Construction Price Information

International construction cost survey 2012
making the difference
Contents
Introduction Country profiles Australia Canada China Germany India Ireland Japan Malaysia Russia Singapore South Africa South Korea UAE UK US Vietnam Contributors 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 2
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
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.
Whats 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.
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: gary.emmett@turntown.com For further information on our services, please visit www.turnerandtownsend.com or contact your nearest office.
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.
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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.
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.
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.
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.
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.
Turner & Townsend
Estimated cost escalation 2012

Australia Canada China Germany India Ireland Japan Malaysia Russia Singapore South Africa South Korea UAE UK US Vietnam 0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
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.
Cost index high-rise apartments

Cost Index 2008=100 Australia Canada China Germany India Ireland Malaysia Russia Singapore South Africa South Korea UAE UK US Vietnam 2008 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 2009 96 95 78 101 100 92 98 105 74 107 99 94 98 99 117 2010 94 94 80 101 117 85 111 98 79 107 99 89 98 97 125 2011 96 100 81 104 150 83 130 100 79 107 99 72 101 101 141
Cost index CBD offices

Cost Index 2008=100 Australia Canada China Germany India Ireland Malaysia Russia Singapore South Africa South Korea UAE UK US Vietnam 2008 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 2009 96 96 82 101 105 78 97 105 83 121 99 96 91 97 117 2010 96 95 84 101 112 72 101 99 83 121 99 92 91 94 125 2011 97 98 89 104 140 71 117 100 83 121 99 83 94 97 141
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.
Key economic indicators

Inflation 2011 Australia Canada China Germany India Ireland Japan Malaysia Russia Singapore South Africa South Korea UAE UK US Vietnam 2.6 2.5 4.0 2.5 10.6 2.2 0.4 3.3 7.5 5.5 6.0 4.3 2.5 4.5 3.9 22.0 GDP 2011 2.1 2.1 9.5 2.7 7.8 0.4 0.5 5.2 4.3 5.3 3.4 3.9 3.3 1.1 1.5 5.8 GDP forecast 2012 3.3 1.9 9.0 1.3 7.5 1.5 2.3 5.1 4.1 4.3 3.6 4.4 3.8 1.6 1.8 6.3 Unemployment rate 5.2 7.6 4.0 6.0 9.5 14.3 4.9 3.2 7.3 2.3 24.5 3.3 4.3 7.8 9.1 5.0
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?

Cold Ireland South Korea UK Lukewarm Australia Canada China Japan Malaysia Russia Singapore UAE US Vietnam Warm Hot Overheating
Germany India South Africa
Is the construction market getting warmer, cooler or staying the same?

Cooler Canada China Vietnam Staying the same Australia Ireland Japan Malaysia Singapore South Africa South Korea UAE UK US Warmer Germany India Russia
Turner & Townsend
Typical contractors margin on medium commercial job (5000m2 GFA)

Australia Canada China Germany India Ireland Japan Malaysia Russia Singapore South Africa South Korea UAE UK US Vietnam 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0%
Contractors 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.
Typical preliminaries as a percentage of total costs

Australia Canada China Germany India Ireland Japan Malaysia Russia Singapore South Africa South Korea UAE UK US Vietnam 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%
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.
Country profiles
Australia
The 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.
Australia international building costs per m2 of internal area

2008 AUD Residential Detached house medium standard Detached house prestige Townhouse medium standard Apartments private medium density Apartments high rise Aged care/affordable unit Commercial Offices business park CBD offices up to 20 floors medium CBD offices prestige Warehouses Warehouse/factory unit basic Large warehouse distribution centre High-tech factory/laboratory Retail Large shopping centre including mall Neighbourhood including supermarket Prestige car showroom Hotels Three-star travellers Five-star luxury Resort style Hospitals Day centre Regional hospital General hospital Schools Primary and secondary University Carparks Multistorey above ground Multistorey below ground Airports Airport terminal 8,000 7,000 6,500 6,565 6,757 850 1,250 832 1,235 800 1,173 808 1,185 832 1,219 1,985 3,130 1,900 3,050 1,900 3,050 1,919 3,081 1,975 3,171 2,900 3,300 5,500 2,900 3,270 5,300 2,900 3,270 5,134 2,929 3,303 5,185 3,015 3,400 5,337 2,840 3,850 4,185 2,800 3,750 4,000 3,247 3,750 4,000 3,279 3,788 4,040 3,376 3,899 4,158 2,200 1,810 4,400 2,150 1,750 4,200 2,150 1,750 4,200 2,172 1,768 4,242 2,235 1,819 4,366 830 640 1,540 750 590 1,500 760 600 1,500 768 606 1,515 790 624 1,559 1,895 3,000 3,360 1,820 2,880 3,200 1,820 2,880 3,200 1,838 2,909 3,232 1,892 2,994 3,327 1,518 2,250 1,715 2,050 2,500 2,400 1,445 2,150 1,640 1,950 2,400 2,300 1,445 2,100 1,650 1,900 2,350 2,260 1,474 2,142 1,683 1,938 2,397 2,305 1,517 2,205 1,732 1,995 2,467 2,373 2009 AUD 2010 AUD 2011 AUD 2011 USD
Turner & Townsend
Australia hourly cost of labour (including overheads)

2010 AUD Group 1 tradesman eg plumber, electrician Group 2 tradesman eg carpenter, bricklayer Group 3 tradesman eg carpet layer, tiler, plasterer General labourer Site foreman 65 55 53 37 69 2011 AUD 68 57 55 38 72 2011 USD 70 59 57 40 75
Australia costs of materials

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

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

AUD Chevron Gorgon Chevron Wheatstone APLNG Gladstone BHP Olympic Dam Santos GLNG 43bn 30bn 16bn 30bn 16bn
Canada
At 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 CAD Residential Detached house medium standard Detached house prestige Townhouse medium standard Apartments private medium density Apartments high rise Aged care/affordable units Commercial Offices business park CBD offices up to 20 floors medium CBD offices prestige Warehouses Warehouse/factory unit basic Large warehouse distribution centre High-tech factory/laboratory Retail Large shopping centre including mall Neighbourhood including supermarket Prestige car showroom Hotels Three-star travellers Five-star luxury Resort style Hospitals Day centre Regional hospital General hospital Schools Primary and secondary University Carparks Multistorey above ground Multistorey below ground Airports Airport terminal 5,724 5,454 5,400 5,700 5,774 795 1,060 758 1,010 750 1,000 800 1,100 810 1,114 1,802 3,498 1,717 3,333 1,700 3,300 1,800 3,500 1,823 3,546 3,710 5,724 6,890 3,535 5,454 6,565 3,500 5,400 6,500 3,700 5,700 6,800 3,748 5,774 6,888 1,378 2,862 2,862 1,313 2,727 2,727 1,300 2,700 2,700 1,400 2,800 2,800 1,418 2,836 2,836 1,378 1,166 1,484 1,313 1,111 1,414 1,300 1,100 1,400 1,400 1,200 1,500 1,418 1,216 1,520 912 1,007 1,378 869 960 1,313 860 950 1,300 900 1,000 1,400 912 1,013 1,418 1,696 2,047 2,968 1,616 1,970 2,828 1,600 1,950 2,800 1,700 2,000 2,900 1,722 2,026 2,938 3,000 4,000 1,379 1,909 1,697 2,057 2,750 3,750 1,313 1,818 1,616 1,959 2,700 3,700 1,300 1,800 1,600 1,940 2,800 3,800 1,400 1,900 1,700 2,000 2,836 3,849 1,418 1,925 1,722 2,026 2009 CAD 2010 CAD 2011 CAD 2011 USD
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Turner & Townsend
Canada hourly cost of labour (including overheads)

2010 CAD Group 1 tradesman eg plumber, electrician Group 2 tradesman eg carpenter, bricklayer Group 3 tradesman eg carpet layer, tiler, plasterer General labourer Site foreman 60 55 50 45 75 2011 CAD 60 55 50 45 75 2011 USD 61 56 51 46 76
Canada costs of materials

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

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

CAD Halton Region Hospital Humber River Regional Hospital Air Rail Link Union Station Revitalisation Toronto-York Spadina Subway Extension 1bn 1bn 310m 640m 2.6bn
11
China
Construction 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 CNY Residential Detached house medium standard Detached house prestige Townhouse medium standard Apartments private medium density Apartments high rise Aged care/affordable units Commercial Offices business park CBD offices up to 20 floors medium CBD offices prestige Warehouses Warehouse/factory unit basic Large warehouse distribution centre High-tech factory/laboratory Retail Large shopping centre including mall Neighbourhood including supermarket Prestige car showroom Hotels Three-star travellers Five-star luxury Resort style Hospitals Day centre Regional hospital General hospital Schools Primary and secondary University Carparks Multistorey above ground Multistorey below ground Airports Airport terminal 11,500 10,300 10,600 10,900 1,677 2,200 5,300 2,000 4,500 2,080 4,640 2,140 4,780 329 736 3,800 5,700 3,500 5,200 3,610 5,350 3,640 5,390 560 829 4,500 5,500 6,100 4,200 5,100 5,700 4,320 5,250 5,870 4,410 5,350 5,980 679 823 920 6,800 11,300 9,100 5,500 10,000 8,300 5,660 10,300 8,550 5,780 10,540 8,750 889 1,622 1,346 7,500 5,100 3,900 5,900 4,000 3,400 6,080 4,120 3,500 6,180 4,220 3,650 951 649 562 3,000 3,300 6,100 2,300 2,700 5,300 2,360 2,780 5,450 2,580 3,050 5,870 397 469 903 5,500 8,400 10,500 4,400 6,900 8,900 4,500 7,090 9,140 4,690 7,450 9,300 722 1,146 1,431 5,800 6,500 4,800 4,500 5,000 3,700 4,400 5,100 4,000 3,200 3,900 2,600 4,480 5,170 4,050 3,290 3,980 2,670 4,540 5,240 4,110 3,330 4,030 2,710 699 806 632 512 620 417 2009 CNY 2010 CNY 2011 CNY 2011 USD
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Turner & Townsend
China hourly cost of labour (including overheads)

2010 CNY Group 1 tradesman eg plumber, electrician Group 2 tradesman eg carpenter, bricklayer Group 3 tradesman eg carpet layer, tiler, plasterer General labourer Site foreman 19 18 17 11 31 2011 CNY 22 21 19 13 36 2011 USD 3 3 3 2 6
China costs of materials

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

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

CNY National Trunk Road Network SouthNorth Water Transfer Silk Road Renaissance Tianjin Binhai New Area Chinas Renewable Energy Development Plan 900bn 500bn 330bn 1tn 2tn
13
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 EUR Residential Detached house medium standard Detached house prestige Townhouse medium standard Apartments private medium density Apartments high rise Aged care/affordable units Commercial Offices business park CBD offices up to 20 floors medium CBD offices prestige Warehouses Warehouse/factory unit basic Large warehouse distribution centre High-tech factory/laboratory Retail Large shopping centre including mall Neighbourhood including supermarket Prestige car showroom Hotels Three-star travellers Five-star luxury Resort style Hospitals Day centre Regional hospital General hospital Schools Primary and secondary University Carparks Multistorey above ground Multistorey below ground Airports Airport terminal 1,080 1,090 1,094 1,125 1,565 524 597 526 599 533 607 548 624 762 868 1,170 1,370 1,180 1,385 1,184 1,390 1,218 1,430 1,694 1,988 1,350 2,160 2,350 1,365 2,180 2,375 1,370 2,188 2,383 1,409 2,250 2,452 1,960 3,130 3,410 1,210 2,652 1,718 1,220 2,662 1,728 1,224 2,666 1,732 1,259 2,742 1,782 1,751 3,814 2,478 895 895 870 900 900 880 903 903 883 929 929 908 1,292 1,292 1,263 860 1,073 1,560 861 1,074 1,575 872 1,088 1,575 900 1,123 1,626 1,252 1,563 2,262 1,130 1,130 1,620 1,140 1,140 1,640 1,144 1,144 1,646 1,177 1,177 1,693 1,637 1,637 2,354 820 1,160 1,740 1,071 1,020 780 830 1,170 1,760 1,068 1,017 778 833 1,174 1,766 1,085 1,033 790 857 1,208 1,817 1,105 1,052 804 1,192 1,680 2,528 1,536 1,463 1,119 2009 EUR 2010 EUR 2011 EUR 2011 USD
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Turner & Townsend
Germany hourly cost of labour (including overheads)

2010 EUR Group 1 tradesman eg plumber, electrician Group 2 tradesman eg carpenter, bricklayer Group 3 tradesman eg carpet layer, tiler, plasterer General labourer Site foreman 39 36 35 24 40 2011 EUR 35 36 36 33 40 2011 USD 49 50 50 46 56
Germany costs of materials

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

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

USD Trans Europa Naturgas Pipeline (TENP) Upgrade Frankfurt Chlor-Alkali Plant Expansion Stuttgart 21 120m 140m 5.2bn
15
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 1218 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 INR Residential Detached house medium standard Detached house prestige Townhouse medium standard Apartments private medium density Apartments high rise Aged care/affordable units Commercial Offices business park CBD offices up to 20 floors medium CBD offices prestige Warehouses Warehouse/factory unit basic Large warehouse distribution centre High-tech factory/laboratory Retail Large shopping centre including mall Neighbourhood including supermarket Prestige car showroom Hotels Three-star travellers Five-star luxury Resort style Hospitals Day centre Regional hospital General hospital Schools Primary and secondary University Carparks Multistorey above ground Multistorey below ground Airports Airport terminal 40,500 45,000 55,000 65,000 1,419 40,500 16,200 45,000 18,000 40,000 25,000 38,000 24,000 829 524 9,000 22,500 10,000 25,000 15,000 35,000 18,000 38,000 393 829 16,200 27,000 24,300 18,000 30,000 27,000 20,000 35,000 25,000 21,000 37,000 29,000 458 808 633 32,130 75,735 29,835 35,700 84,150 33,150 35,000 70,000 38,000 38,000 75,000 48,000 829 1,637 1,048 24,300 20,700 13,500 27,000 23,000 15,000 35,000 26,000 16,000 38,000 26,000 17,500 829 567 382 27,000 31,500 33,300 30,000 35,000 37,000 35,000 37,000 38,000 26,500 33,500 40,000 578 731 873 21,600 25,000 30,000 27,000 26,250 32,500 25,000 28,000 35,000 30,000 35,000 38,000 655 764 829 14,850 19,350 18,000 17,100 30,000 12,600 16,500 21,500 20,000 19,000 32,500 14,000 28,000 35,000 22,000 18,000 35,000 16,000 30,000 37,500 25,000 20,000 45,000 18,000 655 818 546 436 982 393 2009 INR 2010 INR 2011 INR 2011 USD
16
Turner & Townsend
India hourly cost of labour (including overheads)

2010 INR Group 1 tradesman eg plumber, electrician Group 2 tradesman eg carpenter, bricklayer Group 3 tradesman eg carpet layer, tiler, plasterer General labourer Site foreman 45 45 40 18 80 2011 INR 56 50 38 20 80 2011 USD 1.2 1.1 0.8 0.4 1.7
India costs of materials

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

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

USD Delhi Mumbai Industrial Corridor (DMIC) Information Technology Investment Region (ITIR Bangalore) Jawaharlal Nehru National Solar Mission (JNNSM) National Highways Development Programme Lavasa Hill City 100bn 50bn 75bn 75bn 31bn
17
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 EUR Residential Detached house medium standard Detached house prestige Townhouse medium standard Apartments private medium density Apartments high rise Aged care/affordable units Commercial Offices business park CBD offices up to 20 floors medium CBD offices prestige Warehouses Warehouse/factory unit basic Large warehouse distribution centre High-tech factory/laboratory Retail Large shopping centre including mall Neighbourhood including supermarket Prestige car showroom Hotels Three-star travellers Five-star luxury Resort style Hospitals Day centre Regional hospital General hospital Schools Primary and secondary University Carparks Multistorey above ground Multistorey below ground Airports Airport terminal 4,300 3,900 3,600 3,500 4,868 570 960 570 960 525 875 500 875 695 1,217 1,230 2,500 1,230 2,200 1,125 2,035 1,050 1,975 1,460 2,747 3,000 4,500 4,500 2,400 3,500 3,500 2,200 3,225 3,225 2,150 3,175 3,175 2,990 4,416 4,416 2,000 3,300 2,450 1,700 3,000 2,200 1,575 2,775 2,025 1,550 2,750 2,000 2,156 3,825 2,782 2,950 2,950 3,250 2,500 2,200 2,900 2,300 2,025 2,675 2,250 2,000 2,650 3,129 2,782 3,686 650 1,100 1,800 550 975 1,650 500 900 1,550 500 875 1,525 695 1,217 2,121 1,750 2,500 3,750 1,300 1,950 2,950 1,200 1,800 2,725 1,175 1,775 2,675 1,634 2,469 3,720 1,500 2,200 1,400 1,750 1,800 2,500 1,100 1,800 1,080 1,500 1,650 2,000 1,000 1,700 1,000 1,375 1,525 1,850 1,000 1,600 1,000 1,350 1,500 1,825 1,391 2,225 1,391 1,878 2,086 2,538 2009 EUR 2010 EUR 2011 EUR 2011 USD
18
Turner & Townsend
Ireland hourly cost of labour (including overheads)

2010 EUR Group 1 tradesman eg plumber, electrician Group 2 tradesman eg carpenter, bricklayer Group 3 tradesman eg carpet layer, tiler, plasterer General labourer Site foreman 29 29 29 24 29 2011 EUR 29 29 29 24 29 2011 USD 40 40 40 33 40
Ireland costs of materials

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

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

EUR INTEL 200m+ Rapid Schools Bundle 2 (Lots 14 Primary/Post Primary Schools) 100m+ National Paediatric Hospital at Mater Hospital 400m+ Pfizer 100200m Google Data Centre 50100m
19
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 Yen Residential Detached house medium standard Detached house prestige Townhouse medium standard Apartments private medium density Apartments high rise Aged care/affordable units Commercial Offices business park CBD offices up to 20 floors medium CBD offices prestige Warehouses Warehouse/factory unit basic Large warehouse distribution centre High-tech factory/laboratory Retail Large shopping centre including mall Neighbourhood including supermarket Prestige car showroom Hotels Three-star travellers Five-star luxury Resort style Hospitals Day centre Regional hospital General hospital Schools Primary and secondary University Carparks Multistorey above ground Multistorey below ground Airports Airport terminal 370,000 4,602 205,300 444,800 2,554 5,533 202,400 186,300 2,518 2,317 164,000 164,000 247,800 2,040 2,040 3,082 349,000 523,400 289,500 4,341 6,510 3,601 304,000 368,400 485,000 3,781 4,582 6,033 154,500 207,900 455,000 1,922 2,586 5,660 230,500 266,500 303,800 2,867 3,315 3,779 201,500 235,800 186,700 189,300 284,000 164,800 2,506 2,933 2,322 2,355 3,533 2,050 2011 USD
20
Turner & Townsend
Japan hourly cost of labour (including overheads)

2011 Yen Group 1 tradesman eg plumber, electrician Group 2 tradesman eg carpenter, bricklayer Group 3 tradesman eg carpet layer, tiler, plasterer General labourer Site foreman 2,400 2,210 2,140 1,700 2,440 2011 USD 30 27 27 21 30
Japan costs of materials

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

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

Yen Tokyo Sky Tree Japan Post Tower Loop Road (Kanjo) No. 2 Redevelopment in Shinjuku 8-Chome Tokyo Waterfront Redevelopment in Aomi R-District 65bn 88bn NA NA NA
21
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 MYR Residential Detached house medium standard Detached house prestige Townhouse medium standard Apartments private medium density Apartments high rise Aged care/affordable units Commercial Offices business park CBD offices up to 20 floors medium CBD offices prestige Warehouses Warehouse/factory unit basic Large warehouse distribution centre High-tech factory/laboratory Retail Large shopping centre including mall Neighbourhood including supermarket Prestige car showroom Hotels Three-star travellers Five-star luxury Resort style Hospitals Day centre Regional hospital General hospital Schools Primary and secondary University Carparks Multistorey above ground Multistorey below ground Airports Airport terminal 4,600 4,500 4,700 5,000 1,637 1,008 1,511 1,000 1,500 1,150 1,600 1,200 1,700 393 556 805 3,021 800 3,000 850 3,200 900 3,400 295 1,113 1,611 2,115 2,366 1,600 2,100 2,350 1,700 2,200 2,500 1,800 2,400 2,700 589 786 884 3,525 6,042 6,300 3,500 6,000 6,250 3,600 6,200 6,450 3,800 6,600 6,900 1,244 2,160 2,259 3,021 2,517 3,323 3,000 2,500 3,300 3,200 2,700 3,500 3,400 2,900 3,700 1,113 949 1,211 1,228 1,536 2,560 1,200 1,500 2,500 1,250 1,600 2,600 1,400 1,800 3,000 458 589 982 1,957 2,575 3,605 1,900 2,500 3,500 2,000 2,600 3,700 2,300 3,000 4,200 753 982 1,375 1,436 1,897 974 1,169 1,538 1,250 1,400 1,850 950 1,140 1,500 1,220 1,500 1,980 1,000 1,200 1,700 1,310 1,800 2,300 1,200 1,400 2,000 1,500 589 753 393 458 655 491 2009 MYR 2010 MYR 2011 MYR 2011 USD
22
Turner & Townsend
Malaysia hourly cost of labour (including overheads)

2010 MYR Group 1 tradesman eg plumber, electrician Group 2 tradesman eg carpenter, bricklayer Group 3 tradesman eg carpet layer, tiler, plasterer General labourer Site foreman 19 15 19 10 50 2011 MYR 20 15 20 10 55 2011 USD 7 5 7 3 18
Malaysia costs of materials

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

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

MYR Greater KL Mass Rapid Transit Warisan Merdeka 100-Storey Tower Support for Corridors Development of 1,084 hectare Malaysian Rubber Board Land, Sungai Buloh Kuala Lumpur International Financial District (KLIFD) 40bn 5bn 853bn 10bn 26bn
23
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 RUB Residential Detached house medium standard Detached house prestige Townhouse medium standard Apartments private medium density Apartments high rise Aged care/affordable units Commercial Offices business park CBD offices up to 20 floors medium CBD offices prestige Warehouses Warehouse/factory unit basic Large warehouse distribution centre High-tech factory/laboratory Retail Large shopping centre including mall Neighbourhood including supermarket Prestige car showroom Hotels Three-star travellers Five-star luxury Resort style Hospitals Day centre Regional hospital General hospital Schools Primary and secondary University Carparks Multistorey above ground Multistorey below ground Airports Airport terminal 90,000 96,000 100,000 105,000 3,580 21,300 17,000 22,355 18,000 23,250 26,350 23,000 31,000 784 1,057 45,000 50,000 48,000 54,000 49,000 57,000 50,000 63,000 1,705 2,148 37,500 50,000 65,000 40,000 53,000 68,000 42,500 51,000 70,000 51,000 75,000 60,000 1,739 2,557 2,045 56,430 70,538 64,645 59,400 74,250 69,100 62,000 77,500 73,000 63,000 75,000 70,000 2,148 2,557 2,386 40,641 29,803 28,500 42,780 31,372 30,000 46,500 34,100 37,200 47,000 30,000 38,000 1,602 1,023 1,295 20,425 24,510 56,700 21,500 25,800 57,000 23,250 26,350 58,250 25,000 26,000 60,000 852 886 2,045 37,620 50,160 62,700 39,600 52,800 66,000 43,400 49,600 55,800 44,000 50,000 57,000 1,500 1,705 1,943 28,500 57,000 23,750 47,500 57,000 47,500 30,000 60,000 25,000 50,000 60,000 50,000 31,000 62,000 27,900 43,400 55,800 43,400 32,000 57,000 35,000 45,000 57,000 43,000 1,091 1,943 1,193 1,534 1,943 1,466 2009 RUB 2010 RUB 2011 RUB 2011 USD
24
Turner & Townsend
Russia hourly cost of labour (including overheads)

2010 RUB Group 1 tradesman eg plumber, electrician Group 2 tradesman eg carpenter, bricklayer Group 3 tradesman eg carpet layer, tiler, plasterer General labourer Site foreman 310 310 310 248 496 2011 RUB 500 500 500 400 600 2011 USD 17 17 17 14 20
Russia costs of materials

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

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

USD Russian Sustainable Tourism in North Caucasus Mountains South Stream Gas Pipeline 2014 Winter Olympics Infrastructure 2018 FIFA World Cup Infrastructure Kaliningrad Nuclear Power Plant 30bn 15.5bn 11bn NA 9bn
25
Singapore
The Singapore market has been quite moderate in 2011 and escalation has been minimal for most building types. Singapores 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. Singapores 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 SGD Residential Detached house medium standard Detached house prestige Townhouse medium standard Apartments private medium density Apartments high rise Aged care/affordable units Commercial Offices business park CBD offices up to 20 floors medium CBD offices prestige Warehouses Warehouse/factory unit basic Large warehouse distribution centre High-tech factory/laboratory Retail Large shopping centre including mall Neighbourhood including supermarket Prestige car showroom Hotels Three-star travellers Five-star luxury Resort style Hospitals Day centre Regional hospital General hospital Schools Primary and secondary University Carparks Multistorey above ground Multistorey below ground Airports Airport terminal 1,200 2,000 900 1,600 1,200 1,600 1,200 1,700 953 1,351 1,500 2,500 1,500 2,500 1,500 2,500 1,500 2,700 1,192 2,145 2,000 3,500 3,500 1,800 3,000 3,000 1,750 3,000 3,000 1,800 3,100 3,100 1,430 2,463 2,463 3,300 4,800 3,200 2,700 4,000 2,600 3,100 4,150 3,000 3,200 4,200 3,000 2,542 3,337 2,384 3,000 2,400 3,500 2,500 2,000 3,300 3,000 2,000 3,300 3,200 2,100 3,300 2,542 1,669 2,622 1,400 1,600 3,000 1,200 1,500 2,800 1,200 1,700 2,800 1,200 1,800 3,000 953 1,430 2,384 2,300 3,000 3,200 2,000 2,500 2,800 2,000 2,500 2,800 2,000 2,500 2,900 1,589 1,986 2,304 4,000 4,900 3,400 3,000 3,400 1,500 3,500 4,400 2,800 2,000 2,500 1,350 3,850 4,400 2,800 2,000 2,700 1,450 4,000 4,600 2,800 2,100 2,700 1,500 3,178 3,655 2,225 1,669 2,145 1,192 2009 SGD 2010 SGD 2011 SGD 2011 USD
26
Turner & Townsend
Singapore hourly cost of labour (including overheads)

2010 SGD Group 1 tradesman eg plumber, electrician Group 2 tradesman eg carpenter, bricklayer Group 3 tradesman eg carpet layer, tiler, plasterer General labourer Site foreman 25 20 20 12 30 2011 SGD 25 20 21 15 30 2011 USD 20 16 17 12 24
Singapore costs of materials

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

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

USD Mass Rapid Transit Extensions Marina Bay Marina South 6.7bn 2bn 500m
27
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 ZAR Residential Detached house medium standard Detached house prestige Townhouse medium standard Apartments private medium density Apartments high rise Aged care/affordable units Commercial Offices business park CBD offices up to 20 floors medium CBD offices prestige Warehouses Warehouse/factory unit basic Large warehouse distribution centre High-tech factory/laboratory Retail Large shopping centre including mall Neighbourhood including supermarket Prestige car showroom Hotels Three-star travellers Five-star luxury Resort style Hospitals Day centre Regional hospital General hospital Schools Primary and secondary University Carparks Multistorey above ground Multistorey below ground Airports Airport terminal 20,000 20,900 20,900 20,900 2,943 3,200 3,500 3,500 4,000 4,000 4,800 3,800 4,500 535 634 4,500 5,000 5,000 6,000 5,000 6,000 7,000 9,000 986 1,267 4,500 6,000 7,500 5,500 7,000 8,500 5,500 7,000 8,500 6,000 7,500 9,000 845 1,056 1,267 5,500 7,000 6,900 8,000 10,000 9,700 8,400 10,500 10,185 8,600 10,500 10,000 1,211 1,479 1,408 5,500 6,000 6,200 7,800 6,800 7,000 7,800 6,800 7,000 8,000 7,000 7,500 1,127 986 1,056 3,700 3,900 4,500 3,700 3,900 6,000 3,700 3,900 6,300 3,800 4,000 6,000 535 563 845 4,500 7,000 7,500 5,000 8,500 10,000 5,300 8,500 10,000 6,500 8,500 11,500 915 1,197 1,619 4,500 8,000 5,000 4,800 7,000 5,000 5,000 9,000 6,000 6,000 7,500 5,500 5,000 9 000 6,000 6,300 7,500 5,500 5,300 9,500 5,800 6,200 7,500 5,500 746 1,338 817 873 1,056 775 2009 ZAR 2010 ZAR 2011 ZAR 2011 USD
28
Turner & Townsend
South Africa hourly cost of labour (including overheads)

2010 ZAR Group 1 tradesman eg plumber, electrician Group 2 tradesman eg carpenter, bricklayer Group 3 tradesman eg carpet layer, tiler, plasterer General labourer Site foreman 50 45 35 15 200 2011 ZAR 52 48 40 18 200 2011 USD 7 7 6 3 28
South Africa costs of materials

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

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

ZAR Medupi Power Station Kusile Power Station RMI Integrated Titanium and Zirconium Beneficiation Complex Xstrata Tweefontein Optimisation Project Xstrata Atcom East Pascoulama 125bn 141bn 15bn 8bn 3.8bn 5bn
29
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 KRW Residential Detached house medium standard Detached house prestige Townhouse medium standard Apartments private medium density Apartments high rise Aged care/affordable units Commercial Offices business park CBD offices up to 20 floors medium CBD offices prestige Warehouses Warehouse/factory unit basic Large warehouse distribution centre High-tech factory/laboratory Retail Large shopping centre including mall Neighbourhood including supermarket Prestige car showroom Hotels Three-star travellers Five-star luxury Resort style Hospitals Day centre Regional hospital General hospital Schools Primary and secondary University Carparks Multistorey above ground Multistorey below ground Airports Airport terminal 2,500,000 2,600,000 2,550,000 2,550,000 2,302 558,277 812,040 552,750 804,000 550,000 800,000 550,000 800,000 497 722 1,015,050 1,370,317 1,005,000 1,356,750 1,000,000 1,350,000 1,000,000 1,360,000 903 1,228 1,116,555 1,624,080 1,725,585 1,105,500 1,608,000 1,708,500 1,100,000 1,600,000 1,700,000 1,100,000 1,600,000 1,700,000 993 1,445 1,535 1,522,575 3,045,150 1,827,090 1,507,500 3,015,000 1,809,000 1,500,000 3,000,000 1,800,000 1,500,000 3,200,000 2,050,000 1,354 2,889 1,851 1,725,585 954,450 1,898,144 1,708,500 945,000 1,879,350 1,700,000 900,000 1,870,000 1,700,000 950,000 1,870,000 1,535 858 1,688 954,450 761,287 2,639,130 945,000 753,750 2,613,000 900,000 750,000 2,600,000 900,000 700,000 2,600,000 813 632 2,348 1,116,555 1,370,317 1,725,585 1,105,500 1,356,750 1,708,500 1,100,000 1,350,000 1,700,000 1,100,000 1,350,000 1,700,000 993 1,219 1,535 1,167,307 1,725,585 1,380,468 1,116,555 1,421,070 1,220,000 1,155,750 1,708,500 1,366,800 1,105,500 1,407,000 1,200,000 1,150,000 1,700,000 1,360,000 1,100,000 1,400,000 1,180,000 1,150,000 1,700,000 1,360,000 1,100,000 1,400,000 1,200,000 1,038 1,535 1,228 993 1,264 1,083 2009 KRW 2010 KRW 2011 KRW 2011 USD
30
Turner & Townsend
South Korea hourly cost of labour (including overheads)

2010 KRW Group 1 tradesman eg plumber, electrician Group 2 tradesman eg carpenter, bricklayer Group 3 tradesman eg carpet layer, tiler, plasterer General labourer Site foreman 95,858 96,113 96,677 68,965 92,218 2011 KRW 105,524 105,698 104,620 74,008 100,879 2011 USD 95 95 94 67 91
South Korea costs of materials

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

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

KRW Great Train Express (GTX) Korea Train Express (KTX) Incheon-Seoul-Pyeongchang Yongsan Incheon Airport 3 Phase Universal Studios Korea Resort 13tn 6.7tn 8tn 4.3tn 3tn
31
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 20068. 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 AED Residential Detached house medium standard Detached house prestige Townhouse medium standard Apartments private medium density Apartments high rise Aged care/affordable units Commercial Offices business park CBD offices up to 20 floors medium CBD offices prestige Warehouses Warehouse/factory unit basic Large warehouse distribution centre High-tech factory/laboratory Retail Large shopping centre including mall Neighbourhood including supermarket Prestige car showroom Hotels Three-star travellers Five-star luxury Resort style Hospitals Day centre Regional hospital General hospital Schools Primary and secondary University Carparks Multistorey above ground Multistorey below ground Airports Airport terminal 3,500 4,500 3,500 4,500 3,500 4,500 3,500 4,250 953 1,157 7,000 7,800 6,500 7,300 6,000 6,800 5,750 6,500 1,565 1,770 7,000 8,500 9,000 6,500 8,000 8,500 6,000 7,500 8,000 5,750 7,250 8,750 1,565 1,974 2,382 10,000 13,000 15,000 9,750 12,750 15,000 9,500 12,500 15,000 9,000 12,000 14,500 2,450 3,267 3,948 8,000 8,500 7,500 8,000 7,000 7,500 6,500 7,000 1,770 1,906 6,000 5,500 7,625 5,250 4,750 6,875 4,500 4,000 6,125 4,250 4,000 6,000 1,157 1,089 1,634 5,300 6,000 8,000 4,800 5,750 7,500 4,550 5,500 7,000 4,000 5,000 6,750 1,089 1,361 1,838 7,500 9,500 7,500 7,000 9,000 5,720 7,000 9,250 6,525 6,500 8,500 5,340 6,500 9,000 5,550 6,000 8,000 4,960 6,000 9,750 5,250 5,500 6,500 4,750 1,634 2,654 1,429 1,497 1,770 1,293 2009 AED 2010 AED 2011 AED 2011 USD
32
Turner & Townsend
UAE hourly cost of labour (including overheads)

2010 AED Group 1 tradesman eg plumber, electrician Group 2 tradesman eg carpenter, bricklayer Group 3 tradesman eg carpet layer, tiler, plasterer General labourer Site foreman 30 30 28 15 75 2011 AED 30 30 28 15 75 2011 USD 8 8 8 4 20
UAE costs of materials

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

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

AED Etihad Rail Louvre Abu Dhabi Khalifa Port and Industrial Zone (KPIZ) Presidential Palace Yas Mall 40bn 2m 26.5bn 6m 2m
33
UK
The UK market continues to be directly affected by economic uncertainties within Europe, as the eurozone represents the UKs 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 GBP Residential Detached house medium standard Detached house prestige Townhouse medium standard Apartments private medium density Apartments high rise Aged care/affordable units Commercial Offices business park CBD offices up to 20 floors medium CBD offices prestige Warehouses Warehouse/factory unit basic Large warehouse distribution centre High-tech factory/laboratory Retail Large shopping centre including mall Neighbourhood including supermarket Prestige car showroom Hotels Three-star travellers Five-star luxury Resort style Hospitals Day centre Regional hospital General hospital Schools Primary and secondary University Carparks Multistorey above ground Multistorey below ground Airports Airport terminal 3,150 3,050 3,050 3,163 5,072 437 870 450 850 450 850 467 881 749 1,413 1,553 2,240 1,590 2,200 1,350 2,180 1,400 2,261 2,245 3,625 1,295 2,639 1,740 1,531 2,514 1,733 1,531 2,514 1,733 1,588 2,607 1,797 2,546 4,180 2,881 1,300 2,500 2,500 1,200 2,500 2,500 1,200 2,500 2,500 1,244 2,593 2,593 1,995 4,158 4,158 2,200 1,835 2,000 2,200 1,835 2,000 2,200 1,835 2,000 2,281 1,903 2,074 3,657 3,051 3,325 691 867 1,365 800 900 1,500 800 900 1,500 830 933 1,556 1,331 1,496 2,495 1,500 2,972 1,833 1,500 2,700 3,800 1,500 2,700 3,800 1,556 2,800 3,941 2,495 4,489 6,319 1,050 1,465 1,008 1,624 2,170 1,800 1,050 1,465 1,200 1,800 2,300 1,820 1,020 1,465 1,200 1,800 2,300 1,820 1,058 1,519 1,244 1,867 2,385 1,887 1,696 2,436 1,995 2,994 3,824 3,026 2009 GBP 2010 GBP 2011 GBP 2011 USD
34
Turner & Townsend
UK hourly cost of labour (including overheads)

2010 GBP Group 1 tradesman eg plumber, electrician Group 2 tradesman eg carpenter, bricklayer Group 3 tradesman eg carpet layer, tiler, plasterer General labourer Site foreman 30 30 30 18 45 2011 GBP 30 30 30 18 46 2011 USD 48 48 48 29 74
UK costs of materials
Concrete 30 mpa (m3) (1,500m3 job) Reinforcement bar 16mm (tonne) (120 tonne job) Concrete block (400 x 200) per 1,000 (>10,000 block job) Standard brick per 1,000 Structural steel beams (tonne) (>100 tonne job) Glass pane 6mm (m2) Softwood timber for framing 100mm x 50mm (m) Plasterboard 13mm (m2) Emulsion paint (litre) Copper pipe 15mm (m) (>1,000m job) Copper cable (m) (3C + E, 2.5mm PVC) (>100,000m job) 85 700 1,050 450 1,600 30 2 5 2 1 0.15 83 744 1,071 454 1,786 31 2 5 2 1 0.15 133 1,193 1,717 728 2,864 50 3 8 3 2 0.24
UK key trades (excluding preliminaries and builders margins)

Excavate basement (m3) (1,800m3 job) Excavate footings (m) Concrete in slab (m3) (1,500m3 job) Reinforcement in beams (tonne) Formwork to soffit of slab (m2) Blockwork in wall (m2) (10,000 block job) Structural steel beams (tonne) Pre-cast concrete wall (m2) Curtain wall glazing incl support system (m2) (1,000m2 job) Plasterboard 13mm thick to stud wall (m2) (3,000m2 job) Single solid core door incl frame and hardware (no) (50 door job) Painting to walls primer + 2 coats (m2) Ceramic tiling (m2) (1,000m2 job) Vinyl flooring to wet areas (m2) (500m2 job) Carpet medium tufted (m2) (4,500m2 job) Lighting installation (m2) (>5,000m2 job) Copper pipe 15mm to wall (m) (>1,000m job) Fire sprinklers (per m2) (5,000m2 job) Air conditioning incl main plant (m2) (>5,000m2 job) 45 12 110 950 42 35 1,900 50 550 18 750 5 40 25 25 65 10 30 160 43 12 107 1,010 36 36 2,120 63 570 19 720 5 41 24 24 67 10 31 166 69 19 172 1,619 58 58 3,399 101 914 30 1,154 8 66 38 38 107 16 50 266
UK major projects
GBP Crossrail High Speed Railway 2 London 2012 Olympics London Tideway Improvements Forth Replacement Crossing 14.5bn 32.7bn 2bn 4bn 1bn
35
US
The outlook for 201213 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 USD Residential Detached house medium standard Detached house prestige Townhouse medium standard Apartments private medium density Apartments high rise Aged care/affordable units Commercial Offices business park CBD offices up to 20 floors medium CBD offices prestige Warehouses Warehouse/factory unit basic Large warehouse distribution centre High-tech factory/laboratory Retail Large shopping centre including mall Neighbourhood including supermarket Prestige car showroom Hotels Three-star travellers Five-star luxury Resort style Hospitals Day centre Regional hospital General hospital Schools Primary and secondary University Carparks Multistorey above ground Multistorey below ground Airports Airport terminal 3,650 3,525 3,425 3,550 700 1,325 730 1,395 690 1,295 700 1,315 1,450 2,160 1,510 2,240 1,495 2,150 1,570 2,200 1,645 3,100 3,000 1,765 3,210 3,110 2,045 3,290 3,260 2,055 3,340 3,300 1,485 2,680 2,420 1,580 2,720 2,630 1,525 2,550 2,250 1,575 2,600 2,300 1,580 860 1,425 1,600 900 1,390 1,500 840 1,325 1,560 910 1,380 750 915 1,520 850 990 1,615 840 1,100 1,700 860 1,140 1,785 1,600 2,215 2,610 1,905 2,150 2,505 1,850 2,085 2,440 1,885 2,140 2,520 1,570 1,925 1,475 1,420 2,075 1,300 1,475 1,750 1,330 1,590 2,045 1,400 1,435 1,710 1,300 1,520 2,020 1,420 1,495 1,800 1,350 1,600 2,100 1,550 2009 USD 2010 USD 2011 USD
36
Turner & Townsend
US hourly cost of labour (including overheads)

2010 USD Group 1 tradesman eg plumber, electrician Group 2 tradesman eg carpenter, bricklayer Group 3 tradesman eg carpet layer, tiler, plasterer General labourer Site foreman 73 64 54 51 75 2011 USD 75 65 57 53 77
US costs of materials
Concrete 30 mpa (m3) (1,500m3 job) Reinforcement bar 16mm (tonne) (120 tonne job) Concrete block (400 x 200) per 1,000 (>10,000 block job) Standard brick per 1,000 Structural steel beams (tonne) (>100 tonne job) Glass pane 6mm (m2) Softwood timber for framing 100mm x 50mm (m) Plasterboard 13mm (m2) Emulsion paint (litre) Copper pipe 15mm (m) (>1,000m job) Copper cable (m) (3C + E, 2.5mm PVC) (>100,000m job) 138 595 950 400 1,030 58 9 3 7 6 3 135 992 1,030 350 1,150 58 7 3 8 7 4
US key trades (excluding preliminaries and builders margins)

Excavate basement (m3) (1,800m3 job) Excavate footings (m) Concrete in slab (m3) (1,500m3 job) Reinforcement in beams (tonne) Formwork to soffit of slab (m2) Blockwork in wall (m2) (10,000 block job) Structural steel beams (tonne) Pre-cast concrete wall (m2) Curtain wall glazing incl support system (m2) (1,000m2 job) Plasterboard 13mm thick to stud wall (m2) (3,000m2 job) Single solid core door incl frame and hardware (no) (50 door job) Painting to walls primer + 2 coats (m2) Ceramic tiling (m2) (1,000m2 job) Vinyl flooring to wet areas (m2) (500m2 job) Carpet medium tufted (m2) (4,500m2 job) Lighting installation (m2) (>5,000m2 job) Copper pipe 15mm to wall (m) (>1,000m job) Fire sprinklers (per m2) (5,000m2 job) Air conditioning incl main plant (m2) (>5,000m2 job) 8 7 168 1,905 56 70 2,775 123 719 32 2,048 12 84 59 39 80 29 28 162 10 8 171 2,100 71 75 2,855 120 775 34 2,100 10 90 64 44 83 32 30 172
NB: Construction costs vary widely across the US:
US cost variations
National average % 100
US major projects
USD California High-Speed Rail Bay Bridge East Span Replacement Fab 42 The Ohio River Bridges Interstate 69 Extension SIU #3 99bn 6.3bn 5bn 4.1bn 1.8bn
Charlotte, NC Houston, TX Seattle, WA Chicago, IL Los Angeles, CA San Francisco, CA New York Metro
Source: ENR
83 92 111 115 115 125 132
37
Vietnam
Restrictions 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 VND Residential Detached house medium standard Detached house prestige Townhouse medium standard Apartments private medium density Apartments high rise Aged care/affordable units Commercial Offices business park CBD offices up to 20 floors medium CBD offices prestige Warehouses Warehouse/factory unit basic Large warehouse distribution centre High-tech factory/laboratory Retail Large shopping centre including mall Neighbourhood including supermarket Prestige car showroom Hotels Three-star travellers Five-star luxury Resort style Hospitals Day centre Regional hospital General hospital Schools Primary and secondary University Carparks Multistorey above ground Multistorey below ground Airports Airport terminal 34,362,002 38,180,003 41,998,003 45,377,280 2,225 9,163,204 10,502,250 10,502,250 11,454,004 11,457,000 12,411,750 7,280,000 15,127,840 357 742 7,254,203 9,547,500 8,592,750 10,502,250 9,547,500 11,457,000 10,816,000 12,979,200 530 636 9,547,500 21,000,100 21,000,100 9,547,500 22,908,240 22,908,240 11,457,000 23,862,550 23,862,550 13,798,720 26,556,192 26,556,192 676 1,302 1,302 19,091,000 26,726,280 23,366,500 21,000,100 28,635,300 25,272,032 22,908,240 30,544,064 27,181,036 25,983,360 34,277,152 29,328,000 1,274 1,680 1,438 10,502,250 7,638,000 8,592,750 11,457,000 8,592,750 9,547,500 12,411,750 9,547,500 10,502,250 14,047,280 10,805,600 11,886,160 689 530 583 5,728,500 5,728,500 11,457,000 6,683,250 6,683,250 12,411,750 7,638,000 7,638,000 13,366,500 8,561,280 8,677,760 15,142,400 420 425 742 9,547,500 11,457,000 14,321,250 10,502,250 13,366,500 15,276,000 11,457,000 14,321,250 16,230,750 12,966,720 16,208,400 18,135,936 636 795 889 7,638,000 9,165,600 7,638,000 9,547,500 11,457,000 7,638,000 10,502,250 11,457,000 8,592,750 11,457,000 13,366,500 8,592,750 11,457,000 12,411,750 9,547,500 12,411,750 14,321,250 9,547,500 12,954,240 14,033,760 10,795,200 14,033,760 16,192,800 10,795,200 635 688 529 688 794 529 2009 VND 2010 VND 2011 VND 2011 USD
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Turner & Townsend
Vietnam hourly cost of labour (including overheads)

2010 VND Group 1 tradesman eg plumber, electrician Group 2 tradesman eg carpenter, bricklayer Group 3 tradesman eg carpet layer, tiler, plasterer General labourer Site foreman 180,000 155,000 125,000 100,000 90,000 2011 VND 216,000 186,000 150,000 120,000 200,000 2011 USD 11 9 7 6 10
Vietnam costs of materials

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

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

USD Saigon International Terminal, Phu My 1 Urban Railway Line 1, Hanoi Mass Rapid Transit Line 1, Ho Chi Minh City Monorail Line 2, Ho Chi Minh City Da NangQuang Ngai Expressway 163m 1.1bn 1.2bn 350m 1.5bn
39
Contributors
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 e: gary.emmett@turntown.com
Australia Dave Todd e: dave.todd@turntown.com t: +61 (0)7 3020 4700 Canada Gerard McCabe e: gmccabe@ttcm2r.com t: +1 (416) 925 1424 China Ben Chaston e: ben.chaston@turntown.com t: +86 10 6474 5566 Germany Simon Lawler e: simon.lawler@turntown.com t: +49 (0) 69 795 3478 0 India Robert Hewitt e: robert.hewitt@turntown.com t: +91 22 4071 9800 Ireland Mark Kelly e: mark.kelly@hktt.ie t: +35 (0) 312 831 116 Japan Ben Chaston e: ben.chaston@turntown.com t: +86 10 6474 5566 Malaysia David Hancox e: david.hancox@turntown.com t: +60 3 2171 1100
Russia Paul Grace e: paul.grace@turntown.com t: +7 495 223 86 50 Singapore Soh May Yeng e: soh-may.yeng@turntown.com t: +65 6846 3790 South Africa Ian Donaldson e: ian.donaldson@turntown.com t: +27 (0) 11 214 1400 South Korea Yoonseong Cho e: yoonseong.cho@turntown.com t: +82 (0)70 7118 2800 UAE Alan Talabani e: alan.talabani@turntown.com t: +971 (0) 24437890 UK Nick Townsend e: nick.townsend@turntown.com t: +44 (0) 20 7544 4000 US Craig Blinston e: craig.blinston@turntown.com t: +1 415 489 1600 Vietnam David Lockwood e: david.lockwood@turntown.com t: +84 (8) 62 99 82 83
40
Turner & Townsend
www.turnerandtownsend.com

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International construction cost survey 2012

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International construction cost survey 2012

Whats happened since the last survey?

Turner & Townsend

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International construction cost survey 2012

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Estimated cost escalation 2012

Cost index high-rise apartments

Cost index CBD offices

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International construction cost survey 2012

Key economic indicators

How would you describe current market tendering conditions?

Germany India South Africa

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

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Typical contractors margin on medium commercial job (5000m2 GFA)

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International construction cost survey 2012

Australia international building costs per m2 of internal area

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Australia hourly cost of labour (including overheads)

Australia costs of materials

Australia key trades (excluding preliminaries and builders margins)

Australia major projects

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International construction cost survey 2012

Canada international building costs per m2 of internal area

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Canada hourly cost of labour (including overheads)

Canada costs of materials

Canada key trades (excluding preliminaries and builders margins)

Canada major projects

making the difference

International construction cost survey 2012

China international building costs per m2 of internal area

Turner & Townsend

China hourly cost of labour (including overheads)

China costs of materials

China key trades (excluding preliminaries and builders margins)

China major projects

making the difference

International construction cost survey 2012

Germany international building costs per m2 of internal area

Turner & Townsend

Germany hourly cost of labour (including overheads)

Germany costs of materials

Germany key trades (excluding preliminaries and builders margins)

Germany major projects

making the difference

International construction cost survey 2012

India international building costs per m2 of internal area

Turner & Townsend

India hourly cost of labour (including overheads)

India costs of materials

India key trades (excluding preliminaries and builders margins)

India major projects

making the difference

International construction cost survey 2012