International construction cost survey 2012
making the difference
International construction cost survey 2012
Introduction
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.
In Europe the problems that started in Ireland
virtues after years of credit-fuelled growth,
and Greece have spread to Portugal, Italy and
but demand is lower, and the construction
Spain. Falling asset values, high unemployment
sector struggles to find projects.
and crippling government debt in several of the Euro member countries are likely to result
However, worldwide there are many reasons to
in economic weakness in 2012.
be optimistic. The Chinese, Indian, Vietnamese
Country profiles Australia Canada
and African economies are on long-term London Bridge Quarter, the Shard
What’s happened since the last survey?
The focal point for a major commercial development in the heart
2011 was a tough year for construction
of London, the Shard will be the tallest building in western Europe.
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:
[email protected] 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.
In the US and Europe, governments are
growth paths that will improve living standards,
running out of policy levers, be they monetary
creating jobs and opportunities for their
stimulus or austerity measures such as higher
people and the economies which supply them.
taxes and pay cuts. Politically difficult as
There is still a long way to go so the demand
austerity measures are, they also prolong and
for resources and skills will grow.
exacerbate the downturn, as demand and consumption falls. This sets the retail, property
The demand for energy and resources is driving
and construction sectors on a downwards spiral.
the growth of many new projects in natural resources, gas, coal shale and renewable
Those countries which introduced stimulus
energies in countries as diverse as Australia,
measures to boost their economies and
Kazakhstan, Mauritania, Brazil and the US,
construction sectors have mostly spent their
creating jobs, driving construction and wealth.
stimulus budgets and there are few remaining
South Africa is transforming its power sector
policy levers or alternative stimuli to help their
with major investments in power stations.
economies achieve self-sustaining growth.
Australia has introduced a carbon tax that
China Germany India Ireland Japan Malaysia
will eventually force the replacement of coal But with time businesses restructure, reduce
power stations with cleaner alternatives.
their cost base, recapitalise and prepare for
Communications networks are being built, or
the future. The US seems to be at this stage
upgraded as high-speed internet becomes global.
Singapore
of recovery in many sectors including the construction sector. The US went into the
Siemens City, Vienna
GFC first and so logically it will emerge first.
World-class, energy-efficient construction, delivered to
In 2012 the US construction data should start
meticulously engineered costs, certified to US Green
to improve.
Barring natural disasters and
The effects of the continuing difficulties
other surprises, 2012 offers
everywhere, even in the growth economies
a window of opportunity to
reduced international trade, tightening credit
build your project on time
fund balances and lower house prices. Public
and perhaps under budget.
works projects delayed and consumers are
Russia
South Africa
Building Gold standard.
South Korea
in the developed economies are being felt
UAE
of Asia, South America and Africa, through
UK
markets, falling share markets, lower retirement infrastructure budgets have been cut, public
US
saving more, paying off debt, consuming less,
Vietnam
and exercising caution. These are all good
Contributors
2
Turner & Townsend
making the difference
International construction cost survey 2012
King Edward VII Memorial Hospital, Bermuda
Materials prices are also competitive. Commodity
The first P3 (PPP) project in Bermuda is being delivered using
prices increased alarmingly in early 2011 but
local contractors for stakeholders in the US, Europe and Bermuda.
have now fallen. Steel prices fell in late 2011.
Estimated cost escalation 2012
Introduction Australia
Lower coking coal and iron ore prices indicate
Canada
that steel could be cheaper in 2012. Copper
Country profiles
China
prices have also fallen by 20 percent since March
Germany India
2011 which should mean cheaper costs for some
Australia
Ireland
electrical and plumbing materials in 2012.
Japan Malaysia Russia Singapore
All of this bodes well for construction costs in 2012 with forecast cost increases in line with
Canada South Africa
2011. In other words, construction costs in
South Korea UAE UK US
most regions are expected to stay moderate during 2012. Barring natural disasters and other surprises, 2012 offers a window of
China Germany
Vietnam
opportunity to build your project on time and perhaps under budget.
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
India Worldwide, these projects add up to a
Part of the reason why construction markets
substantial portfolio of long-term construction
are so competitive is that housing and
Moderate cost escalation is expected once again in 2012 following only moderate cost increases
work. It is a good time to build. Construction
non-residential building construction is hardly
in most regions during 2011. The exceptions are India and South Africa where higher escalation
costs are generally benign as shown by our
increasing in most developed economies,
is forecast by our teams on the ground. In Japan prices are forecast to fall slightly.
surveys. In most regions the markets are not
because there is little, if any, price growth.
overheated like they were in the last decade.
Eventually, this cyclical downturn will end as the
That means projects are more likely to be
fundamentals of supply and demand reassert.
built on time and budget. Contractors have
Housing markets will recover, consumers will
retained their most skilled labour and many of
start to borrow and spend again. The cycle
Cost Index 2008=100
the casuals employed when work is plentiful
will turn, and when it does costs will increase
have left to pursue other opportunities.
Japan Cost index – high-rise apartments
Cost index – CBD offices
2008
2009
2010
2011
Australia
100
96
94
96
again as building, resources and infrastructure
Canada
100
95
94
100
projects compete for resources and skills.
Cost Index 2008=100
2008
2009
2010
2011
Australia
100
96
96
97
Canada
100
96
95
98
China
100
82
84
89
China
100
78
80
81
In many countries the construction sector
Germany
100
101
101
104
Germany
100
101
101
104
is now very competitive and tendered prices
India
100
100
117
150
India
100
105
112
140
often come in below budget. The surveys
Alstom Hydro, China
Ireland
100
92
85
83
Ireland
100
78
72
71
show that construction costs in half of the
Multiform energy-saving technologies are helping to make this
100
98
111
130
Malaysia
100
97
101
117
countries surveyed are still below 2008
146,000 m2 hydropower manufacturing facility fully carbon neutral.
Malaysia
Russia
100
105
99
100
Singapore
100
83
83
83
Russia
100
105
98
100
levels. Most of our respondents indicated
Singapore
100
74
79
79
that labour rates were well under control.
South Africa
100
107
107
107
South Africa
100
121
121
121
South Korea
100
99
99
99
South Korea
100
99
99
99
UAE
100
94
89
72
UAE
100
96
92
83
UK
100
98
98
101
UK
100
91
91
94
US
100
99
97
101
US
100
97
94
97
Vietnam
100
117
125
141
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.
3
Turner & Townsend
Ireland
making the difference
Malaysia Russia Singapore South Africa South Korea UAE UK US Vietnam Contributors
International construction cost survey 2012
Key economic indicators
Typical contractor’s margin on medium commercial job (5000m2 GFA) 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
10.6
7.8
7.5
9.5
2.2
0.4
1.5
14.3
–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
UK US
India Ireland Japan
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
22.0
5.8
6.3
5.0
Vietnam
Introduction
Australia Canada
Country profiles
China Germany India Ireland
Australia
Japan Malaysia
Canada
Russia Singapore South Africa
China
South Korea UAE
Germany Vietnam
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
Contractor’s margin has been squeezed in those countries where work volumes have fallen and
India Ireland
contractors have to compete more vigorously. With fewer jobs contractors will often submit 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 Warm Australia Canada China Japan Malaysia Russia Singapore UAE US Vietnam
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.
Hot Overheating
Japan Malaysia
Typical preliminaries as a percentage of total costs
Germany India South Africa
Russia
Australia Canada China Germany
Singapore
India Ireland
South Africa
Japan Malaysia Russia
Is the construction market getting warmer, cooler or staying the same?
Singapore
Cooler Canada China Vietnam
UAE
Staying the same
Warmer
Australia Ireland Japan Malaysia Singapore South Africa South Korea UAE UK US
Germany India Russia
South Korea
South Africa South Korea
UAE
UK US
UK
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
Turner & Townsend
Vietnam
preliminaries. In many countries costs of power and water are increasing. Also regulatory compliance adds further preliminary costs.
4
US
Contributors
making the difference
International construction cost survey 2012
Country profiles
Australia – hourly cost of labour (including overheads)
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
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
Introduction Country profiles Australia
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
Australia – international building costs per m2 of internal area
2008 AUD
2009 AUD
2010 AUD
2011 AUD
2011 USD
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
Residential Detached house – medium standard Detached house – prestige Townhouse – medium standard Apartments – private medium density Apartments – high rise Aged care/affordable unit
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)
Commercial Offices – business park CBD offices up to 20 floors – medium CBD offices – prestige
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
830 640 1,540
750 590 1,500
760 600 1,500
768 606 1,515
790 624 1,559
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
Retail Large shopping centre including mall Neighbourhood including supermarket Prestige car showroom Hotels Three-star travellers Five-star luxury Resort style
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
2,900 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
1,985 3,130
1,900 3,050
1,900 3,050
1,919 3,081
1,975 3,171
Hospitals Day centre Regional hospital General hospital
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)
Warehouses Warehouse/factory unit – basic Large warehouse distribution centre High-tech factory/laboratory
Canada
Australia – costs of materials
is currently in the final stages of debate prior to passing into legislation.
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
Schools Primary and secondary University
850 1,250
832 1,235
800 1,173
808 1,185
832 1,219
8,000
7,000
6,500
6,565
6,757
Airports Airport terminal
Germany India Ireland Japan Malaysia Russia Singapore South Africa South Korea UAE UK
Carparks Multistorey – above ground Multistorey – below ground
China
Australia – major projects
AUD
Chevron Gorgon Chevron Wheatstone APLNG Gladstone BHP Olympic Dam Santos GLNG
43bn 30bn 16bn 30bn 16bn
US Vietnam Contributors
5
Turner & Townsend
making the difference
International construction cost survey 2012
Canada
Canada – hourly cost of labour (including overheads)
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.
Group 1 tradesman – eg plumber, electrician Group 2 tradesman – eg carpenter, bricklayer Group 3 tradesman – eg carpet layer, tiler, plasterer General labourer Site foreman
2008 CAD
2009 CAD
2010 CAD
2011 CAD
2011 USD
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
1,700 2,000 2,900
1,722 2,026 2,938
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
1,696 2,047 2,968
1,616 1,970 2,828
1,600 1,950 2,800
Warehouses Warehouse/factory unit – basic Large warehouse distribution centre High-tech factory/laboratory
912 1,007 1,378
869 960 1,313
860 950 1,300
900 1,000 1,400
912 1,013 1,418
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
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
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
1,802 3,498
1,717 3,333
1,700 3,300
1,800 3,500
1,823 3,546
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
60 55 50 45 75
2011 CAD 60 55 50 45 75
2011 USD 61 56 51 46 76
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
795 1,060
758 1,010
750 1,000
800 1,100
810 1,114
Airports Airport terminal
Country profiles Australia
China Germany India Ireland Japan Malaysia Russia Singapore South Africa South Korea UAE UK
Carparks Multistorey – above ground Multistorey – below ground
Introduction
Canada
Canada – costs of materials
Canada – international building costs per m2 of internal area
2010 CAD
5,724
5,454
5,400
5,700
5,774
Canada – major projects Halton Region Hospital Humber River Regional Hospital Air Rail Link Union Station Revitalisation Toronto-York Spadina Subway Extension
CAD
US
1bn 1bn 310m 640m 2.6bn
Vietnam Contributors
6
Turner & Townsend
making the difference
International construction cost survey 2012
China
China – hourly cost of labour (including overheads)
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
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
Introduction Country profiles Australia
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 m of internal area 2
2008 CNY
2009 CNY
2010 CNY
2011 CNY
2011 USD
Residential Detached house – medium standard Detached house – prestige Townhouse – medium standard Apartments – private medium density Apartments – high rise Aged care/affordable units
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
Canada
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 Germany India Ireland
Commercial Offices – business park CBD offices up to 20 floors – medium CBD offices – prestige
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
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
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
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
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
3,800 5,700
3,500 5,200
3,610 5,350
3,640 5,390
560 829
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
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
Japan Malaysia Russia Singapore South Africa South Korea UAE
Schools Primary and secondary University
UK China – major projects
Carparks
Multistorey – above ground Multistorey – below ground
National Trunk Road Network South–North Water Transfer Silk Road Renaissance Tianjin Binhai New Area China’s Renewable Energy Development Plan
2,200 5,300
2,000 4,500
2,080 4,640
2,140 4,780
329 736
11,500
10,300
10,600
10,900
1,677
Airports Airport terminal
CNY
US
900bn 500bn 330bn 1tn 2tn
Vietnam Contributors
7
Turner & Townsend
making the difference
International construction cost survey 2012
Germany
Germany – hourly cost of labour (including overheads)
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
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
Introduction Country profiles Australia
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,
Germany – international building costs per m2 of internal area
2008 EUR
2009 EUR
2010 EUR
2011 EUR
2011 USD
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
Residential Detached house – medium standard Detached house – prestige Townhouse – medium standard Apartments – private medium density Apartments – high rise Aged care/affordable units
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)
1,130 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
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
895 895 870
900 900 880
903 903 883
929 929 908
1,292 1,292 1,263
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
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
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
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)
Commercial Offices – business park CBD offices up to 20 floors – medium CBD offices – prestige
Canada
Germany – costs of materials
tendering competitive and escalation moderate.
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
1,170 1,370
1,180 1,385
1,184 1,390
1,218 1,430
1,694 1,988
Carparks Multistorey – above ground Multistorey – below ground
Germany India Ireland Japan Malaysia Russia Singapore South Africa South Korea UAE UK
Schools Primary and secondary University
China
524 597
526 599
533 607
548 624
762 868
1,080
1,090
1,094
1,125
1,565
Germany – major projects Trans Europa Naturgas Pipeline (TENP) Upgrade Frankfurt Chlor-Alkali Plant Expansion Stuttgart 21
USD
US
120m 140m 5.2bn
Vietnam
Airports Airport terminal
8
Turner & Townsend
Contributors
making the difference
International construction cost survey 2012
India
India – hourly cost of labour (including overheads)
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.
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
Introduction Country profiles Australia
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 m of internal area 2
2008 INR
2009 INR
2010 INR
2011 INR
2011 USD
Residential Detached house – medium standard Detached house – prestige Townhouse – medium standard Apartments – private medium density Apartments – high rise Aged care/affordable units
Canada
India – costs of materials
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
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
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
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
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
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
9,000 22,500
10,000 25,000
15,000 35,000
18,000 38,000
393 829
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
China Germany India Ireland
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
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
Japan Malaysia Russia Singapore South Africa South Korea UAE
Schools Primary and secondary University
UK India – major projects
Carparks
Multistorey – above ground Multistorey – below ground
Delhi Mumbai Industrial Corridor (DMIC) Information Technology Investment Region (ITIR – Bangalore) Jawaharlal Nehru National Solar Mission (JNNSM) National Highways Development Programme Lavasa Hill City
40,500 16,200
45,000 18,000
40,000 25,000
38,000 24,000
829 524
40,500
45,000
55,000
65,000
1,419
Airports Airport terminal
USD
US
100bn 50bn 75bn 75bn 31bn
Vietnam Contributors
9
Turner & Townsend
making the difference
International construction cost survey 2012
Ireland
Ireland – hourly cost of labour (including overheads)
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
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
Introduction Country profiles Australia
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
Ireland – international building costs per m2 of internal area
2008 EUR
2009 EUR
2010 EUR
2011 EUR
2011 USD
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
Residential Detached house – medium standard Detached house – prestige Townhouse – medium standard Apartments – private medium density Apartments – high rise Aged care/affordable units
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)
Commercial Offices – business park CBD offices up to 20 floors – medium CBD offices – prestige
1,300 1,950 2,950
1,200 1,800 2,725
1,175 1,775 2,675
1,634 2,469 3,720
650 1,100 1,800
550 975 1,650
500 900 1,550
500 875 1,525
695 1,217 2,121
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
Retail Large shopping centre including mall Neighbourhood including supermarket Prestige car showroom Hotels Three-star travellers Five-star luxury Resort style
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
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
1,230 2,500
1,230 2,200
1,125 2,035
1,050 1,975
1,460 2,747
Hospitals Day centre Regional hospital General hospital
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) 1,750 2,500 3,750
Warehouses Warehouse/factory unit – basic Large warehouse distribution centre High-tech factory/laboratory
Canada
Ireland – costs of materials
expenditure are likely to satisfy the requirements of the IMF/ECB/ESFS bail-out conditions.
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
Schools Primary and secondary University
570 960
570 960
525 875
500 875
695 1,217
4,300
3,900
3,600
3,500
4,868
Airports Airport terminal
Germany India Ireland Japan Malaysia Russia Singapore South Africa South Korea UAE UK
Carparks Multistorey – above ground Multistorey – below ground
China
Ireland – major projects
EUR
US
INTEL 200m+ Rapid Schools – Bundle 2 (Lots 1–4 Primary/Post Primary Schools) 100m+ National Paediatric Hospital at Mater Hospital 400m+ Pfizer 100–200m Google Data Centre 50–100m
Vietnam Contributors
10
Turner & Townsend
making the difference
International construction cost survey 2012
Japan
Japan – hourly cost of labour (including overheads)
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
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
Introduction Country profiles Australia
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 m of internal area 2
2011 Yen
2011 USD
Residential Detached house – medium standard Detached house – prestige Townhouse – medium standard Apartments – private medium density Apartments – high rise Aged care/affordable units
Canada
Japan – costs of materials
201,500 235,800 186,700 189,300 284,000 164,800
2,506 2,933 2,322 2,355 3,533 2,050
230,500 266,500 303,800
2,867 3,315 3,779
154,500 207,900 455,000
1,922 2,586 5,660
304,000 368,400 485,000
3,781 4,582 6,033
349,000 523,400 289,500
4,341 6,510 3,601
164,000 164,000 247,800
2,040 2,040 3,082
202,400 186,300
2,518 2,317
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
China Germany India Ireland
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
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 Malaysia Russia Singapore South Africa South Korea UAE
Schools Primary and secondary University
UK Japan – major projects
Carparks
Multistorey – above ground Multistorey – below ground
Tokyo Sky Tree Japan Post Tower Loop Road (Kanjo) No. 2 Redevelopment in Shinjuku 8-Chome Tokyo Waterfront Redevelopment in Aomi R-District
205,300 444,800
2,554 5,533
370,000
4,602
Airports Airport terminal
Yen
US
65bn 88bn NA NA NA
Vietnam Contributors
11
Turner & Townsend
making the difference
International construction cost survey 2012
Malaysia
Malaysia – hourly cost of labour (including overheads)
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
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
Introduction Country profiles Australia
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 m of internal area 2
2008 MYR
2009 MYR
2010 MYR
2011 MYR
2011 USD
Residential Detached house – medium standard Detached house – prestige Townhouse – medium standard Apartments – private medium density Apartments – high rise Aged care/affordable units
1,436 1,897 974 1,169 1,538 1,250
1,400 1,850 950 1,140 1,500 1,220
Canada
Malaysia – costs of materials
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
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
China Germany India Ireland
Commercial Offices – business park CBD offices up to 20 floors – medium CBD offices – prestige
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
1,228 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
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
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
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
805 3,021
800 3,000
850 3,200
900 3,400
295 1,113
1,008 1,511
1,000 1,500
1,150 1,600
1,200 1,700
393 556
4,600
4,500
4,700
5,000
1,637
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
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
Japan Malaysia Russia Singapore South Africa South Korea UAE
Schools Primary and secondary University Carparks Multistorey – above ground Multistorey – below ground Airports Airport terminal
UK
Malaysia – major projects 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)
MYR
US
40bn 5bn 853bn
Vietnam
10bn 26bn
Contributors
12
Turner & Townsend
making the difference
International construction cost survey 2012
Russia
Russia – hourly cost of labour (including overheads)
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
2010 RUB
2011 RUB
310 310 310 248 496
500 500 500 400 600
Group 1 tradesman – eg plumber, electrician Group 2 tradesman – eg carpenter, bricklayer Group 3 tradesman – eg carpet layer, tiler, plasterer General labourer Site foreman
2011 USD 17 17 17 14 20
Introduction Country profiles Australia
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 m of internal area 2
2008 RUB
2009 RUB
2010 RUB
2011 RUB
2011 USD
Residential Detached house – medium standard Detached house – prestige Townhouse – medium standard Apartments – private medium density Apartments – high rise Aged care/affordable units
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
Canada
Russia – costs of materials
1,091 1,943 1,193 1,534 1,943 1,466
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
China Germany India Ireland
Commercial Offices – business park CBD offices up to 20 floors – medium CBD offices – prestige
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
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
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
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
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
45,000 50,000
48,000 54,000
49,000 57,000
50,000 63,000
1,705 2,148
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
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
Japan Malaysia Russia Singapore South Africa South Korea UAE
Schools Primary and secondary University Carparks Multistorey – above ground Multistorey – below ground
21,300 17,000
22,355 18,000
23,250 26,350
23,000 31,000
784 1,057
90,000
96,000
100,000
105,000
3,580
Airports Airport terminal
UK
Russia – major projects Russian Sustainable Tourism in North Caucasus Mountains South Stream Gas Pipeline 2014 Winter Olympics Infrastructure 2018 FIFA World Cup Infrastructure Kaliningrad Nuclear Power Plant
USD 30bn 15.5bn 11bn NA 9bn
US Vietnam Contributors
13
Turner & Townsend
making the difference
International construction cost survey 2012
Singapore
Singapore – hourly cost of labour (including overheads)
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
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
Introduction Country profiles Australia
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 building material prices (steel and concrete) have fluctuated. Singapore – international building costs per m2 of internal area
2008 SGD
2009 SGD
2010 SGD
2011 SGD
2011 USD
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
Residential Detached house – medium standard Detached house – prestige Townhouse – medium standard Apartments – private medium density Apartments – high rise Aged care/affordable units
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)
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
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
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
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
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
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
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)
Commercial Offices – business park CBD offices up to 20 floors – medium CBD offices – prestige
Canada
Singapore – costs of materials
projects, which is broadly in line with general inflation. Wage increases are moderate, but some
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
1,500 2,500
1,500 2,500
1,500 2,500
1,500 2,700
India Ireland Japan Malaysia Russia Singapore South Africa South Korea UAE
1,200 2,000
900 1,600
1,200 1,600
1,200 1,700
Singapore – major projects
1,192 2,145
953 1,351
Mass Rapid Transit Extensions Marina Bay Marina South
Carparks Multistorey – above ground Multistorey – below ground
Germany
UK
Schools Primary and secondary University
China
USD
US
6.7bn 2bn 500m
Vietnam
Airports Airport terminal
14
Turner & Townsend
–
–
–
–
–
Contributors
making the difference
International construction cost survey 2012
South Africa
South Africa – hourly cost of labour (including overheads)
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
2010 ZAR
2011 ZAR
50 45 35 15 200
52 48 40 18 200
Group 1 tradesman – eg plumber, electrician Group 2 tradesman – eg carpenter, bricklayer Group 3 tradesman – eg carpet layer, tiler, plasterer General labourer Site foreman
2011 USD 7 7 6 3 28
Introduction Country profiles Australia
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 m of internal area 2
2008 ZAR
2009 ZAR
2010 ZAR
2011 ZAR
2011 USD
Residential Detached house – medium standard Detached house – prestige Townhouse – medium standard Apartments – private medium density Apartments – high rise Aged care/affordable units
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
Canada
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 –
China Germany India Ireland
Commercial Offices – business park CBD offices up to 20 floors – medium CBD offices – prestige
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
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
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
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
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
4,500 5,000
5,000 6,000
5,000 6,000
7,000 9,000
986 1,267
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
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
Japan Malaysia Russia Singapore South Africa South Korea UAE
Schools Primary and secondary University
UK South Africa – major projects
Carparks
Multistorey – above ground Multistorey – below ground
Medupi Power Station Kusile Power Station RMI Integrated Titanium and Zirconium Beneficiation Complex Xstrata Tweefontein Optimisation Project Xstrata Atcom East Pascoulama
3,200 3,500
3,500 4,000
4,000 4,800
3,800 4,500
535 634
20,000
20,900
20,900
20,900
2,943
Airports Airport terminal
15
Turner & Townsend
ZAR
US
125bn 141bn 15bn 8bn 3.8bn 5bn
Vietnam Contributors
making the difference
International construction cost survey 2012
South Korea
South Korea – hourly cost of labour (including overheads)
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
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
Introduction Country profiles Australia
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 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
2009 KRW
2010 KRW
2011 KRW
2011 USD
Residential Detached house – medium standard Detached house – prestige Townhouse – medium standard Apartments – private medium density Apartments – high rise Aged care/affordable units
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
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)
1,116,555 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
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
1,725,585 954,450 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
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
1,116,555 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
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
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)
Commercial Offices – business park CBD offices up to 20 floors – medium CBD offices – prestige
Canada
South Korea – costs of materials
than in 2011. The engineering, fabrication and shipbuilding sectors have healthy order books with
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
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
Carparks Multistorey – above ground Multistorey – below ground
558,277 812,040
552,750 804,000
550,000 800,000
550,000 800,000
497 722
2,500,000
2,600,000
2,550,000
2,550,000
2,302
Airports Airport terminal
16
Turner & Townsend
Germany India Ireland Japan Malaysia Russia Singapore South Africa South Korea UAE UK
Schools Primary and secondary University
China
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
US Vietnam Contributors
making the difference
International construction cost survey 2012
UAE
UAE – hourly cost of labour (including overheads)
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
2010 AED
2011 AED
2011 USD
30 30 28 15 75
30 30 28 15 75
8 8 8 4 20
Group 1 tradesman – eg plumber, electrician Group 2 tradesman – eg carpenter, bricklayer Group 3 tradesman – eg carpet layer, tiler, plasterer General labourer Site foreman
Introduction Country profiles Australia
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 m of internal area 2
2008 AED
2009 AED
2010 AED
2011 AED
2011 USD
Residential Detached house – medium standard Detached house – prestige Townhouse – medium standard Apartments – private medium density Apartments – high rise Aged care/affordable units
7,500 9,500 7,500 7,000 9,000 5,720
Canada
UAE – costs of materials
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
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 – –
China Germany India Ireland
Commercial Offices – business park CBD offices up to 20 floors – medium CBD offices – prestige
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
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
8,000 8,500 –
7,500 8,000 –
7,000 7,500 –
6,500 7,000 –
1,770 1,906 –
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
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
7,000 7,800
6,500 7,300
6,000 6,800
5,750 6,500
1,565 1,770
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
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
Japan Malaysia Russia Singapore South Africa South Korea UAE
Schools Primary and secondary University
UK UAE – major projects
Carparks
Multistorey – above ground Multistorey – below ground
Etihad Rail Louvre Abu Dhabi Khalifa Port and Industrial Zone (KPIZ) Presidential Palace Yas Mall
3,500 4,500
3,500 4,500
3,500 4,500
3,500 4,250
953 1,157
Airports Airport terminal
–
–
–
–
–
AED
US
40bn 2m 26.5bn 6m 2m
Vietnam Contributors
17
Turner & Townsend
making the difference
International construction cost survey 2012
UK
UK – hourly cost of labour (including overheads)
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
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
Introduction Country profiles Australia
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 m of internal area 2
2008 GBP
2009 GBP
2010 GBP
2011 GBP
2011 USD
Residential Detached house – medium standard Detached house – prestige Townhouse – medium standard Apartments – private medium density Apartments – high rise Aged care/affordable units
Canada
UK – costs of materials
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
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
691 867 1,365
800 900 1,500
800 900 1,500
830 933 1,556
1,331 1,496 2,495
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
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
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
1,553 2,240
1,590 2,200
1,350 2,180
1,400 2,261
2,245 3,625
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
China Germany India Ireland
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
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
Japan Malaysia Russia Singapore South Africa South Korea UAE
Schools Primary and secondary University
UK UK – major projects
Carparks
Multistorey – above ground Multistorey – below ground
Crossrail High Speed Railway 2 London 2012 Olympics London Tideway Improvements Forth Replacement Crossing
437 870
450 850
450 850
467 881
749 1,413
3,150
3,050
3,050
3,163
5,072
Airports Airport terminal
GBP
US
14.5bn 32.7bn 2bn 4bn 1bn
Vietnam Contributors
18
Turner & Townsend
making the difference
International construction cost survey 2012
US
US – hourly cost of labour (including overheads)
The 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
Group 1 tradesman – eg plumber, electrician Group 2 tradesman – eg carpenter, bricklayer Group 3 tradesman – eg carpet layer, tiler, plasterer General labourer Site foreman
2012. Residential is unlikely to recover in 2012 with the market still somewhat oversupplied,
US – international building costs per m2 of internal area
2008 USD
2009 USD
2010 USD
2011 USD
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
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
1,600 2,215 2,610
1,905 2,150 2,505
1,850 2,085 2,440
1,885 2,140 2,520
750 915 1,520
850 990 1,615
840 1,100 1,700
860 1,140 1,785
1,580 860 1,425
1,600 900 1,390
1,500 840 1,325
1,560 910 1,380
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
1,485 2,680 2,420
1,580 2,720 2,630
1,525 2,550 2,250
1,575 2,600 2,300
1,645 3,100 3,000
1,765 3,210 3,110
2,045 3,290 3,260
2,055 3,340 3,300
Hospitals Day centre Regional hospital General hospital
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)
1,450 2,160
1,510 2,240
1,495 2,150
1,570 2,200
700 1,325
730 1,395
690 1,295
700 1,315
3,650
3,525
3,425
3,550
Airports Airport terminal
75 65 57 53 77
135 992 1,030 350 1,150 58 7 3 8 7 4
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
Introduction Country profiles Australia Canada China Germany India Ireland
US – key trades (excluding preliminaries and builders’ margins) 10 8 171 2,100 71 75 2,855 120 775 34 2,100 10 90 64 44 83 32 30 172
Japan Malaysia Russia Singapore South Africa South Korea UAE
NB: Construction costs vary widely across the US:
US – cost variations National average % 100
Carparks Multistorey – above ground Multistorey – below ground
73 64 54 51 75
138 595 950 400 1,030 58 9 3 7 6 3
Schools Primary and secondary University
2011 USD
US – costs of materials
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.
2010 USD
US – major projects California High-Speed Rail Bay Bridge East Span Replacement Fab 42 The Ohio River Bridges Interstate 69 Extension SIU #3
USD 99bn 6.3bn 5bn 4.1bn 1.8bn
Charlotte, NC 83 Houston, TX 92 Seattle, WA 111 Chicago, IL 115 Los Angeles, CA 115 San Francisco, CA 125 New York Metro 132
UK US Vietnam
Source: ENR
Contributors
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Turner & Townsend
making the difference
International construction cost survey 2012
Vietnam
Vietnam – hourly cost of labour (including overheads)
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
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
Introduction Country profiles Australia
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.
Vietnam – international building costs per m2 of internal area
2008 VND
2009 VND
2010 VND
2011 2011 VND USD
Residential Detached house – medium standard 7,638,000 Detached house – prestige 9,165,600 Townhouse – medium standard 7,638,000 Apartments – private medium density 9,547,500 Apartments – high rise 11,457,000 Aged care/affordable units 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
9,547,500 10,502,250 11,457,000 12,966,720 11,457,000 13,366,500 14,321,250 16,208,400 14,321,250 15,276,000 16,230,750 18,135,936
636 795 889
5,728,500 6,683,250 7,638,000 8,561,280 5,728,500 6,683,250 7,638,000 8,677,760 11,457,000 12,411,750 13,366,500 15,142,400
420 425 742
Large shopping centre including mall 10,502,250 11,457,000 12,411,750 14,047,280 Neighbourhood including supermarket 7,638,000 8,592,750 9,547,500 10,805,600 Prestige car showroom 8,592,750 9,547,500 10,502,250 11,886,160
689 530 583
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)
Commercial Offices – business park CBD offices up to 20 floors – medium CBD offices – prestige
Retail
Hotels Three-star travellers Five-star luxury Resort style
19,091,000 21,000,100 22,908,240 25,983,360 1,274 26,726,280 28,635,300 30,544,064 34,277,152 1,680 23,366,500 25,272,032 27,181,036 29,328,000 1,438
Hospitals Day centre Regional hospital General hospital
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)
Warehouses Warehouse/factory unit – basic Large warehouse distribution centre High-tech factory/laboratory
Canada
Vietnam – costs of materials
Construction costs are increasing strongly off a low base, and this is likely to continue in 2012.
9,547,500 9,547,500 11,457,000 13,798,720 676 21,000,100 22,908,240 23,862,550 26,556,192 1,302 21,000,100 22,908,240 23,862,550 26,556,192 1,302
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
Schools Primary and secondary University
530 636
9,163,204 10,502,250 11,457,000 7,280,000 10,502,250 11,454,004 12,411,750 15,127,840
357 742
Airports Airport terminal
Germany India Ireland Japan Malaysia Russia Singapore South Africa South Korea UAE UK
7,254,203 8,592,750 9,547,500 10,816,000 9,547,500 10,502,250 11,457,000 12,979,200
Carparks Multistorey – above ground Multistorey – below ground
China
34,362,002 38,180,003 41,998,003 45,377,280 2,225
Vietnam – major projects 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 Nang–Quang Ngai Expressway
USD
US
163m 1.1bn 1.2bn 350m 1.5bn
Vietnam Contributors
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International construction cost survey 2012
Contributors
Introduction
This survey has been compiled by Gary Emmett, Economist
Country profiles
Turner & Townsend Level 3, 179 Turbot Street
Australia
Brisbane, Queensland 4000 t: +61 (0) 7 3020 4759 e:
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Canada
Australia
Russia
Dave Todd
Paul Grace
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t: +7 495 223 86 50
Canada
Singapore
Gerard McCabe
Soh May Yeng
e:
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t: +65 6846 3790
China
South Africa
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Ian Donaldson
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t: +27 (0) 11 214 1400
Germany
South Korea
Simon Lawler
Yoonseong Cho
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India
UAE
Robert Hewitt
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Ireland
UK
Mark Kelly
Nick Townsend
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t: +44 (0) 20 7544 4000
Japan
US
Ben Chaston
Craig Blinston
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t: +1 415 489 1600
Malaysia
Vietnam
David Hancox
David Lockwood
e:
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e:
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t: +60 3 2171 1100
t: +84 (8) 62 99 82 83
China Germany India Ireland Japan Malaysia Russia Singapore South Africa South Korea UAE 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.
UK US
Comparative values are based on average exchange rates for the calendar year 2011.
Vietnam
© Turner & Townsend plc 2012
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