TT ICC 2012 Report Single Pages ZKJM PDF

International
construction
cost survey
2012
making the difference
Contents
Introduction
Country profiles
Australia
Canada
10
China
12
Germany
14
India
16
Ireland
18
Japan
20
Malaysia
22
Russia
24
Singapore
26
South Africa
28
South Korea
30
UAE
32
UK
34
US
36
Vietnam
38
Contributors
40
In this survey, trade, labour and material prices and prices per square metre are indicative, and should
not be relied on. Costs are dependent on building design, inclusions, exclusions and site conditions. Cost
comparisons between countries are subject to different interpretations, building methods, and standards
for costing, measurement and construction. Costs may vary substantially between countries within regions.
Professional advice should always be sought.
Comparative values are based on average exchange rates for the calendar year 2011.
Turner & Townsend plc 2012
International construction cost survey 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
Whats 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 8.5percent
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
Construction costs in most

regions are expected to stay
tothem for their invaluable input.
moderate during 2012.
We welcome your feedback on ways we
Barring natural disasters and
can improve it in future. If you have any

comments on this survey or would like
any further information, please contact:
other surprises, 2012 offers
gary.emmett@turntown.com
a window of opportunity to
For further information on our services,
build your project on time
please visit www.turnerandtownsend.com

or contact your nearest office.
Turner & Townsend
andperhaps under budget.
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

and African economies are on long-term
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

willeventually 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.
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 meticulously
In 2012 the US construction data should start
engineered costs, certified to US Green Building Gold standard.
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
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.

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 in2012.
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
andperhaps under budget.
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
work. It is a good time to build. Construction
non-residential building construction is hardly
costs are generally benign as shown by our
increasing in most developed economies,
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
the casuals employed when work is plentiful
will turn, and when it does costs will increase
have left to pursue other opportunities.
again as building, resources and infrastructure

projects compete for resources and skills.
In many countries the construction sector

isnow very competitive and tendered prices
often come in below budget. The surveys
Alstom Hydro, China
show that construction costs in half of the
Multiform energy-saving technologies are helping to make this
countries surveyed are still below 2008
146,000 m2 hydropower manufacturing facility fully carbon neutral.
levels. Most of our respondents indicated

thatlabourrates were well under control.
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
Cost index CBD offices
2008
2009
2010
2011
Australia
100
96
94
96
Canada
100
95
94
100
China
100
78
80
81
Germany
100
101
101
104
Germany
100
India
100
100
117
150
India
100
Ireland
100
92
85
83
Ireland
100
78
72
71
Malaysia
100
98
111
130
Malaysia
100
97
101
117
Russia
100
105
98
100
Singapore
100
74
79
79
South Africa
100
107
107
South Korea
100
99
99
UAE
100
94
UK
100
98
US
100
Vietnam
100
Cost Index
2008=100
2008
2009
2010
2011
Australia
100
96
96
97
Canada
100
96
95
98
China
100
82
84
89
101
101
104
105
112
140
Russia
100
105
99
100
Singapore
100
83
83
83
107
South Africa
100
121
121
121
99
South Korea
100
99
99
99
89
72
UAE
100
96
92
83
98
101
UK
100
91
91
94
99
97
101
US
100
97
94
97
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.
Key economic indicators

Inflation
2011
GDP
2011
GDP forecast
2012
Unemployment
rate
Australia
2.6
2.1
3.3
5.2
Canada
2.5
2.1
1.9
7.6
China
4.0
9.5
9.0
4.0
2.5
2.7
1.3
6.0
10.6
7.8
7.5
9.5
Germany
India
Ireland
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
UAE
2.5
3.3
3.8
4.3
UK
4.5
1.1
1.6
7.8
3.9
1.5
1.8
9.1
22.0
5.8
6.3
5.0
Japan
US
Vietnam
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
Hot Overheating
Germany
India
South Africa
Is the construction market getting warmer,

cooler or staying the same?
Cooler

Canada
China
Vietnam

Turner & Townsend
Staying the same
Warmer
Australia
Ireland
Japan
Malaysia
Singapore
South Africa
South Korea
UAE
UK
US
Germany
India
Russia
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
verycompetitive prices just to keep work flowing. Often sub-contractor prices may be equally
competitive allowing head contractors to claw backsome 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
iscurrently in the final stages of debate prior to passing into legislation.
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
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
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
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
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
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
2011
AUD
2011
USD
65
55
53
37
69
68
57
55
38
72
70
59
57
40
75
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 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)
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
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
Residential
Aged care/affordable units
Commercial
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
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
795
1,060
758
1,010
750
1,000
800
1,100
810
1,114
5,724
5,454
5,400
5,700
5,774
Warehouses
Retail
Hotels
Five-star luxury
Resort style
Hospitals
Day centre
Regional hospital
General hospital
Schools
University
Carparks
Airports
Airport terminal
10
Turner & Townsend
Canada hourly cost of labour (including overheads)

2010
CAD

General labourer
Site foreman
2011
CAD
2011
USD
60
55
50
45
75
60
55
50
45
75
61
56
51
46
76
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 costs of materials

Glass pane 6mm (m2)
Canada key trades (excluding preliminaries and builders margins)

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

Halton Region Hospital
Humber River Regional Hospital
Air Rail Link
Union Station Revitalisation
Toronto-York Spadina Subway Extension
CAD
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
2009
CNY
2010
CNY
2011
CNY
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
2011
USD
Residential
699
806
632
512
620
417
Commercial
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
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
Warehouses
Retail
Hotels
Five-star luxury
Resort style
Hospitals
Day centre
Regional hospital
General hospital
Schools
University
Carparks
Airports
Airport terminal
12
Turner & Townsend
China hourly cost of labour (including overheads)

2010
CNY

General labourer
Site foreman
2011
CNY
2011
USD
19
18
17
11
31
22
21
19
13
36
3
3
3
2
6
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 costs of materials

Glass pane 6mm (m2)
China key trades (excluding preliminaries and builders margins)

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

National Trunk Road Network
SouthNorth Water Transfer
Silk Road Renaissance
Tianjin Binhai New Area
Chinas Renewable Energy Development Plan
CNY
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
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
Commercial
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
1,170
1,370
1,180
1,385
1,184
1,390
1,218
1,430
1,694
1,988
524
597
526
599
533
607
548
624
762
868
1,080
1,090
1,094
1,125
1,565
Warehouses
Retail
Hotels
Five-star luxury
Resort style
Hospitals
Day centre
Regional hospital
General hospital
Schools
University
Carparks
Airports
Airport terminal
14
Turner & Townsend
Germany hourly cost of labour (including overheads)

2010
EUR

General labourer
Site foreman
2011
EUR
2011
USD
39
36
35
24
40
35
36
36
33
40
49
50
50
46
56
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 costs of materials

Glass pane 6mm (m2)
Germany key trades (excluding preliminaries and builders margins)

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

Trans Europa Naturgas Pipeline (TENP) Upgrade
Frankfurt Chlor-Alkali Plant Expansion
Stuttgart 21
USD
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 ofthe highest
escalation rates globally.
India international building costs per m2 of internal area

2008
INR
2009
INR
2010
INR
2011
INR
2011
USD
Residential
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
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
Commercial
Warehouses
Retail
Hotels
Five-star luxury
Resort style
Hospitals
Day centre
Regional hospital
General hospital
Schools
University
Carparks
Airports
Airport terminal
16
Turner & Townsend
India hourly cost of labour (including overheads)

2010
INR

General labourer
Site foreman
2011
INR
2011
USD
45
45
40
18
80
56
50
38
20
80
1.2
1.1
0.8
0.4
1.7
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 costs of materials

Glass pane 6mm (m2)
India key trades (excluding preliminaries and builders margins)

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

Delhi Mumbai Industrial Corridor (DMIC)
Information Technology Investment Region (ITIR Bangalore)
Jawaharlal Nehru National Solar Mission (JNNSM)
National Highways Development Programme
Lavasa Hill City
USD
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
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
Commercial
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
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
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
570
960
570
960
525
875
500
875
695
1,217
4,300
3,900
3,600
3,500
4,868
Warehouses
Retail
Hotels
Five-star luxury
Resort style
Hospitals
Day centre
Regional hospital
General hospital
Schools
University
Carparks
Airports
Airport terminal
18
Turner & Townsend
Ireland hourly cost of labour (including overheads)

2010
EUR

General labourer
Site foreman
2011
EUR
2011
USD
29
29
29
24
29
29
29
29
24
29
40
40
40
33
40
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 costs of materials

Glass pane 6mm (m2)
Ireland key trades (excluding preliminaries and builders margins)

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
togrow by 2.6percent 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
2011
USD
Residential

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
205,300
444,800
2,554
5,533
370,000
4,602
Commercial
Warehouses
Retail
Hotels
Five-star luxury
Resort style
Hospitals
Day centre
Regional hospital
General hospital
Schools
University
Carparks
Airports
Airport terminal
20
Turner & Townsend
Japan hourly cost of labour (including overheads)

2011
Yen
2011
USD

General labourer
Site foreman
2,400
2,210
2,140
1,700
2,440
30
27
27
21
30
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 costs of materials

Glass pane 6mm (m2)
Japan key trades (excluding preliminaries and builders margins)

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

Tokyo Sky Tree
Japan Post Tower
Loop Road (Kanjo) No. 2
Redevelopment in Shinjuku 8-Chome
Tokyo Waterfront Redevelopment in Aomi R-District
Yen
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
2009
MYR
2010
MYR
2011
MYR
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
2011
USD
Residential
589
753
393
458
655
491
Commercial
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
Retail
Hotels
Five-star luxury
Resort style
Hospitals
Day centre
Regional hospital
General hospital
Schools
University
Carparks
Airports
Airport terminal
22
Turner & Townsend
Malaysia hourly cost of labour (including overheads)

2010
MYR

General labourer
Site foreman
2011
MYR
2011
USD
19
15
19
10
50
20
15
20
10
55
7
5
7
3
18
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 costs of materials

Glass pane 6mm (m2)
Malaysia key trades (excluding preliminaries and builders margins)

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

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
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
2009
RUB
2010
RUB
2011
RUB
2011
USD
Residential
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
Commercial
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
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
Warehouses
Retail
Hotels
Five-star luxury
Resort style
Hospitals
Day centre
Regional hospital
General hospital
Schools
University
Carparks
Airports
Airport terminal
24
Turner & Townsend
Russia hourly cost of labour (including overheads)

2010
RUB
2011
RUB
310
310
310
248
496
500
500
500
400
600
17
17
17
14
20
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

General labourer
Site foreman
2011
USD
Russia costs of materials

Glass pane 6mm (m2)
Russia key trades (excluding preliminaries and builders margins)

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

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
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
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
Commercial
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
1,500
2,500
1,500
2,500
1,500
2,500
1,500
2,700
1,192
2,145
1,200
2,000
900
1,600
1,200
1,600
1,200
1,700
953
1,351
Warehouses
Retail
Hotels
Five-star luxury
Resort style
Hospitals
Day centre
Regional hospital
General hospital
Schools
University
Carparks
Airports
Airport terminal
26
Turner & Townsend
Singapore hourly cost of labour (including overheads)

2010
SGD

General labourer
Site foreman
2011
SGD
2011
USD
25
20
20
12
30
25
20
21
15
30
20
16
17
12
24
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 costs of materials

Glass pane 6mm (m2)
Singapore key trades (excluding preliminaries and builders margins)

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

Mass Rapid Transit Extensions
Marina Bay
Marina South
USD
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
2009
ZAR
2010
ZAR
2011
ZAR
2011
USD
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
Residential
Commercial
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
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
Warehouses
Retail
Hotels
Five-star luxury
Resort style
Hospitals
Day centre
Regional hospital
General hospital
Schools
University
Carparks
Airports
Airport terminal
28
Turner & Townsend
South Africa hourly cost of labour (including overheads)

2010
ZAR
2011
ZAR
50
45
35
15
200
52
48
40
18
200

General labourer
Site foreman
2011
USD
7
7
6
3
28
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 costs of materials

Glass pane 6mm (m2)
940
7,727
1,450
1,500
15,000
400
70
46
40
30

South Africa key trades (excluding preliminaries and builders margins)

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

Medupi Power Station
Kusile Power Station
RMI Integrated Titanium and Zirconium Beneficiation Complex
Xstrata Tweefontein Optimisation Project
Xstrata Atcom East
Pascoulama
ZAR
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
2009
KRW
2010
KRW
2011
KRW
2011
USD
Residential
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
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
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
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
Commercial
Warehouses
Retail
Hotels
Five-star luxury
Resort style
Hospitals
Day centre
Regional hospital
General hospital
Schools
University
Carparks
Airports
Airport terminal
30
Turner & Townsend
South Korea hourly cost of labour (including overheads)

2010
KRW

General labourer
Site foreman
95,858
96,113
96,677
68,965
92,218
2011
KRW
2011
USD
105,524
105,698
104,620
74,008
100,879
95
95
94
67
91
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 costs of materials

Glass pane 6mm (m2)
64,380
771,000
750,000
50,000
910,000
9,410
917
3,059
2,100
5,188
285
South Korea key trades (excluding preliminaries and builders margins)

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
2009
AED
2010
AED
2011
AED
2011
USD
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
Residential
Commercial
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
3,500
4,500
3,500
4,500
3,500
4,500
3,500
4,250
953
1,157
Warehouses
Retail
Hotels
Five-star luxury
Resort style
Hospitals
Day centre
Regional hospital
General hospital
Schools
University
Carparks
Airports
Airport terminal
32
Turner & Townsend
UAE hourly cost of labour (including overheads)

2010
AED
2011
AED
2011
USD
30
30
28
15
75
30
30
28
15
75
8
8
8
4
20
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

General labourer
Site foreman
UAE costs of materials

Glass pane 6mm (m2)
UAE key trades (excluding preliminaries and builders margins)

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

Etihad Rail
Louvre Abu Dhabi
Khalifa Port and Industrial Zone (KPIZ)
Presidential Palace
Yas Mall
AED
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
2009
GBP
2010
GBP
2011
GBP
2011
USD
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
437
870
450
850
450
850
467
881
749
1,413
3,150
3,050
3,050
3,163
5,072
Residential
Commercial
Warehouses
Retail
Hotels
Five-star luxury
Resort style
Hospitals
Day centre
Regional hospital
General hospital
Schools
University
Carparks
Airports
Airport terminal
34
Turner & Townsend
UK hourly cost of labour (including overheads)

2010
GBP

General labourer
Site foreman
2011
GBP
2011
USD
30
30
30
18
45
30
30
30
18
46
48
48
48
29
74
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 costs of materials
Glass pane 6mm (m2)
UK key trades (excluding preliminaries and builders margins)

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

Crossrail
High Speed Railway 2
London 2012 Olympics
London Tideway Improvements
Forth Replacement Crossing
GBP
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
ofgrowth. Multi-unit residential, education, health and energy projects should lead the way.
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
Commercial
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
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
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
Warehouses
Retail
Hotels
Five-star luxury
Resort style
Hospitals
Day centre
Regional hospital
General hospital
Schools
University
Carparks
Airports
Airport terminal
36
Turner & Townsend
US hourly cost of labour (including overheads)

General labourer
Site foreman
2010
USD
2011
USD
73
64
54
51
75
75
65
57
53
77
US costs of materials
Glass pane 6mm (m2)
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)

8
7
168
1,905
56
70
2,775
123
719
32
2,048
12
84
59
39
80
29
28
162
NB: Construction costs vary widely across the US:
10
8
171
2,100
71
75
2,855
120
775
34
2,100
10
90
64
44
83
32
30
172
US cost variations
National average % 100
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
Source: ENR
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
2009
VND
2010
VND
2011 2011
VND USD
Residential
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
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

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
8,592,750
9,547,500 10,502,250 11,886,160
689
530
583
Commercial
Warehouses
Retail
Hotels
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
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
Schools
University
7,254,203
8,592,750
9,547,500 10,816,000
9,547,500 10,502,250 11,457,000 12,979,200
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
Carparks
Airports
Airport terminal
38
Turner & Townsend
34,362,002 38,180,003 41,998,003 45,377,280 2,225
Vietnam hourly cost of labour (including overheads)

2010
VND

General labourer
Site foreman
2011
VND
2011
USD
180,000
155,000
125,000
100,000
90,000
216,000
186,000
150,000
120,000
200,000
11
9
7
6
10
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 costs of materials

Glass pane 6mm (m2)
Vietnam key trades (excluding preliminaries and builders margins)

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

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

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International

making the difference

making the difference

International construction cost survey 2012

London Bridge Quarter, the Shard

Whats 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

All the cost data presented here has come

Construction costs in most

tothem for their invaluable input.

moderate during 2012.

We welcome your feedback on ways we

Barring natural disasters and

can improve it in future. If you have any

other surprises, 2012 offers

For further information on our services,

build your project on time

please visit www.turnerandtownsend.com

Turner & Townsend

andperhaps under budget.

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

However, worldwide there are many reasons to

in economic weakness in 2012.

be optimistic. The Chinese, Indian, Vietnamese

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

The demand for energy and resources is driving

and construction sectors on a downwards spiral.

the growth of many new projects in natural

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

But with time businesses restructure, reduce

power stations with cleaner alternatives.

their cost base, recapitalise and prepare for