International Construction Cost Survey 2013

A brighter
outlook
International construction
cost survey 2013
Foreword
Overview
Australia
Brazil
Canada
China
Germany
Hong Kong
India
Ireland
Japan
Malaysia
Netherlands
Oman
Poland
Qatar
Russia
Singapore
South Africa
South Korea
UAE
Uganda
UK
US
Vietnam
12
14
16
18
20
22
24
26
28
30
32
34
36
38
40
42
44
46
48
50
52
54
56
Purchasing power parity
58
After an unprecedented period of global economic

instability, things are beginning to slowly improve.
Many markets remain fragile but its clear that sentiment
is improving. With recovery comes opportunity, and some
key markets around the world are showing sustainable
signs of growth.
Given this context, our international construction cost
survey 2013 makes for interesting reading. Data gathered
by our people around the world reflects major projects
and programmes in every sector. Our team of construction
economists provides expert analysis and ensure the data
is as robust as possible, given the ever-shifting nature
of such information.
This report contains data from 23 countries, with Brazil,
Poland and Uganda appearing for the first time. Clients
planning major programmes of work will find this a useful
decision-making tool that helps them compare future
construction costs between countries and regions.
To allow true country-to-country comparisons to be made,
we have introduced purchasing power parity methodology
this year to calculate construction costs. Developed by
Turner & Townsend with Bond University in Australia,
our construction purchasing power parity index takes
out the impact of exchange rate volatility. This is a new
approach for construction, and one we believe will become
significant (more about this on page 58).
Contact us if you require any more information about this
survey or if you need data and advice that can help inform
decision-making for your project or programme.
Vincent Clancy
Chief Executive Officer
With recovery
comes opportunity
The economic tide has turned and there is reason to be
optimistic. Construction markets around the world are
showing the first signs of recovery and shelved projects
are being dusted off. The results of our 2013 survey
of international construction costs reveal where the
potential opportunities might be for early movers.
The global outlook for construction

is the most positive we have seen
since the financial crisis began in
2008. Of the 23 markets included
in this survey, 13 expect to see more
projects starting in the year ahead
than they did in the previous
12 months.
Figure 1. More projects in the next 12 months

for over half the markets surveyed
Asia, parts of Europe, the Middle East

and the US are all warming up (see
Figure 1). Investment in housing and
infrastructure is building momentum
for stagnant economies and projects
which had been on hold since the
financial crisis began. These are
now going out for tender.
The start of a global recovery
is a great time to build. First-mover
advantages include stabilised
construction costs, reduced schedule
risk and the delivery of projects as
demand is increasing. In many regions
tender prices are becoming more
competitive and there are plenty
of firms keen to bid.
Of course, some developers will prefer
to watch and wait before making
their move. In the first fragile stages
of recovery, world events can erode
market confidence overnight, and
there are likely to be headwinds
still to come.
Stable costs are the trend, but
there are exceptions. In emerging
economies including China, India,
Malaysia, Russia and South Africa,
construction costs are expected to
rise steadily. And in certain hotspots
Brazil and Qatar, both future World
Cup hosts costs are also forecast
to increase strongly.
Cooler
Fewer projects
than last 12 months
China
India
Netherlands
Poland
South Africa
South Korea
Staying the same

Similar number of
projects to the last
12 months
Australia
Hong Kong
Ireland
Vietnam
Warmer
More projects starting
than last 12 months
Brazil
Canada
Germany
Japan
Malaysia
Oman
Qatar
Russia
Singapore
UAE
Uganda
UK
US
We asked our people around the world whether they expected more, fewer or the
same number of projects to start in the next 12 months compared to the previous
12 months. Of the 23 markets surveyed, 13 expect more projects to start, with four
predicting no change and six expecting fewer projects.
International construction cost survey 2013
A business park in Japan

would cost 24 percent
more to build than one
in the UK.
We can see some of these trends

emerging through our cost index
benchmarking of high-rise apartments
and offices in central business districts
(see Figures 2 and 3). So, for example,
while costs for offices in the UK have
risen just four percent between 2010
and 2013, comparable costs in India
have risen 25 percent.
Over the following pages, we present
the findings of our 2013 international
construction cost survey. The data
comes from current construction
programmes, and reflects prices at
the middle of 2013. All costs exclude
VAT and applicable sales taxes.
Purchasing power parity:
a new way to compare markets
For those who want to drill down
further into our data, we have
included output costs (cost per
square metre) and input costs (labour,
materials and plant) for each type
of building and geographical market
on pages 12 to 57. The costs are
shown in the local currency, in US
dollars and as a purchasing power
parity value.
The methodology allows a true
comparison between countries,
removing the impact of varying
currency exchange rates. The higher
the purchasing power parity adjusted
cost, the higher the relative costs
of building in one country over
another. Though purchasing power
parity indexes are used in some
branches of economics, this method
has rarely been used to compare
construction costs.
Turner & Townsend
For example, we can see that an office

building in a business park in Japan
would cost 24 percent more to build
than one in the UK; 3,339 purchasing
power parity units per m2 for Japan
compared to 2,690 units for the UK.
Purchasing power parity indicates
the cost relative to the cost of living,
so we can see that concrete in China
at 129 is almost half that of India
at 283.
Turner & Townsend worked with Bond
Universitys Centre for Comparative
Construction Research in Queensland,
Australia, to create this constructionspecific index, which we will be
employing and developing over the
coming years. You can read more
about purchasing power parity on
page 58.
Purchasing
power parity
methodology allows
a true comparison
between countries
+25%
the cost increase

of building offices
in India
Figure 2. Changes to the cost of central business

district offices since 2010
Mid-year
Figure 3. Changes to the cost of high-rise

apartments since 2010
2010
2011
2012
2013
2010
2011
2012
Australia
100
102
103
105
Mid-year
Australia
100
102
101
2013
101
Brazil
100
104
109
114
Brazil
100
104
108
112
Canada
100
102
104
106
Canada
100
102
103
104
China
100
107
113
120
China
100
107
112
118
Germany
100
102
104
106
Germany
100
102
104
106
Hong Kong
100
104
109
115
Hong Kong
100
104
109
115
India
100
108
117
125
India
100
108
117
125
Ireland
100
102
102
104
Ireland
100
101
100
101
Japan
100
100
100
101
Japan
100
100
100
101
Malaysia
100
104
109
113
Malaysia
100
105
109
113
Netherlands
100
102
104
106
Netherlands
100
102
103
105
Oman
100
101
103
105
Oman
100
101
103
105
Poland
100
102
104
106
Poland
100
101
103
105
Qatar
100
102
106
111
Qatar
100
100
103
108
Russia
100
104
110
116
Russia
100
104
109
115
Singapore
100
104
108
112
Singapore
100
103
105
109
South Africa
100
106
114
124
South Africa
100
105
112
120
South Korea
100
102
104
106
South Korea
100
102
104
106
UAE
100
100
102
105
UAE
100
100
102
104
Uganda
100
105
110
116
Uganda
100
104
108
114
UK
100
102
102
104
UK
100
102
101
103
US
100
100
103
107
US
100
100
102
106
Vietnam
100
110
119
128
Vietnam
100
108
116
124
Looking at cost changes for prime property in the residential

and commercial sectors helps us to identify trends and make
predictions for the future. The two charts show construction
costs indexed to 2010 = 100 for high-rise apartments and
central business district offices, for each region of the
survey based on cost per square metre.
We can see that for most countries, there has been a gradual
rise in costs for both types of building. There are exceptions:
costs have remained more-or-less stable in Australia, Ireland,
Japan and the UK; whereas in China, India, South Africa and
Vietnam, costs have risen more steeply.
+12%
US house price
growth over the
last 12 months
US recovery still fragile
In the past 12 months, the US
economy has begun to pick up,
with the impact felt around the
world. Quantitative easing and
low interest rates adopted by the
USs central bank, the Fed, have
contributed to this fledgling recovery.
However, there is uncertainty
surrounding the Feds ability to taper
this policy, which could lead to further
problems when it is reduced and,
ultimately, stopped.
Suggestions from the Fed in May
this year that it might cut back on
its bond-buying programme over
the coming months had an immediate
and negative effect on global stock
markets. Investors ditched risky
assets in favour of certainty.
Confidence returned after further
assurances from the Fed, but
continued pressures remain.
Standard & Poors (S&P) 500, which
tracks publicly traded US companies,
has recently reached all-time highs
and global funds are moving back
into US dollars as the currency
starts to stabilise. Other markets have
followed the US, only pausing in May
2013 as the northern economies took
summer holidays.
Unemployment in the US is edging
downwards, and housing construction
is increasing again. The Case-Shiller
20-City-Index, which measures the
value of residential real estate in
20 metropolitan areas of the US,
shows a house price growth of 12
percent over the past 12 months.
Turner & Townsend
The USs newest industry and source

of energy, shale gas, is also injecting
further growth into the economy.
Projects to construct the pipelines and
associated infrastructure are ramping
up, with the prospect of US energy
self-sufficiency promising a big boost
to the economy.
Falling unemployment and recovering
house prices will encourage US
consumers to spend more, providing
a much-needed boost to international
trade and construction. Still, the US
recovery remains fragile, operating
within the confines of a quantitative
easing headwind and continued
government impasses.
Policy changes in Europe?
In contrast to the tactics of the
USs central bank, European
countries have chosen the path
of austerity. However, recent policy
announcements indicate a change
of approach. Expect investment in
infrastructure, which should help
relieve the chronic underemployment
holding several major European
countries back.
Though some European countries,
such as Greece, Portugal and
Spain, continue to suffer from
underemployment, many parts
of Europe are showing signs
of recovery. Here, forecasts
of GDP growth over the next
year are improving prospects
for construction.
$1.3tn
of Middle East
construction projects
are in the planning
or tendering stages
The Middle East is also increasing
its construction activity, reawakening
many of the ambitious projects
that have been dormant or partially
completed since the global financial
crisis. Some USD1.3tn worth of
construction projects are in the
planning or tendering stages across
the region.
Projects such as high-speed rail,
manufacturing plants, heavy
industrial plants, football stadiums,
and housing and cultural precincts
are moving to construction or already
underway. Traditionally, strong
markets such as Dubai are gradually
coming back to full strength and
new construction leaders such
as Qatar are emerging, with big
project portfolios.
There are other engines of global
growth. Japan is making substantial
efforts to stimulate its economy after
decades of stagnation by pumping
in money, causing the yen to fall
dramatically. The worlds third biggest
economy is becoming competitive
again, construction is picking up and
trade skills shortages are becoming
a problem.
Unemployment
in the US is edging
downwards, and
housing construction
is increasing again
All change in China

For the past five years, Chinas growth
has kept the global economy growing
at above three percent, through its
demand for commodities. Its appetite
for iron ore, copper, coal and oil during
that period drove up commodity
prices and spurred a wave of mining
investment. Chinas manufacture
and export of cheap goods has also
kept global inflation down to below
two percent.
This changed in late 2012, following
concerns about the sustainability
of Chinese growth as their new
political leadership established itself.
Turner & Townsend
Indications show that China has

now entered a new lower-growth
trajectory, although with growth
forecast at seven to eight percent,
it will continue to be an important
driver of global growth.
Changes in China are felt elsewhere
in the world. Lower commodity prices
have caused the sudden cancellation
of numerous natural resource projects
worldwide, leading to concern in the
economies of Australia and Latin
America, where mining plays
a major role.
China has now entered

a new lower-growth
trajectory, although with
growth forecast at seven
to eight percent, it will
continue to be an important
driver of global growth.
Competitive tenders
Though construction markets
around the world are warming
up, tender prices will not be following
suit immediately. In two-thirds
of the markets surveyed, there
is strong competition on tenders,
with others reporting moderate
competition.
In general, construction costs are
only increasing slowly, often in line
with a countrys general inflation.
In many regions, costs have barely
moved for five years. Flat prices go
all along the value chain: engineers,
architects and construction
consultants costs are competitive,
and skilled labour is fairly easy
to obtain in most markets.
Margins
Contractors margins in developed
economies have been hard hit by
the global financial crisis. Fierce
tender competition has forced
many contractors to tender with
very low margins, hoping to pick
up additional margin during the
construction by completing ahead
of schedule, through better
efficiency, or negotiating
advantageous deals with
their suppliers.
It is interesting to note that

countries in parts of Africa,
Asia, the Middle East and Russia
have indicated higher contractors
margins. A more vibrant construction
market allows margins to increase
through reduced tender competition.
Barriers to entry in some markets
may also limit the number of tenders
and help keep margins higher
(see Figure 5).
Preliminaries
Ranging from eight percent
to 15 percent, the spread in the
range of preliminaries costs such
as supervision, project set-up,
scaffolding, and temporary facilities
indicates different requirements
between countries. Higher-cost
countries may have higher
inclusions, due to elements such
as specifications for scaffolding
(based on local safety standards)
and insurance costs (see Figure 6).
Countries or regions where space
restrictions are common, with
awkward building sites, would
typically have higher preliminaries.
For example, the preliminaries for
a building in New York City might
be expected to be higher than
for the rest of the US.
Figure 4. Strong competition is keeping tenders competitive in the majority of markets

Intense competition, not
much work, prices low:
Ireland
Netherlands
South Korea
Strong competition,
moderate tender prices:
Australia
Canada
China
Germany
Malaysia
Oman
Singapore
South Africa
UAE
Uganda
UK
US
Vietnam
Moderate competition,
moderate tender prices:
Brazil
Hong Kong
India
Japan
Poland
Russia
Qatar
We asked our experts how they would describe tender conditions in their local
markets. 16 of the 23 described competition on bids as strong
or intense, limiting the prices of bids.
Turner & Townsend
Figure 5. Wide range of contractors margins tells story of the markets

Canada
Ireland
South Korea
Australia
US
UK
Vietnam
Netherlands
Germany
Hong Kong
Poland
China
Japan
Singapore
UAE
Oman
Malaysia
Brazil
Russia
South Africa
Uganda
Qatar
India
10
Percentage
This chart shows what percentage of a buildings cost a

contractor would typically make as profit on an office building
with a gross floor area of 5,000m2. Generally, where work
volumes are lower, margins are squeezed as contractors
lower their tender prices in order to win work.
14
12
16
18
20
At the lower end of the range, contractors in Canada, Ireland,

South Korea, Australia, US and UK all currently make less than
five percent margin. Whereas in South Africa, Uganda, Qatar
and India, margins are relatively high: above ten percent.
Figure 6. Difference in preliminaries, depending on projects location

20
19
18
17
16
15
14
13
Percentage
12
11
10
9
8
7
6
5
4
3
2
1
This chart shows what proportion of a buildings cost goes on

preliminaries for an office with a gross floor area of 5,000m2.
Preliminaries include costs such as scaffolding, approvals,
insurances, power and water, cleaning and handover,
and work supervision.
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Typically, higher-cost countries have higher preliminaries.

Regulatory compliance, such as safety and environmental
requirements, adds further preliminary costs.
A stable outlook for costs

Materials prices are competitive,
and are expected to increase only
slowly for several years. In 201112,
high prices for commodities fed into
cost hikes for construction products
such as steel, copper cables and
copper pipes. In late 2012, however,
those commodity prices started
to fall. Rises in manufacturing wages
and energy will cause only a gradual
price rise over the next few years.
The cost of manufacturing plants
and equipment is also relatively
stable. European manufacturers
who were hit hard after the global
financial crisis are likely to have
spare plant and labour capacity
for several years.
Construction wages and salaries

in advanced economies have changed
little since the financial crisis and are
expected to remain relatively stable.
In contrast, those in China, India,
South Africa and Vietnam will continue
to increase strongly, but from a low
base (Figure 7 shows relative labour
costs between markets).
Looking ahead, we forecast modest
rises in construction costs over the
coming 12 months in many markets.
Australia, Ireland, the Netherlands,
Poland, Oman and the UAE should
all experience just two percent cost
escalation between mid-2013 and mid2014, removing that element of risk
from projects. At the other end of the
scale, Brazil, Hong Kong, India, Qatar
and South Africa could all experience
cost escalation of six percent or more,
with South Africa predicting the
highest escalation, at ten percent
(see Figure 8).
+2%
cost escalation
over the coming
12 months in
many markets
10
Turner & Townsend
Figure 7. The cost of labour
China
Brazil
Poland
Qatar
Australia
Germany
Japan
Singapore
Ireland
India
South
Africa
Oman
UAE
UK
US
Hong
Kong
Uganda
Netherlands
Malaysia
Vietnam
South
Korea
Canada
Russia
From this chart, we can see how hourly labour costs compare
in different markets around the world. As might be expected,
construction operatives in the US where parts of the country
are still heavily unionised, enjoy the highest hourly rates in the
world, with size relating to cost (small circles = lower cost).
Figure 8. How much will costs rise over the next 12 months?
South Africa
India
Brazil
Hong Kong
Japan
China
Vietnam
Russia
Uganda
Qatar
Germany
UK
Canada
Singapore
Malaysia
South Korea
Ireland
Netherlands
US
Australia
UAE
Oman
Poland
0
We asked our experts to predict how much construction costs

would rise between mid-2013 and mid-2014. As can be seen from
the chart, we expect a great variation in cost escalation, with
costs in some markets remaining almost flat, while others are
rising quickly.
5
Percentage
10
Developers in Ireland, Netherlands, US, Australia, UAE, Oman

and Poland will be taking on little risk of cost escalation, with
only two percent predicted. Whereas in countries such as South
Africa, India, Brazil and Hong Kong, rising construction costs
must be an important consideration.
11
Australia
Residential recovery and falling exchange rate to drive growth
The Australian economy continued to grow during
the period following the global financial crisis, through
a massive investment in mining and energy projects.
Now that this investment is tailing off, where will the
next growth driver come from?
Meanwhile, domestic non-resources construction

has been hit by low demand, weak confidence and
a shortage of projects. This has kept margins low
and tendering very competitive.
Housing recovery is set to be the next growth sector.

Low interest rates and improving values are starting
to have the desired effect. Fortunately, the high Australian
dollar, which plagued the export sector, is now devaluing,
offering better opportunities for tourism, attracting
overseas students and services exports.
International building costs
per m2 of internal area, in 2013
AUD
USD
Purchasing
power parity
(exchange rate:
1.10)
Airports
Domestic terminal full service
Low-cost carrier basic service
4,900
3,880
4,455
3,527
4,900
3,880
Carparks
Multistorey above ground
Multistorey below ground
820
1,220
745
1,109
820
1,220
Commercial
Offices business park
CBD offices up to 20 floors medium (A-grade)
CBD offices high-rise prestige
1,860
2,940
3,260
1,691
2,673
2,964
1,860
2,940
3,260
Education
Primary and secondary schools
University
1,940
3,140
1,764
2,855
1,940
3,140
Hospitals
Day centre (including basic surgeries)
Regional hospital
General hospital (eg city teaching hospital)
2,960
3,400
5,340
2,691
3,091
4,855
2,960
3,400
5,340
Hotels
3 star travellers
5 star luxury
Resort style
2,350
3,900
3,600
2,136
3,545
3,273
2,350
3,900
3,600
Warehouse/factory units basic

Large warehouse distribution centre
High-tech factory/laboratory
770
950
1,560
700
864
1,418
770
950
1,560
Residential
Individual detached house medium standard
Individual detached house prestige
Townhouses medium standard
Apartments private medium density
Apartments high rise
Aged care/affordable units
1,650
2,160
1,700
1,960
2,440
2,350
1,500
1,964
1,545
1,782
2,218
2,136
1,650
2,160
1,700
1,960
2,440
2,350
Retail
Large shopping centre including mall
Neighbourhood incl supermarket
Prestige car showroom
2,240
1,900
2,500
2,036
1,727
2,273
2,240
1,900
2,500
Industrial
12
Turner & Townsend
Australia international building costs

per m2 of internal area
AUD
USD
Purchasing
power parity
22
36
261
2,076
122
134
2,400
200
620
35
773
14
110
52
60
82
61
46
250
20
33
237
1,887
111
121
2,182
182
564
32
702
13
100
47
55
74
55
42
227
22
36
261
2,076
122
134
2,400
200
620
35
773
14
110
52
60
82
61
46
250
66
59
52
38
75
60
54
47
35
68
66
59
52
38
75
Material
Concrete 30 MPa (m3) (1,500m3 job)
Reinforcement bar 16mm (tonne) (120 tonne job)
Concrete block (400x200) per 1,000 (>10,000 block job)
Standard brick per 1,000
Structural steel beams (tonne) (100 tonne + job)
Glass pane 10mm tempered (m2)
Softwood timber for framing 100mm x 50mm (m)
13 mm plasterboard (m2)
Emulsion paint (litre)
Copper pipe 15 mm (m) (1,000m+ job)
Copper cable (m) (3C + E, 2.5mm PVC) (100,000m+ job)
225
1,125
3,394
568
1,550
240
4
8
12
12
4
205
1,023
3,085
516
1,409
218
3
7
11
11
4
225
1,125
3,394
568
1,550
240
4
8
12
12
4
Plant
Hire 50t mobile crane + operator (day)
2,100
1,909
2,100
Composite
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 (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)
Labour
Group 1 tradesman eg plumber/electrician
Group 2 tradesman eg carpenter/bricklayer
Group 3 tradesman eg carpet layer, tiler, plasterer
General labourer
Site foreman
Market:
Tendering:
(exchange rate:
1.10)
staying the same
Adelaide
95
lukewarm
Brisbane
98
Cost escalation:
2%
Melbourne
98
Contractors margin:
4%
Perth
96
Preliminaries:
12%
Sydney
100
13
Brazil
Public spending will maintain growth well beyond the World Cup and Olympics
Brazils continued growth and ambitious construction
plans for the 2014 World Cup and 2016 Olympics will
add pressure to construction costs, especially in the
venue cities. Skills and equipment shortages are likely
in these areas. However, Brazil is a large country with
a large population, and the additional construction
demand should be within its capabilities.
While non-residential construction spending growth

is likely to slow down after the build-up to the World Cup
and Olympics, spending on residential construction and
countrywide infrastructure is expected to accelerate
beyond 2016 to 2022.
Over the next five years, construction spending in the

country is expected to increase at a seven percent
compound annual growth rate. This growth is due
to mammoth public housing and infrastructure projects
across the country, in addition to the major works being
undertaken in preparation for the World Cup and the
Rio Olympics.
Real
USD
Purchasing
power parity
(exchange rate:
2.28)
Airports
5,500
4,500
2,412
1,974
3,125
2,557
Carparks
1,650
2,150
724
943
937
1,222
Commercial
3,300
2,570
4,060
1,447
1,127
1,781
1,875
1,460
2,307
Education
University
1,980
2,640
868
1,158
1,125
1,500
Hospitals
Regional hospital
2,640
3,300
3,960
1,158
1,447
1,737
1,500
1,875
2,250
Hotels
3 star travellers
5 star luxury
Resort style
2,610
3,470
3,140
1,145
1,522
1,377
1,483
1,972
1,784
Industrial
1,520
1,960
4,060
667
860
1,781
864
1,114
2,307
Residential
1,500
2,000
2,200
2,480
3,330
2,810
658
877
965
1,088
1,461
1,232
852
1,136
1,250
1,409
1,892
1,597
Retail
2,900
2,610
3,960
1,272
1,145
1,737
1,648
1,483
2,250
14
Turner & Townsend
Brazil international building costs

Real
USD
Purchasing
power parity
25
30
320
4,800
55
40
6,000
800
2,500
50
4,200
60
80
60
60
150
15
40
200
11
13
140
2,105
24
18
2,632
351
1,096
22
1,842
26
35
26
26
66
7
18
88
14
17
182
2,727
31
23
3,409
455
1,420
28
2,386
34
45
34
34
85
9
23
114
60
50
45
30
80
26
22
20
13
35
34
28
26
17
45
Material
250
4,000
1,500
945
5,000
880
8
20
10
5
3
110
1,754
658
414
2,193
386
4
9
4
2
1
142
2,273
852
537
2,841
500
5
11
6
3
2
Plant
3,200
1,404
1,818
Composite
Labour
General labourer
Site foreman
Market:
Tendering:
getting warmer
warm
(exchange rate:
2.28)
Belo Horizonte
87
Brasilia
94
Cost escalation:
7%
Prto Alegre
Contractors margin:
9%
Rio de Janeiro
101
So Paulo
100
Preliminaries:
11%
81
15
Canada
All sectors picking up, with tenders still competitive
The Canadian economy has been one of the strongest
global performers among advanced economies in
recent years. Unemployment is down to 7.2 percent and
a strong resources sector is helping to boost exports and
engineering construction. However, growth of 1.7 percent
in the second quarter of 2013 disappointed policymakers,
who were hoping for 2.5 percent.
Construction in most sectors tailed off in late 2012. But by
mid-2013 all sectors, including housing, commercial and
industrial, were picking up again, along with construction
employment, which is now showing moderate growth.
The overvalued Canadian dollar has eased down

five percent against the US dollar in 2013. This will
shore up Canadas competitive position and
export earnings.
Construction cost increases will be moderate,
with tendering competitive and only small wage
increases. The relatively weak domestic private
sector should improve over 2013 and 2014.
CAD
USD
Purchasing
power parity
(exchange rate:
1.03)
Airports
5,750
4,020
5,583
3,903
5,301
3,706
Carparks
810
1,110
786
1,078
747
1,023
Commercial
1,710
2,020
2,920
1,660
1,961
2,835
1,577
1,862
2,692
Education
University
1,820
3,530
1,767
3,427
1,678
3,254
Hospitals
Regional hospital
3,730
5,750
6,860
3,621
5,583
6,660
3,439
5,301
6,325
Hotels
3 star travellers
5 star luxury
Resort style
1,410
2,820
2,820
1,369
2,738
2,738
1,300
2,600
2,600
Industrial
910
1,010
1,410
883
981
1,369
839
931
1,300
Residential
2,870
3,890
1,430
1,920
1,720
2,020
2,786
3,777
1,388
1,864
1,670
1,961
2,646
3,586
1,318
1,770
1,586
1,862
Retail
2,400
2,200
2,600
2,330
2,136
2,524
2,213
2,028
2,397
16
Turner & Townsend
Canada international building costs

CAD
USD
Purchasing
power parity
15
20
192
1,919
121
105
3,283
125
934
45
1,100
10
86
66
56
51
66
35
165
15
20
186
1,863
117
102
3,187
121
907
44
1,068
10
83
64
54
49
64
34
160
14
19
177
1,769
112
97
3,026
115
861
41
1,014
9
79
61
51
47
61
33
152
62
56
51
46
76
60
54
50
44
74
57
52
47
42
70
Material
167
1,400
1,400
909
2,200
280
5
10
10
10
7
162
1,359
1,359
883
2,136
272
5
10
10
10
7
154
1,291
1,291
838
2,028
258
5
9
9
9
7
Plant
1,800
1,748
1,660
Composite
Labour
General labourer
Site foreman
Market:
Tendering:
getting warmer
lukewarm
(exchange rate:
1.03)
Calgary
113
Edmonton
111
Cost escalation:
3%
Halifax
95
Contractors margin:
2%
Montreal
95
Preliminaries:
8%
Ottawa
103
Toronto
100
Vancouver
95
17
China
Construction market cools as growth rate slows
Chinese growth has now settled at a more moderate
level of seven to eight percent, following several years
of very strong growth. The Chinese economy is still
investment led, despite efforts to stimulate domestic
consumption and grow the Chinese middle class.
Once again, housing and apartment construction
is in danger of overheating, although various government
efforts to slow this sector may prove successful for
a while. Efforts are being made to encourage more
foreign investment, such as healthcare provision.
Construction in the commercial and retail sectors

is buoyant, but industrial spending appears to be
slowing, especially in the more developed southern
and eastern cities.
Though the Chinese market is cooler, tender prices
are still expected to increase, albeit at a lower rate than
in previous years. Labour costs, while still a relatively
low portion of total construction costs, are still growing
and are likely to have more of an impact on tender prices
in the future.
USD
Purchasing
power parity
10,900
8,010
1,778
1,307
3,282
2,412
Carparks
2,140
4,780
349
780
644
1,439
Commercial
4,690
7,450
9,300
765
1,215
1,517
1,412
2,243
2,800
Education
University
3,640
5,390
594
879
1,096
1,623
Hospitals
Regional hospital
4,410
5,350
5,980
719
873
976
1,328
1,611
1,800
5,780
15,000
8,750
943
2,447
1,427
1,740
4,516
2,634
Industrial
2,580
3,050
5,870
421
498
958
777
918
1,767
Residential
4,540
5,240
4,110
3,330
4,600
2,710
741
855
670
543
750
442
1,367
1,578
1,237
1,003
1,385
816
Retail
6,180
4,220
3,650
1,008
688
595
1,861
1,271
1,099

Airports
Hotels
3 star travellers
5 star luxury
Resort style
18
Turner & Townsend
CNY
(exchange rate:
6.13)
China international building costs

CNY
USD
Purchasing
power parity
34
54
560
5,200
90
155
9,800
210
1,600
180
2,670
48
210
385
390
320
85
280
490
6
9
91
848
15
25
1,599
34
261
29
436
8
34
63
64
52
14
46
80
10
16
169
1,566
27
47
2,950
63
482
54
804
14
63
116
117
96
26
84
148
22
21
19
13
31
4
3
3
2
5
7
6
6
4
9
Material
430
4,500
3,200
450
8,600
530
62
38
65
53
18
70
734
522
73
1,403
86
10
6
11
9
3
129
1,355
964
135
2,589
160
19
11
20
16
5
Plant
2,100
343
632
Composite
Labour
General labourer
Site foreman
Market:
Tendering:
getting cooler
lukewarm
(exchange rate:
6.13)
Beijing
97
Chongqing
100
Cost escalation:
5%
Guangzhou
Contractors margin:
6%
Shanghai
100
Preliminaries:
8%
Shenzhen
105
92
19
Germany
Solid growth which looks set to continue
Germany achieved a region-leading growth rate of
0.9 percent in the second quarter of 2013 compared
to the same period in 2012. Business confidence is now
at its highest level in 16 months, indicating the improving
prospects of the region.
Some of the major infrastructure projects which added

to this growth rate, such as the Berlin airport and the
Frankfurt airport expansion, are, however, coming to
an end. The outlook for commercial and infrastructure
construction for the immediate future is slightly weaker.
Housebuilding is benefiting from low interest rates,

improving demand and a growing preference to hold
physical assets rather than shares. German industry
is doing well, with orders continuing to increase. This also
holds for the building, civil engineering and underground
construction sectors which have grown by nearly ten
percent over the last year.
As a consequence, construction cost escalation is mild.

But as the economies of Germanys European neighbours
improve over 201416, German construction activity
is set to increase further.

USD
Purchasing
power parity
2,800
1,650
3,684
2,171
4,188
2,468
600
760
789
1,000
897
1,137
Commercial
1,250
1,940
2,300
1,645
2,553
3,026
1,870
2,902
3,440
Education
University
1,540
1,930
2,026
2,539
2,303
2,887
Hospitals
Regional hospital
1,970
2,750
3,030
2,592
3,618
3,987
2,946
4,113
4,532
Hotels
3 star travellers
5 star luxury
Resort style
1,490
3,250
2,110
1,961
4,276
2,776
2,229
4,861
3,156
Industrial
620
750
1,750
816
987
2,303
927
1,122
2,617
Residential
1,000
1,390
1,050
950
1,370
1,100
1,316
1,829
1,382
1,250
1,803
1,447
1,496
2,079
1,570
1,421
2,049
1,645
Retail
2,050
1,750
2,240
2,697
2,303
2,947
3,066
2,617
3,350
Airports
Carparks
20
Turner & Townsend
EUR
(exchange rate:
0.76)
Germany international building costs

EUR
USD
Purchasing
power parity
14
26
132
1,342
41
68
3,617
101
614
49
865
7
53
29
24
56
30
79
90
18
34
174
1,766
55
89
4,759
133
808
64
1,138
9
69
38
32
74
39
104
118
21
39
197
2,007
62
102
5,410
151
918
73
1,294
10
79
43
37
84
45
118
135
45
38
38
28
41
59
50
50
37
54
67
57
57
42
61
Material
108
823
4,667
673
1,800
100
3
4
5
8
4
142
1,083
6,141
885
2,368
132
4
5
7
11
5
162
1,231
6,980
1,006
2,692
150
4
5
7
12
6
Plant
1,250
1,645
1,870
Composite
Labour
General labourer
Site foreman
Market:
Tendering:
getting warmer
lukewarm
Berlin
90
Frankfurt
95
Cost escalation:
3%
Munich
Contractors margin:
5%
Stuttgart
Preliminaries:
(exchange rate:
0.76)
100
96
15%
There was an average German escalation of two percent during 210213. Some costs/rates are significantly higher than previous
editions following an exercise to align specifications and inclusions with regional peers.
21
Hong Kong
Booming civil sector will push prices up in 2014
Hong Kongs construction industry is experiencing
strong growth, with several sectors booming again.
The civil construction sector is by far the largest growth
driver, with five large rail projects underway or scheduled
to commence soon. Besides these high-profile rail projects,
an Environmental Impact Statement for an USD11.1bn
third runway at the citys airport is now underway.
Due to these projects and incessant demand for
commercial and residential real estate in the densely
populated city, construction volumes are at a high level.
Construction materials costs are rising relatively slowly,

with the exception of key civil materials, such as concrete
and rebar. Labour costs, however, suffer from high cost
escalation due to increasing labour shortages and
an ageing workforce.
In the short term, construction cost escalation will
remain comparatively moderate. However, from the
second quarter of 2014 costs are forecast to increase
strongly again.
HKD
USD
Purchasing
power parity
(exchange rate:
7.75)
Airports
40,000
25,000
5,161
3,226
7,018
4,386
Carparks
10,000
18,000
1,290
2,323
1,754
3,158
Commercial
18,000
21,000
24,000
2,323
2,710
3,097
3,158
3,684
4,211
Education
University
18,000
24,000
2,323
3,097
3,158
4,211
Hospitals
Regional hospital
18,000
28,000
32,000
2,323
3,613
4,129
3,158
4,912
5,614
Hotels
3 star travellers
5 star luxury
Resort style
26,000
32,000
35,000
3,355
4,129
4,516
4,561
5,614
6,140
Industrial
13,500
15,000
25,000
1,742
1,935
3,226
2,368
2,632
4,386
Residential
28,000
35,000
22,000
20,000
22,000
14,000
3,613
4,516
2,839
2,581
2,839
1,806
4,912
6,140
3,860
3,509
3,860
2,456
Retail
28,000
22,000
28,000
3,613
2,839
3,613
4,912
3,860
4,912
22
Turner & Townsend
Hong Kong international building costs

HKD
Composite
Labour
General labourer
Site foreman
Material
Plant
Market:
Tendering:
Purchasing
power parity
120
130
1,260
10,900
300
350
37,500
1,200
5,040
450
6,000
120
650
300
480
850
210
520
2,600
15
17
163
1,406
39
45
4,839
155
650
58
774
15
84
39
62
110
27
67
335
21
23
221
1,912
53
61
6,579
211
884
79
1,053
21
114
53
84
149
37
91
456
110
140
120
78
160
14
18
15
10
21
19
25
21
14
28
650
6,015
3,500
1,950
12,000
1,880
65
80
55
28
14
84
776
452
252
1,548
243
8
10
7
4
2
114
1,055
614
342
2,105
330
11
14
10
5
2
6,000
774
1,053
staying the same

warm
Cost escalation:
6%
Contractors margin:
6%
Preliminaries:
USD
(exchange rate:
7.75)
15%
23
India
Slow now, but long-term prospects look good
At five percent year-on-year, growth in the Indian
economy in 201213 has been the slowest the country
has seen in the past decade.
Rising interest costs and fewer government and private
projects have affected the construction sector. Contractors
also complain about excessive bureaucracy causing slower
project approvals and increased financial risks.
Recently announced government programmes include

easing of foreign direct investment rules in the multi-brand
retail and aviation sectors and increased investment plans
for metro rail projects in 19 cities, motorways and roads.
Inflation and construction cost escalation remain quite
high. The weakened exchange rate will add to costs
of imported equipment, machinery, fuel and materials.
Despite the short-term weakness, the outlook for the

sector remains positive in the longer term. The upside
of the weakening exchange rate will be improved export
earnings, providing much-needed capital for investment.
INR
USD
Purchasing
power parity
(exchange rate:
58.00)
Airports
70,850
49,600
1,222
855
3,633
2,543
Carparks
27,360
43,320
472
747
1,403
2,221
Commercial
34,200
39,900
43,320
590
688
747
1,754
2,046
2,221
Education
University
20,520
43,320
354
747
1,052
2,221
Hospitals
Regional hospital
23,940
42,180
33,060
413
727
570
1,227
2,163
1,695
Hotels
3 star travellers
5 star luxury
Resort style
43,320
85,500
54,720
747
1,474
943
2,221
4,384
2,806
Industrial
29,420
37,190
44,400
507
641
766
1,508
1,907
2,277
Residential
34,200
42,750
28,500
22,800
51,300
20,520
590
737
491
393
884
354
1,754
2,192
1,461
1,169
2,630
1,052
Retail
43,320
29,640
19,950
747
511
344
2,221
1,520
1,023
24
Turner & Townsend
India international building costs

INR
USD
Purchasing
power parity
350
542
7,500
66,000
541
1,300
96,000
8,910
12,000
4,000
34,000
220
3,146
2,360
2,462
2,300
660
891
4,500
6
9
129
1,138
9
22
1,655
154
207
69
586
4
54
41
42
40
11
15
78
18
28
385
3,384
28
67
4,922
457
615
205
1,743
11
161
121
126
118
34
46
231
63
56
43
23
90
1
1
1
0
2
3
3
2
1
5
Material
5,525
44,800
36,750
6,647
56,000
1,250
283
350
275
550
130
95
772
634
115
966
22
5
6
5
9
2
283
2,297
1,884
341
2,871
64
15
18
14
28
7
Plant
16,020
276
821
Composite
Labour
General labourer
Site foreman
Market:
Tendering:
Cost escalation:
Contractors margin:
Preliminaries:
getting cooler
warm
(exchange rate:
58.00)
Bangalore
104
Chennai
96
7%
Kolkata
96
16%
Mumbai
100
9%
New Delhi
97
25
Ireland
Low demand and high competition are keeping prices down
The Irish construction sector has shrunk considerably
since 2006, with 34 percent fewer firms in 2013
compared to then. Skills and expertise have been lost,
with professionals and tradespeople moving to work
overseas. At the height of Irelands construction boom,
273,000 people were directly employed in the sector,
a figure that had shrunk to 99,600 in 2012.
GDP growth remains below one percent in 2013 as Ireland
faces weaker demand from Europe and the UK. Domestic
demand is hampered by continued austerity measures
aimed at correcting fiscal imbalance; its effects include
a lack of development finance, weak confidence and
low demand.
Some projects are coming through in the public sector,

thanks to the governments school-building programme,
its purchasing power parity stimulus package, and
spending on maintenance and energy-efficiency measures
for schools, roads and local authority housing. Despite this,
construction opportunities overall are down.
Tender prices are competitive and high levels of
unemployment in construction will keep construction
cost increases to a minimum for several years. Gradually,
as the European and US economies improve over 201415,
Ireland will benefit through improved demand and the
relaxation of austerity measures.
Data for Northern Ireland is included in UK figures
on pages 5253.
USD
Purchasing
power parity
3,540
2,470
4,658
3,250
6,850
4,779
510
880
671
1,158
987
1,703
Commercial
1,200
1,810
2,730
1,579
2,382
3,592
2,322
3,502
5,282
Education
University
1,100
2,030
1,447
2,671
2,128
3,928
Hospitals
Regional hospital
2,210
3,270
3,270
2,908
4,303
4,303
4,276
6,327
6,327
Hotels
3 Star travellers
5 Star luxury
Resort style
1,570
2,780
2,020
2,066
3,658
2,658
3,038
5,379
3,909
Industrial
High tech factory/laboratory
510
890
1,600
671
1,171
2,105
987
1,722
3,096
Residential
1,010
1,620
1,010
1,360
1,520
1,840
1,329
2,132
1,329
1,789
2,000
2,421
1,954
3,135
1,954
2,632
2,941
3,560
Retail
2,250
2,040
2,700
2,961
2,684
3,553
4,354
3,947
5,224

Airports
Carparks
26
Turner & Townsend
EUR
(exchange rate:
0.76)
Ireland international building costs

EUR
USD
Purchasing
power parity
9
19
140
950
29
23
1,850
85
433
52
742
6
57
33
26
45
29
75
120
12
24
184
1,249
38
30
2,434
112
569
68
976
8
75
43
34
59
39
99
158
18
36
271
1,837
56
44
3,579
164
837
100
1,435
12
110
64
50
87
57
145
232
29
29
29
22
29
38
38
38
29
38
56
56
56
43
56
Material
75
750
2,400
450
1,250
178
1
3
4
3
1
99
986
3,158
592
1,644
234
1
4
5
4
1
145
1,451
4,644
871
2,418
345
2
6
8
6
2
Plant
1,150
1,513
2,225
Composite
Labour
General labourer
Site foreman
Market:
Tendering:
staying the same

cold
Cost escalation:
2%
Contractors margin:
2%
Preliminaries:
(exchange rate:
0.76)
10%
27
Japan
Abenomics helps Japan to rise again
Are the years of stagnation for the Japanese economy
coming to an end? The signs look positive.
Business conditions are recovering, with the share
market rising 42 percent between January and the
end of September 2013. GDP growth is positive again
as Abenomics, the policies of Prime Minister Shinz Abe,
take effect. These include further monetary easing,
tax breaks and a weaker currency, which will stimulate
Japanese export growth.
The news in September 2013 that Tokyo will host the 2020
Olympics is also positive for the construction sector, with
investment in stadiums, housing and transport expected.
Reports of sporadic skills shortages in key construction
trades means that cost escalation is presently a little
higher than in other developed economies.
Property prices look set to rise. New housing starts

have increased by nearly 15 percent in the last year.
Rebuilding after the 2011 tsunami has also added
to construction activity.
JPY
USD
Purchasing
power parity
(exchange rate:
97.90)
Airports
370,000
302,100
3,779
3,086
5,359
4,376
Carparks
205,300
444,800
2,097
4,543
2,974
6,443
Commercial
230,500
266,500
303,800
2,354
2,722
3,103
3,339
3,860
4,401
Education
University
202,400
186,300
2,067
1,903
2,932
2,699
Hospitals
Regional hospital
164,000
164,000
247,800
1,675
1,675
2,531
2,376
2,376
3,589
Hotels
3 star travellers
5 star luxury
Resort style
349,000
523,400
289,500
3,565
5,346
2,957
5,055
7,581
4,193
Industrial
154,500
207,900
455,000
1,578
2,124
4,648
2,238
3,011
6,591
Residential
201,500
235,800
186,700
189,300
284,000
164,800
2,058
2,409
1,907
1,934
2,901
1,683
2,919
3,416
2,704
2,742
4,114
2,387
Retail
304,000
368,400
485,000
3,105
3,763
4,954
4,403
5,336
7,025
28
Turner & Townsend
Japan international building costs

JPY
USD
Purchasing
power parity
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
5
5
140
991
27
45
1,174
155
1,021
31
752
9
59
35
44
46
23
41
295
7
7
199
1,405
39
64
1,665
219
1,448
44
1,066
12
84
49
62
65
33
58
419
2,400
2,210
2,140
1,700
2,440
25
23
22
17
25
35
32
31
25
35
Material
11,900
66,000
110,000
97,500
80,000
1,730
1,210
230
270
661
181
122
674
1,124
996
817
18
12
2
3
7
2
172
956
1,593
1,412
1,159
25
18
3
4
10
3
Plant
150,000
1,532
2,173
Composite
Labour
General labourer
Site foreman
Market:
Tendering:
getting warmer
warm
Cost escalation:
5%
Contractors margin:
6%
Preliminaries:
(exchange rate:
97.90)
15%
29
Malaysia
Road, rail and major housing projects will drive costs up from low base
Malaysia is making fresh progress towards its goal of
achieving developed nation status by 2020. And a major
part of its strategy is an ambitious construction plan.
The Economic Transformation Programme (ETP) includes
USD52bn of new rail and road projects. Among these
projects are new light rail transit extensions, mass rapid
transit systems and a high-speed railway between Kuala
Lumpur and Singapore.
The government is also planning large public housing

schemes. Rolled out progressively between now and
2020, these developments will provide a boost to the
construction sector.
For now, Malaysia remains a low-cost country
for construction. Shortages of skilled labour are,
however, likely to increase costs in the future.
MYR
USD
Purchasing
power parity
(exchange rate:
3.23)
Airports
6,240
4,370
1,932
1,353
4,136
2,896
Carparks
1,500
2,120
464
656
994
1,405
Commercial
3,110
4,060
5,680
963
1,257
1,759
2,061
2,691
3,764
Education
University
1,870
4,600
579
1,424
1,239
3,049
Hospitals
Regional hospital
2,810
3,740
4,210
870
1,158
1,303
1,862
2,479
2,790
Hotels
3 star travellers
5 star luxury
Resort style
5,140
8,920
9,330
1,591
2,762
2,889
3,407
5,912
6,183
Industrial
1,890
2,430
4,060
585
752
1,257
1,253
1,610
2,691
Residential
2,340
2,990
1,560
1,820
2,600
1,950
724
926
483
563
805
604
1,551
1,982
1,034
1,206
1,723
1,292
Retail
4,600
3,920
5,000
1,424
1,214
1,548
3,049
2,598
3,314
30
Turner & Townsend
Malaysia international building costs

MYR
USD
Purchasing
power parity
35
50
347
3,950
52
70
6,798
226
418
94
836
8
115
103
94
157
82
105
314
11
15
108
1,223
16
22
2,105
70
129
29
259
3
36
32
29
49
25
32
97
23
33
230
2,618
35
46
4,505
149
277
62
554
5
76
68
62
104
54
69
208
21
15
21
10
56
6
5
6
3
17
14
10
14
7
37
Material
236
3,301
4,080
410
2,992
775
13
27
28
28
16
73
1,022
1,263
127
926
240
4
8
9
9
5
156
2,187
2,704
272
1,983
514
9
18
19
19
11
Plant
1,800
557
1,193
Composite
Labour
General labourer
Site foreman
Market:
Tendering:
getting warmer
lukewarm
(exchange rate:
3.23)
Georgetown
97
Ipoh
97
Cost escalation:
3%
Johor Bahru
Contractors margin:
8%
Kuala Lumpur
100
Kuching
112
Preliminaries:
10%
88
31
Netherlands
Projects thin on the ground beware of low bids
Despite being the fifth biggest economy in the
eurozone and its third largest exporter, GDP growth
in the Netherlands fell during 2013. New housing projects
are decreasing and business confidence remains firmly
in negative territory.
The forecast for 2014 economic growth was cut by another
quarter of a percentage point to 0.5 percent recently.
This reflects the 6bn in austerity measures needed
to bring Dutch public finances close to eurozone targets.
These measures, combined with weaker export demand,
mean unemployment has risen by nearly two percent since
July 2012, to 8.7 percent.
Purchasing power parity projects are currently

one of the more buoyant construction sectors.
But overall, infrastructure growth is down and
private sector construction is subdued.
Tenders are very competitive. Cost escalation
is low, but low-value submissions are adding
to commercial risk.
EUR
USD
Purchasing
power parity
(exchange rate:
0.76)
Airports
3,180
2,230
4,184
2,934
5,301
3,717
Carparks
550
1,070
724
1,408
917
1,784
Commercial
1,550
2,110
2,550
2,039
2,776
3,355
2,584
3,517
4,251
Education
University
1,600
1,870
2,105
2,461
2,667
3,117
Hospitals
Regional Hospital
General Hospital (eg city teaching hospital)
2,200
2,500
3,000
2,895
3,289
3,947
3,667
4,167
5,001
Hotels
3 star travellers
5 star luxury
Resort style
1,770
2,770
2,330
2,329
3,645
3,066
2,951
4,617
3,884
Industrial
890
860
1,150
1,171
1,132
1,513
1,484
1,434
1,917
Residential
1,150
1,450
1,150
1,330
1,890
1,600
1,513
1,908
1,513
1,750
2,487
2,105
1,917
2,417
1,917
2,217
3,151
2,667
Retail
2,310
1,870
2,590
3,039
2,461
3,408
3,851
3,117
4,317
32
Turner & Townsend
Netherlands international building costs

EUR
USD
Purchasing
power parity
13
25
195
1,158
35
47
2,527
105
632
79
1,120
17
75
46
35
68
26
37
86
17
33
257
1,524
46
62
3,324
138
831
104
1,474
22
99
61
46
89
34
48
114
22
42
325
1,930
58
79
4,212
175
1,053
132
1,867
28
125
77
58
113
43
61
144
42
34
30
23
39
56
45
40
30
52
71
57
50
38
65
Material
95
968
2,632
406
1,337
132
2
5
9
5
2
125
1,274
3,463
535
1,759
174
2
7
12
6
3
158
1,614
4,387
677
2,229
220
3
9
15
8
4
Plant
1,300
1,711
2,167
Composite
Labour
General labourer
Site foreman
Market:
Tendering:
getting cooler
(exchange rate:
0.76)
Amsterdam
103
cold
Rotterdam
98
Cost escalation:
2%
The Hague
100
Contractors margin:
5%
Preliminaries:
13%
33
Oman
Construction activity increasing, with major projects planned
The Sultanate of Oman was insulated for the most
part from the negative effects of the global financial
crisis, thanks to increased oil revenue. The government,
in its eighth five-year Development Plan (201115),
announced over OMR5.6bn of state spending on education,
healthcare, defence, transport infrastructure, and oil and
gas field development.
While private investment lags behind, groundwork is being
established for secure future investment, as Oman remains
one of the most politically and economically stable of the
GCC countries. Major projects include the Muscat
International Airport and Salalah Airport, projected to

complete in 2015, and the development of international
ports at Duqm, Muscat, Salalah and Sohar.
As the country continues to develop its infrastructure and
industry to move away from its historic reliance on oil and
gas production, a broad increase in construction activity
is expected over the immediate future.
USD
Purchasing
power parity
1,400
950
3,684
2,500
7,458
5,061
Carparks
360
440
947
1,158
1,918
2,344
Commercial
410
510
690
1,079
1,342
1,816
2,184
2,717
3,676
Education
University
590
670
1,553
1,763
3,143
3,569
Hospitals
Regional hospital
590
740
900
1,553
1,947
2,368
3,143
3,942
4,794
920
1,230
1,490
2,421
3,237
3,921
4,901
6,552
7,937
440
410
620
1,158
1,079
1,632
2,344
2,184
3,303
620
1,000
540
560
670
490
1,632
2,632
1,421
1,474
1,763
1,289
3,303
5,327
2,877
2,983
3,569
2,610
670
720
970
1,763
1,895
2,553
3,569
3,835
5,167
Airports
Hotels
3 star travellers
5 star luxury
Resort style
Industrial
Residential
Retail
34
Turner & Townsend
OMR
(exchange rate:
0.38)
Oman international building costs

OMR
USD
Purchasing
power parity
3
3
50
432
11
11
1,079
70
151
13
394
1
11
11
32
16
6
10
74
9
9
131
1,136
28
28
2,839
185
398
34
1,036
3
28
30
85
43
16
27
196
17
17
264
2,299
57
57
5,748
374
805
69
2,098
6
57
60
172
86
32
55
397
3
3
3
2
8
9
9
8
4
21
17
17
16
9
43
Material
27
311
375
268
589
69
2
2
6
1
0
70
817
986
704
1,550
180
4
4
16
3
1
143
1,654
1,996
1,426
3,137
365
8
8
32
7
2
Plant
627
1,650
3,340
Composite
Labour
General labourer
Site foreman
Market:
Tendering:
getting warmer
lukewarm
Cost escalation:
2%
Contractors margin:
8%
Preliminaries:
(exchange rate:
0.38)
10%
35
Poland
Costs stable in the short-term, but construction activity likely to increase from 2014
During 2013, the Polish construction market has slowed.
This follows several years of strong growth, in line with the
countrys GDP growth rates, which have been among the
highest in the EEC countries.
The market for apartments appears to be temporarily
oversupplied, and activity in the civil engineering sectors
of roads, water and energy is also slowing. Bankruptcies
among construction firms increased during 201213
as the market flattened out.

Unemployment in Poland has been rising since late

2008, and grew from 9.9 percent in January 2012 to
10.7 percent in March 2013. Inflation is well under control,
and construction costs are expected to grow very little
over the next 12 months, with a predicted cost escalation
of just two percent.
By 2014, the sector is likely to start picking up in line
with improving European growth. EU funding of 72.9bn
between 2014 and 2020 a third of which is aimed
at infrastructure and the environment is likely to give
the Polish construction market a further boost.
PLN
USD
Purchasing
power parity
(exchange rate:
3.17)
Airports
8,000
4,000
2,524
1,262
6,885
3,442
Carparks
1,700
2,200
536
694
1,463
1,893
Commercial
3,200
4,000
4,400
1,009
1,262
1,388
2,754
3,442
3,787
Education
University
2,300
3,500
726
1,104
1,979
3,012
Hospitals
Regional hospital
2,600
3,300
3,300
820
1,041
1,041
2,238
2,840
2,840
Hotels
3 star travellers
5 star luxury
Resort style
4,000
6,500
4,500
1,262
2,050
1,420
3,442
5,594
3,873
Industrial
1,500
1,800
2,500
473
568
789
1,291
1,549
2,151
Residential
2,100
2,900
2,400
2,500
2,800
2,700
662
915
757
789
883
852
1,807
2,496
2,065
2,151
2,410
2,324
Retail
2,100
2,400
3,400
662
757
1,073
1,807
2,065
2,926
36
Turner & Townsend
Poland international building costs

PLN
USD
Purchasing
power parity
24
90
540
3,500
90
107
8,500
460
1,075
54
2,500
15
115
90
90
210
65
65
520
8
28
170
1,104
28
34
2,681
145
339
17
789
5
36
28
28
66
21
21
164
21
77
465
3,012
77
92
7,315
396
925
46
2,151
13
99
77
77
181
56
56
448
33
31
31
22
45
10
10
10
7
14
29
27
27
19
39
Material
271
2,410
4,000
900
4,000
160
6
11
11
18
4
85
760
1,262
284
1,262
50
2
3
3
6
1
233
2,074
3,442
775
3,442
138
5
9
9
15
3
Plant
4,150
1,309
3,571
Composite
Labour
General labourer
Site foreman
Market:
Tendering:
getting cooler
warm
Cost escalation:
2%
Contractors margin:
6%
Preliminaries:
(exchange rate:
3.17)
14%
37
Qatar
Major projects on the horizon will lead price rises from late 2014
With a booming gas export industry and extensive
local development plans to meet the FIFA World Cup
commitment and the 2030 National Vision, Qatars
construction industry is poised to expand by an average
of 12 percent a year over the next ten years. By 2021,
the value of the construction industry should double
to USD15bn per annum in real terms.
The robust programme of development activities
comprises signature FIFA World Cup projects including
a new metro system, expressways, a road tunnel under
Doha Bay, 12 stadiums and over 200 hotels.
Qatars National Vision target of becoming an advanced

economy by 2030 includes ambitious construction
projects in transportation, such as a long-distance
freight and passenger railway, social infrastructure
and housing. Several new ports are also planned
to improve import capacity.
Expect cost escalation on local commodities such
as concrete, sand and aggregate in the shorter term,
with the cost of imported equipment from Japan and
Europe remaining competitive. Once major tenders have
been awarded, expect all costs to rise more significantly
from late 2014 onwards.
USD
Purchasing
power parity
14,500
11,000
3,984
3,022
7,261
5,509
Carparks
3,420
3,620
940
995
1,713
1,813
Commercial
4,050
6,450
7,050
1,113
1,772
1,937
2,028
3,230
3,531
Education
University
6,000
7,000
1,648
1,923
3,005
3,506
Hospitals
Regional hospital
9,500
11,500
13,110
2,610
3,159
3,602
4,757
5,759
6,565
Hotels
3 star travellers
5 star luxury
Resort style
7,830
12,450
13,200
2,151
3,420
3,626
3,921
6,235
6,610
3,460
4,010
4,480
951
1,102
1,231
1,733
2,008
2,244
4,200
11,540
6,200
5,220
5,930
5,500
1,154
3,170
1,703
1,434
1,629
1,511
2,103
5,779
3,105
2,614
2,970
2,754
7,000
8,000
9,500
1,923
2,198
2,610
3,506
4,006
4,757

Airports
Industrial
Residential
Retail
38
Turner & Townsend
QAR
(exchange rate:
3.64)
Qatar international building costs

QAR
USD
Purchasing
power parity
40
44
591
4,745
110
113
13,949
650
1,610
180
4,185
26
188
152
170
315
63
109
794
11
12
162
1,304
30
31
3,832
179
442
49
1,150
7
52
42
47
87
17
30
218
20
22
296
2,376
55
57
6,986
326
806
90
2,096
13
94
76
85
158
32
55
397
47
42
26
14
50
13
12
7
4
14
24
21
13
7
25
Material
288
3,335
4,025
2,875
6,325
736
18
12
75
14
3
79
916
1,106
790
1,738
202
5
3
21
4
1
144
1,670
2,016
1,440
3,167
369
9
6
38
7
2
Plant
6,300
1,731
3,155
Composite
Labour
General labourer
Site foreman
Market:
(exchange rate:
3.64)
getting warmer
Tendering:
warm
Cost escalation:
3.6%
Contractors margin:
15%
Preliminaries:
11%
39
Russia
Housing, commercial and infrastructure all on the up
The Russian construction market is experiencing strong
growth, in contrast to the weak overall economy. This is
due to an increase in residential construction, combined
with non-residential and infrastructure projects connected
to the 2014 Winter Olympics and the 2018 FIFA World Cup.
A record 66 million m2 of residential space was constructed
in 2012, a large percentage of which was affordable
housing encouraged by the governments 2030 housing
strategy. Rising house prices are expected to sustain this
high output trend.
More than 50 percent of construction activities,

however, are accounted for by the infrastructure sector.
This includes construction in the oil and gas sector and
development of transport infrastructure, including roads,
railways and airport expansions, in preparation for the
2018 FIFA World Cup. Construction of eight of the
12 stadiums planned is expected to start in 2014.
USD
Purchasing
power parity
138,600
95,700
4,200
2,900
6,860
4,736
Carparks
27,720
34,650
840
1,050
1,372
1,715
Commercial
49,500
52,800
66,000
1,500
1,600
2,000
2,450
2,613
3,267
Education
University
66,000
77,550
2,000
2,350
3,267
3,838
Hospitals
Regional hospital
57,750
77,480
85,800
1,750
2,348
2,600
2,858
3,835
4,246
Hotels
3 star travellers
5 star luxury
Resort style
58,740
90,420
77,550
1,780
2,740
2,350
2,907
4,475
3,838
Industrial
26,730
27,720
66,000
810
840
2,000
1,323
1,372
3,267
Residential
34,650
61,050
37,950
46,200
57,750
44,550
1,050
1,850
1,150
1,400
1,750
1,350
1,715
3,022
1,878
2,287
2,858
2,205
Retail
51,150
37,950
77,550
1,550
1,150
2,350
2,532
1,878
3,838
Airports
40
Turner & Townsend
RUB
(exchange rate:
33.00)
Russia international building costs

RUB
USD
Purchasing
power parity
510
660
7,194
56,100
1,006
1,495
92,400
6,996
28,050
2,475
28,050
330
1,980
1,645
1,650
1,980
528
957
4,950
15
20
218
1,700
30
45
2,800
212
850
75
850
10
60
50
50
60
16
29
150
25
33
356
2,777
50
74
4,573
346
1,388
122
1,388
16
98
81
82
98
26
47
245
564
564
564
511
830
17
17
17
15
25
28
28
28
25
41
Material
4,785
26,400
59,400
15,840
41,250
5,940
165
158
50
361
70
145
800
1,800
480
1,250
180
5
5
2
11
2
237
1,307
2,940
784
2,042
294
8
8
2
18
3
Plant
49,500
1,500
2,450
Composite
Labour
General labourer
Site foreman
Market:
Tendering:
Cost escalation:
Contractors margin:
Preliminaries:
getting warmer
(exchange rate:
33.00)
Moscow
100
warm
St Petersburg
92
5%
Yekaterinburg
87
10%
8%
41
Singapore
Growth continues, contractors face skills shortages
Singapores construction sector continued to grow
in the first half of 2013, although the rate of GDP growth
slowed as the year progressed to 5.1 percent by the end
of the second quarter, compared to 7.3 percent at the end
of the first quarter.
The value of contracts awarded in both the public and
private sectors slowed down, resulting in a 27 percent
year-on-year decline at the end of the second quarter.
Total construction output in 2013 is projected to be
between SGD1bn and SGD33bn in 2013, moderating
between SGD26bn and SGD33bn in 2014 and 2015.

Public sector demand is expected to strengthen

significantly, however, contributing between SGD14bn
and SGD17bn or around half of industry demand
in 2013. This is due to the rescheduling of some major
public housing and civil engineering projects, now to be
tendered in 2013, and the ramping up of public housing
and rail construction. The public mass rapid transit
infrastructure expansion programme remains strong,
with preparations taking place for the next major roll-out
of rail and road construction contracts in 2013 and 2014.
Contractors have been complaining about professional and
labour skills shortage, in part due to tighter restrictions on
overseas workers, which have been leading to higher wage
bills. Low-margin bids and the widespread use of lump sum
contracts make it difficult to recover costs.
SGD
USD
Purchasing
power parity
(exchange rate:
1.27)
Airports
5,200
4,000
4,094
3,150
5,712
4,394
Carparks
1,230
1,740
969
1,370
1,351
1,911
Commercial
2,050
2,560
2,970
1,614
2,016
2,339
2,252
2,812
3,262
Education
University
1,500
2,770
1,181
2,181
1,648
3,043
Hospitals
Regional hospital
1,850
3,000
3,900
1,457
2,362
3,071
2,032
3,295
4,284
Hotels
3 star travellers
5 star luxury
Resort style
3,280
4,310
5,150
2,583
3,394
4,055
3,603
4,734
5,657
Industrial
2,200
2,500
3,080
1,732
1,969
2,425
2,416
2,746
3,383
Residential
4,100
4,720
2,870
2,150
2,770
1,540
3,228
3,717
2,260
1,693
2,181
1,213
4,503
5,184
3,152
2,362
3,043
1,692
Retail
3,280
2,150
3,380
2,583
1,693
2,661
3,603
2,362
3,713
42
Turner & Townsend
Singapore international building costs

SGD
USD
Purchasing
power parity
75
25
158
1,550
37
65
4,100
135
1,365
25
845
10
87
80
63
205
28
82
267
59
20
124
1,220
29
51
3,228
106
1,075
20
665
7
68
63
50
161
22
65
210
82
27
174
1,703
41
71
4,503
148
1,499
27
928
10
95
88
69
225
30
90
293
26
18
25
15
25
20
14
20
12
20
28
20
27
17
27
Material
108
1,200
700
350
2,200
120
12
8
18
13
2
85
945
551
276
1,732
94
9
6
14
10
2
119
1,318
769
384
2,416
132
13
9
20
15
2
Plant
2,000
1,575
2,197
Composite
Labour
General labourer
Site foreman
Market:
Tendering:
getting warmer
lukewarm
Cost escalation:
3%
Contractors margin:
8%
Preliminaries:
(exchange rate:
1.27)
10%
43
South Africa
Residential and commercial sectors sluggish, but retail on the rise
South Africas economy weakened in 201213 due
to two factors: lower global demand for resources and
labour strikes, with workers demanding wage increases
above the high rate of inflation. The falling exchange rate
is adding to the cost of imports, though this makes exports
more competitive.
Confidence in the industry is expected to increase

under forecasts of lower interest rates and slightly
firmer exchange rates in the immediate future. However,
recovery is likely to be modest, due to poor economic
growth, slower growth in consumer spending and
labour unrest.
Residential construction remained sluggish, trapped in a

cyclical low. After a few years of operating below capacity,
the commercial sector, on the other hand, is now healthy
and recovering. However, there has been demand in the
retail sector which looks set to continue. The public sector
has added to the overall level of construction work,
with projects in several sectors, such as transportation
and power generation.
Construction cost increases of more than ten percent

are being driven by large annual trade wage increases,
increased demand for local materials from the retail
sector and higher imported material costs.

USD
Purchasing
power parity
24,450
17,120
2,495
1,747
4,336
3,036
4,450
5,270
454
538
789
935
Commercial
7,610
9,950
13,460
777
1,015
1,373
1,349
1,764
2,387
Education
University
8,190
10,530
836
1,074
1,452
1,867
Hospitals
Regional hospital
7,020
8,780
10,530
716
896
1,074
1,245
1,557
1,867
Hotels
3 star travellers
5 star luxury
Resort style
10,060
12,290
11,700
1,027
1,254
1,194
1,784
2,179
2,075
4,000
4,500
7,020
408
459
716
709
798
1,245
6,200
11,120
6,790
7,250
8,780
6,440
633
1,135
693
740
896
657
1,099
1,972
1,204
1,286
1,557
1,142
9,360
8,190
8,780
955
836
896
1,660
1,452
1,557
Airports
Carparks
Industrial
Residential
Retail
44
Turner & Townsend
ZAR
(exchange rate:
9.80)
South Africa international building costs

ZAR
Composite
Labour
General labourer
Site foreman
Material
Plant
Market:
Tendering:
Cost escalation:
getting cooler
lukewarm
9%
Contractors margin:
12%
Preliminaries:
11%
USD
Purchasing
power parity
39
140
1,467
12,500
221
227
24,000
486
2,500
270
1,840
30
250
182
246
90
56
276
1,412
4
14
150
1,276
23
23
2,449
50
255
28
188
3
26
19
25
9
6
28
144
7
25
260
2,217
39
40
4,256
86
443
48
326
5
44
32
44
16
10
49
250
60
48
45
28
100
6
5
5
3
10
11
9
8
5
18
1,334
9,963
3,500
1,720
21,160
1,696
60
50
39
36
15
136
1,017
357
176
2,159
173
6
5
4
4
2
237
1,767
621
305
3,752
301
11
9
7
6
3
9,000
918
1,596
(exchange rate:
9.80)
Gauteng
100
KwaZulu-Natal
101
Western Cape
103
45
South Korea
Housing slowdown hits construction
South Korea is now facing its worst property market
slowdown since 2004. Residential building permits
fell 24.4 percent in the first half of 2013 from a year
earlier, while housing starts dropped 19.2 percent
in the same period.
With tightening credit conditions, falling property
values and the expiry of temporary tax breaks
on property acquisition, domestic construction
is weakening. Infrastructure construction, on the
other hand, is experiencing moderate growth.
Koreas exceptional manufacturing growth is now

threatened by its strong currency which, against the
weakened yen, is gradually eroding Koreas competitive
advantage. Static inflation and the slowdown in the
property sector should keep construction costs down
during 201314.
(exchange rate: 1,114.00)
USD
Purchasing
power
parity
2,626,500
1,838,550
2,358
1,650
6,481
4,537
566,500
824,000
509
740
1,398
2,033
Commercial
1,133,000
1,390,500
1,751,000
1,017
1,248
1,572
2,796
3,431
4,321
Education
University
1,030,000
1,400,800
925
1,257
2,542
3,457
Hospitals
Regional hospital
1,133,000
1,648,000
1,751,000
1,017
1,479
1,572
2,796
4,067
4,321
Hotels
3 star travellers
5 star luxury
Resort style
1,545,000
3,296,000
2,111,500
1,387
2,959
1,895
3,812
8,133
5,210
Industrial
927,000
721,000
2,678,000
832
647
2,404
2,287
1,779
6,608
Residential
1,184,500
1,751,000
1,400,800
1,133,000
1,442,000
1,236,000
1,063
1,572
1,257
1,017
1,294
1,110
2,923
4,321
3,457
2,796
3,558
3,050
Retail
1,750,000
978,500
1,926,100
1,571
878
1,729
4,318
2,415
4,753

Airports
Carparks
46
Turner & Townsend
KRW
South Korea international building costs

KRW
Composite
Labour
General labourer
Site foreman
Material
Plant
Market:
Tendering:
USD
Purchasing
power
parity
6,489
6,489
130,000
1,251,450
27,000
36,633
2,008,500
257,500
309,000
46,350
257,500
4,635
46,350
36,050
51,500
43,260
11,330
23,175
208,060
6
6
117
1,123
24
33
1,803
231
277
42
231
4
42
32
46
39
10
21
187
16
16
321
3,088
67
90
4,956
635
762
114
635
11
114
89
127
107
28
57
513
18,000
17,436
17,436
12,216
15,924
16
16
16
11
14
44
43
43
30
39
81,502
1,032,060
988,800
679,800
1,176,000
133,680
1,112
3,205
3,063
6,526
370
73
926
888
610
1,056
120
1
3
3
6
0
201
2,547
2,440
1,677
2,902
330
3
8
8
16
1
940,000
844
2,320
getting cooler
cold
Cost escalation:
3%
Contractors margin:
3%
Preliminaries:
(exchange rate: 1,114.00)
12%
47
UAE
Rapid recovery will stretch construction sector
Though the UAE economy was affected by the global
recession, it has rapidly regained much of its past
momentum. The economy grew by 4.4 percent
in 2012, partly due to recovery in construction activity.
Prospects are strongest in Abu Dhabi, where demand
tends to exceed supply in the commercial and retail
sectors and the government continues to invest in
key infrastructure projects to support the 2030 vision
of a diversified economy. Dubai is a little further behind
in the upswing, although property values are now
increasing, bank lending is growing and tourism
is thriving again.
Construction cost escalation is still moderate but set

to increase as USD350bn of announced projects get
underway, stretching the capacity of the construction
sector. While some mega developments are in this mix,
there has been a general shift in the region away from
residential and commercial projects to large social
and transport infrastructure projects.
USD
Purchasing
power parity
14,350
10,050
3,910
2,738
8,260
5,785
Carparks
3,590
4,360
978
1,188
2,066
2,510
Commercial
4,100
5,130
6,920
1,117
1,398
1,886
2,360
2,953
3,983
Education
University
5,890
6,660
1,605
1,815
3,390
3,833
Hospitals
Regional hospital
5,890
7,430
8,970
1,605
2,025
2,444
3,390
4,277
5,163
9,230
12,300
14,860
2,515
3,351
4,049
5,313
7,080
8,553
Industrial
4,360
4,100
6,150
1,188
1,117
1,676
2,510
2,360
3,540
Residential
6,150
9,990
5,380
5,640
6,660
4,870
1,676
2,722
1,466
1,537
1,815
1,327
3,540
5,750
3,097
3,246
3,833
2,803
Retail
6,660
7,180
9,740
1,815
1,956
2,654
3,833
4,133
5,606
Airports
Hotels
3 star travellers
5 star luxury
Resort style
48
Turner & Townsend
AED
(exchange rate:
3.67)
UAE international building costs

AED
USD
Purchasing
power parity
31
31
472
4,100
115
150
10,250
666
1,435
123
3,741
15
120
110
308
154
56
130
900
8
8
128
1,117
31
41
2,793
182
391
34
1,019
4
33
30
84
42
15
35
245
18
18
271
2,360
66
86
5,900
383
826
71
2,153
9
69
63
177
88
32
75
518
31
31
29
15
77
8
8
8
4
21
18
18
17
9
44
Material
256
2,973
3,588
2,563
5,638
656
13
10
60
12
3
70
810
978
698
1,536
179
4
3
16
3
1
147
1,711
2,065
1,475
3,245
378
7
6
35
7
2
Plant
6,606
1,800
3,802
Composite
Labour
General labourer
Site foreman
Market:
Tendering:
getting warmer
lukewarm
Cost escalation:
2%
Contractors margin:
8%
Preliminaries:
(exchange rate:
3.67)
12%
49
Uganda
Government investment signals sustainable construction growth
After a period of sluggish growth, Ugandas construction
market is showing signs of more rapid growth following
the recent announcement of several large projects.
Government investment in infrastructure and public
facilities including roads, energy, schools and hospitals
has been increasing steadily.
With the help of foreign investment, particularly from
China, several high-profile projects have recently been
announced by the government. These include the
USD1.4bn Karuma hydropower dam across the River Nile
and a new railway line between Kenya and Rwanda,
running through Uganda.
Private sector investment is still subdued, hampered

by high borrowing costs introduced to control spiralling
inflation levels, which reached a high of 30.5 percent
in October 2011.
Ugandas economy is expected to be further boosted when
oil production begins, scheduled for 2018. This will require
construction of wells, pipelines, roads and a refinery.
UGX
USD
Purchasing
power parity
(exchange rate:
2,595.00)
Airports
5,070,000
3,802,500
1,954
1,465
2,996
2,247
Carparks
1,014,000
887,250
420
450
599
524
Commercial
2,154,750
2,281,500
3,491,680
830
879
1,346
1,273
1,348
2,064
Education
University
1,521,000
1,774,500
580
650
899
1,049
Hospitals
Regional hospital
2,166,830
2,408,250
3,295,500
835
928
1,270
1,281
1,423
1,948
Hotels
3 star travellers
5 star luxury
Resort style
3,171,430
3,794,560
3,687,130
1,222
1,462
1,421
1,874
2,243
2,179
Industrial
1,267,500
1,267,500
3,168,750
350
380
950
749
749
1,873
Residential
1,954,040
3,295,500
2,122,040
2,028,000
2,509,370
1,521,000
370
620
550
641
770
350
1,155
1,948
1,254
1,199
1,483
899
Retail
2,205,620
1,930,680
2,068,220
1,200
800
797
1,303
1,141
1,222
50
Turner & Townsend
Uganda international building costs

UGX
USD
Purchasing
power parity
10,140
7,605
760,500
4,687,200
38,025
76,050
8,500,000
304,200
507,000
63,375
1,140,750
12,675
63,375
50,700
101,400
228,150
76,050
50,700
253,500
4
3
293
1,806
15
29
3,276
117
195
24
440
5
24
20
39
88
29
20
98
6
4
449
2,770
22
45
5,023
180
300
37
674
7
37
30
60
135
45
30
150
10,140
10,140
10,140
3,803
30,420
3
2
2
1
3
6
6
6
2
18
Material
633,750
4,056,000
3,549,000
354,900
7,605,000
263,640
7,605
31,000
3,803
65,910
50,700
244
1,563
1,368
137
2,931
102
3
12
1
25
20
375
2,397
2,097
210
4,494
156
4
18
2
39
30
Plant
3,373,500
1,300
1,994
Composite
Labour
General labourer
Site foreman
Market:
Tendering:
Cost escalation:
Contractors margin:
Preliminaries:
(exchange rate:
2,595.00)
getting warmer
lukewarm
5%
15%
8%
51
UK
Growth again, but concentrated in London and the South East
After several tough years, the UK economy is picking up
in certain sectors and locations. GDP growth had increased
to 1.5 percent year-on-year by the third quarter of 2013,
unemployment was stable at 7.7 percent, and business
confidence is now well into positive territory. Despite this,
construction is still 13.3 percent down from its 2008 peak.
The government has introduced various schemes to boost
housing, including shared equity where first-time buyers
can receive a government loan. This is helping the housing
market to grow again, prompting premature warnings of
a housing bubble.
Fuelled by low interest rates and undersupply,
the rejuvenated real estate sector will help boost
construction activity and lead growth in the rest of the
economy. However, it is still early days, with growth
primarily in high-end property in the South East,

but set to ripple out from there.
The government also announced an infrastructure
spending boost of 100bn after its June spending review.
However, many of these projects, which will include road,
rail and energy, will take some time to start feeding
through in capital expenditure terms.
Construction wages have not risen for several years and
some spare capacity still exists, so construction cost
increases will be minimal until mid-2014. The exception
to this will be the South East.
USD
Purchasing
power parity
3,190
2,240
4,908
3,446
5,918
4,156
550
890
846
1,369
1,020
1,651
Commercial
1,450
2,100
2,800
2,231
3,231
4,308
2,690
3,896
5,194
Education
University
1,410
2,280
2,169
3,508
2,616
4,230
Hospitals
Regional hospital
1,720
2,350
2,850
2,646
3,615
4,385
3,191
4,360
5,287
Hotels
3 star travellers
5 star luxury
Resort style
1,360
2,620
2,300
2,092
4,031
3,538
2,523
4,860
4,267
Industrial
840
940
1,570
1,292
1,446
2,415
1,558
1,744
2,913
Residential
1,070
1,530
1,260
1,890
2,410
1,910
1,646
2,354
1,938
2,908
3,708
2,938
1,985
2,838
2,337
3,506
4,471
3,543
Retail
2,550
2,050
2,400
3,923
3,154
3,692
4,731
3,803
4,452

Airports
Carparks
52
Turner & Townsend
GBP
(exchange rate:
0.65)
United Kingdom international building costs

GBP
USD
Purchasing
power parity
11
18
145
925
34
37
1,943
75
513
38
685
6
42
24
25
48
20
35
100
17
28
223
1,424
53
57
2,990
115
790
58
1,053
9
65
37
38
74
31
54
154
20
33
269
1,717
64
69
3,605
139
952
70
1,270
11
78
44
46
89
37
65
186
31
26
26
17
33
48
40
40
25
50
57
48
48
31
60
Material
85
749
2,100
414
1,564
148
2
5
4
6
2
131
1,152
3,231
637
2,406
228
3
7
6
9
3
158
1,389
3,896
768
2,902
275
3
9
7
11
4
Plant
1,000
1,538
1,855
Composite
Labour
General labourer
Site foreman
Market:
Tendering:
getting warmer
lukewarm
(exchange rate:
0.65)
East Anglia Region

East Midlands Region
96
87
Cost escalation:
3%
Greater London
Contractors margin:
4%
Northern Ireland
80
12%
Northern Region
83
North West Region
83
Scotland
87
South East Region (excluding Greater London)
99
South West Region
93
Wales
86
West Midlands Region
89
Yorkshire and Humberside Region
89
Preliminaries:
Source BCIS, Turner & Townsend
100
53
US
Signs of recovery, but its still early days
The US economy has improved considerably during 2013,
with the all-important housing sector starting to stage
a comeback. This follows a 3040 percent decrease in
house prices since 2006, as the market corrected itself.
The manufacturing sector is also growing again. This is
thanks to labour costs, which are now low by international
standards, and to cheaper energy prices due to the
availability of home-grown shale gas.
Equity valuations are high and confidence is improving now
that a relaxation of the Feds policy of quantitative easing is
expected over the next 12 months. This all bodes well for a
Airports
gradual recovery in construction, with housing, industrial

and gas projects leading the way. However, it is still early
in the recovery cycle.
There is a large disparity in costs across the US, with the
Northeast far more expensive than the South and
Southwest. Closed shop conditions and strong labour
unions keep wages high in the Northeast, compared
to other regions where open shop labour laws apply.
Until construction volumes increase substantially,
cost increases are likely to remain moderate.
USD
Purchasing
power parity
3,620
2,530
3,516
2,457
Carparks
710
1,340
690
1,302
Commercial
1,920
2,180
2,570
1,865
2,117
2,496
Education
University
1,600
2,240
1,554
2,176
Hospitals
Regional hospital
2,100
3,410
3,370
2,040
3,312
3,273
Hotels
3 star travellers
5 star luxury
Resort style
1,610
2,650
2,350
1,564
2,574
2,283
Industrial
880
1,160
1,820
855
1,127
1,768
Residential
1,520
1,840
1,380
1,630
2,140
1,580
1,476
1,787
1,340
1,583
2,079
1,535
Retail
2,000
1,400
2,600
1,943
1,360
2,525
54
Turner & Townsend
US international building costs

Composite
USD
Purchasing
power parity
10
18
174
1,600
72
77
2,912
122
791
35
1,100
10
75
65
45
85
33
60
155
10
17
169
1,554
70
74
2,829
119
768
34
1,068
10
73
63
44
82
32
58
151
76
66
58
54
78
74
64
56
52
76
Material
125
1,012
1,051
357
2,052
237
3
5
5
7
4
121
983
1,020
347
1,993
230
3
5
5
7
4
Plant
2,520
2,448
Labour
General labourer
Site foreman
Market:
Tendering:
getting warmer
Chicago
105
lukewarm
Houston
82
Cost escalation:
2%
Los Angeles
100
Contractors margin:
4%
New York
125
Preliminaries:
9%
Philadelphia
113
55
Vietnam
Construction volumes growing but start from a low base
Inflation in Vietnam is now a more manageable 7.2 percent
after reaching 22 percent in late 2012. Growth at five
percent is moderate; efforts to reform and stimulate
the economy have had mixed results.
The residential sector is the strongest construction sector,

with apartments dominating, although these are beginning
to become oversupplied at higher price points, for now.
This has caused problems with non-performing loans.
There is still massive opportunity in construction.

But there is insufficient financial strength to carry
out all the infrastructure and building works needed
to modernise the economy.
Construction volumes are growing strongly, off a low

base. Construction wages are low, but systemic inflation
will ensure construction costs keep rising, even if they
remain low by world standards.

VND
USD
Purchasing
power parity
(exchange rate:
21,200.00)
Airports
49,007,460
34,305,220
2,312
1,618
6,909
4,837
Carparks
7,862,400
16,338,070
371
771
1,108
2,303
Commercial
14,004,060
17,505,070
19,586,810
661
826
924
1,974
2,468
2,761
Education
University
11,681,280
14,017,540
551
661
1,647
1,976
Hospitals
Regional hospital
14,902,620
28,680,690
28,680,690
703
1,353
1,353
2,101
4,044
4,044
Hotels
3 star travellers
5 star luxury
Resort style
28,062,030
37,019,320
31,674,240
1,324
1,746
1,494
3,956
5,219
4,466
Industrial
9,246,180
9,371,980
16,353,790
436
442
771
1,304
1,321
2,306
Residential
13,990,580
15,156,460
11,658,820
15,156,460
17,488,220
11,658,820
660
715
550
715
825
550
1,972
2,137
1,644
2,137
2,466
1,644
Retail
15,171,060
11,670,050
12,837,050
716
550
606
2,139
1,645
1,810
56
Turner & Townsend
Vietnam international building costs

VND
USD
Purchasing
power parity
72,360
86,400
1,555,200
23,801,040
224,640
280,800
30,944,160
972,000
9,720,000
432,000
5,660,928
89,640
438,048
348,192
712,800
388,800
723,600
648,000
864,000
3
4
73
1,123
11
13
1,460
46
458
20
267
4
21
16
34
18
34
31
41
10
12
219
3,356
32
40
4,363
137
1,370
61
798
13
62
49
100
55
102
91
122
233,280
200,880
162,000
129,600
216,000
11
9
8
6
10
33
28
23
18
30
Material
1,215,778
18,695,880
6,183,000
1,566,000
21,792,240
1,144,800
54,000
54,000
51,613
409,471
37,800
57
882
292
74
1,028
54
3
3
2
19
2
171
2,636
872
221
3,072
161
8
8
7
58
5
Plant
25,440,000
1,200
3,587
Composite
Labour
General labourer
Site foreman
Market:
Tendering:
staying the same

lukewarm
Cost escalation:
5%
Contractors margin:
5%
Preliminaries:
(exchange rate:
21,200.00)
Hanoi
92
Ho Chi Minh City
100
10%
57
Purchasing power parity

Turner & Townsend has worked with Bond University,
Queensland, to develop a more reliable method for
comparing international construction costs.
There are two major reasons why construction costs
between countries cannot be compared reliably using
currency exchange rates. First, this method fails to take
account of local living standards. And second, exchange
rates are highly volatile.
Take Australia and the US as an example. In 2001,
1 AUD = 0.5 USD. In 2012, 1 AUD = 1.08 USD. Yet the
relative prices (or purchasing power) of construction items
remained virtually unchanged.
Purchasing power parity is a more reliable way of
comparing prices. Although used in other areas of
economics, its application in this survey and report is the
first attempt to properly compare international
construction costs.
We use a standard basket of equally weighted construction
items, comprising material, labour and plant, to calculate
purchasing power parity values in each country. The
average price of items in the standard basket for a
particular country is then divided by the average price
for a base country to calculate relative purchasing
power parity.
The values in the purchasing power parity columns in the

report express local costs in terms of purchasing power by
weighting them according to the basket priced in-country.
The higher the purchasing power parity-adjusted cost, the
higher are the relative costs of building in one country over
another. When making relative cost comparisons between
cities in different countries, purchasing power parity is the
correct methodology to apply.
In countries where cheap labour predominates, the value
of the basket is lower to reflect lower living standards.
The choice of items in the standard basket is based
on typical construction items available globally.
Use of purchasing power parity to compare cost
performance over time should be aware of current market
conditions in each location, therefore after converting
all costs to a common year, further adjustment (perhaps
ten percent) for abnormal levels of competition may
be required.
Turner & Townsend is grateful to Bond Universitys Centre
for Comparative Construction Research for assistance with
this methodology. Further background on comparing
international construction performance can be accessed
from http://epublications.bond.edu.au/sustainable_
development/150/
In this report, trade, labour and material prices and prices per m2 are
indicative, and should not be relied on without first obtaining advice
from a qualified professional person. 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 regions within countries. Turner
& Townsend plc and its subsidiaries, the authors and contributors,
expressly disclaim all and any liability and responsibility to any person
in respect of anything done or omitted to be done in reliance wholly
or in part upon the whole of the contents of this publication.
We value your feedback, please get in touch at

gary.emmett@turntown.com
58
Turner & Townsend
www.turnerandtownsend.com

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A brighter

Purchasing power parity

After an unprecedented period of global economic

The global outlook for construction

Figure 1. More projects in the next 12 months

Asia, parts of Europe, the Middle East

Staying the same

International construction cost survey 2013

A business park in Japan

We can see some of these trends

Turner & Townsend

For example, we can see that an office

the cost increase

Figure 2. Changes to the cost of central business

Figure 3. Changes to the cost of high-rise

Looking at cost changes for prime property in the residential

International construction cost survey 2013

Turner & Townsend

The USs newest industry and source

International construction cost survey 2013

All change in China

Turner & Townsend

Indications show that China has

China has now entered

International construction cost survey 2013

It is interesting to note that

Figure 4. Strong competition is keeping tenders competitive in the majority of markets

Turner & Townsend

Figure 5. Wide range of contractors margins tells story of the markets

This chart shows what percentage of a buildings cost a

At the lower end of the range, contractors in Canada, Ireland,

Figure 6. Difference in preliminaries, depending on projects location

This chart shows what proportion of a buildings cost goes on

Typically, higher-cost countries have higher preliminaries.

International construction cost survey 2013

A stable outlook for costs

Construction wages and salaries

Turner & Townsend

Figure 7. The cost of labour

We asked our experts to predict how much construction costs

Developers in Ireland, Netherlands, US, Australia, UAE, Oman

International construction cost survey 2013

Meanwhile, domestic non-resources construction

Housing recovery is set to be the next growth sector.

Warehouse/factory units basic

Turner & Townsend

Australia international building costs

staying the same

International construction cost survey 2013

While non-residential construction spending growth

Over the next five years, construction spending in the

Turner & Townsend

Brazil international building costs

International construction cost survey 2013

The overvalued Canadian dollar has eased down

Turner & Townsend

Canada international building costs

International construction cost survey 2013

Construction in the commercial and retail sectors

International building costs

Turner & Townsend

China international building costs

International construction cost survey 2013

Some of the major infrastructure projects which added

International construction cost survey 2013

A business park in Japan

International construction cost survey 2013

International construction cost survey 2013

China has now entered

International construction cost survey 2013

International construction cost survey 2013

International construction cost survey 2013

International construction cost survey 2013

International construction cost survey 2013

International construction cost survey 2013

International construction cost survey 2013

International construction cost survey 2013

International construction cost survey 2013

International construction cost survey 2013

International construction cost survey 2013

International construction cost survey 2013

International construction cost survey 2013

International construction cost survey 2013

International construction cost survey 2013

International construction cost survey 2013

International construction cost survey 2013

International construction cost survey 2013

International construction cost survey 2013

International construction cost survey 2013