 2,210 27Group 3 tradesman – eg carpet layer, tiler, plasterer 2,140 27General labourer 1,700 21Site foreman 2,440 30

Japan – costs of materials

Concrete 30 mpa (m3) (1,500m3 job) 11,900 148 Reinforcement bar 16mm (tonne) (120 tonne job) 66,000 821Concrete block (400 x 200) per 1,000 (>10,000 block job) 110,000 1,368Standard brick per 1,000 97,500 1,213Structural steel beams (tonne) (>100 tonne job) 80,000 995Glass pane 6mm (m2) 1,730 22Softwood timber for framing 100mm x 50mm (m) 12,100 151Plasterboard 13mm (m2) 230 3Emulsion paint (litre) 270 3Copper pipe 15mm (m) (>1,000m job) 661 8Copper cable (m) (3C + E, 2.5mm PVC) (>100,000m job) 181 2

Japan – key trades (excluding preliminaries and builders’ margins)

Excavate basement (m3) (1,800m3 job) 450 6Excavate footings (m) 500 6Concrete in slab (m3) (1,500m3 job) 13,710 171Reinforcement in beams (tonne) 97,000 1,207Formwork to soffit of slab (m2) 2,680 33Blockwork in wall (m2) (10,000 block job) 4,410 55Structural steel beams (tonne) 114,960 1,430Pre-cast concrete wall (m2) 15,140 188Curtain wall glazing incl support system (m2) (1,000m2 job) 100,000 1,244Plasterboard 13mm thick to stud wall (m2) (3,000m2 job) 3,050 38Single solid core door incl frame and hardware (no) (50 door job) 73,600 915Painting to walls primer + 2 coats (m2) 860 11Ceramic tiling (m2) (1,000m2 job) 5,820 72Vinyl flooring to wet areas (m2) (500m2 job) 3,380 42Carpet medium tufted (m2) (4,500m2 job) 4,300 53Lighting installation (m2) (>5,000m2 job) 4,500 56Copper pipe 15mm to wall (m) (>1,000m job) 2,290 28Fire sprinklers (per m2) (5,000m2 job) 4,000 50Air conditioning incl main plant (m2) (>5,000m2 job) 28,900 359

Japan – major projects

Yen

Tokyo Sky Tree 65bnJapan Post Tower 88bnLoop Road (Kanjo) No. 2 NARedevelopment in Shinjuku 8-Chome NATokyo Waterfront Redevelopment in Aomi R-District NA



Malaysia The public sector construction market in Malaysia is expected to moderate with reduced

government spending. However, several mega projects are announced including the Mass Rapid

Transport programme, the Marina Island Pangkor 2nd International Resort and Entertainment

Island, and various energy sector developments. There is increasing demand for space from

SMEs in the industrial sector mainly in the automotive, energy, electrical and logistics sectors.

The new 1Malaysia housing programme, an affordable housing development aimed at the

middle-income group, should boost the residential market. Commercial office and retail

construction should also benefit as a result of this activity.

Malaysia – international building costs per m2 of internal area

2008 2009 2010 2011 2011 MYR MYR MYR MYR USD

Residential

Detached house – medium standard 1,436 1,400 1,500 1,800 589Detached house – prestige 1,897 1,850 1,980 2,300 753Townhouse – medium standard 974 950 1,000 1,200 393Apartments – private medium density 1,169 1,140 1,200 1,400 458Apartments – high rise 1,538 1,500 1,700 2,000 655 Aged care/affordable units 1,250 1,220 1,310 1,500 491

Commercial

Offices – business park 1,957 1,900 2,000 2,300 753CBD offices up to 20 floors – medium 2,575 2,500 2,600 3,000 982CBD offices – prestige 3,605 3,500 3,700 4,200 1,375

Warehouses


Retail

Large shopping centre including mall 3,021 3,000 3,200 3,400 1,113Neighbourhood including supermarket 2,517 2,500 2,700 2,900 949Prestige car showroom 3,323 3,300 3,500 3,700 1,211

Hotels


Hospitals


Schools

Primary and secondary 805 800 850 900 295University 3,021 3,000 3,200 3,400 1,113

Carparks

Multistorey – above ground 1,008 1,000 1,150 1,200 393Multistorey – below ground 1,511 1,500 1,600 1,700 556

Airports



Malaysia – major projects

MYR

Greater KL Mass Rapid Transit 40bnWarisan Merdeka 100-Storey Tower 5bnSupport for Corridors 853bnDevelopment of 1,084 hectareMalaysian Rubber Board Land, Sungai Buloh 10bnKuala Lumpur International Financial District (KLIFD) 26bn

Malaysia – hourly cost of labour (including overheads)

2010 2011 2011 MYR MYR USD

Group 1 tradesman – eg plumber, electrician 19 20 7Group 2 tradesman – eg carpenter, bricklayer 15 15 5Group 3 tradesman – eg carpet layer, tiler, plasterer 19 20 7General labourer 10 10 3Site foreman 50 55 18

Malaysia – costs of materials

Concrete 30 mpa (m3) (1,500m3 job) 230 230 75Reinforcement bar 16mm (tonne) (120 tonne job) 2,900 3,220 1,054Concrete block (400 x 200) per 1,000 (>10,000 block job) 3,600 3,980 1,303Standard brick per 1,000 360 400 131Structural steel beams (tonne) (>100 tonne job) 4,000 4,420 1,447Glass pane 6mm (m2) 188 189 62Softwood timber for framing 100mm x 50mm (m) 25 34 11 Plasterboard 13mm (m2) 25 26 9Emulsion paint (litre) 38 39 13 Copper pipe 15mm (m) (>1,000m job) 24 27 9Copper cable (m) (3C + E, 2.5mm PVC) (>100,000m job) 15 16 5

Malaysia – key trades (excluding preliminaries and builders’ margins)

Excavate basement (m3) (1,800m3 job) 27 28 9Excavate footings (m) 32 33 11Concrete in slab (m3) (1,500m3 job) 332 339 111Reinforcement in beams (tonne) 3,507 3,578 1,171Formwork to soffit of slab (m2) 50 51 17Blockwork in wall (m2) (10,000 block job) 67 68 22Structural steel beams (tonne) 6,500 6,632 2,171Pre-cast concrete wall (m2) – – –Curtain wall glazing incl support system (m2) (1,000m2 job) 400 408 134Plasterboard 13mm thick to stud wall (m2) (3,000m2 job) 90 92 30Single solid core door incl frame and hardware (no) (50 door job) 800 816 267Painting to walls primer + 2 coats (m2) 8 8 3Ceramic tiling (m2) (1,000m2 job) 110 112 37Vinyl flooring to wet areas (m2) (500m2 job) 98 100 33Carpet medium tufted (m2) (4,500m2 job) 90 92 30Lighting installation (m2) (>5,000m2 job) 150 153 50Copper pipe 15mm to wall (m) (>1,000m job) 78 80 26Fire sprinklers (per m2) (5,000m2 job) 100 102 33Air conditioning incl main plant (m2) (>5,000m2 job) 300 306 100



Russia Russia has had a positive year in 2011 with overall GDP rising by 5.1 percent year-on-year by the

third quarter 2011. The main reason for the increase is due to the continuing strong commodity prices

in the oil and gas, and mining sectors. However, the construction market remains quite depressed

relative to the years before the GFC. The main sectors showing renewed growth include industrial and

infrastructure and the commercial retail and logistics sectors. These are predicted to grow significantly

throughout 2012. Construction prices generally remain depressed and provide good value for

money in the market. While some sectors in construction are growing, the overall spare capacity

in the supply chain is projected to keep construction inflation below five percent in 2012.

Russia – international building costs per m2 of internal area

2008 2009 2010 2011 2011 RUB RUB RUB RUB USD

Residential

Detached house – medium standard 28,500 30,000 31,000 32,000 1,091Detached house – prestige 57,000 60,000 62,000 57,000 1,943Townhouse – medium standard 23,750 25,000 27,900 35,000 1,193Apartments – private medium density 47,500 50,000 43,400 45,000 1,534Apartments – high rise 57,000 60,000 55,800 57,000 1,943Aged care/affordable units 47,500 50,000 43,400 43,000 1,466

Commercial


Warehouses

Warehouse/factory unit – basic 20,425 21,500 23,250 25,000 852Large warehouse distribution centre 24,510 25,800 26,350 26,000 886High-tech factory/laboratory 56,700 57,000 58,250 60,000 2,045

Retail


Hotels


Hospitals


Schools


Carparks

Multistorey – above ground 21,300 22,355 23,250 23,000 784Multistorey – below ground 17,000 18,000 26,350 31,000 1,057

Airports



Russia – major projects

USD

Russian Sustainable Tourism in North Caucasus Mountains 30bnSouth Stream Gas Pipeline 15.5bn2014 Winter Olympics Infrastructure 11bn2018 FIFA World Cup Infrastructure NAKaliningrad Nuclear Power Plant 9bn

Russia – hourly cost of labour (including overheads)

2010 2011 2011 RUB RUB USD


Russia – costs of materials

Concrete 30 mpa (m3) (1,500m3 job) 3,000 4,500 153Reinforcement bar 16mm (tonne) (120 tonne job) 24,500 27,000 920Concrete block (400 x 200) per 1,000 (>10,000 block job) 1,000 1,500 51Standard brick per 1,000 9,000 10,000 341Structural steel beams (tonne) (>100 tonne job) 35,000 35,000 1,193Glass pane 6mm (m2) 900 950 32Softwood timber for framing 100mm x 50mm (m) 170 175 6Plasterboard 13mm (m2) 125 140 5 Emulsion paint (litre) 40 44 2 Copper pipe 15mm (m) (>1,000m job) 300 320 11Copper cable (m) (3C + E, 2.5mm PVC) (>100,000m job) 31 33 1

Russia – key trades (excluding preliminaries and builders’ margins)

Excavate basement (m3) (1,800m3 job) 465 470 16Excavate footings (m) 400 410 14 Concrete in slab (m3) (1,500m3 job) 4,000 5,000 170Reinforcement in beams (tonne) 30,000 46,000 1,568Formwork to soffit of slab (m2) 900 900 31Blockwork in wall (m2) (10,000 block job) 1,200 1,300 44Structural steel beams (tonne) 75,000 85,000 2,898Pre-cast concrete wall (m2) 5,000 6,000 205Curtain wall glazing incl support system (m2) (1,000m2 job) 23,250 25,000 852Plasterboard 13mm thick to stud wall (m2) (3,000m2 job) 2,100 2,300 78Single solid core door incl frame and hardware (no) (50 door job) 24,000 25,000 852Painting to walls primer + 2 coats (m2) 250 290 10Ceramic tiling (m2) (1,000m2 job) 1,650 1,800 61Vinyl flooring to wet areas (m2) (500m2 job) 1,500 1,500 51Carpet medium tufted (m2) (4,500m2 job) 1,850 1,800 61Lighting installation (m2) (>5,000m2 job) 3,100 3,500 119Copper pipe 15mm to wall (m) (>1,000m job) 800 500 17Fire sprinklers (per m2) (5,000m2 job) 900 950 32Air conditioning incl main plant (m2) (>5,000m2 job) 6,000 6,000 205



Singapore The Singapore market has been quite moderate in 2011 and escalation has been minimal for

most building types. Singapore’s internationally connected economy is experiencing both the

opportunities of trading with East Asia and the general slowdown in the rest of the world. The

economy is growing at below the trend of recent years, recording 4.9 percent growth in 2011.

Housing and apartment construction is quite resilient based on low unemployment rates, confidence

and wage growth, but the office, retail and hotel sectors appear to be easing. Singapore’s expertise

in shipping and fabrication will benefit from the strong growth in energy and resources projects

in Malaysia and Australia. In 2012 cost escalation of five percent is expected for construction

projects, which is broadly in line with general inflation. Wage increases are moderate, but some

building material prices (steel and concrete) have fluctuated.

Singapore – international building costs per m2 of internal area

2008 2009 2010 2011 2011 SGD SGD SGD SGD USD

Residential

Detached house – medium standard 4,000 3,500 3,850 4,000 3,178Detached house – prestige 4,900 4,400 4,400 4,600 3,655 Townhouse – medium standard 3,400 2,800 2,800 2,800 2,225Apartments – private medium density 3,000 2,000 2,000 2,100 1,669 Apartments – high rise 3,400 2,500 2,700 2,700 2,145 Aged care/affordable units 1,500 1,350 1,450 1,500 1,192

Commercial


Warehouses

Warehouse/factory unit – basic 1,400 1,200 1,200 1,200 953Large warehouse distribution centre 1,600 1,500 1,700 1,800 1,430High-tech factory/laboratory 3,000 2,800 2,800 3,000 2,384

Retail


Hotels


Hospitals


Schools


Carparks

Multistorey – above ground 1,200 900 1,200 1,200 953Multistorey – below ground 2,000 1,600 1,600 1,700 1,351

Airports

Airport terminal – – – – –


Singapore – major projects

USD

Mass Rapid Transit Extensions 6.7bnMarina Bay 2bnMarina South 500m

Singapore – hourly cost of labour (including overheads)

2010 2011 2011 SGD SGD USD


Singapore – costs of materials

Concrete 30 mpa (m3) (1,500m3 job) 126 152 121Reinforcement bar 16mm (tonne) (120 tonne job) 1,580 1,770 1,406Concrete block (400 x 200) per 1,000 (>10,000 block job) 800 808 642Standard brick per 1,000 250 253 201Structural steel beams (tonne) (>100 tonne job) 5,200 5,200 4,132Glass pane 6mm (m2) 55 56 44Softwood timber for framing 100mm x 50mm (m) 13 13 10Plasterboard 13mm (m2) 21 22 17Emulsion paint (litre) 20 20 16Copper pipe 15mm (m) (>1,000m job) 12 13 10Copper cable (m) (3C + E, 2.5mm PVC) (>100,000m job) 2 2 2

Singapore – key trades (excluding preliminaries and builders’ margins)

Excavate basement (m3) (1,800m3 job) 21 21 17Excavate footings (m) 50 50 40Concrete in slab (m3) (1,500m3 job) 200 242 192Reinforcement in beams (tonne) 1,580 1,770 1,406Formwork to soffit of slab (m2) 30 31 25Blockwork in wall (m2) (10,000 block job) 35 35 28Structural steel beams (tonne) 5,200 5,200 4,132Pre-cast concrete wall (m2) 110 110 87Curtain wall glazing incl support system (m2) (1,000m2 job) 500 500 397Plasterboard 13mm thick to stud wall (m2) (3,000m2 job) 21 25 20Single solid core door incl frame and hardware (no) (50 door job) 800 824 655Painting to walls primer + 2 coats (m2) 8 8 6Ceramic tiling (m2) (1,000m2 job) 70 70 56Vinyl flooring to wet areas (m2) (500m2 job) 150 150 119Carpet medium tufted (m2) (4,500m2 job) 70 70 56Lighting installation (m2) (>5,000m2 job) 200 200 159Copper pipe 15mm to wall (m) (>1,000m job) 27 27 21Fire sprinklers (per m2) (5,000m2 job) 80 80 64Air conditioning incl main plant (m2) (>5,000m2 job) 260 260 207



South Africa The deteriorating situation in Europe has had flow-on effects to South Africa, including weakening

confidence, and depressing the Rand exchange rate, which has caused the cost of imported materials

to increase. This together with strong wage increases (coming off a low base) is pushing construction

costs ahead at up to eight percent per annum. Construction growth is moderate with the major

local contractors forced to look abroad for much of their work. Civil construction, including mining

project investments, is still the dominant sector in terms of value of work in progress (accounting

for almost 62 percent of the total construction activity). The housing sectors are in a cyclical low,

but the resources sectors show promising growth which will flow on to the rest of the economy.

South Africa – international building costs per m2 of internal area

2008 2009 2010 2011 2011 ZAR ZAR ZAR ZAR USD

Residential

Detached house – medium standard 4,500 5,000 5,000 5,300 746Detached house – prestige 8,000 9,000 9 000 9,500 1,338Townhouse – medium standard 5,000 6,000 6,000 5,800 817Apartments – private medium density 4,800 6,000 6,300 6,200 873Apartments – high rise 7,000 7,500 7,500 7,500 1,056Aged care/affordable units 5,000 5,500 5,500 5,500 775

Commercial

Offices – business park 4,500 5,000 5,300 6,500 915CBD offices up to 20 floors – medium 7,000 8,500 8,500 8,500 1,197CBD offices – prestige 7,500 10,000 10,000 11,500 1,619

Warehouses


Retail

Large shopping centre including mall 5,500 7,800 7,800 8,000 1,127Neighbourhood including supermarket 6,000 6,800 6,800 7,000 986Prestige car showroom 6,200 7,000 7,000 7,500 1,056

Hotels


Hospitals

Day centre 4,500 5,500 5,500 6,000 845Regional hospital 6,000 7,000 7,000 7,500 1,056General hospital 7,500 8,500 8,500 9,000 1,267

Schools

Primary and secondary 4,500 5,000 5,000 7,000 986University 5,000 6,000 6,000 9,000 1,267

Carparks


Airports



South Africa – major projects

ZAR

Medupi Power Station 125bnKusile Power Station 141bnRMI Integrated Titanium and Zirconium Beneficiation Complex 15bnXtrata Tweefontein Optimisation Project 8bnXtrata Atcom East 3.8bnPascoulama 5bn

South Africa – hourly cost of labour (including overheads)

2010 2011 2011 ZAR ZAR USD


South Africa – costs of materials

Concrete 30 mpa (m3) (1,500m3 job) 940 834 117Reinforcement bar 16mm (tonne) (120 tonne job) 7,727 8,100 1,141Concrete block (400 x 200) per 1,000 (>10,000 block job) 1,450 2,000 282Standard brick per 1,000 1,500 1,600 225Structural steel beams (tonne) (>100 tonne job) 15,000 20,000 2,816Glass pane 6mm (m2) 400 400 56Softwood timber for framing 100mm x 50mm (m) 70 70 10Plasterboard 13mm (m2) 46 46 6Emulsion paint (litre) 40 37 5Copper pipe 15mm (m) (>1,000m job) 30 35 5Copper cable (m) (3C + E, 2.5mm PVC) (>100,000m job) – – –

South Africa – key trades (excluding preliminaries and builders’ margins)

Excavate basement (m3) (1,800m3 job) 50 60 8Excavate footings (m) 60 78 11Concrete in slab (m3) (1,500m3 job) 1,085 917 129Reinforcement in beams (tonne) 7,727 8,910 1,255Formwork to soffit of slab (m2) 135 126 18Blockwork in wall (m2) (10,000 block job) 210 210 30Structural steel beams (tonne) 24,000 24,500 3,450Pre-cast concrete wall (m2) 450 460 65Curtain wall glazing incl support system (m2) (1,000m2 job) 1,600 2,100 296Plasterboard 13mm thick to stud wall (m2) (3,000m2 job) 200 540 76Single solid core door incl frame and hardware (no) (50 door job) 1,683 1,600 225Painting to walls primer + 2 coats (m2) 27 27 4Ceramic tiling (m2) (1,000m2 job) 200 200 28Vinyl flooring to wet areas (m2) (500m2 job) 154 160 23Carpet medium tufted (m2) (4,500m2 job) 220 220 31Lighting installation (m2) (>5,000m2 job) – 85 12Copper pipe 15mm to wall (m) (>1,000m job) 55 40 6Fire sprinklers (per m2) (5,000m2 job) 165 260 37 Air conditioning incl main plant (m2) (>5,000m2 job) 1,300 1,300 183



South Korea South Korea is experiencing improvements in the private domestic construction sector as the economy

experiences quite healthy growth and gradual cyclical recovery. However, the country has recently

felt the impact of international economic conditions including tighter financing, higher input costs

including oil, and interrupted trade with Japan since the earthquake. The private development sector

has undergone a period of deregulation with less involvement by public institutions. This has increased

demand for private development and should assist the private sector construction markets in

2012. Public sector construction continues to remain subdued with public works and large-scale

project construction in a slowdown. Public sector construction is unlikely to be higher in 2012

than in 2011. The engineering, fabrication and shipbuilding sectors have healthy order books with

Asian and Australian energy projects. Construction cost escalation should be modest in 2012.

South Korea – international building costs per m2 of internal area

2008 2009 2010 2011 2011 KRW KRW KRW KRW USD

Residential

Detached house – medium standard 1,167,307 1,155,750 1,150,000 1,150,000 1,038Detached house – prestige 1,725,585 1,708,500 1,700,000 1,700,000 1,535Townhouse – medium standard 1,380,468 1,366,800 1,360,000 1,360,000 1,228Apartments – private medium density 1,116,555 1,105,500 1,100,000 1,100,000 993Apartments – high rise 1,421,070 1,407,000 1,400,000 1,400,000 1,264Aged care/affordable units 1,220,000 1,200,000 1,180,000 1,200,000 1,083

Commercial

Offices – business park 1,116,555 1,105,500 1,100,000 1,100,000 993CBD offices up to 20 floors – medium 1,370,317 1,356,750 1,350,000 1,350,000 1,219CBD offices – prestige 1,725,585 1,708,500 1,700,000 1,700,000 1,535

Warehouses

Warehouse/factory unit – basic 954,450 945,000 900,000 900,000 813Large warehouse distribution centre 761,287 753,750 750,000 700,000 632High-tech factory/laboratory 2,639,130 2,613,000 2,600,000 2,600,000 2,348

Retail

Large shopping centre including mall 1,725,585 1,708,500 1,700,000 1,700,000 1,535Neighbourhood including supermarket 954,450 945,000 900,000 950,000 858Prestige car showroom 1,898,144 1,879,350 1,870,000 1,870,000 1,688

Hotels

Three-star travellers 1,522,575 1,507,500 1,500,000 1,500,000 1,354Five-star luxury 3,045,150 3,015,000 3,000,000 3,200,000 2,889Resort style 1,827,090 1,809,000 1,800,000 2,050,000 1,851

Hospitals

Day centre 1,116,555 1,105,500 1,100,000 1,100,000 993Regional hospital 1,624,080 1,608,000 1,600,000 1,600,000 1,445General hospital 1,725,585 1,708,500 1,700,000 1,700,000 1,535

Schools

Primary and secondary 1,015,050 1,005,000 1,000,000 1,000,000 903University 1,370,317 1,356,750 1,350,000 1,360,000 1,228

Carparks

Multistorey – above ground 558,277 552,750 550,000 550,000 497Multistorey – below ground 812,040 804,000 800,000 800,000 722

Airports

Airport terminal 2,500,000 2,600,000 2,550,000 2,550,000 2,302


South Korea – major projects

KRW

Great Train Express (GTX) 13tnKorea Train Express (KTX) – Incheon-Seoul-Pyeongchang 6.7tnYongsan 8tnIncheon Airport 3 Phase 4.3tnUniversal Studios Korea Resort 3tn

South Korea – hourly cost of labour (including overheads)

2010 2011 2011 KRW KRW USD

Group 1 tradesman – eg plumber, electrician 95,858 105,524 95Group 2 tradesman – eg carpenter, bricklayer 96,113 105,698 95Group 3 tradesman – eg carpet layer, tiler, plasterer 96,677 104,620 94General labourer 68,965 74,008 67Site foreman 92,218 100,879 91

South Korea – costs of materials

Concrete 30 mpa (m3) (1,500m3 job) 64,380 65,940 60Reinforcement bar 16mm (tonne) (120 tonne job) 771,000 835,000 754Concrete block (400 x 200) per 1,000 (>10,000 block job) 750,000 800,000 722Standard brick per 1,000 50,000 55,000 50Structural steel beams (tonne) (>100 tonne job) 910,000 1,150,000 1,038Glass pane 6mm (m2) 9,410 9,370 8Softwood timber for framing 100mm x 50mm (m) 917 900 1Plasterboard 13mm (m2) 3,059 2,593 2Emulsion paint (litre) 2,100 2,478 2Copper pipe 15mm (m) (>1,000m job) 5,188 5,280 5Copper cable (m) (3C + E, 2.5mm PVC) (>100,000m job) 285 299 0

South Korea – key trades (excluding preliminaries and builders’ margins)

Excavate basement (m3) (1,800m3 job) 6,256 6,300 6Excavate footings (m) 6,256 6,300 6Concrete in slab (m3) (1,500m3 job) 76,380 77,940 70Reinforcement in beams (tonne) 1,155,105 1,215,000 1,097Formwork to soffit of slab (m2) 22,440 22,440 20Blockwork in wall (m2) (10,000 block job) 35,566 35,566 32Structural steel beams (tonne) 1,910,000 1,950,000 1,761Pre-cast concrete wall (m2) 250,000 250,000 226Curtain wall glazing incl support system (m2) (1,000m2 job) 300,000 300,000 271Plasterboard 13mm thick to stud wall (m2) (3,000m2 job) 45,000 45,000 41Single solid core door incl frame and hardware (no) (50 door job) 250,000 250,000 226Painting to walls primer + 2 coats (m2) 4,448 4,500 4Ceramic tiling (m2) (1,000m2 job) 45,000 45,000 41Vinyl flooring to wet areas (m2) (500m2 job) 35,000 35,000 32Carpet medium tufted (m2) (4,500m2 job) 50,000 50,000 45Lighting installation (m2) (>5,000m2 job) 42,000 42,000 38Copper pipe 15mm to wall (m) (>1,000m job) 11,000 11,000 10Fire sprinklers (per m2) (5,000m2 job) 22,500 22,500 20Air conditioning incl main plant (m2) (>5,000m2 job) 202,000 202,000 182



UAE The economies of Abu Dhabi and Dubai are strengthening, driven by high levels of investment in

Abu Dhabi, strong tourism growth and the gradual emergence of the UAE as the financial hub for

the region. However, oversupply in residential and commercial markets will continue to constrain

construction growth in the UAE, with Dubai worse affected after growing strongest during 2006–8.

It may take several years until healthy sales rates resume and price growth occurs. Construction

costs have fallen substantially with prices in steady decline since 2008 and now up to 25 percent

lower. Abu Dhabi has much less of an oversupply problem, a healthy backlog of projects and

prospects for construction growth are better in 2012.

UAE – international building costs per m2 of internal area

2008 2009 2010 2011 2011 AED AED AED AED USD

Residential

Detached house – medium standard 7,500 7,000 6,500 6,000 1,634Detached house – prestige 9,500 9,250 9,000 9,750 2,654 Townhouse – medium standard 7,500 6,525 5,550 5,250 1,429Apartments – private medium density 7,000 6,500 6,000 5,500 1,497 Apartments – high rise 9,000 8,500 8,000 6,500 1,770Aged care/affordable units 5,720 5,340 4,960 4,750 1,293

Commercial


Warehouses

Warehouse/factory unit – basic 6,000 5,250 4,500 4,250 1,157Large warehouse distribution centre 5,500 4,750 4,000 4,000 1,089High-tech factory/laboratory 7,625 6,875 6,125 6,000 1,634

Retail

Large shopping centre including mall 8,000 7,500 7,000 6,500 1,770Neighbourhood including supermarket 8,500 8,000 7,500 7,000 1,906Prestige car showroom – – – – –

Hotels


Hospitals


Schools


Carparks

Multistorey – above ground 3,500 3,500 3,500 3,500 953Multistorey – below ground 4,500 4,500 4,500 4,250 1,157

Airports

Airport terminal – – – – –


UAE – major projects

AED

Etihad Rail 40bnLouvre Abu Dhabi 2mKhalifa Port and Industrial Zone (KPIZ) 26.5bnPresidential Palace 6mYas Mall 2m

UAE – hourly cost of labour (including overheads)

2010 2011 2011 AED AED USD


UAE – costs of materials

Concrete 30 mpa (m3) (1,500m3 job) 350 250 68Reinforcement bar 16mm (tonne) (120 tonne job) 3,000 2,900 790Concrete block (400 x 200) per 1,000 (>10,000 block job) 3,500 3,500 953Standard brick per 1,000 – – –Structural steel beams (tonne) (>100 tonne job) 5,500 5,500 1,497Glass pane 6mm (m2) – – –Softwood timber for framing 100mm x 50mm (m) 90 90 25Plasterboard 13mm (m2) 10 10 3Emulsion paint (litre) – 170 46Copper pipe 15mm (m) (>1,000m job) – – –Copper cable (m) (3C + E, 2.5mm PVC) (>100,000m job) – – –

UAE – key trades (excluding preliminaries and builders’ margins)

Excavate basement (m3) (1,800m3 job) 35 30 8Excavate footings (m) 35 30 8Concrete in slab (m3) (1,500m3 job) 500 460 125 Reinforcement in beams (tonne) 3,750 4,000 1,089Formwork to soffit of slab (m2) 100 100 27Blockwork in wall (m2) (10,000 block job) 125 100 27Structural steel beams (tonne) 13,000 10,000 2,723Pre-cast concrete wall (m2) 650 650 177Curtain wall glazing incl support system (m2) (1,000m2 job) 1,800 1,400 381Plasterboard 13mm thick to stud wall (m2) (3,000m2 job) 150 120 33Single solid core door incl frame and hardware (no) (50 door job) 4,000 3,650 994Painting to walls primer + 2 coats (m2) 15 11 3Ceramic tiling (m2) (1,000m2 job) 225 100 27Vinyl flooring to wet areas (m2) (500m2 job) 125 105 29 Carpet medium tufted (m2) (4,500m2 job) 300 300 82Lighting installation (m2) (>5,000m2 job) 150 150 41Copper pipe 15mm to wall (m) (>1,000m job) 55 55 15Fire sprinklers (per m2) (5,000m2 job) 100 95 26Air conditioning incl main plant (m2) (>5,000m2 job) 650 690 188



UK The UK market continues to be directly affected by economic uncertainties within Europe, as the

eurozone represents the UK’s largest trading partner. Consumer confidence within the UK is on

the decline, and this economic ambiguity is having a negative effect on private sector activities

in the face of dwindling public sector investment due to government austerity measures. This

is making the industry increasingly dependent on long-term infrastructure projects and a rise

in private sector investment to fill the void. Unemployment is rising as employers attempt to

maintain current staffing levels leading to lower than inflation level wage increases. However,

falling inflation rates should ease the pressure on wages throughout 2012.

UK – international building costs per m2 of internal area

2008 2009 2010 2011 2011 GBP GBP GBP GBP USD

Residential

Detached house – medium standard 1,050 1,050 1,020 1,058 1,696Detached house – prestige 1,465 1,465 1,465 1,519 2,436 Townhouse – medium standard 1,008 1,200 1,200 1,244 1,995Apartments – private medium density 1,624 1,800 1,800 1,867 2,994 Apartments – high rise 2,170 2,300 2,300 2,385 3,824Aged care/affordable units 1,800 1,820 1,820 1,887 3,026

Commercial


Warehouses

Warehouse/factory unit – basic 691 800 800 830 1,331Large warehouse distribution centre 867 900 900 933 1,496High-tech factory/laboratory 1,365 1,500 1,500 1,556 2,495

Retail


Hotels


Hospitals


Schools


Carparks

Multistorey – above ground 437 450 450 467 749Multistorey – below ground 870 850 850 881 1,413

Airports



UK – major projects

GBP

Crossrail 14.5bnHigh Speed Railway 2 32.7bnLondon 2012 Olympics 2bnLondon Tideway Improvements 4bnForth Replacement Crossing 1bn

UK – hourly cost of labour (including overheads)

2010 2011 2011 GBP GBP USD


UK – costs of materials

Concrete 30 mpa (m3) (1,500m3 job) 85 83 133Reinforcement bar 16mm (tonne) (120 tonne job) 700 744 1,193Concrete block (400 x 200) per 1,000 (>10,000 block job) 1,050 1,071 1,717Standard brick per 1,000 450 454 728Structural steel beams (tonne) (>100 tonne job) 1,600 1,786 2,864Glass pane 6mm (m2) 30 31 50Softwood timber for framing 100mm x 50mm (m) 2 2 3Plasterboard 13mm (m2) 5 5 8Emulsion paint (litre) 2 2 3Copper pipe 15mm (m) (>1,000m job) 1 1 2Copper cable (m) (3C + E, 2.5mm PVC) (>100,000m job) 0.15 0.15 0.24

UK – key trades (excluding preliminaries and builders’ margins)

Excavate basement (m3) (1,800m3 job) 45 43 69Excavate footings (m) 12 12 19Concrete in slab (m3) (1,500m3 job) 110 107 172Reinforcement in beams (tonne) 950 1,010 1,619Formwork to soffit of slab (m2) 42 36 58Blockwork in wall (m2) (10,000 block job) 35 36 58Structural steel beams (tonne) 1,900 2,120 3,399Pre-cast concrete wall (m2) 50 63 101Curtain wall glazing incl support system (m2) (1,000m2 job) 550 570 914Plasterboard 13mm thick to stud wall (m2) (3,000m2 job) 18 19 30Single solid core door incl frame and hardware (no) (50 door job) 750 720 1,154Painting to walls primer + 2 coats (m2) 5 5 8Ceramic tiling (m2) (1,000m2 job) 40 41 66Vinyl flooring to wet areas (m2) (500m2 job) 25 24 38Carpet medium tufted (m2) (4,500m2 job) 25 24 38Lighting installation (m2) (>5,000m2 job) 65 67 107Copper pipe 15mm to wall (m) (>1,000m job) 10 10 16Fire sprinklers (per m2) (5,000m2 job) 30 31 50Air conditioning incl main plant (m2) (>5,000m2 job) 160 166 266



USThe outlook for 2012–13 is for continued slow to moderate growth and a likely return to

pre-recession economic activity by 2014, subject to the European financial system not causing

further setbacks. New York, Texas and Massachusetts are experiencing stronger construction

growth, while Arizona, Nevada and Florida are much weaker. Construction costs should

increase moderately in 2012 with labour up by two to four percent and materials up by four

to eight percent. Gypsum-based products such as plasterboard are set to spike upwards in

2012. Residential is unlikely to recover in 2012 with the market still somewhat oversupplied,

but markets and companies are consolidating, rightsizing, and setting up for a resumption

of growth. Multi-unit residential, education, health and energy projects should lead the way.

US – international building costs per m2 of internal area

2008 2009 2010 2011 USD USD USD USD

Residential

Detached house – medium standard 1,570 1,475 1,435 1,495 Detached house – prestige 1,925 1,750 1,710 1,800 Townhouse – medium standard 1,475 1,330 1,300 1,350 Apartments – private medium density 1,420 1,590 1,520 1,600 Apartments – high rise 2,075 2,045 2,020 2,100 Aged care/affordable units 1,300 1,400 1,420 1,550

Commercial

Offices – business park 1,600 1,905 1,850 1,885CBD offices up to 20 floors – medium 2,215 2,150 2,085 2,140CBD offices – prestige 2,610 2,505 2,440 2,520

Warehouses

Warehouse/factory unit – basic 750 850 840 860Large warehouse distribution centre 915 990 1,100 1,140High-tech factory/laboratory 1,520 1,615 1,700 1,785

Retail

Large shopping centre including mall 1,580 1,600 1,500 1,560Neighbourhood including supermarket 860 900 840 910Prestige car showroom 1,425 1,390 1,325 1,380

Hotels

Three-star travellers 1,485 1,580 1,525 1,575Five-star luxury 2,680 2,720 2,550 2,600Resort style 2,420 2,630 2,250 2,300

Hospitals

Day centre 1,645 1,765 2,045 2,055Regional hospital 3,100 3,210 3,290 3,340General hospital 3,000 3,110 3,260 3,300

Schools

Primary and secondary 1,450 1,510 1,495 1,570University 2,160 2,240 2,150 2,200

Carparks

Multistorey – above ground 700 730 690 700Multistorey – below ground 1,325 1,395 1,295 1,315

Airports

Airport terminal 3,650 3,525 3,425 3,550


US – major projects

USD

California High-Speed Rail 99bnBay Bridge East Span Replacement 6.3bnFab 42 5bnThe Ohio River Bridges 4.1bnInterstate 69 Extension SIU #3 1.8bn

US – cost variations

National average % 100

Charlotte, NC 83Houston, TX 92Seattle, WA 111Chicago, IL 115Los Angeles, CA 115San Francisco, CA 125New York Metro 132Source: ENR

NB: Construction costs vary widely across the US:

US – hourly cost of labour (including overheads)

2010 2011 USD USD

Group 1 tradesman – eg plumber, electrician 73 75Group 2 tradesman – eg carpenter, bricklayer 64 65Group 3 tradesman – eg carpet layer, tiler, plasterer 54 57General labourer 51 53Site foreman 75 77

US – costs of materials

Concrete 30 mpa (m3) (1,500m3 job) 138 135Reinforcement bar 16mm (tonne) (120 tonne job) 595 992Concrete block (400 x 200) per 1,000 (>10,000 block job) 950 1,030Standard brick per 1,000 400 350Structural steel beams (tonne) (>100 tonne job) 1,030 1,150Glass pane 6mm (m2) 58 58Softwood timber for framing 100mm x 50mm (m) 9 7Plasterboard 13mm (m2) 3 3Emulsion paint (litre) 7 8Copper pipe 15mm (m) (>1,000m job) 6 7Copper cable (m) (3C + E, 2.5mm PVC) (>100,000m job) 3 4

US – key trades (excluding preliminaries and builders’ margins)

Excavate basement (m3) (1,800m3 job) 8 10Excavate footings (m) 7 8 Concrete in slab (m3) (1,500m3 job) 168 171Reinforcement in beams (tonne) 1,905 2,100Formwork to soffit of slab (m2) 56 71Blockwork in wall (m2) (10,000 block job) 70 75Structural steel beams (tonne) 2,775 2,855Pre-cast concrete wall (m2) 123 120Curtain wall glazing incl support system (m2) (1,000m2 job) 719 775Plasterboard 13mm thick to stud wall (m2) (3,000m2 job) 32 34Single solid core door incl frame and hardware (no) (50 door job) 2,048 2,100Painting to walls primer + 2 coats (m2) 12 10Ceramic tiling (m2) (1,000m2 job) 84 90Vinyl flooring to wet areas (m2) (500m2 job) 59 64Carpet medium tufted (m2) (4,500m2 job) 39 44Lighting installation (m2) (>5,000m2 job) 80 83Copper pipe 15mm to wall (m) (>1,000m job) 29 32Fire sprinklers (per m2) (5,000m2 job) 28 30Air conditioning incl main plant (m2) (>5,000m2 job) 162 172



VietnamRestrictions on bank lending for construction have been introduced to counter the 22 percent

inflation and 20 percent interest rates. This credit squeeze has severely reduced local developers’

activity, but several foreign investors are entering the market targeting distressed projects with

equity injection. Labour costs now compete very favourably with China due to recent increases in

the Chinese minimum wage. This has created a strong incentive for Japanese manufacturers and

Korean chaebols to set up investments in the country in manufacturing plants, infrastructure and

land development projects. The government recognises the importance of foreign investment

in promoting GDP growth and several pilot projects using PPP/BOT models are underway.

Construction costs are increasing strongly off a low base, and this is likely to continue in 2012.

Vietnam – international building costs per m2 of internal area

2008 2009 2010 2011 2011 VND VND VND VND USD

Residential

Detached house – medium standard 7,638,000 10,502,250 11,457,000 12,954,240 635Detached house – prestige 9,165,600 11,457,000 12,411,750 14,033,760 688 Townhouse – medium standard 7,638,000 8,592,750 9,547,500 10,795,200 529Apartments – private medium density 9,547,500 11,457,000 12,411,750 14,033,760 688 Apartments – high rise 11,457,000 13,366,500 14,321,250 16,192,800 794Aged care/affordable units 7,638,000 8,592,750 9,547,500 10,795,200 529

Commercial

Offices – business park 9,547,500 10,502,250 11,457,000 12,966,720 636CBD offices up to 20 floors – medium 11,457,000 13,366,500 14,321,250 16,208,400 795CBD offices – prestige 14,321,250 15,276,000 16,230,750 18,135,936 889

Warehouses

Warehouse/factory unit – basic 5,728,500 6,683,250 7,638,000 8,561,280 420Large warehouse distribution centre 5,728,500 6,683,250 7,638,000 8,677,760 425High-tech factory/laboratory 11,457,000 12,411,750 13,366,500 15,142,400 742

Retail

Large shopping centre including mall 10,502,250 11,457,000 12,411,750 14,047,280 689Neighbourhood including supermarket 7,638,000 8,592,750 9,547,500 10,805,600 530Prestige car showroom 8,592,750 9,547,500 10,502,250 11,886,160 583

Hotels

Three-star travellers 19,091,000 21,000,100 22,908,240 25,983,360 1,274Five-star luxury 26,726,280 28,635,300 30,544,064 34,277,152 1,680Resort style 23,366,500 25,272,032 27,181,036 29,328,000 1,438

Hospitals

Day centre 9,547,500 9,547,500 11,457,000 13,798,720 676Regional hospital 21,000,100 22,908,240 23,862,550 26,556,192 1,302General hospital 21,000,100 22,908,240 23,862,550 26,556,192 1,302

Schools

Primary and secondary 7,254,203 8,592,750 9,547,500 10,816,000 530University 9,547,500 10,502,250 11,457,000 12,979,200 636

Carparks

Multistorey – above ground 9,163,204 10,502,250 11,457,000 7,280,000 357Multistorey – below ground 10,502,250 11,454,004 12,411,750 15,127,840 742

Airports

Airport terminal 34,362,002 38,180,003 41,998,003 45,377,280 2,225


Vietnam – major projects

USD

Saigon International Terminal, Phu My 1 163mUrban Railway Line 1, Hanoi 1.1bnMass Rapid Transit Line 1, Ho Chi Minh City 1.2bnMonorail Line 2, Ho Chi Minh City 350mDa Nang–Quang Ngai Expressway 1.5bn

Vietnam – hourly cost of labour (including overheads)

2010 2011 2011 VND VND USD

Group 1 tradesman – eg plumber, electrician 180,000 216,000 11Group 2 tradesman – eg carpenter, bricklayer 155,000 186,000 9Group 3 tradesman – eg carpet layer, tiler, plasterer 125,000 150,000 7General labourer 100,000 120,000 6Site foreman 90,000 200,000 10

Vietnam – costs of materials

Concrete 30 mpa (m3) (1,500m3 job) 1,100,000 1,125,720 55Reinforcement bar 16mm (tonne) (120 tonne job) 16,575,000 17,311,000 849Concrete block (400 x 200) per 1,000 (>10,000 block job) 5,301,000 5,725,000 281Standard brick per 1,000 1,400,300 1,450,000 71Structural steel beams (tonne) (>100 tonne job) 17,500,000 20,178,000 989Glass pane 6mm (m2) 247,000 265,000 13Softwood timber for framing 100mm x 50mm (m) 46,000 50,000 2Plasterboard 13mm (m2) 45,000 50,000 2Emulsion paint (litre) 42,000 47,790 2Copper pipe 15mm (m) (>1,000m job) 350,000 379,140 19Copper cable (m) (3C + E, 2.5mm PVC) (>100,000m job) 29,000 35,000 2

Vietnam – key trades (excluding preliminaries and builders’ margins)

Excavate basement (m3) (1,800m3 job) 75,000 67,000 3Excavate footings (m) 76,000 80,000 4Concrete in slab (m3) (1,500m3 job) 1,600,000 1,440,000 71Reinforcement in beams (tonne) 19,500,000 22,038,000 1,080Formwork to soffit of slab (m2) 380,000 208,000 10Blockwork in wall (m2) (10,000 block job) 350,000 260,000 13Structural steel beams (tonne) 22,000,000 28,652,000 1,405Pre-cast concrete wall (m2) 450,000 518,300 25Curtain wall glazing incl support system (m2) (1,000m2 job) 8,550,000 9,000,000 441Plasterboard 13mm thick to stud wall (m2) (3,000m2 job) 150,000 161,200 8Single solid core door incl frame and hardware (no) (50 door job) 4,750,000 5,241,600 257Painting to walls primer + 2 coats (m2) 75,000 83,000 4Ceramic tiling (m2) (1,000m2 job) 650,000 405,600 20Vinyl flooring to wet areas (m2) (500m2 job) 300,000 322,400 16Carpet medium tufted (m2) (4,500m2 job) 650,000 660,000 32Lighting installation (m2) (>5,000m2 job) – 360,000 18Copper pipe 15mm to wall (m) (>1,000m job) 650,000 670,000 33Fire sprinklers (per m2) (5,000m2 job) – 600,000 29 Air conditioning incl main plant (m2) (>5,000m2 job) – 800,000 39



Australia

Dave Todd

e: [email protected]

t: +61 (0)7 3020 4700

Canada

Gerard McCabe


t: +1 (416) 925 1424

China

Ben Chaston


t: +86 10 6474 5566

Germany

Simon Lawler


t: +49 (0) 69 795 3478 0

India

Robert Hewitt


t: +91 22 4071 9800

Ireland

Mark Kelly


t: +35 (0) 312 831 116

Japan

Ben Chaston


t: +86 10 6474 5566

Malaysia

David Hancox


t: +60 3 2171 1100

Russia

Paul Grace


t: +7 495 223 86 50

Singapore

Soh May Yeng


t: +65 6846 3790

South Africa

Ian Donaldson


t: +27 (0) 11 214 1400

South Korea

Yoonseong Cho


t: +82 (0)70 7118 2800

UAE

Alan Talabani


t: +971 (0) 24437890

UK

Nick Townsend


t: +44 (0) 20 7544 4000

US

Craig Blinston


t: +1 415 489 1600

Vietnam

David Lockwood


t: +84 (8) 62 99 82 83

This survey has been compiled by

Gary Emmett, Economist

Turner & Townsend

Level 3, 179 Turbot Street

Brisbane, Queensland 4000

t: +61 (0) 7 3020 4759


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