Bruce Shaw Handbook 2012

3
United States
Middle East
Ireland
Dublin
New bio-pharma
production facility
for Amgen
Iowa & Virginia

Cost management
of data centres
for Microsoft
Riyadh
Program management
for data centres, HQ
offices and retail stores
for Mobily
CONTENTS
1 Global Construction
4 United Kingdom
Developing Markets Offer Business

Development Opportunities
UK Market Review
38
UK Construction Output
39
15 Largest Construction Markets in 2010
Public Sector Output
39
Private Sector Output
39
UK Tender Price Index
40
UK Regional Tender Price Index
40
Resource Cost Index of UK non-housing building
41
15 Largest Construction Markets in 2020

Construction Output Growth Rates
in Developed Countries
Construction Output Growth Rates

in Emerging Markets
Index of International Construction Costs
Top 20 International Contractors
10
Top 20 International Design Firms
11
Global Ination %
12
Overview of Percentage Change in Global Output
12
Oil Production / Consumption Statistics
13
2 Europe
Numbers of Employed & Self Employed

in Construction
41
Standard Hourly Base Rates for Labour
42
Top UK Main Contractors
42
Top UK Architects
43
Top UK Engineering Firms
43
Bruce Shaw Average UK Construction Costs
44
House Building Starts and Completions
46
Average Procurement lead in times
46
The UK Housing Market 2012
47
48
48
European Market Review
16
2012 Olympics
Production Index in the Construction Sector
17
Euro vs Sterling
Construction Output - Annual Variation
17
Top 15 European Contractors
18
Top 15 European Design Firms
18
Middle East Market Review
52
Construction Cost - New Residential Building
19
GCC Hydrocarbon Dependence
52
Consumer Ination v Construction Ination
20
GCC Stimulus Packages
52
EU Labour Costs and Productivity
20
Value of Projects by Country
53
EU Procurement Timescales
21
Middle East Commodity Prices
54
EU Procurement Thresholds
21
Prices of Building Materials in Abu Dhabi
54
Currency Movements - Euro vs Various

European Currencies
21
3 Ireland
Ireland Market Review
24
Value of Construction Output
24
Construction Output
24
Gross National Product
24
Construction Purchasing Managers Index Report
25
Middle East
UAE, Bahrain and Qatar in Brief
55
Saudi Arabia in Brief
56
Saudi Arabia Key Budgetary Allocations
56
Saudi Arabia Housing Requirements by Region
57
Regional Building Cost Comparisons
57
Top 10 Infrastructure Projects in the GCC
58
Middle Eastern Design Firms
58
GCC Nations Main Contractors
59
GCC Single Currency Update
59
Historical Property Performance Total Return %
25
Bruce Shaw Tender & Cost Indices
26
SCSI Tender Price Index
27
US Market Review
Consumer vs Construction Price Ination
27
Value of Construction Output Public / Private
63
Annual Numbers Employed in Construction
27
US Construction by Type of Work
63
Bruce Shaw Average Irish Construction Costs
28
Annual Construction Cost Index
64
Basic Hourly Wage Rates
30
US Regional Building Cost Index
64
Basic Hourly Wage Rates Mechanical & Electrical 30
Employment in Construction
64
The Top Irish Main Contractors
31
Change in U.S. Employment in Construction
65
The Top Irish Services Sub-Contractors Turnover
31
US Earnings in Construction
65
Annual Housing Completions
33
Top US Contractors
66
New Housing Completions by Type
33
Top U.S. Design Firms
67
SCSI Rebuilding Costs per sq.m
34
Euro vs. Dollar
67
Planning Charges
35
Fire Certicate Charges
35
BRUCE SHAW
HANDBOOK 2012
6 United States
62
10 South East Asia continued
Caribbean Market Review
70
General Statistics for the Caribbean
70
Caribbean Country Review

Bahamas
Barbados
Bermuda
Cayman Islands
Cuba
Curacao
Dominican Republic
Haiti
Jamaica
Puerto Rico
St Lucia
Trinidad & Tobago
Turks & Caicos Islands
71
71
71
71
71
72
72
72
73
73
74
74
74
Construction Costs
74
Average Cost Range
75
8 India
Malaysia Market Review
96
GDP Growth Rate
96
Average Construction Costs
97
Currency Exchange Rates
97
Vietnam Market Review
98
GDP Growth Rate
98
98
99
Indonesia Market Review
100
100
101
11 China
China Market Review
105
China GDP Annual Growth Rate
105
Total Government Investment
106
Regional Building Cost Comparison
106
Shanghai Tender Price Index.
107
Top 20 Chinese Contractors
108
India Market Review
78
Top 20 Chinese Design Firms
109
78
109
Construction Cost Indices
79
Top Infrastructure Companies in India
79
US Dollar vs. Rupee
79
9 Australia & New Zealand

Australia Market Review
83
Australian Key Statistics
83
Australia
Building Cost Index by Capital City
Building Cost Index & Consumer
Price Comparison
Dwelling Unit Commencements
List of Tier 1 Main / Building Contractors
New Zealand
New Zealand Market Review
New Zealand Key Statistics
Numbers Employed in Construction
84
84
85
85
85
86
86
12 Ghana
Ghana Market Review
113
Ghana Key Statistics
113
GDP forecast
113
114
Construction Output Growth Rate Forecast
114
114
Ination Index
115
Building Cost Index & Consumer

Price Index Comparison
115
Construction Companies Active in Ghana
116
116
13 Topical Issues
Energy and Power Generation
120
87
87
87
88
88
88
Financial Robustness of Contractors
122
Building Information Modelling (BIM)
124
The Changing Shape of Retail
126
Challenges for Consultant Project Managers

within current market conditions
128
List of Tier 1 Main/Building Contractors
89
89
14 About Bruce Shaw
10 South East Asia
Bruce Shaw
132
Cost Management
133
Project Management
137
93
Consultancy Services
138
Carrying Out Business Throughout the World
93
Health & Safety Consultancy
142
Singapore Market Review
94
Bruce Shaw Corporate & Community Activities
144
94
Bruce Shaw Senior Personnel
146
95
Our Clients
148
95
South East Asia Market Review
CONTENTS
7 Caribbean
BRUCE SHAW
HANDBOOK 2012
BRUCE SHAW
HANDBOOK 2012
GLOBA L CONSTRUC TION 1
BRUCE SHAW
HANDBOOK 2012
GLOBAL CONSTRUCTION
Developing Markets Oer Business Development Opportunities

Most of us will have heard the maxim which states
that uncertainty is the only certainty there is. Not so
many of us have heard the rest of this quotation from
the great mathematician John Allen Paulos which
goes on to state that knowing how to live with
insecurity is the only security. For construction
companies operating in many markets in Europe,
uncertainty and insecurity on a level not seen
since the great wars of the last century are now
the norm and efforts are focused on surviving rather
than thriving.
The global construction market is

forecast to grow by up to 5% in 2012
and the rate of increase is likely to
outpace that of global GDP over the
next 10 years.
nancial crisis, a return to growth in 2013 will likely

prove too soon for those countries whose public
nances are reliant on intervention and troika funds.
Looking beyond Europe, the US market is likely
to see improved conditions and some growth in
2012 although this will be hampered by ongoing
difficulties for Developers seeking to secure funding
for their projects and the shrinking of the value
of the scal stimulus particularly in relation to
infrastructure development.
The trading environment in many economies within

the Eurozone is dened by austerity and tightening
public nances with the fate of the Euro itself being
less than certain. The duration of this environment
can now be measured in years rather than months
and the impact on construction is plain to see as the
growth trends across Europe in all construction
sectors since 2008 have been negative.
Whilst continued year on year growth is also

predicted for the Australian construction market,
fears are being expressed that the signicant property
price rises observed in recent years which have
occurred on the back of commodities led economic
growth could also be a bubble which will burst soon
with inevitable consequences. Commentators in
Australia hold opposing views as to what will happen
next and what has to be done if anything to cool the
market with many of the voices again echoing the
refrain that this time, its different. The Canadian
market will also continue to grow strongly as it
mirrors Australia with a commodities led boom albeit
with less exposure to rising property values .
Analysis of the recent contraction in European

construction output indicates that the contraction
was not evenly spread. In 2011 for example, we see
Poland at one extreme experiencing upwards of 12%
growth whilst at the other end, Spain saw their
construction output contract by over 19%. Whilst
many European nations have reached the bottom of
their construction cycles hastened no doubt by the
The Kingdom of Saudi Arabia and Qatar will continue

to see strong growth in 2012. The changing politics
of a number of the Arab nations such as Egypt and
Libya may also see signicant growth as the new
governments seek to recommence stalled projects
and to implement social enhancement programmes
including the development of housing and
educational facilities.
BRUCE SHAW
HANDBOOK 2012
SECTION
One country to watch in 2012 is Russia which is

expected to see signicant market growth as natural
gas and oil production increase with a corresponding
increase in investment, infrastructure and
development for upcoming sporting events.
GLOBAL CONSTRUCTION
Demographic trends may also see notable growth in

South American and South East Asian markets albeit
at lower rates of expansion than those of the BRICs.
(Brazil, Russia, India and China).
The global construction market is forecast to grow
by up to 5% in 2012 and the rate of increase is likely
to outpace that of global GDP over the next 10 years
as the developing economies forge ahead led by
China and India. Activity in the developed economies
will also accelerate during the same period led by the
US, Australia and Canada. For those European rms
operating in shrinking markets, the only way to thrive
will be to seek work in other jurisdictions. Recent
developments in the construction professional
services sector indicate that there is a growing
recognition of the need to expand global coverage
and to diversify in terms of knowledge and skills.
15 Largest Construction Markets in 2010 $ 7.5 trillion
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GLOBAL CONSTRUCTION
Output in China and India will continue to achieve

signicant growth albeit not in double digits and
it is possible that governments in both countries
will take action to cool their markets in the face of
rapidly increasing construction ination. China is also
facing signicant increases in property values and
whilst it is being said that what is being referred to
as Chinas Housing Bubble is different than those
observed elsewhere, quick action by the Chinese
government could signicantly reduce any risks
posed by such a bubble for the wider economy.
GLOBAL CONSTRUCTION
One country to watch

in 2012 is Russia which
is expected to see
signicant market growth
as natural gas and oil
production increase.
SECTION
GLOBAL CONSTRUCTION
Construction Output Growth Rates in Developed Countries
Average % pa Rates of Change
2005-2010
6.0
2010-2015(f)
2015-2020(f)
4.0
0
-2.0
-4.0
-6.0
-8.0
Western Europe
Northern America
Asia Pacic (Developed)
Construction Output Growth Rates in Emerging Markets
Average % pa Rates of Change
12.0
2010-2015(f)
2015-2020(f)
8.0
6.0
4.0
2.0
Source: Global Construction Perspectives and Oxford Economics
2005-2010
10.0
0
Eastern Europe
South and Central

America
Asia Pacic
(Emerging)
Middle East
and North Africa
Sub Saharan Africa
Index of International Construction Costs 2011

160
Source: Bruce Shaw
140
120
100
80
60
40
20
BRUCE SHAW
Switzerland
Japan
Sweden
France
Germany
UK
Australia
Italy
Ireland
USA
Spain
Greece
UAE
Poland
Czech
Republic
Hungary
Romania
China
India
HANDBOOK 2012
1
GLOBAL CONSTRUCTION
2.0
Source: Global Construction Perspectives and Oxford Economics
8.0
GLOBAL CONSTRUCTION
The Top 20 International Contractors
Revenue
$ bn
Firm
CHINA RAILWAY CONSTRUCTION CORP., China
76.21
CHINA RAILWAY GROUP, China
73.01
CHINA STATE CONST. ENGINEERING CORP., China
48.87
VINCI, France
45.11
CHINA COMMUNICATIONS CONST. GROUP, China
40.42
BOUYGUES, France
30.67
CHINA METALLURGICAL GROUP CORP., China
29.91
HOCHTIEF, Germany
28.98
10
GRUPO ACS, Spain
20.63
10
BECHTEL, U.S.A.
19.71
11
12
LEIGHTON HOLDINGS, Australia
18.51
12
16
EIFFAGE, France
17.73
13
14
FLUOR CORP., U.S.A.
17.19
14
13
FCC, Spain
16.06
15
26
SINOHYDRO CORP., China
15.88
16
15
SKANSKA, Sweden
14.64
17
18
SHIMIZU CORP., Japan
14.40
18
17
KAJIMA CORP., Japan
14.39
19
22
OBAYASHI CORP., Japan
13.68
20
27
SHANGHAI CONSTRUCTION GROUP, China
13.01
Source: Engineering News Record
Rank
2011
2010
Based on Total Firm Contracting Revenue
2011 ranking is based on 2010 construction contracting revenue.
The Top 20 International Contractors

Firm
HOCHTIEF, Germany
27.42
VINCI, France
16.56
BECHTEL, U.S.A.
12.50
BOUYGUES, France
12.43
SKANSKA, Sweden
11.63
SAIPEM, Italy
11.60
FLUOR CORP., U.S.A.
11.57
STRABAG, Austria
10.87
10
TECHNIP, France
7.94
10
11
FCC, Spain
7.46
11
13
7.13
12
18
GRUPO ACS, Spain
6.56
13
BILFINGER BERGER, Germany
6.32
14
12
KBR, U.S.A.
5.86
15
15
CONSTRUTORA NORBERTO ODEBRECHT, Brazil
5.84
16
14
LEND LEASE GROUP, Australia
5.59
17
17
ROYAL BAM GROUP, The Netherlands
5.44
18
19
CONSOLIDATED CONTRACTORS GROUP, Greece
5.26
19
16
BALFOUR BEATTY, U.K.
5.16
20
22
CHINA STATE CONST. ENGINEERING CORP., China
4.87
2011 ranking is based on 2010 construction contracting revenue.
10
Revenue
$ bn
BRUCE SHAW
HANDBOOK 2012
Rank
2011
2010
Based on Contracting Revenue from Projects Outside Home Country
SECTION
GLOBAL CONSTRUCTION
The Top 20 International Design Firms
Revenue
$ bn
Type of Firm
Firm
EA
AECOM TECHNOLOGY CORP., U.S.A.
5.92
EAC
URS CORP., U.S.A.
5.04
EAC
JACOBS, U.S.A.
4.75
EC
WORLEYPARSONS, Australia
3.65
EA
CH2M HILL, U.S.A
3.60
AMEC PLC, U.K.
3.40
EC
FLUOR CORP.,U.S.A
3.13
FUGRO, The Netherlands
3.00
EC
SNC-LAVALIN INTERNATIONAL, Canada
2.85
10
10
ARCADIS, The Netherlands
2.65
11
15
EC
M + W GROUP, Germany
2.36
12
13
TETRA TECH, U.S.A.
2.21
13
12
EC
BECHTEL, U.S.A.
2.17
14
11
EA
ATKINS, U.K.
2.14
15
14
EC
KBR, U.S.A.
2.01
16
17
EA
DAR AL-HANDASAH CONSULTANTS, Egypt
1.78
17
72
EC
1.74
18
22
EC
1.67
19
16
MOTT MACDONALD GROUP, U.K.
1.62
20
21
EC
HYDROCHINA CORP., China
1.53
2011 ranking is based on revenue for design services performed in 2010.

Key to Type of Firm: A architect; E engineer; C contractor
The Top 20 International Design Firms

Type of Firm
Firm
Revenue
$ bn
EC
WORLEYPARSONS, Australia
2.85
2.83
EA
AECOM TECHNOLOGY CORP., U.S.A.
2.63
AMEC PLC, U.K.
2.46
EAC
JACOBS, U.S.A.
2.26
2.12
EC
FLUOR CORP., U.S.A.
2.06
EA
DAR AL-HANDASAH CONSULTANTS, Egypt
1.78
10
EC
KBR, U.S.A.
1.74
10
EC
SNC - LAVALIN INTERNATIONAL, Canada
1.67
11
11
EC
M + W GROUP, Germany
1.55
12
43
EC
1.46
13
12
EC
TECNICAS REUNIDAS, Spain
1.29
14
13
EC
BECHTEL, U.S.A.
1.22
15
14
1.12
16
19
ARUP GROUP, U.K.
0.96
17
24
EAC
URS CORP., U.S.A.
0.94
18
62
AURECON, Singapore
0.93
19
16
TECHNIP, France
0.91
20
29
EA
ATKINS, U.K.
0.89
Rank
2011
2010
Based on Revenue from Projects Outside Home Country
2011 ranking is based on revenue for design services performed in 2010.

Key to Type of Firm: A architect; E engineer; C contractor
BRUCE SHAW
HANDBOOK 2012
11
1
GLOBAL CONSTRUCTION
Rank
2011
2010
Based on Total Firm Revenue
GLOBAL CONSTRUCTION
Global Ination 2011
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Overview of Percentage Change in Global Output
January 2012
2011
2012(f)
2013(f)
United States
3.0%
1.8%
1.8%
2.2%
Euro area
1.9%
1.6%
-0.5%
0.8%
Germany
3.6%
3.0%
0.3%
1.5%
France
1.4%
1.6%
0.2%
1.0%
Italy
1.5%
0.4%
-2.2%
-0.6%
Spain
-0.1%
0.7%
-1.7%
-0.3%
Japan
4.4%
-0.9%
1.7%
1.6%
United Kingdom
2.1%
0.9%
0.6%
2.0%
Canada
3.2%
2.3%
1.7%
2.0%
Emerging &
Developing Economies
Central & Eastern Europe
4.5%
5.1%
1.1%
2.4%
Russia
4.0%
4.1%
3.3%
3.5%
4.3%
3.1%
3.2%
3.6%
China
10.4%
9.2%
8.2%
8.8%
India
9.9%
7.4%
7.0%
7.3%
Brazil
7.5%
2.9%
3.0%
4.0%
Mexico
5.4%
4.1%
3.5%
3.5%
South Africa
2.9%
3.1%
2.5%
3.4%
World output
5.2%
3.8%
3.3%
3.9%
12
BRUCE SHAW
HANDBOOK 2012
Source: International Monetary Fund
2010
Advanced Economies
Middle East & North Africa
Source: International Monetary Fund / www.global-rates.com
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SECTION
GLOBAL CONSTRUCTION
Oil Production
Country
Barrels /
Day
Rank
2011 2010
Country
Barrels /
Day
Saudi Arabia
10,520,000
13
11
Venezuela
2,375,000
Russia
10,130,000
14
13
European Union
2,276,000
United States
9,688,000
15
14
Norway
2,134,000
China
4,273,000
16
16
Algeria
2,078,000
Iran
4,252,000
17
17
Angola
1,988,000
Canada
3,483,000
18
18
Libya
1,789,000
Mexico
2,983,000
19
19
Kazakhstan
1,610,000
United Arab Emirates
2,813,000
20
21
Qatar
1,437,000
Brazil
2,746,000
21
20
United Kingdom
1,393,000
10
15
Nigeria
2,458,000
22
23
Azerbaijan
1,041,000
11
10
Kuwait
2,450,000
23
22
Indonesia
1,030,000
12
12
Iraq
2,408,000
24
24
India
954,000
Oil Consumption
Country
Barrels /
Day
Rank
2011
2010
Country
Barrels /
Day
United States
19,150,000
13
13
France
1,861,000
European Union
13,730,000
14
14
Iran
1,845,000
China
9,189,000
15
15
United Kingdom
1,622,000
Japan
4,452,000
16
16
Italy
1,528,000
India
3,182,000
17
17
Spain
1,441,000
Russia
2,937,000
18
18
Indonesia
1,292,000
Brazil
2,654,000
19
23
Singapore
1,080,000
Saudi Arabia
2,643,000
20
21
Netherlands
1,009,000
1,002,000
Germany
2,495,000
21
22
Taiwan
10
10
Korea, South
2,251,000
22
20
Thailand
988,000
11
11
Canada
2,209,000
23
19
Australia
960,800
12
12
Mexico
2,073,000
24
24
Venezuela
746,000
Source: CIA World Fact book
Rank
2011
2010
Note: 2011 rank is based on based on 2010 production / consumption levels
Staff / pictures
BRUCE SHAW
HANDBOOK 2012
13
1
GLOBAL CONSTRUCTION
3
4
Source: CIA World Fact book
Rank
2011 2010
14
BRUCE SHAW
HANDBOOK 2012
EUROPE 2
BRUCE SHAW
HANDBOOK 2012
15
EUROPE
European Market Review

Decit, the second most used word globally in
2011 according to the Global Language Monitor
and indeed it could be argued that in Europe it
became the most used word, followed closely by
austerity and sovereign debt. These are not words
that bode well for growth in 2012 in Europe. The
IMFs World Economic Outlook clearly states that
high public decits and debt, lower potential output,
and mounting market tensions are weighing on
growth in much of advanced Europe. The impact
of the various European governments austerity
programmes has hit all areas of public expenditure,
and in particular capital expenditure programmes.
In addition, the debt crisis also impacts on the
private banking system, and will lead to pressure
on bank funding and the possible risk of another
deep credit crunch. Governmental austerity
measures and nancing problems in the private
sector have resulted in a decrease in building
construction of 2.2% in the EU27 and a fall in
civil engineering of 0.6% in the EU27.
The austerity measures that are being implemented
have impacted on the absorption rate of European
Commission Cohesion and Structural Funds
throughout the EU27, however more so in Central
Primark, Zaandam
16
BRUCE SHAW
HANDBOOK 2012
Governmental austerity measures

and nancing problems in the private
sector have resulted in a decrease
in building construction of 2.2%
in the EU27.
& Eastern Europe (CEE). The European Commission,
in conjunction with the The European Investment
Bank (EIB), is trying to provide support to member
states in absorbing funds by using nancial
engineering initiatives. These initiatives provide
opportunities for not only member states in fund
absorption, but also private industry. It is now more
necessary than ever, to seek out positives in the
market place and increase industry sentiment.
The fact is, whilst there are currently only a few,
there are in existence, cash rich companies that are
now moving in to the market place, seeking out and
acquiring assets to develop. Whilst the halcyon days
in terms of high fees and prot margins are gone,
such movement in the construction industry
indicates that the economic woes and uncertainty
will come to an end, sooner rather than later and that
more such companies will emerge from behind the
parapet, the ultimate result being a more sustainable
and evenly balanced industry.
SECTION
EUROPE
Production Index in the Construction Sector

Euro area, seasonally adjusted series
EU27, seasonally adjusted series
110
Source: Eurostat
115
Trendline
Trendline
EUROPE
105
100
95
90
85
80
11-2011
05-2011
11-2010
05-2010
11-2009
05-2009
11-2008
05-2008
11-2007
05-2007
11-2006
05-2006
11-2005
11-2004
05-2004
11-2003
05-2003
11-2002
05-2005
2005=100
75
Note: The production in construction index shows the output and activity of the construction sector. It measures changes in the volume
of output on a monthly basis. Construction includes building construction and civil engineering.
Construction Output Annual Variation

% change compared with the same quarter of the previous year
Q4-10
Q1-11
Q2-11
Belgium
-3.1
5.4
2.3
Q3-11
1.3
Bulgaria
-8.3
-15.9
-13.4
-11.4
Czech Republic
-2.5
6.6
-4.9
-9.8
Denmark
-0.5
13.9
0.9
4.3
Germany
-1.3
34.5
5.2
4.8
Estonia
-4.7
34.6
11.5
25.5
Ireland
-22.4
-24.0
-21.5
N/A
Greece
-33.5
-37.3
-35.8
-8.3
Spain
-27.5
-36.6
-27.9
5.5
-5.4
2.8
-0.6
2.0
France
Italy
-1.2
0.5
-2.8
-4.9
Cyprus
-11.2
-7.9
-5.8
N/A
Latvia
-9.6
-15.1
-0.9
19.6
Lithuania
16.2
15.9
16.7
18.4
Luxembourg
-4.4
11.4
-1.1
-3.8
-10.5
-6.6
-9.5
-13.7
2.0
1.6
0.7
-0.6
Netherlands
-6.9
8.0
3.5
3.7
Austria
-3.8
-2.5
1.0
-0.6
Poland
11.7
17.9
19.7
15.1
Portugal
-9.3
-8.2
-7.7
-10.4
Romania
-7.1
-4.9
-4.1
8.0
Slovenia
-16.2
-25.3
-31.1
-25.5
Hungary
Malta
Slovakia
1.8
-3.7
-3.3
-3.0
Finland
16.4
16.6
7.9
9.8
Sweden
9.6
7.1
9.3
5.8
United Kingdom
10.7
7.7
3.4
0.5
EU Average
-3.8
0.6
-2.2
1.6
Building Average
-2.5
1.0
-3.1
1.3
Civil Engineering Average
-9.7
-1.8
1.7
2.7
BRUCE SHAW
HANDBOOK 2012
Source: Eurostat
Total
17
EUROPE
The Top 15 European Contractors
Turnover
bn
2011
2010
Firm
VINCI, France
34.21
BOUYGUES, France
23.26
HOCHTIEF, Germany
21.98
GRUPO, Spain
15.65
EIFFAGE, France
13.45
FCC, Spain
12.18
SKANSKA, Sweden
11.10
STRABAG , Austria
9.69
9.40
10
11
SAIPEM, Italy
9.18
11
10
BILFINGER BERGER , Germany
8.18
12
12
ROYAL BAM GROUP, The Netherlands
7.44
13
13
TECHNIP, France
6.12
14
14
SACYR VALLEHERMOSO, Spain
5.27
15
15
FERROVIAL, Spain
4.92
Rank
Based on Total Revenue
2011 ranking is based on 2010 construction revenue
The Top 15 European Design Firms
Revenue
bn
Type of Firm
Firm
AMEC, U.K.
2.58
2.28
2.01
EA
WS ATKINS, U.K
1.63
EC
1.32
1.23
ARUP GROUP , U.K.
1.04
EC
TECNICAS REUNIDAS, Spain
1.02
GRONTMIJ , The Netherlands
0.92
10
WSP GROUP, U.K.
0.83
11
11
RAMBOLL GROUP, Denmark
0.81
12
EC
EGIS, France
0.81
13
MOUCHEL, U.K.
0.73
14
14
EC
TECHNIP, France
0.70
15
13
POYRY, Finland
0.69
Note: 2011 ranking is based on revenue for design services performed in 2010. Key to Type of Firm: A architect; E engineer; EC engineer-contractor
18
BRUCE SHAW
HANDBOOK 2012
Rank
2011
2010
Based on Total Firm Revenue
SECTION
2 EUROPE
Construction Cost - New Residential Buildings

Index (2005=100)
2010
Q3
Q1
2011
Q3
Q1
Q3
112.1
111.6
110.4
111.1
114.3
N/A
Bulgaria
N/A
140.8
143.6
139.9
144.1
142.3
Czech Republic
112.3
112.2
113.2
113.6
115.3
115.9
113.87e
114.0
114.4
115.7
117.6
120.5
Germany
107.0
108.9
110.4
111.7
114.4
115.6
Estonia
122.5
116.3
114.1
115.3
116.1
119.1
Denmark
Ireland
97.2
91.0
91.9
94.0
91.8
91.1
Greece
114.0
114.4
115.3
116.6
117.5
117.6
Spain
118.68e
118.7
119.4
122.3
125.6
127.0
France
116.51e
116.7
117.9
120.4
123.7
124.9
Italy
Cyprus
N/A
111.5
N/A
N/A
N/A
N/A
120.3
119.7
122.6
124.4
126.8
N/A
Latvia
185.0
161.9
158.4
152.5
162.6
159.8
Lithuania
128.0
118.0
112.9
116.1
114.5
121.0
Luxembourg
110.03e
111.2
111.0
112.0
112.5
N/A
Hungary
122.30e
124.7
124.9
123.1
124.0
125.7
Netherlands
113.26e
112.2
112.3
113.2
114.6
115.5
Austria
115.1
116.0
117.5
119.9
121.7
122.4
Poland
116.3
115.6
115.4
115.8
116.1
N/A
Portugal
111.2
111.7
112.6
113.8
114.8
115.3
Romania
141.50e
145.8
142.3
148.2
154.7
162.0
Slovenia
114.5
119.7
125.7
126.3
134.0
131.8
Slovakia
116.7
116.9
116.8
116.8
117.5
117.9
Finland
113.5
112.7
113.1
114.6
116.4
118.7
Sweden
118.31e
119.2
120.7
122.6
124.1
125.9
United Kingdom
101.20e
115.0
115.4
115.8
116.1
N/A
Turkey
135.40e
137.4
142.3
145.5
154.3
166.7
Norway
119.7
120.7
122.6
124.6
127.2
129.1
European Union Average
111.3
114.0
114.7
116.3
118.3
119.7
Notes: N/A = Not available e = Estimated value
Parklake Plaza, Bucharest
BRUCE SHAW
HANDBOOK 2012
2
EUROPE
Belgium
Source: Eurostat
2009
Q1
19
EUROPE
Consumer Ination vs Construction Ination 2008-2011

5%
Source: Eurostat
4%
3%
2%
1%
0%
-1%
-2%
-3%
-4%
2008
2009
European Union Average Consumer Ination
2010
2011
New Residential Construction Cost
EU Labour Costs & Productivity 2011

Country
Productivity
Cost / Hr
Austria
78
22.98
Cyprus
N/A
N/A
Czech Republic
46
7.57
Denmark
81
35.41
Estonia
42
N/A
Finland
75
N/A
France
91
27.46
Germany
84
22.95
Greece
53
13.21
Hungary
41
5.38
Ireland
Italy
100
26.15
69
21.86
Latvia
N/A
5.17
Lithuania
N/A
4.86
Luxembourg
118
20.26
Netherlands
92
22.10
Poland
39
6.69
Portugal
50
8.27
Romania
N/A
3.34
Slovakia
53
6.66
Slovenia
54
12.86
Spain
74
17.97
Sweden
78
33.14
UK
73
19.40
Source: Productivity gures are from OECD for 2010 and based on GDP per hours worked for the whole labour market.
Cost/Hr data source - Eurostat up to 3rd Qtr of 2010, except for: Netherlands 2nd Qtr
Cost/Hr is for all construction employment types
20
BRUCE SHAW
HANDBOOK 2012
SECTION
EUROPE
EU Procurement Timescales 2012

Accelerated Restricted Procedure
Publish at least 52 days prior to date contract
Time Limit for Receipt of Expressions of Interest
notice is dispatched to avail of reduced time limits
/PUMFTTUIBOEBZTGSPNEBUFDPOUSBDUOPUJDF
is dispatched
(max. 12 mths).
Time Limit for Receipt of Tenders
Time Limit for Receipt of Tender
/PUMFTTUIBOEBZTGSPNEBUFJOWJUBUJPOUP
tender is dispatched
If no PIN: not less than 52 days

If PIN: General rule minimum time 36 days and in
Negotiated Procedure with Prior Publication
any case not less than 22 days from date contract
of a Contract Notice
notice is dispatched
Time Limit for Receipt of Application

Restricted Procedure
is dispatched
Time Limit for Receipt of Expressions of Interest

Not less than 37 days from date contract notice is
Negotiated Accelerated Procedure with Prior
dispatched
Publication of a Contract Notice
Time Limit for Receipt of Tenders
Time Limit for Receipt of Application
If no PIN: Not less than 40 days
If PIN: General rule minimum time 36 days. This may

be reduced in certain cases but in no circumstances
less than 22 days from the date invitation to tender
is dispatched
is dispatched
Contract Award Notice
Time Limit for Receipt of Issue
EBZTGSPNBXBSEPGDPOUSBDU
EU Procurement Thresholds 2012
Contract Notice
5,000,000
Threshold applies to Government Departments and Offices,

Local and Regional Authorities and other public bodies.
Supplies and Services

Contract Notice
130,000
Threshold applies to Government Departments and Offices
Contract Notice
200,000
Threshold applies to Local and Regional Authorities and public
Source: www.etenders.gov.ie
Works
bodies outside the Utilities sector.

Utilities
Works Contracts /
Prior Indicative Notice
Supplies and Services
5,000,000
For entities in Utilities sectors covered by GPA
400,000
For entities in Utilities sectors covered by GPA
Note: The above thresholds are valid until 31 December 2013
Currency Movements Euro v Various European Currencies

Croatian
kuna
HRK
Czech
koruna
CZK
Danish
krone
DKK
Hungarian
forint
HUF
Polish
zloty
PLN
2012*
1.96
2011
1.96
7.54
25.72
7.44
314.63
4.47
7.44
24.59
7.45
279.37
4.12
2010
1.96
7.29
25.28
7.45
275.48
3.99
2009
1.96
7.34
26.43
7.45
280.33
2008
1.96
7.22
24.95
7.46
2007
1.96
7.34
27.77
7.45
2006
1.96
7.32
28.34
2005
1.96
5.59
29.78
Romanian
leu
RON
Russian
rouble
RUB
Turkish
lira
TRY
4.34
40.83
2.40
4.24
40.88
2.34
4.21
40.26
2.00
4.33
4.24
44.14
2.16
251.51
3.51
3.68
36.42
1.91
251.35
3.78
3.34
35.02
1.79
7.46
264.26
3.90
3.53
34.11
1.81
7.45
248.05
4.02
1.81
26.38
1.68
Source: European Central Bank
Year
Bulgarian
lev
BGN
*Note: Based on January exchange rates
BRUCE SHAW
HANDBOOK 2012
21
2
EUROPE
Open Procedures
Source: www.etenders.gov.ie
Prior Indicative Notice (PIN)
22
BRUCE SHAW
HANDBOOK 2012
IRELAND 3
BRUCE SHAW
HANDBOOK 2012
23
IRELAND
Ireland Market Review

The Irish construction industry peaked in 2007
with an output of over 38 billion. At 24% of GNP
this was an unsustainable level. Since then the
industry has declined rapidly as shown in the graph
below. Bruce Shaw predicts that output in 2011 was
approximately 8.5 billion and output in 2012 will
fall further to approximately 7 billion. These levels
of output represent 7% and 5.5% respectively of
a much reduced GNP. The widely accepted norm
for construction output is 12% to 13% of GNP so
it is clear that the industry in Ireland has seriously
over-corrected. By the end of this year output
in the industry will have fallen by 82% from its peak.
In November 2011 the Government published its

Infrastructure and Capital Investment Framework
for 2012-2016. This shows a much reduced
expenditure on the public side of 3.94 billion in
2012, reducing to 3.37 billion in 2013 and further
reducing to 3.25 billion for the following three
years. There is very little activity on the private side
of the industry either. Commercial projects have
been hampered by over-supply, lack of funding and
delays and uncertainty related to NAMA projects.
By the end of this year output in the

industry will have fallen by 82%
from its peak.
Unfortunately, the over-correction in output

has lead to the loss of almost 200,000 direct and
indirect jobs in the sector and inevitably the loss
of many skills which will be needed again when
eventually the industry returns to its more normal
output levels. The over-correction has also
resulted in contractors and sub-contractors
tendering for the diminishing volumes of work
available at prices which are below cost. This is
an unsustainable situation for any period of
time and is one of the major reasons for the
high prole failure of both construction and
consultancy rms.
Looking forward though, there are some glimmers

of hope that 2012 will see construction output
bottom out after 5 years of massive decline. The
reduction in construction prices has been reversed,
there is renewed investment by the multi-national
technology and pharmaceutical industries and
a gradual return of some private sector activity
particularly in commercial office t-outs for both
Irish and overseas occupiers. If global nancial
concerns can be overcome and some condence
recovered locally hopefully 2013 will see the start
of a slow recovery for the industry.
Value of Construction Output m 2000-2012

Source: DKM / Department of Environment, Heritage
& Local Government / Bruce Shaw
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
2000
2001
2002
2003
DKM / Dept. of Environ. 10 Forecast
2004
2005
2006
2007
2008
2009
Bruce Shaw Forecast
DKM
2010
(F)
BS
2010
(F)
BS
2011
(F)
BS
2012
(F)
Construction Output 2007-2011
Change in Value of Output (%)

Construction Output as % of GNP
2008
2009
2010 (f)
2011 (f)
38,601
32,593
18,048
11,733
8,500
0%
-16%
-45%
-35%
-28%
23.7
21.1
13.7
9.2
6.8
2007
2008
2009
2010
2011(f)
163,413
154,673
132,233
128,207
125,500
5.4%
-5.3%
-14.5%
-3.0%
-2.1%
Source: DKM /
Department of the
Environment /
Bruce Shaw
Value of Output at Current Prices (m)
2007
Gross National Product (GNP) 2007-2011
% Change in GNP
24
BRUCE SHAW
HANDBOOK 2012
Source: CSO /
ESRI
GNP at Current Prices (m)
SECTION
IRELAND
Construction Purchasing Managers Index Report June 2001January 2012

70
50 = no change on previous month
60
50
40
30
Increasing rate of contraction
20
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Ulster Bank Construction PMI
Dec-10
Mar-11
Jun-11
Sep-11
Dec-11
Jan-12
Total Activity (graphed above)
40.6
46.1
40.5
40.1
49.9
46.4
Housing
45.5
47.0
41.0
36.6
52.3
47.2
Commercial
41.7
47.0
42.3
44
49.8
51.3
Civil Engineering
30.2
43.3
32.8
37.2
42.9
37.7
Historical Property Performance Total Return % 19962011

15
600
% return per quarter
10
800
Source; IPD / SCSI
1,000
-5
Index Value (shaded area)
400
-10
200
-15
-20
Dec. 96
All Property Index
Dec. 01
All Property
Dec. 06
Retail
Office
BRUCE SHAW
Dec. 11
Industrial
HANDBOOK 2012
25
3
IRELAND
Source; Ulster Bank
Increasing rate of growth
IRELAND
Bruce Shaw Tender & Cost Indices

The rst half of 2011 saw Irish construction tender
prices bottoming out and the Bruce Shaw Tender
Price Index, which is shown graphically below, shows
that prices rose in the full year by 2%. Prices are still at
levels not seen since the late 1990s but it seems that
the race to the bottom has halted. Contractors and
sub-contractors have realised that below cost
tendering is not sustainable in the long run, as
evidenced by some well publicised company failures.
Looking forward, all sectors of the industry, both
public and private, remain very depressed with a
shortage of work in all categories. This will mean that
prices will remain very competitive but we predict
that they will rise by a further 3% during 2012. In later
years we predict that prices are then likely to increase
generally in line with ination from 2013/14 onwards.
For Clients this means that project budgets spanning
a number of years will once more have to allow for
future tender price ination.
Contractors and sub-contractors

have realised that below cost tendering
is not sustainable in the long run
It is important to distinguish between construction
input costs and tender prices. The former reect the
actual costs of labour and materials while the latter

reect market trends of supply and demand.
Irish construction labour rates, which remained
unchanged since January 2008, were reduced by
7.5% in February 2011 after prolonged negotiations
with the construction trade unions. The prices of
some materials are reducing also but by less than
might be expected since local manufacturers are
experiencing smaller production volumes and
imported commodities such as steel and copper
reect global demand. Overall the Bruce Shaw
Construction Input Cost Index declined by 2% in
2011 and we predict that it will fall by a further 1%
in 2012 and will then bottom out at that level.
The small increase in tender prices coupled
with the small decrease in construction input
costs is shown as a narrowing of the gap between
the two bars on the graph below and this is to be
welcomed as a sign of reality starting to come
back into the marketplace. However prices
remain very competitive and we reiterate our
advice to Clients from last years Handbook
that they should look carefully at the nancial
strength of contractors and their ability to obtain
performance guarantee bonds before entering
into construction contracts.
Bruce Shaw Tender Price & Cost Indices 2001-2012

Source: Bruce Shaw
190
180
170
160
150
140
130
120
110
100
2001
2002
Average Tender Price
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012(f)
Construction Input Cost
Tender % 6
-2
-4
-12
-17
-6
Cost %
-2
-3
-2
-1
26
BRUCE SHAW
HANDBOOK 2012
SECTION
IRELAND
SCSI Tender Price Index 2001-2011
150
145
140
135
130
125
120
115
110
105
100
1h 2h
2001
1h 2h
2002
1h 2h
2003
1h 2h
2004
1h 2h
2005
1h 2h
2006
1h 2h
2007
1h 2h
2008
1h 2h
2009
1h 2h
2010
1h 2h
2011
2008
2009
2010
2011*
Consumer v Construction Price Ination 2001-2011

Source: CSO / Bruce Shaw
15%
10%
5%
0%
-5%
-10%
-15%
-20%
2001
2002
2003
Construction Price Ination
2004
2005
2006
Consumer Price Ination
2007
*2011 Consumer Price Ination gure based on Jan 11-Nov 11
Annual Numbers Employed in Construction (000s)

Source: CSO
280
260
240
220
200
180
160
140
120
BRUCE SHAW
HANDBOOK 2012
Jul-Sep 11
Apr-Jun 11
Jan-Mar 11
Jul-Sep 10
Oct-Dec 10
Apr-Jun 10
Jan-Mar 10
Jul-Sep 09
Oct-Dec 09
Apr-Jun 09
Jan-Mar 09
Jul-Sep 08
Oct-Dec 08
Apr-Jun 08
Jan-Mar 08
Jul-Sep 07
Oct-Dec 07
Apr-Jun 07
Jan-Mar 07
Oct-Dec 06
Jul-Sep 06
Apr-Jun 06
Jan-Mar 06
Oct-Dec 05
Jul-Sep 05
Apr-Jun 05
Jan-Mar 05
100
27
3
IRELAND
Source: Society of Chartered Surveyors Ireland
155
IRELAND
Bruce Shaw Average Irish Construction Costs 2012

The average construction costs table is generated using Bruce Shaws Cost Database and sets out typical
building construction costs. Our database is the largest construction cost database in Ireland.
Average Costs
Cost Range
M&E
Suburban Naturally Ventilated

Shell & Core
1,100
1,450
Developer Standard
1,200
150
Shell & Core

Developer Standard
Extra for Air Conditioning
per sq.m
10-15%
1,550
per sq.m
15-20%
300
per sq.m
1,450
2,050
per sq.m
15-20%
1,600
2,250
per sq.m
20-25%
City Centre Air Conditioned
Office Fit Out

95% Open Plan, No Catering
400
600
per sq.m
20-30%
75% Open Plan, Limited Catering
600
800
per sq.m
20-30%
60% Open Plan, Full Catering
800
1,200
per sq.m
25-35%
1,250
1,550
per sq.m
25-35%
950
2,600
each
Shell & Core
700
1,250
per sq.m
20-25%
Developer Standard
800
1,250
per sq.m
25-45%
Estate House (Approx. 100 sq.m)
950
1,200
per sq.m
10-20%
Developer Standard Apartments
1,200
1,750
per sq.m
10-20%
Corporate HQ
Open Plan Work Station
High Tech Industrial
Residential
Individual House Rebuilding Costs
UCD Science Centre South
28
BRUCE SHAW
HANDBOOK 2012
(see page 34)
Source: Bruce Shaw
Commercial Offices
SECTION
IRELAND
3
Average Costs
Cost Range
M&E
600
750
per sq.m
Unit Shops
800
1,200
per sq.m
10-15%
10-15%
Mall
1,400
2,500
per sq.m
20-25%
Retail Fit Out
1,100
1,550
per sq.m
25-30%
145,000
455,000
per hectare
Site Development Business Parks

Roads & Primary Services
Warehouses
Without Offices
550
700
per sq.m
8-12%
With 10% Offices
650
1,000
per sq.m
10-15%
Healthcare
Acute Hospitals, Average Costs
2,200
2,550
per sq.m
20-30%
Ward Blocks
1,850
2,200
per sq.m
20-25%
General Operating Theatres
3,300
6,200
per sq.m
45-60%
Nursing Homes
1,600
2,350
per sq.m
20-25%
Accident & Emergency
2,300
3,300
per sq.m
25-30%
Car Park
Surface
1,000
1,250
per space
Multi-Storey
8,200
16,500
per space
Single Level Basement
11,750
26,050
per space
Double Level Basement
15,350
33,700
per space
930*
per sq.m
10-15%
Education
Primary Level (DOE Jan 11)
Second Level (DOE Jan 11)
930*
per sq.m
15-20%
1,300
2,100
per sq.m
20-25%
1,400
2,350
per sq.m
25-35%
250
600
per sq.m
Restaurant
1,500
2,250
per sq.m
25-35%
Cinema
1,200
1,950
per sq.m
20-30%
850
1,300
per sq.m
10-15%
1,900
2,600
per sq.m
20-35%
Third Level
Leisure
Hotel Building
FF&E
Sports Hall
Swimming Pool
Municipal
Fire Station
1,750
2,100
per sq.m
15-25%
Prison
1,600
2,300
per sq.m
20-30%
Courthouse
2,350
3,000
per sq.m
20-30%
Note: Costs are based on January 2012 prices.

Average costs as indicated should not be used for insurance valuation purposes. The costs are representative of typical specications for each
type of project. Unique designs or challenging sites may not be within the cost range shown. The rates shown are average construction build
only costs and do not include VAT, professional fees or allow for future ination.
* Basic Building Cost only (incl. VAT). External allowances of 12.5% and abnormal costs should be added.
BRUCE SHAW
HANDBOOK 2012
29
IRELAND
Anchor Unit
Source: Bruce Shaw
Shopping Centres
IRELAND
Blackrock Clinic
Basic Hourly Wage Rates

General Operative
Grade A
Grade B
Grade C
Grade D
1 October 2005
16.85
16.34
15.33
14.83
13.48
1 April 2006 (3%)
17.36
16.84
15.80
15.28
13.89
1 October 2006 (2%)
17.71
17.18
16.12
15.58
14.17
1 July 2007 (2.5%)
18.15
17.61
16.52
15.97
14.52
1 January 2008 (2.5%)
18.60
18.04
16.93
16.37
14.88
4 February 2011 (-7.5%)
17.21
16.69
15.66
15.14
13.77
Source: Registered Agreement for the

Construction Industry
Craftsman
Basic Hourly Wage Rate Mechanical & Electrical
1st October 2005
16.85
1st April 2006 (3%)
17.36
1st October 2006 (2%)
17.71
1st July 2007 (2.5%)
18.15
1st January 2008 (2.5%)
18.60
4th February 2011 (-7.5%)
17.21
Electrical
1 April 2004
18.98
1 April 2005
19.72
1 April 2006
20.39
1 April 2007
21.49
1 September 2009
22.03
1 January 2010
22.56
30
BRUCE SHAW
HANDBOOK 2012
Source: MEBSCA / ECA
Mechanical
SECTION
IRELAND
The Top Irish Main Contractors

Firm
Revenue m
2010
Revenue m
2011
2010
JOHN SISK & SON LTD
568.25
420.00*
BAM CONTRACTORS LTD.
270.30
250.00
WALLS CONSTRUCTION LTD.
169.04
180.00
P.J. HEGARTY & SONS LTD.
125.00
80.00
JOHN PAUL CONSTRUCTION LTD.
108.77
71.50
128.00**
60.00***
44.00
58.00
118.00
44.00
50.00
42.30
SIAC CONSTRUCTION LTD.
13
J.J. RHATIGAN & CO LTD.
ROADBRIDGE LTD.
11
BENNETT (CONSTRUCTION) LTD.
10
14
COLLEN CONSTRUCTION LTD.
33.12
37.15
11
12
GLENMAN CORPORATION LTD.
27.80
28.50
12
G&T CRAMPTON LTD.
21.00
26.46
13
MDY CONSTRUCTION LTD.
23.44
20.00
14
15
LAING OROURKE IRELAND LTD.
25.12
16.10
15
BRIAN MCCARTHY CONTRACTORS LTD.
14.64
14.00
Notes:
* This gure is Irish turnover only. Total worldwide t/o gure for Sisk
in 2011 was 958m
** This gure is Irish turnover only. Total worldwide t/o gure for SIAC
in 2010 was 138m
*** This gure is Irish turnover only. Total worldwide t/o gure for SIAC
in 2011 was 177m
This gure is Irish turnover only. Total worldwide t/o gure for
Roadbridge in 2010 was 143m
This gure is Irish turnover only. Total worldwide t/o gure for
Roadbridge in 2011 was 175m
The Top Irish Services Sub-Contractors Turnover

Firm
2010
Revenue m
2010
Revenue m
2011
MERCURY ENGINEERING GROUP
204.23
265.00*
JONES ENGINEERING LTD.
121.36
150.00
DORNAN ENGINEERING LTD.
71.90
73.90
KIRBY GROUP ENGINEERING LTD.
57.91
64.84
SUIR ENGINEERING LTD.
49.85
52.16
L. LYNCH & CO. LTD.
33.64
46.17
WINTHROP ENGINEERING LTD.
38.32
37.74
DESIGNER GROUP
30.90
31.71
11
LYNSKEY ENGINEERING LTD.
17.62
23.00
10
12
ROTARY M & E SERVICES (IRELAND) LTD.
16.85
15.80
11
10
PRECISION ELECTRIC (IRELAND) LTD.
20.61
14.81
12
13
T. BOURKE & CO. LTD.
9.03
6.75
Source: Individual Companies Information / Companies Registration Office
Rank
2011
* This gure is Irish turnover only. Total worldwide turnover gure for Mercury Engineering Group in 2011 was 535m
BRUCE SHAW
HANDBOOK 2012
31
3
IRELAND
2011
Source: Individual Companies Auditors / Companies Registration Office
Rank
IRELAND
Looking forward,
there are some
glimmers of hope
that 2012 will
see construction
output bottom out
after 5 years of
massive decline.
SECTION
IRELAND
Annual Housing Completions 20012011
2001
4,875
9.3%
2002
5,763
10.0%
2003
6,133
8.9%
2004
5,146
2005
2006
2007
6,671
Private
Total
47,727
90.7%
52,602
51,932
90.0%
57,695
62,686
91.1%
68,819
6.7%
71,808
93.3%
76,954
5,559
6.9%
75,398
93.1%
80,957
5,208
5.6%
88,211
94.4%
93,419
8.5%
71,356
91.5%
78,027
2008
6,801
13.1%
44,923
86.9%
51,724
2009
5,344
20.2%
21,076
79.8%
26,420
2010
N/A
N/A
N/A
N/A
14,602
2011
N/A
N/A
N/A
N/A
10,480
Total
52,202
New Housing Completions by Type 20012011

House
Apartment
2001
41,576
79.6%
10,626
20.4%
2002
45,657
79.7%
11,638
20.3%
57,295
2003
53,580
78.3%
14,839
21.7%
68,419
2004
60,448
79.0%
16,106
21.0%
76,554
2005
62,522
77.6%
18,035
22.4%
80,557
2006
73,073
78.6%
19,946
21.4%
93,019
2007
58,936
75.9%
18,691
24.1%
77,627
2008
38,513
75.0%
12,811
25.0%
51,324
2009
21,272
80.5%
5,148
19.5%
26,420
2010
12,514
85.7%
2,088
14.3%
14,602
2011
9,140
87.2%
1,340
12.8%
10,480
BRUCE SHAW
HANDBOOK 2012
Source: Department of the Environment,

Heritage & Local Government
Housing
Completions
33
3
IRELAND
Social
Source: Department of the Environment,

Heritage & Local Government
Housing
Completions
IRELAND
SCSI Rebuilding Costs per sq.m March 2011
Semi Detached
Typical
Size
Dublin
Area
Cork
Area
Galway
Area
Waterford
Area
Limerick
Area
70 sq.m
1,820
1,402
1,375
1,373
1,395
95 sq.m
1,743
1,320
1,295
1,304
1,316
95 sq.m
1,759
1,339
1,317
1,314
1,321
118 sq.m
1,738
1,319
1,301
1,291
1,277
Detached
118 sq.m
1,767
1,338
1,307
1,332
1,332
Detached Bungalow
146 sq.m
1,707
1,314
1,277
1,253
1,350
The table is a guideline based on a typical speculative built, estate type house in the Dublin, Cork, Galway,
Waterford and Limerick Areas.
Notes:
1. The gures shown in the table are a minimum base cost guide for
your house insurance.
4.
House contents such as carpets, curtains, furniture, etc. are not

covered by the gures.
2.
5.
No allowance has been made for the cost of out-buildings, patios

or boundary walls. The gures do however allow for a concrete path
around the house, for driveway repairs and regrassing.
6.
The gures allow for demolition costs, professional fees incurred

in reinstatement and VAT at 13.5% on building costs and 21% on
professional fees.
7.
The amounts included for professional fees have been calculated

to cover the following services: Building Surveyor / Architect and
Quantity Surveyor.
8.
The costs are based on building rates ruling in March 2011 and
do not include for ination during the duration of the policy and
the period between any loss occurring and reinstatement.
3.
The gures are based on estate type houses built since the 1960s.
They exclude; (a) Properties with more than 2 storeys or with
basements or habitable attics (b) One-off houses with special design
features or period houses (c) Apartment / residential ats because of
split responsibilities for shared areas. The insurance of apartments is
covered in the block service charge. Owners should conrm with their
management companies / agents that their apartment block has been
valued for insurance purposes, and that the insured value is current.
The gures assume a basic quality specication with normal
foundations, brick or block walls, concrete tiled roof, concrete ground
oor and timber rst oor, softwood ush doors and hardwood
double glazed windows, painted plaster to walls, plastered ceilings,
standard electrics and central heating. The sum insured should be
increased to allow for better than average kitchen ttings, built-in
wardrobes, nishes and any other items not normally included
in an estate type house (e.g. re alarm).
St. Vincents Private Hospital
Citi Bank, City RDiL Project
34
BRUCE SHAW
HANDBOOK 2012
Source: SCSI
Terraced
No. of
Bedrooms
SECTION
IRELAND
3
IRELAND
Christchurch Cork, refurbishment and conservation of a listed building
Planning Charges 2012

Charge
Most Building Types
80 or 3.60 per sq.m whichever is greater
New Houses
65 for each dwelling
House Alterations
34
Golf Courses
50 per hectare
Outline Planning Permission
75% of full planning permission charge
Source: Local Planning Authorities
Class of Development
Maximum Scale of Charges for Planning Applications

Full Application Most Building Types
38,000
Outline Application Most Building Types
28,500
Retention Application
125,000
Fire Certicate Charges 2012

Charge
Option 1
Standard Application
2.90 per sq.m up to a maximum of 12,500
Option 2
A Seven Day Notice Application
Option 3
A Revised Fire Safety Certicate Application
Option 4
A Regularisation Fire Safety Certicate Application
11.60/sq.m up to a maximum of 50,000
BRUCE SHAW
HANDBOOK 2012
Source: Local Planning Authorities
Type of Application
35
36
BRUCE SHAW
HANDBOOK 2012
UNITED KINGDOM 4
BRUCE SHAW
HANDBOOK 2012
37
UNITED KINGDOM
UK Market Review
After a number of challenging years in the UK
construction industry the prospects for 2012 do not
indicate any signicant improvement in activity. The
continued combination of factors such as the lack of
access to debt nance for development, the lack of
mortgage availability for new house purchasers, the
lack of grant funding from the HCA for affordable
homes, the UK governments continued reduction in
capital spending as well as rising ination continue to
keep the prospect of a sustained recovery subdued.
The south-east and particularly

London are enjoying signicantly
more activity.
The UK Government spending cuts announced in
late 2010 have begun to make a signicant impact
on the sector during 2011 and will continue to
do so through 2012. This places more pressure on
the private sector to make up the shortfall. After a dip
during 2010 according to the Construction Products
Association (CPA), the construction sector did
actually increase its output in 2011 by around 4%
but we expect a smaller growth of 2% to 3% in 2012.
The CPA has estimated that the value of work in the
sector will increase from 109bn in 2011 to 112bn
in 2012. Since the peak in Q42007, data from the
Office for National Statistics shows that orders for
all new work have dipped in between but have
now risen back to 2007 levels while the repairs and
refurbishment sector has experienced a signicant
fall. The new work growth is mainly propped up by
a recent increase in private housing as well as some
signicant infrastructure and energy projects. This
also has led to a modest increase in construction
employment.
The Consumer Prices Index has now risen to 4.8%
at the end of 2011 but like 2010, we have not seen in
2011 the increases in material costs translating into
equivalently higher tender costs as contractors
38
BRUCE SHAW
HANDBOOK 2012
continue to absorb the bulk of increased costs before

passing them on to Clients in tenders. For Clients
wishing to commission construction work it
continues to present a great opportunity to secure
very competitive prices. We have seen tender prices
largely remaining stagnant in 2011 and believe that
in 2012, they will remain fairly static or increase
modestly. However the compound effect of
increases in raw materials, a potentially smaller
supply chain and wage pressures is generating
a belief that tender prices will begin to escalate
slowly from early 2013.
We are continuing to predict that the ongoing
lack of bank nancing for development along
with stricter lending conditions will constrain
speculative development in the commercial sector
and will therefore continue to restrict growth in
the private sector.
Despite the negatives above, there are likely to be
some bright spots. The modest pick-up in housing
starts will enable some parts of the industry to enjoy
increased activity in 2012. In terms of regions, the
south-east and particularly London are enjoying
signicantly more activity while the other UK
regions including Northern Ireland are seeing
little improvement in activity. There is an anticipation
that the optimism that will come from the London
Olympic Games themselves together with some
legacy projects may stimulate some increased
construction activity in London and throughout
the UK. The recovery in the commercial sector,
particularly in London, should continue as a number
of high prole projects have commenced and are
due to start on site in the coming months.
The commencement of the Crossrail on-site works
and station upgrades and the HS2 announcement
will bring some optimism to the Civil Engineering
sector and while most of the Crossrail projects have
been awarded, it will be some years until the HS2
impact will translate into construction activity.
SECTION
UNITED KINGDOM
4
UNITED KINGDOM
46-48 Grosvenor Gardens
UK Construction Output bn 2001-2012

Source: National Office for Statistics,
Construction Statistics Branch
140
120
100
80
60
40
20
0
2001
2002
New Work
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Repair & Maintenance
2010 Public Sector Output bn
New Housing 4.8

Infrastructure 4.9
Industrial 0.1
Education 7.7
Healthcare 2.4
Offices 1.0
Entertainment 1.2
Retail 0.3
Miscellaneous 1.5
2010 Private Sector Output bn
New Housing 14.3

Infrastructure 7.8
Industrial 3.6
Education 2.2
Healthcare 2.1
BRUCE SHAW
Offices 6.1
Entertainment 4.7
Retail 5.6
Miscellaneous 2.6
HANDBOOK 2012
39
UNITED KINGDOM
UK Tender Price Index 2001-2012

Source: BCIS. Tender Price Indices National
300
250
200
150
100
50
0
2001
Tender %
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012(f)
7%
3%
15%
0%
3%
8%
-4%
-12%
-4%
9%
1%
UK Regional Tender Price Index 2011

Source: BCIS. Tender Price Indices Regional
215
210
205
200
195
190
185
East
Anglia
North
West
Scotland Northern
Ireland
Yorks &
Humber
Victoria Palace Theatre
40
BRUCE SHAW
HANDBOOK 2012
North
East
Wales
South
East
West
Midlands
East
Midlands
South
West
Greater
London
SECTION
UNITED KINGDOM
4
UNITED KINGDOM
Resource Cost Index of Non-Housing Building 2001-2012

Source: National Office for Statistics
240
220
200
180
160
140
120
100
2001
2002
2003
2004
2005
2006
2007
Labour & Plant
Combined Index
2008
2009
2011
2012(f)
Materials
The trend of low tender prices and overall increase in materials price is set to continue. A slow rise in steel and reinforcement prices combined
with a decrease of 6% in labour costs which is forecast to continue in 2012 may offset the increase on general plant and building material
prices.
Number of Employed and Self-Employed in Construction: UK

000s
2,700
2,600
2,500
2,400
2,300
2,200
2,100
2,000
Q1
Q2 Q3
2005
Q4
Q1
Q2 Q3
2006
Q4
Q1
Q2 Q3
2007
Q4
Q1
Q2 Q3
2008
Q4 Q1
Q2 Q3
Q4
Q1
Q2 Q3
2009
BRUCE SHAW
2010
Q4
Q1
Q2 Q3
Q4
2011
HANDBOOK 2012
41
UNITED KINGDOM
Standard Hourly Base Rates for Labour 2011

Base rate
Building Craft Operative
13.21
Building Skill Rate 1
12.59
12.11
11.32
10.68
Building General Operative

Technical Plumber
9.90
Source: BCIS.
Standard Hourly Base Rates for Labour.
Job Type
19.06
HVAC Senior Craftsman
17.16
Electrical Technician
23.03
Mechanical Technician
23.03
The Top UK Main Contractors
42
Firm
Turnover
bn
BALFOUR BEATTY
6.74
LAING OROURKE
3.53
CARILLION
2.72
KIER
1.42
SKANSKA CONSTRUCTION
1.28
MORGAN SINDALL
1.25
BOVIS LEND LEASE
1.09
12
KELLER
1.07
10
COSTAIN
1.02
2010
2
3
10
BAM CONSTRUCT UK
1.01
11
14
WATES GROUP
0.98
12
11
INTERIOR SERVICES GROUP
0.97
13
45
BOUYGUES GROUP
0.94
14
GALLIFORD TRY
0.94
15
20
MACE GROUP
0.85
16
18
WILLMOTT DIXON GROUP
0.78
17
17
INTERSERVE
0.74
18
16
VINCI
0.72
19
21
BAM NUTTALL
0.69
20
13
NEWARTHILL (SIR ROBERT MCALPINE)
0.67
BRUCE SHAW
HANDBOOK 2012
Source: Building Magazine
Rank
2011
SECTION
UNITED KINGDOM
The Top UK Architects

Firm
Staff
FOSTER & PARTNERS
315
ATKINS
228
CAPITA SYMONDS
176
AEDAS
155
15
NPS PROPERTY CONSULTANTS LTD
128
3DREID
126
9=
ARCHIAL GROUP PLC
117
PRP ARCHITECTS
111
10
13
PM GROUP/DEVEREUX ARCHITECTS
90
11
9=
NIGHTINGALE ASSOCIATES
87
12
18
STRIDE TREGLOWN LTD
84
13
17
LEWIS & HICKEY LTD
82
BUILDING DESIGN PARTNERSHIP
360
14
16
PURCELL MILLER TRITTON LLP
79
15
20
PASCALL & WATSON ARCHITECTS
74
16
22
ALLFORD HALL MONAGHAN MORRIS LTD
66
17
23
FEILDEN CLEGG BRADLEY STUDIOS LLP
66
18
URS SCOTT WILSON
64
19
31
TP BENNETT
59
20
AECOM
58
Note: Ranked by number of Chartered Architects registered as of 2011
The Top UK Engineering Firms

2010
Firm
Staff
ATKINS
2,218
URS SCOTT WILSON
1,893
MOTT MACDONALD
1,705
JACOBS ENGINEERING UK LTD
1,135
ARUP GROUP LTD
1,118
AECOM
1,022
HALCROW GROUP LTD
990
CAPITA SYMONDS
691
PARSONS BRINCKERHOFF LTD
686
10
WATERMAN GROUP PLC
589
11
WSP GROUP PLC
372
12
RAMBOLL
369
13
10
WHITE YOUNG GREEN GROUP LTD
361
14
11
BURO HAPPOLD LTD
299
15
13
HOARE LEA & PARTNERS
260
16
14
W A FAIRHURST & PARTNERS
220
17
15
MACE
206
18
22
HILSON MORAN
150
19
16=
TPS
148
20
21
HURLEYPALMERFLATT
138
Rank
2011
Note: Ranked by number of Chartered Engineers registered as of 2011
BRUCE SHAW
HANDBOOK 2012
43
4
UNITED KINGDOM
2010
Rank
2011
UNITED KINGDOM
Bruce Shaw Average UK Construction Costs 2012

Average Costs
Cost Range
Over 20 storey offices premium grade facilities and common nishes

with lifts, provision for air conditioning, and sprinklers excluding
Developers CAT A tout
2,250
2,500
per sq.m
Over 20 storey offices A grade common nishes with lifts, provision

for air conditioning, and sprinklers excluding Developers CAT A tout
1,950
2,250
per sq.m
Up to 20 storey offices medium grade facilities and common

nishes with lifts, provision for air conditioning and sprinklers excluding
1,650
1,950
per sq.m
Up to 8 storey offices medium grade facilities and common nishes

with lifts, provision for air conditioning, and sprinklers excluding
1,200
1,550
per sq.m
Up to 2 storey offices - medium grade facilities and common nishes

with provision for air conditioning, no lift and no sprinklers excluding
800
1,050
per sq.m
Developers CAT A tout including raised oors, carpets, ceilings, fan coil
units with ducts and grilles, lighting and power distribution
300
500
per sq.m
Category B t-out from institutional Category A specication; standard

corporate accommodation; open plan 15 per cent offices
500
1,350
per sq.m
1,000
2,250
per sq.m
1,250
1,500
per sq.m
750
950
per sq.m
Category B t-out from institutional Category A specication; standard

corporate accommodation; banking / legal 50 per cent offices / cellular
Retail
Regional shopping complex high standard including major stores,
specialty shops and enclosed malls
Suburban supermarkets; excluding tout
Retail Park; shell excluding t-out
850
1,250
per sq.m
Fit out of small food store < 4,500 sq ft
2,000
2,250
per sq.m
Fit out of large store with food and general merchandise < 50,000 sq ft
1,800
2,150
per sq.m
Fit out of large full-range department store < 100,000 sq ft
1,950
2,750
per sq.m
Single project home up to 250 sq.m medium standard, double brick

with normal site cost for at site
650
1050
per sq.m
2 storey townhouse medium standard
900
1,250
per sq.m
2 storey townhouse high standard
1,050
1,500
per sq.m
3 storey apartments medium standard
1,050
1,300
per sq.m
3 storey apartments high standard, air conditioning
1,350
1,700
per sq.m
Multi storey apartments medium standard
1,300
2,000
per sq.m
Multi storey apartments high standard, air conditioning
1,750
2,750
per sq.m
2 star medium standard, minimal F+B / dining facilities, no air conditioning
25,000
35,000
per key
3 star hotel, restaurant, public areas, comfort cooling, no conferencing
40,000
50,000
per key
4 star hotel, restaurant, public areas, air conditioning, conferencing
120,000
150,000
per key
5 star hotel, multiple restaurants, public areas, air conditioning,

banqueting, wellness
300,000
450,000
per key
Super luxury 6 star hotel, multiple, public areas, air conditioning,

banqueting, wellness
500,000
650,000
per key
Residential
Hotels (New Build excluding FF&E)
44
BRUCE SHAW
HANDBOOK 2012
Source: Bruce Shaw
Commercial Offices
SECTION
Average Costs
UNITED KINGDOM
Cost Range
400
550 per sq.m
Up to 10m high warehouse basic standard, metal clad walls,

no sprinklers (over 5,000 sq.m)
400
500 per sq.m
Up to 10m high warehouse medium standard, precast walls,

no sprinklers (up to 5,000 sq.m)
450
600 per sq.m
Up to 10m high warehouse medium standard, precast walls,

no sprinklers (over 5,000 sq.m)
400
500 per sq.m
Up to 10m warehouse high standard, precast walls, sprinklers

(up to 5,000 sq.m)
600
750 per sq.m
Up to 10m high warehouse high standard, precast walls, sprinklers (over

5,000 sq.m)
450
600 per sq.m
Truck hardstand, 175 RC slab, drainage, line marking
100
150 per sq.m
Open bitumen car parking, drainage, line marking (30 sq.m/car)
100
150
per sq.m
Multi storey (above ground), concrete structure, lift, no mechanical

ventilation, no sprinklers (30 35 sq.m/car)
600
750
per sq.m
1,100
1,300
per sq.m
Tier Level 2 Fit out of existing shell, fully built (day 1 & 2), technical load
between 1,000-1,500 kW/sq.m
5,000
8,000
per
kilowatt
(IT load)
8,000
11,000
per
kilowatt
(IT load)
12,000
16,000
per
kilowatt
(IT load)
Car Parking
Underground, concrete structure, excavation, lifts, mechanical ventilation,

sprinklers (35 40 sq.m/car)
Data Centre
(excludes shell construction, incoming power & fibre upgrades,
comms equipment)
Approximate Regional Variance

Region
Wales
Midlands
East
South West
North
Factor
0.96
0.97
1.00
0.98
0.91
Region
Factor
South East
London
Scotland
Northern Ireland
1.09
1.12
0.96
0.85
Notes:
1. All costs exclude VAT and professional fees.
2. Costs based on January 2012 prices.
3. Average costs as shown should not be used for insurance valuation purpose.
4. The costs are representative of typical specications for each type of building and do not account for any site abnormal costs.
BRUCE SHAW
HANDBOOK 2012
45
4
UNITED KINGDOM
Up to 10m high warehouse basic standard, metal clad walls,

no sprinklers (up to 5,000 sq.m)
Source: Bruce Shaw
Industrial
UNITED KINGDOM
House Building Starts and Completions 2001-2011

70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2001
2002
2003
Housebuilding Starts
2004
2005
2006
2007
2008
2009
2010
2011
Housebuilding Completions
Average Procurement Lead-in Times in Weeks

5
10
15
Piling (Rotary)
Piling (Precast)
Concrete Works
Structural Steel Frames
Cladding (Reconstituted Stone)
Cladding (Natural Materials)
Cladding (Metal Panellised)
Cladding (Curtain Walling)
Atrium Roofs
Roof Finishes - Proled Metal
Faade cleaning equipment
Brickwork
Blockwork
Metal doors
Drylining
Demountable Partitions
General Joinery
Specialist Bespoke Joinery
Raised Floors
Suspended Ceilings
Architectural Metalwork
Decorative Wall Coverings
Internal Stone Floors & Walls
Soft Floor Finishes
Passenger Lifts (Non-standard)
Escalators
Mechanical Packages
Ductwork
Electrical Packages
Controls
Notes: All times based on generic 5 storey 100,000 sq.ft. office block in city. As of July 2011.
46
BRUCE SHAW
HANDBOOK 2012
20
25
30
35
SECTION
UNITED KINGDOM
The UK Housing Market 2012
Sales activity for housing has hit its lowest level in a

decade. The RICS Housing Market Survey shows that
sales were slightly higher than earlier in the year. New
NHBC home registrations also fell in 2011 by 0.38%
and London has found that the number of homes
changing hands is at a third of levels seen during the
property boom. This is despite the fact that London
outperforms other UK regions and is forecast to
continue to do so during 2012. However, prime sites
are still scarce.
The housing market is more buoyant in the south
specically in London, however the current mortgage
market is dictating sales gures. Lenders are reluctant
to lend which limits builders building and buyers
buying. Despite this, house loans have grown since
November 2011 and are expected to continue to
grow in the months before March 2012; when
rst-time buyers will not be eligible to exemption
from stamp duty.
The Government introduced a Housing Strategy in
November 2011 whereby it included a scheme to
encourage more rst-time buyers onto the property
ladder as these had dropped from 40% of the market
share to 23% since July 2009. It also proposed a

400m Get Britain Building Investment Fund aimed
at tackling stalled sites with an aim of freeing up
public sector land with the capacity to build 100,000
new homes.
In 2011 only 103,000 new homes were built.
However, projections show that with population
growth, an increase of 232,000 new homes per year
is needed.
The Government intends to invest 4.5bn in their
Affordable Homes Programme between 2011 and
2015. Approximately 146 providers will aim to deliver
80,000 new homes for Affordable Rent and
Affordable Home Ownership with the help of
Government funding of 1.8bn.
The Land Registry statistics demonstrate that London
is the only region in England and Wales to show an
increase in its average property price over the last 12
months with a movement of +1.4%. The largest fall of
-5.4% was experienced by the north east. Out of 33
London Boroughs, the City of Westminster showed
the largest annual increase of +7.1% and Havering the
largest decrease of -3.3%.
Despite encouraging housing sales gures towards
the end of 2011, the fragile state of the economy and
instability in the Eurozone means the housing market
faces another tough year ahead.
38 Grosvenor Gardens Mews
BRUCE SHAW
HANDBOOK 2012
47
4
UNITED KINGDOM
Condence in the UK housing market is at rock

bottom and Britain faces a housing shortage of one
million homes by 2015 if construction fails to match
the ever growing population.
UNITED KINGDOM
2012 Olympics
On 27 July 2012 the world will be watching London
as the opening ceremony of the 2012 Olympics is
launched. This ceremony gives the world an
opportunity to experience the artistic demonstration
of Oscar award winning lm director Danny Boyle
and his creative team. It also gives our host city and
the rest of the UK a chance to show off a rich and
diverse culture. The Olympic Games will run from
27 July until 12 August, and the Paralympic Games
from 29 August to 9 September.
The 500 acre Olympic Park site comprises the main
stadium, aquatics centre, smaller stadia and the
Athletes Village. Westeld Stratford City sits next door
to the Olympic Park, and with a total retail oor
area of 1,883,700 sq.ft (175,000 sq.m) it is the largest

urban shopping centre in Europe.
Post Olympics, the Village is to be converted into
homes targeted at key workers. Further housing,
along with shops, restaurants and cafes will provide
new amenities for the local community, while the
stadium is to remain an athletic centre.
It is hoped that the Olympic Games will offer
our economy the upturn it needs to help bring it
out of the recession. It has been predicted that
the UKs prime housing market will surge as the
2012 Olympics attract new international buyers
to the country.
Primark, Stratford City
Euro v Sterling 2005-2012

0.94
0.92
0.90
0.88
0.86
0.84
0.82
0.80
0.78
0.76
0.74
0.72
0.70
0.68
0.66
0.64
48
BRUCE SHAW
HANDBOOK 2012
Jan-12
Sep-11
May-11
Jan-11
Sep-10
May-10
Jan-10
Sep-09
May-09
Jan-09
Sep-08
May-08
Jan-08
Sep-07
May-07
Jan-07
Sep-06
May-06
Jan-06
Sep-05
May-05
Jan-05
0.62
SECTION
4 UNITED KINGDOM
4
UNITED KINGDOM
It is hoped that the

Olympic Games will
oer our economy
the upturn it needs
to help bring it out
of the recession.
50
BRUCE SHAW
HANDBOOK 2012
MIDDLE EAST 5
BRUCE SHAW
HANDBOOK 2012
51
MIDDLE EAST
Middle East Market Review

GDP in the Gulf Cooperation Council (GCC)
countries is still largely based upon a hydrocarbon
industry as illustrated in the graph below.
Macro economic data indicates that construction

activity in Saudi Arabia grew by 11.6% in 2011 with
ination estimated to be at 4.5% for 2012. Analysts
predict a Saudi Arabian GDP growth forecast of 2.3%
in 2012 sustained by high oil prices and production.
The GCC region as a whole is projected to average
real GDP of 5% in the next 5 years.
In the UAE, the IMF forecasts real GDP to grow

by 3.8% in 2012 and ination to rise from a 2011
forecast of 2% to 3% in 2012.
Moodys Rating Agency have reported a projected
GDP for Bahrain at 3% for 2012, an increase of 1%
from last year. This increase is reportedly due to the
drilling of 200 new oil wells by Tatweer Petroleum
over the past 3 years, with a further 3,000 wells
planned in the next 20 years.
A number of countries in the GCC have introduced

stimulus packages recently, as set out in the
table below.
The overall value of construction projects in the
region during 2011 is illustrated in the graph opposite.
GCC Hydrocarbon Dependence (% of GDP)

Source: National Authorities and Deloitte Analysis
100%
80%
60%
40%
20%
0
Bahrain
KSA
Hydrocarbons
Kuwait
Public Sector / Social Services
Oman
Qatar
UAE
Other
GCC Stimulus Packages

Package
Amount ($m)
Main Package Contents
398
1.5
Provide cash transfers of $ 2,660 each to families
Kuwait
4,320
2.5
Provide free staple food to citizens for the next 14 months together with cash transfers
Oman
825
1.25
Employment for 50,000 Omanis
96,600
16.7
Bahrain
Establishment of monthly unemployment benet of $390

Saudi Arabia
Construct 500,000 housing units, build and expand hospitals

Pay a two month salary bonus to state employees
Increase public sector minimum wage by 19%
Inject capital into specialised credit institutions to facilitate debt write offs and increase
mortgage lending, provide affordable housing and extend social insurance and
employment benets
Expand indenitely the 15% ination allowance for state employees that had been
phased in over the past three years
UAE
1,820
0.5
Infrastructure stimulus programme focusing on the Northern Emirates

70% increase in pensions for military personnel
State subsidies for rice and bread
52
BRUCE SHAW
HANDBOOK 2012
Source: MEED Insight
% of
GDP
Country
SECTION
Value of Projects by Country 2011
MIDDLE EAST
Shown as a percentage of total: $1,206.3bn
National Holding Headquarters, UAE
BRUCE SHAW
HANDBOOK 2012
53
MIDDLE EAST
#BISBJO
0NBO
,VXBJU
2BUBS
4BVEJ"SBCJB
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MIDDLE EAST
Middle East Commodity Prices

Commodity prices were exceptionally volatile
during 2011 as indicated in the table below.
It is expected that the higher commodity prices
will push construction material prices up. These
material price increases will however be softened
by competitive labour rates and tighter margins
to acquire work, therefore suppressing construction
ination.
A shortage of skilled labour in Saudi Arabia and
Qatar coupled with inationary pressures may
also be factors that push already competitive
rates upwards.
Prices of Building Materials in Abu Dhabi
54
Commodity Groups
Tenders in the UAE and Bahrain look set to remain

keen, as contracting companies compete
aggressively for new work.
It is expected that the higher

commodity prices will push
construction material prices up.
Q4 2011 compared to Q4 2010
Percentage change
Q4 2011 compared to Q4 2010
Transport Equipment
30.1%
Aggregate & Sand
19.9%
Tiles & Marble
13.5%
Waterproong Products
11.8%
Steel
11.0%
Roong Materials
6.6%
Paints
6.1%
Wood
4.8%
Diesel
no change
10
Concrete
-2.8%
11
Power Cables
-3.3%
12
uPVC Pipework
-4.1%
13
Glass
-4.2%
14
Natural Stone
-5.9%
15
Blocks
-6.4%
BRUCE SHAW
HANDBOOK 2012
Source: Statistic Centre Abu Dhabi
Ref.
In 2012, it is estimated that tender prices will rise

at a sustainable pace in what are expected to be the
busier markets of Saudi Arabia & Qatar.
SECTION
MIDDLE EAST
5
MIDDLE EAST
Palm Island, UAE
UAE in Brief
The UAE construction market remained in recovery
mode in 2011, continuing on from 2010.
In the emirate of Abu Dhabi the Urban Planning
Council continues to implement its 2030 urban
plans encompassing Abu Dhabi city, Al Ain, and the
Western Region, perhaps at a slower pace than
originally envisaged. From our experience, private
developers have been much less active in Abu
Dhabi, resulting in a more measured level of
residential and commercial construction.
Dubai has recently approved a ve-year plan
that will involve the emirate investing AED1bn
(US$272m) on its road network before the end of
2016, supplementing the US$3.6bn of road projects
that are currently being built in the emirate. The rst
phase of the plan, which is expected to cost about
AED150m, is expected to commence in 2012.
As Client condence in the hospitality sector
improves, so too does demand for new hotels. This
has been evidenced by Bruce Shaw who in 2011
were successful in securing a 600 bed signature
hotel project on Palm Island.
Bahrain in Brief
As widely reported in the media, Bahrain
experienced political unrest in 2011, this unrest
having a notable impact upon construction activity
in the country.
Construction activity in Bahrain dropped by more
than 80% when compared to the previous year.
2012 however is expected to show some recovery
in the construction industry. In January this year,
Bahrains Housing Ministry awarded the rst
PPP social housing scheme in the GCC. The
US$550m project will provide 4,100 housing units.
Reports indicate that the Bahrain government is
currently planning a second phase of its PPP
housing scheme.
Qatar in Brief
Qatar is the only country in the GCC to be ranked
in the top 100 Doing Business index by the World
Bank in 2011. The World Cup is only one part of
Qatars development goals. Its long term plan is
the Qatar National Vision 2030. The newly created
Central Planning Office will oversee the US$60bn
infrastructure drive towards 2030.
BRUCE SHAW
HANDBOOK 2012
55
MIDDLE EAST
Saudi Arabia in Brief

Saudi Arabia continues to be the leading economy
within the GCC. In the table below, a brief summary
is given of the key budgetary allocations for 2012.
In the KSA, more than US$48bn worth of
construction and infrastructure projects were
awarded during the rst three quarters of 2011.
This represented a 125% increase over the same
period in 2010.
Saudi Arabia is facing a massive housing problem
due to rapid population growth and an inow of
workers coming to the Kingdom, which is rolling
out a US$400bn infrastructure spending plan.

Private and public developers need to build about
275,000 units a year through 2015 to meet the
countrys demands for 1.65 million new homes.
Saudi Arabias population is expected to reach
30 million in 2017, double the gure 30 years ago.
Analysis of the Kingdoms population growth to
2030 also shows the number will hit 36.5 million
by the end of the period under review. This
represents a near 40% rise compared to 2010.
Saudi Arabia Key Budgetary Allocations 2012
Education and Manpower
Value (US $)
44.5
740 schools in addition to 2,000 schools to be renovated, plus a further 2900

currently under construction
Health and Social Affairs
23.1
17 new hospitals, plus a further 137 hospitals currently under construction plus
a number of social centres and welfare offices
Municipality Services
7.8
Intercity roads, intersection and bridges as well as sanitary and other

environment related projects
Transportation and Telecommunications
9.4
Includes 4,200 km of roads, along with King Abdullah Jizan Airport,

4 regional airports, port and railroad developments
Water, Agriculture and Infrastructure
15.3
Water desalination plants and infrastructure projects in Jubail and Yanbu sewage
networks.
Total Budget
100.1
Mobily Project, Saudi Arabia
56
BRUCE SHAW
HANDBOOK 2012
Sector/Institution Allocation
SECTION
MIDDLE EAST
Saudi Arabia Housing Requirements by Region
#BIB
/BKSBO
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Outline Construction Cost Comparisons

With offices in the UAE, Bahrain and the Kingdom of Saudi Arabia, Bruce Shaw is successfully working on
a large volume of projects within the GCC region. Tabled below is a summary of indicative construction costs.
Regional Building Cost Comparison (USD/sq.m) 2012

Abu Dhabi, UAE
Manama, Bahrain
Riyadh, KSA
from
to
Base*
from
to
Index*
from
to
Index*
Podium Car Parking
$ 590
$ 720
100
$ 400
$ 480
67
$ 550
$ 650
92
Basement Car Parking
$ 670
$ 830
100
$ 550
$ 600
77
$ 650
$ 780
95
1 Parking
Sources: Bruce Shaw
Ref. Building Type
Date: January 2012
2 Residential Sector
Medium Quality - Villa Units
$ 1,190
$ 1,450
100
$ 840
$ 1,030
71
$ 830
$ 1,020
70
Medium Quality - High Rise
$ 1,100
$ 1,350
100
$ 1,000
$ 1,220
91
$ 980
$ 1,200
89
High Quality - Low Rise Aparts
$ 1,270
$ 1,550
100
$ 1,270
$ 1,400
95
$ 930
$ 1,130
73
High Quality - High Rise
$ 1,490
$ 1,810
100
$ 1,470
$ 1,625
94
$ 1,160
$ 1,420
78
3 Commercial / Office Sector **/***

Developer Standard / Investment Offices
Low Rise - Medium Rise
$ 810
$ 990
100
$ 800
$ 970
98
$ 830
$ 1,020
103
Medium Rise - High Rise
$ 1,270
$ 1,550
100
$ 1,000
$ 1,220
79
$ 1,020
$ 1,250
80
Low Rise - Medium Rise
$ 1,060
$ 1,300
100
$ 870
$ 1,070
82
$ 980
$ 1,200
92
Medium Rise - High Rise
$ 1,490
$ 1,810
100
$ 1,110
$ 1,360
75
$ 1,160
$ 1,420
78
Owner Occupier Standard Offices
4 Hotel & Leisure / Retail Sector

Regional Shopping Centre **
$ 1,360
$ 1,650
100
$ 870
$ 1,070
64
$ 1,260
$ 1,540
93
Budget / 3 Star ****
$ 1,410
$ 1,700
100
$ 1,270
$ 1,560
91
$ 1,390
$ 1,700
99
5 Star ****
$ 2,420
$ 2,950
100
$ 1,990
$ 2,430
82
$ 2,230
$ 2,710
92
5 Star Resort ****
$ 2,780
$ 3,400
100
$ 2,510
$ 3,070
90
$ 2,560
$ 3,120
92
$ 2,880
$ 3,510
100
$ 2,460
$ 3,010
86
$ 3,060
$ 3,730
106
5 Health Sector *****

District General Hospital
6 Manufacturing Sector
Light Industrial
$ 550
$ 670
100
$ 560
$ 680
102
$ 450
$ 540
81
Heavy Industrial
$ 740
$ 910
100
$ 600
$ 730
81
$ 580
EC$ 710
78
Notes: 1. All subject to site specics, design and specication. 2. All exclude Land Acquisition Costs, External Works Costs & Professional Fees.
*
**
***
Base Index @ 100 = UAE; Index calculated on average of stated cost range
Shell & Core Only; with public areas nished
Excl. super high rise (Low / Medium = upto 15; High Rise +15; Super High Rise +45 storeys)
****
*****
Incl. FF+E; Excl. OS+E

Excl. Medical Equipment
BRUCE SHAW
HANDBOOK 2012
57
5
MIDDLE EAST
Sources: National Development Plan; Bank Saudi Fransi / MEED
+BXG
5BCVL

MIDDLE EAST
Top 10 Infrastructure Projects in the GCC

Ranking
Project
Country
Client
Project
Value
Status
Surface Transport Master

Plan
UAE
Abu Dhabi Dept of Transport
$25bn
Design
Qatar National Rail

Scheme
Qatar
QDREIC / Deutsche Bahn / Qatar

Railways Development Company
$25bn
Design
GCC Rail Network
Regional
(GCC)
Governments of the GCC
$16bn
Design
Emirates Railway Project
UAE
Etihad Rail / Abu Dhabi Dept

of Transport
$11bn
Design
National Freight &

Passenger Railway
Oman
Supremen Committee for Town

Planning
$10bn
Tender for Consultancy

Contract
Kuwait National Railroad

Network
Kuwait
Ministry of Public Works
$10bn
Feasibility Study
Bahrain Rapid Transport

Network
Bahrain
Ministry of Works and Housing
$8.09bn
Feasibility Study
Kuwait Metro System
Kuwait
Ministry of Public Works
$7bn
Design
Mecca-Medina Railway
Link
Saudi
Arabia
Saudi Railways Organisation
$6bn
Construction
10
Jeddah Light Rail Transit

- Tram
Saudi
Arabia
Makkah Municipality
$6bn
Concept stage
Middle Eastern Design Firms

Tabled below is a selected list of design rms currently working within the GCC region.
KEO
HOK
ATKINS
FOSTERS & PARTNERS
ARAB ENGINEERING BUREAU
GENSLER
DEWAN
AECOM
MZ ARCHITECTS
HENNING LARSON
RMJM
CH2M HILL
BURT HILL / STANTEC
BURO HAPPOLD
RW ARMSTRONG
WSP
WOODS BAGOT
DSA
NORR GROUP
BSBG
NAGA ARCHITECTS
P&T GROUP
DWP
BROADWAY MALYAN
GAJ
SOM
AEDAS
58
BRUCE SHAW
HANDBOOK 2012
SECTION
MIDDLE EAST
GCC Nations Main Contractors

Tabled below is a selected list of major contractors currently working within the GCC region.
BELHASA SIX CONSTRUCT
AL FUTTAIM CARRILION
CCC
AL HABTOOR LEIGHTON
DUTCO BALFOUR BEATTY
AL HAMAD CONSTRUCTION & DEVELOPMENT
EL SEIF ENGINEERING & CONTRACTING
AL JABER
KHANSAHEB CIVIL ENGINEERING
AL YAMAMA
KHOOHEJI CONTRACTORS
AL KAZEM GROUP
LAING OROURKE
AL LATIFIA TRADING
MIDMAC
AL REDWAN CONTRACTING
MURRAY & ROBERTS
AB V ROCK
MUSHRIF TRADING & CONTRACTING
AL RAJHI CONTRACTING
NESMA & PARTNERS
AL SHAFAR GENERAL CONTRACTING
SAUDI BIN LADEN GROUP
ALEC
SAUDI OGER
ARABIAN CONSTRUCTION COMPANY
SEDAR
ARABTEC CONSTRUCTION
TEEJAN GROUP
MIDDLE EAST
AL ARAB TRADING & CONTRACTING
ASCON
GCC Single Currency Update

The future of the GCC single currency is still uncertain. In November 2011, the IMF said that the costs
of having a single currency in the Gulf may outweigh the benets. Although the majority of GCC citizens
support the single currency, the name of the currency has not been agreed amongst the member states.
Monetary policy frameworks and a common system of payments & settlements are yet to be put in place.
Therefore it is unlikely that a single GCC currency will be active in the immediate future.
The following table compares the US Dollar to the individual currencies of the GCC member states.
Dollar vs. AED / BHD / SAR / KWD / QAR / OMR

Currency
Symbol
Conversion from US $
Bahrain
Bahraini Dinar
BHD
1 USD = 0.38
United Arab Emirates
Emirati Dirham
AED
1 USD = 3.67
Saudi Arabia
Saudi Riyal
SAR
1 USD = 3.75
Kuwait
Kuwaiti Dinar
KWD
1 USD = 0.28
Qatar
Qatari Riyal
QAR
1 USD = 3.64
Oman
Omani Rial
OMR
1 USD = 0.39
Source: www.xe.com
Country
Note: Figures are based on January 2012.
BRUCE SHAW
HANDBOOK 2012
59
60
BRUCE SHAW
HANDBOOK 2012
U N I T E D STAT E S 6
BRUCE SHAW
HANDBOOK 2012
61
UNITED STATES
US Market Review
The US Construction Market has still to see signs
of recovery from the recession, with projections that
2012 US construction starts will remain essentially
at. The total dollar value of new starts in 2012 is
estimated to be $412 billion just up from a gure
of $410 billion in 2011. This certainly shows that the
market is stabilizing after the losses of 2009 & 2010
but the backdrop for the construction industry is the
weak US economy which continues to see slow
employment growth and diminished funding from
federal/state governments. Most contractors and
construction economists do not see a return to
healthy markets until 2013 or even 2014.
2012 US construction starts will

remain essentially at.
There are however some encouraging signs of
improvement in the US economy with the US
unemployment rate reducing to 8.5% at the end
of 2011 and continuing a positive change in US
employment for the past 15 months in a row.
The cumulative increase over this period has been
2.1 million jobs, with 1.6 million coming in 2011.
Total construction employment now stands at
5,544,000, 46,000 higher than in December 2010
an increase of 0.8%. This is however far below its
peak level of 7,726,000 in April 2006, but continues
a months long trend of slight gains. These gains are
projected to continue as a recent survey by the
Associated General Contractors of America reported
Tempo 300 East 23rd Street, New York
62
BRUCE SHAW
HANDBOOK 2012
that 32% of construction rms plan to add staff this

year with only 9% reporting a decline.
The 2012 Dodge Construction Outlook details the
forecasts for each construction sector, as follows:
4JOHMFGBNJMZIPVTJOHJOXJMMJNQSPWF
in dollars, corresponding to a 7% increase in the
number of units to 435,000 (McGraw-Hill
Construction Dodge basis). This is still a low
amount, as the excess supply of homes due to
foreclosures continues to depress the market.
.VMUJGBNJMZIPVTJOHXJMMSJTFJOEPMMBSTBOE
in units, continuing its moderate, upward trend.
$PNNFSDJBMCVJMEJOHXJMMHSPX8BSFIPVTFT
and hotels will see the largest percentage
increases, but improvement for offices and
stores will be modest.
5IFJOTUJUVUJPOBMCVJMEJOHNBSLFUXJMMTMJQBO
additional 2% in 2012, after falling 15% in 2011. The
tough scal environment for states and localities will
continue to dampen school construction, and the
uncertain economic environment will limit growth
in healthcare facilities.
.BOVGBDUVSJOHCVJMEJOHTXJMMJODSFBTF
following the 35% gain in 2011, as the low value of
the U.S. dollar continues to support export growth.
1VCMJDXPSLTDPOTUSVDUJPOXJMMESPQBGVSUIFS
5%, after a 16% decline in 2011, due to spending
cuts and the absence of a multiyear federal
transportation bill for highway and bridge
construction.
SECTION
UNITED STATES
sector construction offsetting the decline in public

sector demand.
These details indicate that there is growing demand

in certain private market sectors but continued
weakness in other key sectors due to the end of
stimulus measures and a decline in demand for
public construction. Overall the market is projected
to remain stable with the growing demand for private
The US construction market remains very competitive

with 80% of construction rms reporting that they
expect bid levels to either stagnate or decline this
year. This comes in a market where material costs are
continuing to increase and contractors are
generating less revenue.
Value of Construction Output Public / Private $bn 2001-2011

1,000

800

600

2010
2011

400

Source: US Census Bureau
1,200

200
0
2001
2002
2003
Total Public Construction
2004
2005
2006
2007
2008
2009
Total Private Construction
US Construction by Type of Work 2011

Private Sector $ bn
Public Sector $ bn
Residential $236.3
Miscellaneous $10.6
Residential $8.4
Miscellaneous $19.0
Commercial $69.9
Infrastructure $103.6
Commercial $15.0
Infrastructure $116.2
Healthcare $29.4
Manufacturing $34.7
Healthcare $10.5
Water & Waste $42.8
Educational $13.4
Educational $70.6
BRUCE SHAW
HANDBOOK 2012
63
U N I T E D S TAT E S
&MFDUSJDVUJMJUJFTXJMMSFUSFBU GPMMPXJOHB
jump in 2011.
UNITED STATES
Annual Construction Cost Index (1913 = 100)

9,200
8,900
8,600
8,300
8,000
7,700
7,400
7,100
6,800
6,500
6,200
5,900
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
US Regional Building Cost Index

7,000
6,000
5,000
4,000
3,000
2,000
1,000
New York
Chicago
Philadelphia
Boston
San Francisco
Kansas City
Los Angeles
Minneapolis
Seattle
Detroit
St. Louis
Cleveland
Pittsburgh
Baltimore
Cincinnati
Denver
Dallas
Atlanta
New Orleans
Employment in Construction 2000-2011

000s
7,800
7,600
7,400
7,200
7,000
6,800
6,600
6,400
6,200
6,000
5,800
5,600
64
BRUCE SHAW
HANDBOOK 2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
5,400
SECTION
UNITED STATES
Change in US Employment in Construction Jan. 10-Dec. 11

Seasonally Adjusted in Thousands
50


-50

-100

Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
Jul-11
Jun-11
May-11
Apr-11
Mar-11
Feb-11
Jan-11
Dec-10
Nov-10
Oct-10
Sep-10
Aug-10
Jul-10
Jun-10
May-10
Apr-10
Mar-10
Feb-10
Jan-10
-150
US Earnings in Construction 2010

Average earnings of non-supervisory workers in construction, May 2010
$ / Hour
$ / Week
Construction of buildings
21.39
813
Non residential building
23.10
914
Residential building
19.47
707
Heavy and civil engineering construction
22.00
924
Utility system construction
22.31
941
Highway, street, and bridge construction
22.11
931
Other heavy construction
21.78
947
Land subdivision
18.73
702
Speciality trade contractors
21.99
835
Building equipment contractors
23.56
918
Building nishing contractors
20.87
783
Other speciality trade contractors
20.86
795
Building foundation and exterior contractors
20.54
747
BRUCE SHAW
HANDBOOK 2012
Source: BLS Occupational Employment Statistics
Industry
65
UNITED STATES
US Earnings in Construction 2010 continued

Median hourly wages of the largest occupations in US construction, May 2010
Buildings $ / Hour
Civil Engineering $ / Hour
40.08
40.62
Construction managers
First-line supervisors
28.51
28.41
Plumbers & pipetters
24.30
21.80
Electricians
22.01
23.10
Operating engineers
21.52
21.15
Carpenters
19.10
20.64
Masons & concrete nishers
18.08
17.17
Painters
15.45
17.45
Construction labourers
14.49
14.68
Source: BLS Occupational Employment Statistics
Occupation
Top 20 US Contractors
2010
Firm
THE TURNER CORP.
5.95
CLARK GROUP
3.75
THE WHITING-TURNER CONTRACTING CO.
2.78
18
PCL CONSTRUCTION ENTERPRISES
2.77
BALFOUR BEATTY CONSTRUCTION
2.75
GILBANE BUILDING
2.73
PERINI CORP.
2.49
SKANSEA USA
2.34
BOVIS LEND LEASE
2.32
10
27
KBR
2.28
11
FLUOR CORP.
2.14
12
HENSEL PHELPS CONSTRUCTION
2.06
13
10
MCCARTHY HOLDINGS
2.03
14
12
STRUCTURE TONE
1.83
15
15
M.A. MORTENSON CONSTRUCTION
1.83
16
11
JE DUNN CONSTRUCTION GROUP
1.80
17
16
SUFFOLK CONSTRUCTION CO.
1.67
18
13
HUNT CONSTRUCTION GROUP
1.55
19
14
BRASFIELD & GORRIE
1.50
20
17
MANHATTAN CONSTRUCTION GROUP
1.21
Note: Ranked by domestic revenue; 2011 ranking is based on 2010 revenue
66
Revenue $ bn
BRUCE SHAW
HANDBOOK 2012
Rank
2011
SECTION
UNITED STATES
The Top 20 US Design Firms

Revenue
bn
Type of Firm
Firm
EA
AECOM TECHNOLOGY CORP.
5.92
EAC
URS CORP.
5.04
EAC
JACOBS
4.75
EA
CH2M HILL
3.60
EC
FLUOR CORP.
3.13
EC
AMEC
2.46
TETRA TECH
2.21
EC
BECHTEL
2.17
EC
KBR
2.01
10
12
EA
PARSONS BRINCKERHOFF
1.56
11
11
EA
HDR
1.50
12
15
EA
ARCADIS
1.36
13
10
EC
THE SHAW GROUP
1.21
14
13
EC
PARSONS
1.17
15
16
EAP
LOUIS BERGER GROUP
1.15
16
14
EC
BLACK & VEATCH
1.10
17
19
EA
HNTB
1.00
18
17
EC
MWH GLOBAL
0.92
19
26
WORLEYPARSONS GROUP
0.77
20
22
EAC
BURNS & McDONNELL
0.68
Note: 2011 ranking is based on revenue for design services performed in 2010. Key to Type of Firm: A architect; E engineer; C contractor; P planner
Exchange Rates: Euro v US Dollar 2006-2012

1.60
1.55
1.50
1.45
1.40
1.35
1.30
1.25
1.20
1.15
1.10
1.05
BRUCE SHAW
Jan-12
Oct-11
July-11
Apr-11
Jan-11
Oct-10
Jul-10
Apr-10
Jan-10
Oct-09
Jul-09
Apr-09
Jan-09
Oct-08
Jul-08
Apr-08
Jan-08
Jul-07
Oct-07
Apr-07
Jan-07
Oct-06
Jul-06
Apr-06
Jan-06
1.00
HANDBOOK 2012
67
6
Rank
2011
2010
68
BRUCE SHAW
HANDBOOK 2012
CARIBBEAN 7
BRUCE SHAW
HANDBOOK 2012
69
Caribbean Market Review

The Caribbean has a total population of
approximately 40 million and total GDP for the
region has remained at around US$250bn in recent
years. Tourism accounts for 90% of GDP on many
of the islands and the industry employs an estimated
1.6 million people.
It is not surprising then that with tourist numbers
showing a return to growth in 2010/2011 that there
are currently over 100 new hotel projects being
developed and over 50 of these under construction
in the Caribbean. A number of governments across
the region have actively sought out investors.
Incentives characterised by exemptions on import
duties and reductions in stamp duty on property
transactions are being offered. Many of the islands
airports have been improved and expanded in recent
years to cater for increased passenger numbers and
there has been a push to utilise and exploit those
airport capacities. A number of the governments are
looking at proposals for further expansion of airport
capacity to cater for the increase in numbers coming
from neighbouring growth economies in Central and
South America.
Traditional Caribbean industries and in particular
agriculture and the growing of sugar cane
and bananas and associated industries like the
production of rum have been in decline for some
The region continues to oer

opportunities to overseas consultants,
construction rms and specialist
subcontractors.
decades now and tourism, nancial services, light
industry and oil and mineral exploration have taken
on increasing importance. The greater portion of
Foreign Direct Investment ows have been to those
countries that are rich in natural resources such as
gold, bauxite, oil petroleum, natural gas and alumina
and Costa Rica, Dominican Republic and Trinidad
and Tobago remain the major recipients. FDI
remains at c.US$75bn annually in recent years most
of which has come from the USA, China, the EU
with signicant Canadian investment in Cuba.
The region continues to offer opportunities to
overseas consultants, construction rms and
specialist subcontractors as there is limited
expertise locally. This would include some of the
other islands not specically mentioned above
like Grenada, Antigua, Martinique, Bonaire, St. Kitts,
St Vincent and the US and British Virgin Islands.
Cuba remains probably the brightest prospect
in this regard and strong signs of the regime
becoming more open to development using
foreign investment.
General Statistics for the Caribbean

Capital
Population
GDP
Millions
US$
GDP
Per Capita
US$
GDP
Growth
Debt To
GDP Ratio
Unemployment
Bahamas
10,010
Nassau
313,312
7,538
28,700
0.50%
4.50%
7.60%
Barbados
430
Bridgetown
286,705
3,963
21,800
-0.50%
102.10%
10.70%
Bermuda
54
Hamilton
68,679
4,500
69,900
-6.20%
25.00%
2.10%
264
George Town
51,384
2,250
43,800
1.10%
30.00%
13.50%
Havana 11,087,330
57,490
9,900
1.50%
34.20%
1.60%
Cayman
Caymen
Islands
Cuba
109,820
Curacao
Willemstad
142,180
5,080
15,000
3.50%
N/A
N/A
Dominican
Republic
48,320 Santo Domingo
9,956,648
54,912
8,900
7.80%
36.80%
13.30%
Haiti*
27,560
Port au Prince
9,717,932
6,632
1,200
-5.10%
N/A
40.60%
Jamaica
10,831
Kingston
2,868,380
13,690
8,300
-1.10%
126.20%
12.40%
8,870
San Juan
3,989,133
93,520
16,300
-5.80%
60.70%
12.00%
606
Castries
161,557
985
11,200
0.80%
37.20%
20.00%
5,128
Port of Spain
1,227,505
20,590
21,200
0.00%
29.80%
6.40%
948 Cockburn Town
46,335
860
12,000
4.90%
N/A
10.00%
Puerto
Rico
St. Lucia
Trinidad
& Tobago
Turks
& Caicos
444
Note:
* Despite having beneted from debt relief in 2009 the earthquake in 2010 leaves Haiti totally dependent on outside aid to rebuild its economy.
GDP growth for Haiti is expected to expand by 9% in 2011/2012 largely from reconstruction activity and is forecast to be at 6% by 2015.
70
BRUCE SHAW
HANDBOOK 2012
Source: Caribbean Community (Caricom) Regional Statistics Secretariat
Land Area
Sq. Km
Country
SECTION
7 CARIBBEAN
Caribbean Country Review
Chinese investment has clearly been very important

to the Bahamas and to the economies of a number
of the Caribbean island nations in recent years.
Barbados
The Barbadian economy declined by approximately
2% in 2009 and again in 2010 as a result of the global
slowdown and reduced tourism numbers although
Barbados enjoys the highest rate of repeat visitors
anywhere in the world. Tourism constitutes
approximately 14% of the economy directly and 40%
indirectly and employs 25% of the total workforce.
The longer term commitment of the Government to
spending on infrastructure development includes the
expansion of the Grantley Adams international airport
terminal, improvements to the road system, housing
projects, water supply and health centres. Barbados
also benets as a low tax jurisdiction and is home to
3,800 international businesses.
Bruce Shaw have had an oce

in Barbados for 15 years.
A relatively slow recovery is evident with a number
of hotels still at the early design stage on the South
Coast. A number of commercial projects in the
Warrens area are also in prospect with one or two
Government projects nearing completion. Bruce
Shaw have had an office in Barbados for 15 years and
have been involved in a number of hotel and luxury
residence developments in Barbados, Antigua and
some of the neighbouring islands.
Bermuda
Bermudan residents enjoy the highest average per
capita income in the world at US$70,000 GDP per
person. The economy is primarily structured around
nancial services for international business. The

relocation of a number of large US reinsurance
companies following the 9/11 terrorist attacks and
again following Hurricane Katrina contributed to its
already established location as an international
business centre.
High quality luxury tourist facilities are also important
to the economy. Following almost ten years of
the boom in commercial office and top end
condominium development in Bermuda these
sectors of the market stalled dramatically in 2009.
Interestingly a number of high end hotel projects
completed in 2011 and there are plans for a St. Regis
Hotel in Hamilton. There are a number of large
infrastructure projects underway including work
on a new causeway replacing the roadway severely
damaged by a hurricane. Tender prices continue to
reect the downturn and are competitive.
Cayman Islands
No direct taxation on the three Cayman islands
of Grand Cayman, Little Cayman and Cayman Brac
make them an important offshore nancial centre
with over 70,000 companies registered and a stock
exchange opened in 1997. Tourism still accounts for
almost 70% of GDP and 75% of overseas currency
earnings with most visitors coming from North
America. There are plans to build a new cruise ship
terminal area to boost cruise ship arrivals which have
fallen below 1.8 million from a high of over 2 million
some years ago.
Cuba
As the largest of the islands with a population
of some 11 million Cuba is already a major tourist
destination with increases in tourist numbers of
almost 10% year on year since 2007. The gradual and
planned continued relaxation of the restrictions on
US tourists will have an enormous impact on the
economy as the Government there also relaxes the
restrictions of the last fty years on both indigenous
and international private enterprise. There has already
been considerable Spanish, Chinese, Canadian and
Qatari inward investment in tourism projects. The
Tourism Ministry has announced a two-year plan to
build 30 hotels with a total of 10,000 new rooms by
means of joint ventures with companies from Spain
and China. The Government has also been providing
guarantees and greater security for foreign investors
by allowing state-owned lands to be developed as
golf resorts, hotels and marinas based on 99year
lease arrangements. The Qatari Diar Real Estate
Company commenced the construction of the
200-bed 5-star hotel at Cayo Largo del Sur as a joint
venture with the Communist Government which is
BRUCE SHAW
HANDBOOK 2012
71
CARIBBEAN
Bahamas
The Bahamas is one of the wealthiest Caribbean
countries with its economy heavily dependant on
tourism and offshore banking. Tourism and
manufacturing accounts for approximately 60% of
GDP and directly or indirectly employs half of the
labour force. Steady growth in tourism and a boom
in construction of new hotels, resorts and residences
promoted solid growth up to 2007. Recognising the
decline in tourist numbers the government of the
Bahamas actively pursued new investment and
attracted US$2.50 billion in investment from China
for the Baha Mar Cable Beach development with
over 2,000 rooms. Following on from the decline in
tourist numbers in recent years this development has
already kick-started signicant growth in the
recovery of the local economy.
CARIBBEAN
currently a mandatory requirement which is likely

to be relaxed.
It is estimated that 85% of the workforce in the
construction industry are from overseas, mainly from
Haiti and the Dominican Republic. The lack of
investment in construction over the years has left Cuba
with a serious shortage of skilled construction labour
and management expertise which promises signicant
opportunities for overseas construction rms.
Curacao
Curacao lies just 40 miles off the coast of Venezuela
and with the ne natural deep water port of
Willemstad the main industries include oil rening,
tourism and nancial services. It commands one of
the highest living standards in the Caribbean and has
a well developed infrastructure.
Construction costs in Curacao are

considerably lower than on most
of the other Caribbean islands.
While not dependent on tourism it is a popular

destination for Dutch tourists and redeveloped its
airport near Willemstad in 2003 to accommodate
increased tourist numbers. There are plans to further
expand the airport to accommodate greater visitor
numbers. From 2014 it is planned to run suborbital
space tourism ights using the Lynx rocketplane
and to launch scientic research missions from
a new spaceport.
Construction costs in Curacao are considerably
lower than on most of the other Caribbean islands.
Marriott Hotel, Port au Prince
72
BRUCE SHAW
HANDBOOK 2012
Dominican Republic
The Dominican Republic has a population of 10
million with a GDP of US$55 billion, the third largest
in the Caribbean. Despite the global downturn the
Dominican Republic saw a US$10 billion investment
in the tourism sector in 2008 alone and has seen
tourism numbers increase to almost 4.50 million
per year from 4.30 million in 2008. Additional
government spending on infrastructure and water
supply projects is aimed at maintaining repeat visitor
numbers. Much of the low cost labour supporting
this steady growth in construction has been from
Haiti on the other side of the island although stated
Government policy has been to try and correct this
situation to reduce local unemployment.
Haiti
The legacy of the 7.0 magnitude earthquake in
January 2010 that killed roughly 300,000 people and
devastated a huge proportion of the homes, buildings
and infrastructure of the capital Port au Prince remain
but there are some hopeful signs two years on. The
election of new president Michael Martelly with
two-thirds of the vote appears to have stabilised the
fragile country with its high crime levels on the wane.
Reinforcing national consensus and promising to
speed up the decision-making processes Martelly is
working with the international relief agencies and
donors to ensure the resources needed to rebuild the
country are well directed.
The reconstruction of existing combined with the
construction of new housing projects, schools and
new teaching hospitals are welcome developments
along with more recent signs of much needed inward
investment in other areas.
SECTION
7 CARIBBEAN
7
CARIBBEAN
The construction of the E-power 30-megawatt

power plant in Port au Prince, mineral exploration,
expansion of the existing manufacturing facilities
such as Grupo M who currently employ 6,500 Haitian
workers at the Codevi industrial park are some of the
recent positive developments.
Two new hotels are planned for the Petion-Ville
suburb of Port au Prince with a 105-room Best
Western planned to open later this year. The
announcement of a 173-bed Marriott to open in 2014
was made by former US president Bill Clinton and
Marriott International president Arne Sorenson said
This hotel is one more signal that Haiti is open for
business.
The Iron Market was destroyed in the earthquake and
rebuilt and restored within 12 months owing to the
commitment and generosity of Denis OBrien. It is
Bruce Shaw are proud to have assisted

in this rebuilding work.
once again a bustling centre of local commercial
activity and has been nominated for a Design Award
of the Year award by the Design Museum. Bruce
Shaw are proud to have assisted in this rebuilding
work and look forward to working on the extension
planned for later this year.
Jamaica
A new joint venture between the Japanese Marubeni
Corporation, Korea East West Power Company and
the Jamaican Public Service Company to develop a
480 megawatt power plant in St. Catherine starting
shortly, for completion of Phase 1 in 2014 and Phase
2 in 2016 is one of the largest private sector
developments in Jamaican history and will provide up

to 2,000 much needed jobs during the construction
phase. Following on the completion of the rst phase
of the new cruise ship terminal in Falmouth early in
2011 these projects have provided a much needed
boost for the Jamaican construction industry. A new
Marriott hotel and a Sandels City hotel are planned
to start construction in 2012. Against that positive
background expensive concrete and expensive raw
materials imports and high domestic interest rates
have further weakened demand in the housing and
residential sector.
Jamaicas Urban Development Corporation have
been promoting urban regeneration for the Kingston
Downtown area and Digicel Jamaica, the mobile
phone operator, completed the refurbishment of the
Coronation market in 2010 and work started on its
new HQ building which is due for completion in mid
2012. Increases in GCT(VAT) and import duties will
increase the cost of construction for investors unless
exemptions can be negotiated.
Puerto Rico
Puerto Rico with a population of 4 million has the
largest and most dynamic and diversied economy in
the region. It accounts for approximately 30% of the
regions GDP. With duty-free access to the US and
tax incentives Puerto Rico has enjoyed inward
investment from the US over the last 50 years but
being linked so closely to the US economy it has seen
GNP reduce by 2% in 2008, a further 3% in 2009, 2%
in 2010 and results for 2011 are likely to show a
levelling off.
Major recent projects include the expansion of the
Luis International airport, the Puerto Rico Convention
BRUCE SHAW
HANDBOOK 2012
73
CARIBBEAN
Construction Costs
Centre and the Pan American Port Terminal. There
are also a number of new hotels planned.
St. Lucia
St. Lucia has continued to attract foreign business
and investment in its offshore banking and tourism
industries. In contrast to many of its neighbours
visitor numbers increased by over 11% in 2010 with
more than 700,000 arrivals annually increasing closer
to 800,000 in recent years. Tourism is the main
source of foreign exchange.
The construction industry remains more buoyant
than many of its neighbours but delays in planned
and much needed road improvements are likely to
hold back development.
Trinidad & Tobago
Trinidad & Tobago has earned a reputation as an
excellent location for investment for international
businesses and has enjoyed one of the highest
growth rates and per capita income in the region
including Latin America. This has largely been driven
by investment in liqueed natural gas, petrochemicals
and the steel industry. It is the Caribbeans largest
producer of oil and gas which make up 40% of GDP
and up to 80% of exports. Not as dependent on
tourism or agriculture as most of the other islands
inward direct investment has continued to support
and expand capacity in the energy sector and GDP
growth has continued through 2008 to 2011 at close
to or just below 3%. It is anticipated that it will
continue to outperform the majority of the Caribbean
due to its natural resources.
Continuing the ongoing process of industrialisation
the Government is promoting a US$1.40 billion
integrated polypropylene complex to come on
stream in 2012 and another alumina plant for 2013.
Turks & Caicos Islands
The economy is based around tourism, offshore
nancial services, shing and seafood exports.
With its small population of 46,000 the construction
industry has traditionally been focussed on high
end housing, hotel and tourism related projects.
There are two hospital projects proposed, one
on Providentiales and one on Grand Turk with a
combined value of approximately US$125m although
these have been slow to start. The Governor recently
announced plans to award contracts to local
construction rms to rebuild specic buildings in
Grand Turk using funds from the UK for Hurricane
Disaster Recovery arising from the double impact
of Tropical Storm Hanna and Hurricane Ike.
74
BRUCE SHAW
HANDBOOK 2012
Construction costs in the Caribbean generally are not

as low or competitive as might initially be expected
by new overseas investors. The strength of some of
the labour unions have ensured that labour costs
often remain relatively high despite the recent fall in
overall demand. Most of the islands import virtually
all of their construction materials as small individual
markets cannot support cement, steel or other
manufacturing industries. Deforestation in the past
to make way for agricultural production also means
that timber has to be imported on many of the
islands. Import duties and taxes on imports vary
signicantly from island to island but they are
universally high by US or European standards. This
contributes to construction costs being comparable
or higher than costs in the nearest US states of Florida
and Texas. Exemptions from import duties and local
taxes are very often central to feasibility for
commercial projects.
Costs appear to have stabilised during

2011 and are likely to remain stable for
the next few years.
A period of signicant and sustained growth up to
2008 saw substantial increases in construction costs
followed by a relatively sharp decline from 2008 to
2011. Costs appear to have stabilised during 2011
and are likely to remain stable for the next few years.
A natural rebalancing of the market has taken place to
a certain degree with reduced capacity in the industry
as many of the bigger international construction
rms withdrew from the Caribbean market with the
downturn. We expect to see a number of these
overseas contractors and specialist subcontractors
return to the Caribbean and this should bring
increased competition on larger projects.
SECTION
7 CARIBBEAN
Average Cost Range US$/Sq.m

Cayman
Islands
Cuba
Dominican
Republic
Haiti
0.94
0.94
0.75
0.90
0.75
Hotels 5 Star, Urban
3,195-4,000
3,000-3,750
3,000-3,750
2,390-2,995
2,870-3,590
2,390-2,995
Hotels 5 Star, Low Rise Resort
3,465-3,950
3,260-4,075
3,260-4,075
2,595-3,240
3,115-3,890
2,595-3,240
Hotel, 3 Star, Urban
2,130-2,575
2,000-2,500
2,000-2,500
1,580-1,970
1,895-2,370
1,580-1,970
Hotel, 3 Star, Low Rise Resort
2,350-2,940
1,740-2,175
1,740-2,175
1,765-2,310
2,125-2,660
1,765-2,310
High End Residential Apartments
3,415-4,260
3,215-4,000
3,215-4,000
2,575-3,220
3,070-3,835
2,575-3,220
Standard Apartments
2,550-3,190
2,415-3,020
2,415-3,020
1,930-2,415
2,300-2,875
1,930-2,415
Low Cost Housing
1,980-2,475
1,870-2,330
1,870-2,330
1,485-1,865
1,780-2,230
1,485-1,865
Low Rise Offices Shell & Core

(3 storey)
1,865-2,330
1,760-2,100
1,760-2,100
1,400 -1,750
1,675-2,100
1,400 -1,750
Low Rise Offices Fitted-Out

(3 storey)
2,395-3,000
2,250-2,815
2,250-2,815
1,800-2,250
2,160-2,690
1,800-2,250
Medium Rise Offices Shell

& Core(4-8 storey)
2,080-2,600
1,955-2,445
1,955-2,445
1,560-1,950
1,870-2,335
1,560-1,950
Medium Rise Offices Fitted-Out

(4-8 storey)
2,625-3,270
2,465-3,069
2,465-3,069
1,965-2,460
2,360-2,950
1,965-2,460
High Rise Offices Shell & Core

(8-12 storey)
2,275 -2,850
2,145-2,675
2,145-2,675
1,705-2,135
2,050-2,560
1,705-2,135
High Rise Offices Fitted-Out (8-12

storey)
2,890-3,615
2,715-3,395
2,715-3,395
2,170-2,710
2,600-3,250
2,170-2,710
High Rise Headquarter Offices
3,170-3,960
2,970-3,710
2,970-3,710
2,375-2,970
2,850-3,565
2,375-2,970
Jamaica
Puerto Rico
St. Lucia
Trinidad
& Tobago
Turks
& Caicos
1.15
Regional Index
0.90
0.90
0.90
0.74
Hotels 5 Star, Urban
2,870-3,590
2,870-3,590
2,870-3,590
2,365-2,955
3,655-4,595
Hotels 5 Star, Low Rise Resort
3,115-3,890
3,115-3,890
3,115-3,890
2,570-3,205
3,985-4,980
Hotel, 3 Star, Urban
1,895-2,370
1,895-2,370
1,895-2,370
1,565-1,955
2,445-3,060
Hotel, 3 Star, Low Rise Resort
2,125-2,660
2,125-2,660
2,125-2,660
1,750-2,185
2,700-3,365
High End Residential Apartments
3,070-3,835
3,070-3,835
3,070-3,835
2,530-3,160
3,925-4,900
Standard Apartments
2,300-2,875
2,300-2,875
2,300-2,875
1,900-2,371
2,945-3,680
Low Cost Housing
1,780-2,230
1,780-2,230
1,780-2,230
1,465-1,830
2,275-2,845
Low Rise Offices Shell & Core

(3 storey)
1,675-2,100
1,675-2,100
1,675-2,100
1,380-1,725
2,145-2,680
Low Rise Offices Fitted-Out

(3 storey)
2,160-2,690
2,160-2,690
2,160-2,690
1,770-2,215
2,750-3,445
Medium Rise Offices Shell

& Core(4-8 storey)
1,870-2,335
1,870-2,335
1,870-2,335
1,540-1,925
2,390-2,985
Medium Rise Offices Fitted-Out

(4-8 storey)
2,360-2,950
2,360-2,950
2,360-2,950
1,940-2,425
3,015-3,765
High Rise Offices Shell & Core

(8-12 storey)
2,050-2,560
2,050-2,560
2,050-2,560
1,685-2,100
2,620-3,270
High Rise Offices Fitted-Out (8-12

storey)
2,600-3,250
2,600-3,250
2,600-3,250
2,140-2,675
3,315-4,150
High Rise Headquarter Offices
2,850-3,565
2,850-3,565
2,850-3,565
2,340-2,930
3,640-4,550
Notes:
i All subject to site specics, design and specication
ii All exclude Land Acquisition Costs, External Works Costs & Professional Fees
iii Regional variances across the country and from sector to sector
BRUCE SHAW
HANDBOOK 2012
75
CARIBBEAN
Bermuda
Source: Bruce Shaw
Regional Index
Barbados
76
BRUCE SHAW
HANDBOOK 2012
INDIA 8
BRUCE SHAW
HANDBOOK 2012
77
INDIA
India Market Review

With a population of just over 1.2billion, India is
the worlds largest democracy. In the past decade,
the country has witnessed accelerated economic
growth and emerged as a global player with the
worlds fourth largest economy in purchasing
power parity terms. This growth has been placing
huge demands on power supply, roads, railways,
ports, transportation systems and water supply
and sanitation. Bottlenecks in both urban and rural
infrastructure have been eroding the countrys
competitiveness.
Investment in construction accounts

for nearly 11% of Indias GDP.
The Government of India has increased infrastructure
investments under the Eleventh Five Year Plan. With
Indias low taxation base only some 1516% of
GDP is collected as taxes in India compared to
25-40% in developed countries, the Government
based its 2011-2012 budget on projections of GDP
growth of 9% and average ination of 4%. However,

different officials have revised their expectations for
growth downwards, and for ination upwards since
then. The Chairman of the Prime Ministers Economic
Advisory Council expects growth to measure 8.2% in
FY2011-12, while ination would drop to around 6.5%
by end March 2012. The National Council of Applied
Economic Researchs Quarterly Review of the
Economy July 2011 pegs growth at 8.3% and ination
at 7.9% average for FY 2011-12.
Construction accounts for nearly 65% of the total
investment in infrastructure and is expected to be
the biggest beneciary of the surge in infrastructure
investment over the next ve years. Investment in
construction accounts for nearly 11% of Indias
GDP. 240 billion is likely to be invested in the
infrastructure sector over the next ve to 10 years
in power, roads, bridges, city infrastructure, ports,
airports, telecommunications, which would provide
a huge boost to the construction industry as a whole.
Commercial Offices

Shell and Core (Low-Medium Rise)
27,000
To
30,000
Unit
per sq.m
Residential

(medium standard)
15,000
18,000
per sq.m
Leisure
Hotel Building (4/5 Star)
75,000
90,000
per sq.m
Retail
Shopping Centre
30,000
35,000
per sq.m
Healthcare
Hospital
35,000
40,000
per sq.m
Warehouses
Without Offices
10,000
15,000
per sq.m
Notes:
i
All subject to site specics, design and specication
ii
All exclude Land Acquisition Costs, External Works Costs &
Professional Fees
78
BRUCE SHAW
HANDBOOK 2012
iii
Regional variances across the country and from sector to sector
Source: Bruce Shaw
Cost Range INR

From
SECTION
INDIA
Construction Cost Indices

Buildings 2007=100
2010
2011*
Delhi
110.01
113.98
119.29
123.20
Mumbai
110.47
113.21
119.13
122.43
Chennai
110.49
113.46
119.92
123.97
Bangalore
106.99
109.32
117.85
123.63
Kolkata
109.42
112.12
118.63
122.69
Hyderabad
108.44
111.78
118.27
122.73
*2011 November Indices
Top Infrastructure Companies in India

LARSEN & TOUBRO
ERA INFRA ENGINEERING LTD
PUNJ LLOYD
RELIANCE INFRASTRUCTURE
JAIPRAKASH ASSOCIATES LTD
IRCON
LANCO INFRATECH LTD
PATEL ENGINEERING
NAGARJUNA CONSTRUCTION COMPANY
SOMA ENTERPRISES
IVRCL INFRASTRUCTURE & PROJECTS LTD
J KUMAR INFRA PROJECTS
SIMPLEX INFRASTRUCTURES LTD
GVK LTD
GMR LTD
IRB INFRASTRUCTURE DEVELOPERS LTD
GAMMON INDIA
AHLUWALIA CONTRACTS INDIA LTD
HCC
SPML INFRA LTD
Exchange Rates US Dollar v Rupee 2006-2012

Source: www.xe.com
54
53
52
51
50
49
48
47
46
45
44
43
42
41
40
HANDBOOK 2012
Jan-12
Oct-11
Jul-11
Apr-11
Jan-11
Jul-10
BRUCE SHAW
Oct-10
Apr-10
Jan-10
Oct-09
Jul-09
Apr-09
Jan-09
Oct-08
Jul-08
Apr-08
Jan-08
Oct-07
Jul-07
Apr-07
Jan-07
Oct-06
Jul-06
Apr-06
Jan-06
39
79
INDIA
2009
Source: Construction Industry

Development Council (CIDC)
2008
80
BRUCE SHAW
HANDBOOK 2012
AUSTR ALIA & NE W ZEAL AND 9
BRUCE SHAW
HANDBOOK 2012
81
AUSTRALIA & NEW ZEALAND
The outlook for

the construction
industry appears
positive with
expected year
on year increases
in 2012 and 2013.
The outlook for the construction industry appears positive with
expected year on year increases in 2012 and 2013
Source: Australian Bureau of Statistics
SECTION
Australia Market Review
While the Australian economy remains in a strong

position, the International Monetary Fund has noted
some risks which could adversely affect the current
economic position. These potential risks include
global recovery stagnation, Asian growth stumbles
including the impacting demand for commodities
and also the potential risk emanating from scal
restraints in the US and the Euro areas.
The Australian construction industry which is an
integral part of the overall economy is expected
to grow further by circa 5-7% over the next year.
While the building sector remains relatively
stagnant, the engineering sector is predicted
to support this increase.
The government spending introduced through the
recent stimulus packages (2008) in response to the
aftermath of the global nancial crisis are nearly all

exhausted. The extent of this stimulus was the third
highest amongst OECD countries and the delta in
reduced government spending is expected to be
taken up by the private sector.
The introduction of the new Federal Governments
carbon tax has resulted in great speculation in the
construction market. The carbon tax is scheduled
to be introduced on the 1st July 2012 and for the
rst three years will be at a xed rate of $23/tonne.
The effect of this new tax is difficult to calculate at
this juncture but is expected to lter through the
entire supply chain.
The Australian dollar has continued to perform at
record levels against the US dollar. The strong dollar
has allowed for more competitive imports however
it may be problematic for many exporters as they
become less competitive.
The outlook for the construction industry appears
positive with expected year on year increases in
2012 and 2013 in the engineering/infrastructure
sector however a more subdued increase is
expected for the residential and non-residential
sectors. This will be reected in a continued highly
competitive tender market.
Australian Key Statistics 2009-2011

2009
2010
2011
GDP, current prices
U.S. $ Billions
GDP per capita, current prices
U.S. $ Units
987.1
1238
1507.4
44,602
55,150
66,984
Ination, average consumer prices
Annual % change
2.1
3.1
Population
Persons, Millions
22165.5
22541
22817
Current account balance
U.S. $ Billions
-42.03
-33.02
-32.80 (e)
BRUCE SHAW
HANDBOOK 2012
Source: www.abs.gov.au
Units
83
9
AUSTRALIA & NEW ZEAL AND
The Australian economy continues to grow

although it did suffer from set backs in early 2011
due to some natural disasters. The continued
growth has been driven by a number of factors
including strong investment and exports stemming
from the continued mining boom. In addition,
unemployment and ination have been maintained
over the last year and remain relatively low at circa
5% and 3% respectively.
Value of Construction Output (AUD $); Australia

Sector
2009-10
2010-11
AUD $m
AUD $m
AUD $m
44,146
43,854
44,447
Building Work
Residential
Private Sector
Public Sector
894
2,221
2,733
45,040
46,075
47,180
Private Sector
25,175
20,677
19,657
Public Sector
7,340
14,225
32,515
34,902
34,154
77,555
80,977
81,334
Private Sector
47,149
46,324
54,618
Public Sector
27,426
29,669
29,987
74,575
75,993
84,605
152,130
156,970
165,939
Non-Residential Building
Total Building
2008-09
Engineering Work
Engineering
Total Construction
Building Cost Index by Capital City

Source: Australian Institute of Quantity Surveyors
350
300
250
200
150
84
BRUCE SHAW
HANDBOOK 2012
Perth
AWA
Sydney
Apr-12(f)
Jan-12(f)
Jul-11
Melbourne
Oct-11
Apr-11
Jan-11
Jul-10
Oct-10
Apr-10
Jan-10
Oct-09
Jul-09
Apr-09
Jan-09
Jul-08
Oct-08
Apr-08
Jan-08
Jul-07
Adelaide
Oct-07
Apr-07
Jan-07
Jul-06
Brisbane
Oct-06
Apr-06
Jan-06
Jul-05
Canberra
Oct-05
Apr-05
Jan-05
100
SECTION
Building Cost Index and Consumer Price Index Comparison (June 2011)
230
210
200
190
180
170
160
AIQS BCI
Apr-11
Dec-10
Aug-10
Apr-10
Dec-09
Aug-09
Apr-09
Dec-08
Aug-08
Apr-08
Dec-07
Aug-07
Apr-07
Dec-06
Aug-06
Apr-06
Dec-05
Aug-05
Apr-05
150
CPI

New Houses
New Other
Residential Buildings
Total
Dwelling Units
2008-2009
91,953
38,668
130,621
2009-2010
112,177
52,623
164,800
2010-2011
97,116
59,296
156,412
Source: Australian
Bureau of Statistics
Year
Average Construction Costs 2012: Australia
Commercial Offices City Centre Air Conditioned

Developer Standard (Low-Medium Rise)
Shell and Core (Medium-High Rise)
Developer Standard (Medium-High Rise)
Cost Range AUD$

To Unit
1,850
2,100
2,450
3,100
2,350
2,600
3,000
3,950
per sq.m
per sq.m
per sq.m
per sq.m
Residential
Developer Standard Apartments (medium standard)

Developer Standard Apartments (high standard)
1,950
2,600
2,450
3,500
per sq.m
per sq.m
Leisure
Hotel Building (Budget/3 Star)

2,750
4,150
3,350
4,950
per sq.m
per sq.m
Education
Primary Level (up to 3 stories, no Air Conditioning)
1,450
1,850
per sq.m
Car Park
Surface
Multi Storey
2,800
22,500
27,000
3,100
27,000
48,000
Notes:
ii All exclude Land Acquisition Costs, External Works Costs &
Professional Fees
Sources;DCWC Pty Ltd / Bruce Shaw
From
per Space
per Space
per Space
iii The above costs are for projects based in Sydney. Regional cost
variances occur for projects in Adelaide, Brisbane, Canberra,
Melbourne, Hobart & Perth
iv Regional variances across the states can vary from -9% to +15%
BRUCE SHAW
HANDBOOK 2012
85
Source: Australian Institute of Quantity Surveyors
220
List of Tier 1 Main / Building Contractors: Australia

AW EDWARDS
JOHN HOLLAND PTY LTD
BAULDERSTONE HORNIBROOK PTY LTD

BOVIS LEND LEASE PTY LTD
LAING OROURKE AUSTRALIA

CONSTRUCTION PTY LTD
BROOKFIELD MULTIPLEX PTY LTD
LEIGHTON CONTRACTORS PTY LTD
GROCON PTY LTD
ST HILLIERS PTY LTD
HANSEN YUNCKEN PTY LTD
WATPAC LIMITED
HUTCHINSON BUILDERS PTY LTD
THIESS PTY LTD
Australian (AUD $) Currency Exchange Rates

1.1
1.0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
AUD$/USD$
86
BRUCE SHAW
AUD$/EUR
HANDBOOK 2012
Jan-12
Oct-11
Jul-11
Apr-11
Jan-11
Oct-10
Jul-10
Apr-10
Jan-10
Oct-09
Jul-09
Apr-09
Jan-09
Oct-08
Jul-08
Apr-08
Oct-07
Jan-08
Jul-07
Apr-07
Jan-07
Oct-06
Jul-06
Apr-06
Jan-06
SECTION
New Zealand Market Review
The construction market like the rest of the greater

economy is still recovering from a peak in
2007/2008 in line with the effects of the global
nancial crisis. The tender market across all regions

of New Zealand and throughout each construction
sector remains highly competitive and is expected
to continue in a similar vein throughout 2012.
The number of resource consents is expected to
fall in 2012 however the New Zealand government
has indicated the resource consent process requires
an overhaul and streamlining which is expected to
encourage future development.
The tender market across all

regions of New Zealand remains
highly competitive.
The construction outlook for 2012 is expected
to be in line with the previous year with continued
low growth however the true effect of the natural
disaster and subsequent aftershocks may affect
this outlook.
New Zealand Key Statistics 2009-2011

2009
2010
2011
GDP, current prices
U.S. $ Billions
146.13
147.78
154.97
GDP per capita, current prices
U.S. $ Units
25,389
26,287
26,725
Ination, average consumer prices
Annual % change
1.8
Population
Persons, Millions
4,346,700
4,396,620
4,436,741
Current account balance
U.S. $ Billions
-11.3
-3.69
-3.772
Source: www.stats.govt.nz
Units
Note: Average exchange rate for 2011 used to convert from NZ$ to US$
Value of Construction Output: New Zealand NZ$m 2006-2011

9000
8000
7000
6000
5000
4000
3000
2000
1000
0
2006
Residential Buildings
2007
2008
2009
2010
2011
Non-Residential Buildings
BRUCE SHAW
HANDBOOK 2012
87
9
New Zealand like many other countries is still

recovering from the global nancial crisis. Overall
business condence remains low across the
majority of industry sectors which in turn is
hampering the construction industry. The negative
effects from the global nancial crisis have been
further exacerbated with the recent natural disasters
in the Canterbury Region, the full effect of these
disasters is yet to be fully realised. In addition, the
New Zealand dollar although performing well
against the United States dollar has struggled
against the Australian Dollar and recorded a decade
low position in late 2010. The weak currency
position against its Trans Tasman neighbour has had
an obvious effect on Australian trade, New
Zealands largest export/import market.
Numbers Employed in Construction (000s) 2008-2011

186
184
182
180
178
176
174
172
170
168
2008
2009
2010
2011

Apartments
Houses
Total
2006
3,850
22,664
26,514
2007
2,368
23,366
25,734
2008
2,386
16,682
19,068
2009
1,482
12,717
14,199
2010
947
15,014
15,961
2011
1,093
12,436
13,529
Year
Average Construction Costs 2012: New Zealand

Developer Standard (Medium-High Rise)
Cost Range NZ$

To Unit
1,700
2,150
2,500
3,200
1,900
2,450
2,800
3,800
per sq.m
per sq.m
per sq.m
per sq.m
Residential
Developer Standard Apartments (medium standard)

Developer Standard Apartments (high standard)
2,400
2,800
2,700
3,300
per sq.m
per sq.m
Leisure

2,800
4,900
3,200
5,300
per sq.m
per sq.m
Education
Primary Level (up to 3 stories, no Air Conditioning)
1,800
2,200
per sq.m
Car Park
Surface
Multi Storey
3,500
24,000
31,500
5,700
26,500
33,250
per Space
per Space
per Space
All subject to site specics, design and specication
ii All exclude Land Acquisition Costs, External Works Costs &

Professional Fees
; New Zealand
88
BRUCE SHAW
HANDBOOK 2012
iii The above costs are for projects based in Auckland. Regional
cost variances occur for projects in Waikato / Bay of Plenty,
Wellington, Remainder of North Island, Canterbury & Remainder
of South Island
Source: Bruce Shaw
From
SECTION
List of Tier 1 Main / Building Contractors: New Zealand

HAWKINS
MAINZEAL
BROOKEFIELD MULTIPLEX
NDZ$ Exchange Rates 2006-2012: New Zeland

1.0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
NZD$/AUD$
NZD$/USD$
Jan-12
Oct-11
Jul-11
Apr-11
Jan-11
Oct-10
Jul-10
Apr-10
Jan-10
Oct-09
Jul-09
Apr-09
Jan-09
Oct-08
Jul-08
Apr-08
Oct-07
Jan-08
Jul-07
Apr-07
Jan-07
Oct-06
Jul-06
Apr-06
Jan-06
NZD$/EUR
BRUCE SHAW
HANDBOOK 2012
89
FLETCHERS
90
BRUCE SHAW
HANDBOOK 2012
S O U T H E A S T A S I A 10
BRUCE SHAW
HANDBOOK 2012
91
SOUTH EAST ASIA
Investing in
construction
in unfamiliar
territories
is a daunting
prospect.
SECTION
10
SOUTH EAST ASIA
South East Asia Market Review
10
Other than Singapore, these are developing

countries but all rely quite heavily on exports
of goods and services to the West, particularly
the Eurozone and North America.
Whilst the latter has seen some growth in the past
twelve months, this has not been reected in the
Eurozone where the sovereign debt crisis has
restrained all but Germany and France. The effect
of this market contraction has (with the exception
of Indonesia) seen a slow-down in GDP growth
across the region: the global downturn has
dampened growth.
Investing in construction in unfamiliar territories

is a daunting prospect. A very informative schedule
of information on how difficult it is to carry out
business across the world is published by World
Bank Group, and the following extract gives
food for thought: (UK & USA included for
comparative purposes)
Carrying out Business Thoughout the World

Starting
a Business
Dealing with
Construction
Permits
Registering
Property
Enforcing
Contracts
Resolving
Insolvency
Singapore
14
12
USA
13
17
16
15
UK
19
22
68
21
Malaysia
18
50
113
59
31
47
Vietnam
98
103
67
47
30
142
Indonesia
129
155
71
99
156
146
BRUCE SHAW
HANDBOOK 2012
Source: World Bank Group
Economy
Ease of
Doing Business
93
SOUTH EAST ASIA
South East Asia is sometimes hard to dene. In the

context of this commentary, it is taken as countries
bordering the South China Sea, particularly
Singapore, Vietnam, Malaysia, and Indonesia.
Although these countries are quite different
politically and economically, they share a unique
blend of low labour costs, freedom of trade,
and natural resources, sitting across a gateway
between East and West.
SOUTH EAST ASIA
Singapore Market Review

Singapore has a very free economy, second only
to Hong Kong in global stakes, but the economy
is closely controlled by the governing Republic,
balancing global downturn with local initiatives of
public spending. Full year GDP growth in 2011 was
approximately 5%, whilst the forecast for 2012 is
much more modest at 2-3%.
With a population of 5.18m, Singapore commands
high GDP (SG$303.7bn in 2010) with manufacturing
the highest sector, delivery 22%, and construction
a more modest 4.5%. The value of construction
output (at a peak in 2008), recovered in 2010 due
mainly to private sector investment in hotels/
casinos, and strong residential growth to a total of
SG$28bn, with a further increase in 2011 to

SG$32bn, boosted by government contracts,
particularly for infrastructure. Current forecasts
for 2012 indicate a steep decline to between
SG$21bn and SG$27bn.
Because of the freedom of doing business,
nancial integrity and lack of corruption, Singapore
continues to not only attract inward investment,
but also to act as a springboard for businesses
wishing to invest in other South East Asian
countries, and there are government incentives
to do so. This will help smooth out the decline in
growth, and perhaps offer a safer way of investing
off-shore.
Value of Construction Output: Singapore SG$bn

Source: Department of Statistics Singapore

Public Sector
94
BRUCE SHAW

Private Sector
HANDBOOK 2012

SECTION
10
Average Construction Costs: Singapore
SOUTH EAST ASIA
To
Unit
n/a
n/a
per sq.m
2,500
2,750
per sq.m
n/a
n/a
per sq.m
Developer Standard (MediumHigh Rise)
2,900
3,150
per sq.m

(medium standard)
1,950
2,150
per sq.m

(high standard)
2,450
2,650
per sq.m
Leisure
2,850
3,250
per sq.m
4,200
5,100
per sq.m
Education
Primary Level (up to 3 stories,

no Air conditioning)
1,500
1,850
per sq.m
Car Park
Surface
n/a
n/a
per Space
26,000
31,500
per Space
n/a
n/a
per Space

Multi Storey
Notes:
SGD $ Currency Exchange Rates

Source: www.xe.com
0.85
0.80
0.75
0.70
0.65
0.60
0.55
0.50
0.45
SGD$/EUR
Jan-12
Jan-11
Jan-10
Jan-09
Jan-08
Jan-07
Jan-06
0.40
SGD$/USD$
BRUCE SHAW
HANDBOOK 2012
95
SOUTH EAST ASIA
From
Source: Barton Bruce Shaw
Cost Range SGD$
Residential
10
Key Rates Current at January 2012
SOUTH EAST ASIA
Malaysia Market Review

Like Singapore, its ex-colonial neighbour to the
South, Malaysia presents a more mature face to
the investment and construction markets. With
a population of 26.6m and a GDP in excess of
US$220bn, exports of electronics, textiles,
petroleum, palm oil, and tourism help to maintain a
robust construction market. Growth in construction
fell from 5.1% in 2010 to 3.4% in 2011; but a gure
up to 7% is forecast for 2012, driven by both large
infrastructure projects and housing construction.
One concern here is the underlying rate of ination,
set to rise from 3.2% in 2011 to 3.5% or more in
2012. The majority of construction opportunities

lie in East Malaysia, and the focus of tourism has led
to a rise in opportunities for resort and marina
construction.
Its ease of doing business ranking is 18 ahead
of Germany (19), France (29), and way ahead of
Vietnam (98) and Indonesia (129). This is in spite
of the difficulty in obtaining construction permits,
which can slow the pace of projects, whilst red tape
makes starting a business as an inward investment
opportunity a challenge.
Malaysia GDP Growth Rate
Percentage Change in Gross Domestic Product

2
96
2
2

BRUCE SHAW
2
2
2
2

HANDBOOK 2012
2
2
2
2

2
2
2
2

2
2
2
2

Source: www.tradingeconomics.com
Department of Statistics Malay

SECTION
10
SOUTH EAST ASIA
10
From
To
Unit
n/a
n/a
per sq.m
850
950
per sq.m
n/a
n/a
per sq.m
1,100
1,200
per sq.m

(medium standard)
400
500
per sq.m

(high standard)
600
750
per sq.m
1,200
1,500
per sq.m
Residential
Leisure
2,000
2,300
per sq.m
Education

300
400
per sq.m
Car Park
Surface
N/A
N/A
per sq.m
Multi Storey
350
400
per sq.m
500
550
per sq.m
Cost Range US $
Notes:
Malaysian Ringgits (MYR) Currency Exchange Rates

0.35
Source: www.xe.com
0.30
0.25
0.20
0.I5
MYR/EUR
Jan-12
Jan-11
Jan-10
Jan-09
Jan-08
Jan-07
Jan-06
0.10
MYR/USD$
BRUCE SHAW
HANDBOOK 2012
97
SOUTH EAST ASIA
Average Construction Costs: Malaysia
SOUTH EAST ASIA
Vietnam Market Review

Vietnam is regarded by many as a late starter in
the commercial world. This single party communist
state has interesting demographics. Within a
population of just over 90m, the average age is
27.8 years, and the average per capita income is less
than US$1,300 (2011 gures) compared with China
at US$4,250 and Singapore at US$62,100. Within
two to three years the gure for per capita income
is set to at least double: this will only be achieved
if strict controls on trade and the ow of money
are relaxed, and the difficulty of doing business
is eased. Currently in the ease of doing business
league table Vietnam ranks 98 (Singapore and
Hong Kong ght for rst place, China is at 91,
UK at Number 7).
For the past decade, GDP has grown at an

astonishing rate, and currently is second only to
Singapore in growth rate. Growth is now forecast
to slow, due to a combination of factors including
higher commodity prices, devaluation of the
Vietnamese Dong, and rising interest rates, to
between 6 and 6.3% in 2012 but with ination
levels reaching 8-10%. This slowdown in growth
will be reected in the construction industry, with
Government intervention and investment in key
industries (including nuclear) softening the blow.
Construction costs remain lower than other SE
Asian countries, mainly due to the low cost of
employment, which counters the high cost of
imported raw materials.
Vietnam GDP Growth Rate
Percentage Change in Gross Domestic Product

Source: www.tradingeconomics.com
General Statistics Office of Vietnam

2
2
2
2
2
2

2
2

2
2
2
2

Average Construction Costs: Vietnam
2

From
To
Unit
Residential
Leisure
n/a
n/a
per sq.m
730
760
per sq.m
Shell and Core (Medium-High Rise
n/a
n/a
per sq.m
750
850
per sq.m

(medium standard)
650
750
per sq.m
Developer Standard Apartments (high

standard)
800
950
per sq.m
1,500
1,800
per sq.m
1,850
2,050
per sq.m
475
500
per sq.m
Education
Primary Level (up to 3 stories, no Air

conditioning)
Car Park
Surface
n/a
n/a
per sq.m
Multi Storey
400
450
per sq.m
650
750
per sq.m
Notes:
98
BRUCE SHAW
HANDBOOK 2012
Cost Range US $
SECTION
10
SOUTH EAST ASIA
10
SOUTH EAST ASIA
Vietnamese Dong Currency Exchange Rates

Source: www.xe.com

EUR/VND
Oct-11
Jan-11
Jan-10
Jan-09
Jan-08
Jan-07
Jan-06

USD$/VND
BRUCE SHAW
HANDBOOK 2012
99
SOUTH EAST ASIA
Indonesia Market Review

Indonesia is the largest country in this review of
South East Asia, comprising an extensive land mass
stretching from the Indian Ocean to Papua New
Guinea. This landmass is broken into ve large areas,
plus numerous small islands. In area terms it is
roughly 75% of the size of India, supporting a
population of 239m. The majority of the population
live in the capital (Jakarta), and commercial centres
are located on the island of Java.
Indonesia has the largest economy in South East
Asia, and supports a GDP of US$706bn, which in
the face of the same pressures as the other
economies in the area has grown by 6.5% in 2011,
and this pace of growth is forecast to continue until
2014. Ination of between 4% and 6% in 2011 is

expected to fall to 3.5% in 2012. The construction
industry contributed over 10% to the GDP in 2011,
but better performance was hampered by
inationary pressures on the price of basic raw
materials, including cement, aggregates
reinforcement, and structural steel. Indonesia
does not score well in the ease of doing business
league table, at 129. Notwithstanding this, growth
is forecast to continue at a rate of 7.5% pa in 2012,
attracting major inward investment, particularly
in respect of large infrastructure projects
(power generation, railways, manufacturing
industries).
Average Construction Costs: Indonesia
From
To
Unit
n/a
n/a
per sq.m

n/a
n/a
per sq.m
n/a
n/a
per sq.m
750
1,000
per sq.m

(medium standard)
n/a
n/a
per sq.m

(high standard)
800
950
per sq.m
Leisure
800
1,000
per sq.m
1,000
1,200
per sq.m
Education

250
300
per sq.m
Car Park
Surface
n/a
n/a
per sq.m
Residential
Multi Storey
n/a
n/a
per sq.m
n/a
n/a
per sq.m
Notes:
100
BRUCE SHAW
HANDBOOK 2012
Cost Range US $
SECTION
10
SOUTH EAST ASIA
10
Indonesian Rupiah (IDR) Currency Exchange Rates

EUR/IDR
Oct-11
Jan-11
Jan-10
Jan-09
Jan-08
Jan-07
Jan-06

USD$/IDR
BRUCE SHAW
HANDBOOK 2012
101
SOUTH EAST ASIA
Source: www.xe.com

102
BRUCE SHAW
HANDBOOK 2012
C H I N A 11
BRUCE SHAW
HANDBOOK 2012
103
CHINA
Chinas growth has

been around 10%
a year on average
over the past two
decades, making
it the worlds
second largest
economy, after
the United States.

SECTION
11
CHINA
China Market Review

The Peoples Republic of China (PRC) is the most
populous country in the world with more than 1.3
billion people located in East Asia, with the capital
in Beijing. China represents approximately 20% of
the worlds population, nearly ve times more than
the United States, even though they both have
approximately the same geographical area.
11
CHINA
Bruce Shaw has established itself

in the market in China in conjunction
with our local partner.
down from 33% growth in 2010. Many
commentators estimate that this may fall by
a further 10% in 2012. In terms of oor area,
property construction starts increased 16% to
1.9 billion square meters in 2011, a growth rate
down sharply from 42% in 2010, according to
the National Bureau of Statistics.
Bruce Shaw has established itself in the market

in China in conjunction with our local partner,
Shanghai First Surveying Co. Ltd. with offices in
Shanghai and Chengdu, providing full
cost consultancy services to large multi-nationals
including Hewlett Packard and Diageo.
Whilst China plans to start building seven million

public housing units in 2012, this is down from
2011s ten million units, which is due in part to
the Governments measures to stabilise soaring
prices including imposing credit restrictions and
an increase in down payments and also as a result
of a reduction in investment by developers.
Chinas growth has been around 10% a year on

average over the past two decades, making it the
worlds second largest economy, after the United
States. However, the economic constraints in the
US and in particular the Eurozone, has caused
a weakening of the export sector and GDP is
estimated to grow by 8.8% in 2012 compared
to 9.3% in 2011, according to the Bank of China.
Annual growth in property investment was 12.3%

in December 2011, which marked a sharp
slowdown from Novembers 20.2%, a worrying
signal for a sector which represents some 13%
of total economic output.
Chinas investment in real estate development rose

28% to 6.17 trillion Yuan ($977.67 billion) in 2011,
China GDP Annual Growth Rate 2007-2012

14%
Source: National Bureau of Statistics
12%
10%
8%
6%
4%
2%
0%
2
2
2

2
2
2

2
2
2
2

The Gross Domestic Product (GDP) of China

reached 47.2 trillion Yuan in 2011, 9.2% higher than
2010 calculating at comparable prices, according
to economic data issued by the National Bureau of
Statistics of China.
In addition, Chinas Consumer Price Index (CPI),
a main gauge of ination, rose 4.1% in December
2011 from the previous year, hitting a 15 month low.
2
2
2
2
2
2

2
2

2
2

The countrys ination rate has remained

persistently high for a long time, and reached 6.5%
in July 2011. The CPI downward trend in late 2011
came as a great relief, but the annual ination rate
still reached a high level at 5.4% last year, exceeding
the Chinese Governments control target of 4%.
BRUCE SHAW
HANDBOOK 2012
105
CHINA
Total Government Investment in Trillion RMB

35
Source: National Bureau of Statistics
30
25
20
15
10
5
0
+BO%FD

+BO'FC

+BO.BS

+BO"QS

+BO.BZ

+BO+VOF

At the end of September 2011, the ministrys

outstanding debt increased to 2.23 trillion Yuan with
its asset-liability ratio standing at 59.6%, according
to official data released by the Government.
Notwithstanding this debt the economy will be
largely dependent on the Governments willingness
to introduce a stimulus package to counteract the
weak external demand and economic slowdown
similar to the stimulus package introduced
following the global recession in 2009.
+BO+VMZ

+BO"VH

+BO4FQU

+BO0DU

+BO/PW

+BO%FD

One such solid indication is the Governments

conrmation that they plan to invest 400 billion
Yuan in railway infrastructure construction in
2012, with an estimated completion of over
6,000 kms of new railway. However, whilst
positive, this investment scale registered a slight
decline from the total expenditure of 469 billion
Yuan in 2011 and a marked decrease from over
700 billion Yuan in 2010.
This is the rst time for the Government to
announce a clear goal for the future railway
development which plays an important role in
the countrys social and economic development.
Regional Building Cost Comparison January 2012

Outlined below are indicative construction costs for the varying sectors based on tenders received in the regions.
1.0
Description
From
(US$)
To
(US$)
Beijing
Index
From
(US$)
To
(US$)
Hong Kong
Index
From
(US$)
To
(US$)
Index
Residential Sector
1.1
Medium Quality High Rise
$600
$850
100
$650
$900
107
$2,000
$2,400
303
1.2
High Quality High Rise
$900
$1,500
100
$950
$1,500
102
$2,200
$2,600
200
2.0
Commercial / Office Sector
2.1
Standard Specication
High Rise
$850
$1,050
100
$850
$1,050
100
$2,000
$2,400
232
$1,100
$1,500
100
$900
$1,600
96
$2,400
$2,800
200
2.2
High Specication High Rise
3.0
Hotel & Leisure / Retail Sector
3.1
Shopping Centre
$900
$1,400
100
$1,000
$1,500
109
$2,000
$2,500
196
3.2
Budget/3* Hotel
$900
$1,300
100
$1,000
$1,400
109
$2,400
$2,800
236
3.3
4/5* Hotel
$1,900
$2,400
100
$2,000
$2,800
112
$3,000
$3,500
151
Notes: Above costs are indicative only based on return tenders received. They include allowances for prot and preliminaries, but exclude land
acquisition and external works.
106
BRUCE SHAW
HANDBOOK 2012
Source: Bruce Shaw / Shanghai First Surveying Co. Ltd
Shanghai
Ref.
SECTION
Regional Building Cost Comparison January 2012
11
CHINA
11
continued
Outlined below are indicative construction costs for the varying sectors based on tenders received in the regions.
From
(US$)
To
(US$)
Guangzhou
From
(US$)
Index
To
(US$)
Index
Residential Sector
1.1
Medium Quality High Rise
$350
$550
62
$500
$700
83
1.2
High Quality High Rise
$700
$1,050
73
$800
$1,100
79
2.0
Commercial / Office Sector
2.1
Standard Specication High Rise
$700
$850
82
$750
$950
89
2.2
High Specication High Rise
$900
$1,400
88
$950
$1,450
92
3.0
Hotel & Leisure / Retail Sector
3.1
Shopping Centre
$600
$1,000
70
$700
$1,100
78
3.2
Budget/3* Hotel
$700
$900
73
$800
$1,100
86
3.3
4/5* Hotel
$1,500
$2,100
84
$1,600
$2,300
91
Notes: Above costs are indicative only based on return tenders received. They include allowances for prot and preliminaries, but exclude land
acquisition and external works.
Shanghai Tender Price Index. Multistorey Residential Building (2006-2011)

Outlined below is the Tender Price Index for the Shanghai region based on tender returns. The base line index of 100
is taken as of Q1 2001, with a high of 123 in Q3 of 2008, with tender returns as of Q4 2011 down at an index of 118.
130
Source: Shanghai First Surveying Co. Ltd
127
124
121
118
115
112
109
106
103
100
97
2
2
2

2
2
2
2

2
2
2
2

2
2
2
2

2
2
2
2

2
2
2
2
2

Suzhou-Creek, Shanghai
BRUCE SHAW
HANDBOOK 2012
107
CHINA
1.0
Description
Source: Bruce Shaw / Shanghai First Surveying Co. Ltd
Chengdu
Ref.
CHINA
Top 20 Chinese Contractors
108
Revenue
$ bn
Firm
CHINA RAILWAY GROUP LTD.
71.66
CHINA RAILWAY CONSTRUCTION CORP.
71.02
CHINA STATE CONSTRUCTION ENGINEERING CORP.
48.89
CHINA COMMUNICATIONS CONSTRUCTION GROUP
39.64
CHINA METALLURGICAL GROUP CORP.
29.92
SHANGHAI CONSTRUCTION GROUP
13.01
DONGFANG ELECTRIC CORP.
6.68
SHANGHAI URBAN CONSTRUCTION (GROUP) CORP.
6.01
GUANGSHA CONSTRUCTION GROUP CO.
6.00
10
CHINA PETROLEUM ENGINEERING & CONSTRUCTION CORP.
4.97
11
CHINA NATIONAL MACHINERY INDUSTRY CORP.
4.82
12
ZHEJIANG CONSTRUCTION INVESTMENT GROUP CO.
4.69
13
HUNAN CONSTRUCTION ENGINEERING GROUP CORP.
4.10
14
CHENGDU CONSTRUCTION ENGINEERING CORP. GROUP
3.96
15
ZHONGTIAN CONSTRUCTION GROUP CO.
3.87
16
SICHUAN HUASHI GROUP CORP.
3.72
17
GUANGZHOU CONSTRUCTION ENGINEERING CORP.
3.63
18
YUNNAN CONSTRUCTION ENGINEERING GROUP CO.
3.52
19
SHAANXI CONSTRUCTION ENGINEERING GROUP CORP.
3.49
20
GUANGXI CONSTRUCTION ENGINEERING GROUP CO.
3.38
BRUCE SHAW
HANDBOOK 2012
Rank
SECTION
11
CHINA
11
Top 20 Chinese Design Firms
HYDROCHINA CORPORATION
1.31
CHINA CHENGDA ENGINEERING CO.
0.99
CHINA POWER ENGINEERING CONSULTING GROUP CO.
0.89
CHINA RAILWAY ERYUAN ENGINEERING GROUP CO.
0.70
THE THIRD RAILWAY SURVEY AND DESIGN INSTITUTE GROUP CORPORATION
0.54
CHINA RAILWAY SIYUAN SURVEY AND DESIGN GROUP CO. LTD.
0.52
CHINA CONSTRUCTION ENGINEERING DESIGN GROUP CORPORATION
0.51
CHINA ARCHITECTURE DESIGN & RESEARCH GROUP
0.44
SHANGHAI XIAN DAI ARCHITECTURAL DESIGN (GROUP) CO.
0.38
10
CHINA HUANQIU CONTRACTING & ENGINEERING CORPORATION
0.34
11
CHINA PETROLEUM PIPELINE ENGINEERING CORPORATION
0.28
12
CHINA UNITED ENGINEERING CORPORATION
0.26
13
ARCHITECTURAL DESIGN & RESEARCH INSTITUTE OF TONGJI UNIVERSITY
0.25
14
HYDROCHINA CHENGDU ENGINEERING CORPORATION
0.25
15
CHINA NUCLEAR POWER DESIGN COMPANY (SHEN ZHEN)
0.24
16
EAST CHINA INVESTIGATION AND DESIGN INSTITUTE
0.20
17
CCCC HIGHWAY CONSULTANTS CO.
0.20
18
HYDROCHINA XIBEI ENGINEERING CORPORATION
0.20
19
SHANGHAI MUNICIPAL ENGINEERING DESIGN INSTITUTE (GROUP) CO.
0.19
20
CCCC FIRST HIGHWAY CONSULTANTS CO.
0.18
Chinese Yuan Renminbi (CNY) Currency Exchange Rates

0.16
0.15
0.14
0.13
0.12
0.11
0.10
0.09
CNY/EUR
Jan-12
Oct-11
Jul-11
Apr-11
Jan-11
Jul-10
Oct-10
Apr-10
Jan-10
Oct-09
Jul-09
Apr-09
Jan-09
Oct-08
Jul-08
Apr-08
Jan-08
Oct-07
Jul-07
Apr-07
Jan-07
Jul-06
Oct-06
Apr-06
Jan-06
0.08
CNY/USD$
BRUCE SHAW
HANDBOOK 2012
109
CHINA
Revenue
$ bn
Design Firm Name
Rank
110
BRUCE SHAW
HANDBOOK 2012
G H A N A 12
BRUCE SHAW
HANDBOOK 2012
111
GHANA
The Republic of Ghana

is one of the fastest
growing economies
in the world.

SECTION
12
GHANA
Ghana Market Review

The Republic of Ghana with a population of 24
million and a land area of 238,535 square kilometres
is one of the fastest growing economies in the world.
There has been a signicant growth in real GDP from
4% in 2009 to 8% in 2010 and it is expected that circa
14% real GDP growth will be achieved in 2011.
Ination, which was previously high in Ghana, has
stabilised with the Governments 2011 target of 9%
likely to be achieved.
12
Construction is expected to represent

over 10% of GDP from 2012 onwards.
GHANA
Historically, the Construction Sector represented 4%

to 6% of GDP. With a 12% plus growth rate projected
for the sector, construction is expected to represent
over 10% of GDP from 2012 onwards. These growth
expectations are reected in Ghanas 2012 Budget
which focuses on the provision of key infrastructure,
particularly in the areas of:
The Industry Sector will record the highest output

growth due mainly to the recent commencement of
crude oil production. Growth in this sector is
expected to exceed 30% in 2011. Other sectors, such
as Services and Agriculture, are likely to achieve more
modest growth rates.

&MFDUSJDJUZ 0JMBOE(BT
8BUFSBOE4BOJUBUJPO
3BJMXBZT 3PBET BOE1PSUTBOE
)FBMUI &EVDBUJPO BOE"HSJDVMUVSF
Ghana Key Statistics
GDP at current market prices
GDP per capita
2008
2009
2010
Million Gh
30,179
36,598
46,232
Million US$
28,249
25,798
32,319
Gh
1,318
1,563
1,930
US$
1,234
1,102
1,349
GDP growth rate
8.4
4.0
7.7
Ination
16.5
19.3
10.8
Exchange Rate (Gh/US$)
Gh per US$
Current Account Balance
Million US$
Population
Persons, Millions
Minimum Wage
Gh
1.07
1.42
1.43
(5,496)
(3,380)
(2,962)
22.9
23.4
24.0
2.3
2.7
3.1
Source: Ghana Statistical Service
Unit
GDP (US$ billion current prices)

"DUVBM
60
Source: International Monetary Fund, World

Economic Outlook Database
70
'PSFDBTU
50
40
30
20
10
0

BRUCE SHAW

HANDBOOK 2012
113
GHANA
Value of Construction Output (at constant 2006 prices)

Million Gh
Million US$
% of GDP
2006
1,016
1,104
6.20%
2007
1,252
1,332
7.20%
2008
1,739
1,625
8.00%
2009
1,902
1,339
6.20%
2010
1,949
1,373
5.90%
Source: Ghana Statistical Service
Year
Construction Output Growth Rate Forecast (based on constant 2006 prices)
Construction Output Growth Rate
2011
2012
2013
2014
17%
14%
12%
12%
Source: Ghana Statistical Service & Ghana Ministry of Finance and Economic Planning (Sept 2011)
Average Construction Costs 2012: Ghana
Commercial Offices
To
Unit
2,400
2,700
per sq.m
Shell and Core

(Low-Medium Rise)
1,500
1,800
per sq.m
Residential

(medium standard)
2,000
2,500
per sq.m
Leisure
Hotel Building (4/5*)
2,200
2,600
per sq.m
Retail
Shopping Centre
1,700
2,400
per sq.m
Education
Third Level
1,900
2,400
per sq.m
Healthcare
Hospital
3,300
3,900
per sq.m
Warehouses
Without Offices
1,000
1,300
per sq.m
Notes:
ii All exclude Land Acquisition Costs, External Works Costs
& Professional Fees
114
BRUCE SHAW
HANDBOOK 2012
iii Regional variances occur across the country and from sector
to sector
iv Gh per : 2.2
Source: Bruce Shaw
Cost Range Gh
From
SECTION
12
GHANA
12
Ination Index
60%
40%
30%
20%
10%
0%
2004
Labour
2005
Cement
2006
2007
2008
2009
2010
Steel
Building Cost Index & Consumer Price Index Comparison

45%
Source: Ghana Statistical Office
40%
35%
30%
25%
20%
15%
10%
5%
0%
2004
CPI
2005
2006
2007
2008
2009
2010
BCI
BRUCE SHAW
HANDBOOK 2012
115
GHANA
Source: Ghana Statistical Office
50%
GHANA
Construction Companies Active in Ghana

Arab Contractors Co. (Osman Ahmed Osman & Co) GKL Ghana Ltd.
Ballast Nedam Ghana BV
Grinaker-LTA Ltd.
Big Aidoo Construction Company
Jiangsu Jianda Construction Co., Inc
Bilnger Berger AG
Jiangxi Zhongmei Engineering Construction Co.
China Intl Water & Electric Corp.
Justmoh Construction Ltd.
China Jiangxi Corporation for IETC
Kamsad Construction Company Ltd.
China Railway Engineering Corporation
MSF International
China Zhong Hao Ltd.
Royal BAM Group NV
Consar Ltd.
SADE CGTH
De Simone Ltd.
Solel Boneh International Ltd.
Energoprojekt Group
Taysec Construction Ltd.
PW Group
Exchange Rates Gh/US$ 2004-2011

1.80
Source: Bank of Ghana
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
116
BRUCE SHAW
HANDBOOK 2012
Dec-11
Dec-10
Dec-09
Dec-08
Dec-07
Dec-06
Dec-05
Dec-04
0.00
SECTION
12
GHANA
12
GHANA
BRUCE SHAW
HANDBOOK 2012
117
118
BRUCE SHAW
HANDBOOK 2012
T O P I C A L I S S U E S 13
BRUCE SHAW
HANDBOOK 2012
119
TOPICAL ISSUES
Energy and Power Generation

by Stephen Ashe
On both a domestic and international front we are faced with major challenges regarding
how we source and generate our energy supplies. Globally we have an insatiable requirement
for energy and power and with an ageing current capacity and relatively low investment in
future generation Government commitments to low carbon emissions power generation is
set to take front stage in the coming years.
There is now signicant EU and government
legislation which encourages investment in low
carbon energy generation. We note however that
a substantial part of energy generation will still
come from mature technologies (coal, gas & nuclear)
and it is important that we do not lose sight of the
need to upgrade these facilities and introduce latest
technologies.
The main sources of energy are outlined below:
'PTTJMT DPBM PJM QFBU
/VDMFBS
3FOFXBCMF 8JOE )ZESP 8BWF 5JEBM 4PMBS
Geothermal)
0UIFS #JP.BTT #JP'VFMBOE8BTUFUPFOFSHZ
Fossils
Fossil fuels are fuels formed by natural processes.
They contain high percentages of carbon and include
coal, petroleum and gas. It was estimated by the
Energy Information Administration that in 2007
primary sources of energy consisted of petroleum
36.0%, coal 27.4% and natural gas 23.0%, amounting
to an 86.4% share for fossil fuels in primary energy
consumption in the world. As supplies of fossils (in
particular oil) have diminished prices have increased.
This is not helped by some countries creating a false
impression about the availability of capacity in order
to manipulate prices on the wholesale markets.
Generation from fossils is still the most economical
source of power. However as supply diminishes
and government legislation changes renewable
energy sources are becoming more and more
economically viable.
Power Stations require a large initial construction
investment. The costs have several components
including:
-BOE$PTUT
0XOFST Costs Transmission and fuel delivery

facilities (i.e. gas pipeline)
Finance Charges
Nuclear
In a nuclear power plant the heat source is one or
more nuclear reactors. The heat is used to generate
steam which drives a steam turbine connected to
a generator which produces electricity. Nuclear
power plants typically have high capital costs for
building the plant, but low direct fuel costs (with
much of the costs of fuel extraction, processing,
use and long term storage externalised). Cost
estimates also need to take into account plant
decommissioning and nuclear waste storage costs.
Measures to mitigate carbon emissions may favour
the economics of nuclear power but this needs
to be set against the obvious safety concerns.
Renewable Energy
Renewable energy comes from natural resources
such as wind, wave, sunlight and geothermal.
About 16% of global nal energy consumption
comes from renewables. The share of renewables
in electricity generation is around 19%, with 16%
of global electricity coming from hydroelectricity
and 3% from new renewables.
Wind
Wind power is growing at the rate of 30% annually,
with a worldwide installed capacity of 194 gigawatts
(GW) in 2010, and is widely used in Europe, Asia, and
the United States. The graph on the next page sets
out the global wind power cumulative capacity.
As can be seen it has experienced major growth.
Wave and Hydro
Energy can be harnessed from water by large scale
dams (hydroelectric dams) and from the ocean
taking advantage of tidal ow.
&OHJOFFSJOH 1SPDVSFNFOUBOE$POTUSVDUJPO
(EPC) This is the cost of the construction
contract for building the plant. It includes the cost
of designing the facility, buying the equipment
and construction. A large part of the cost is the
actual equipment.
120
BRUCE SHAW
HANDBOOK 2012
Hydroelectricity is the most common form of

renewable energy accounting for 16% of global
electricity consumption in 2010. The cost of
hydroelectricity is relatively low, making it a
competitive source of renewable electricity.
Hydroelectricity also has considerably less C02
emissions than fossil fuels.
13
SECTION
TOPICAL ISSUES
13
Global Wind Power Cumulative Capacity
(MPCBM$VNVMBUJWF$BQBDJUZ (8

Tidal power, also called tidal energy, is a form of

hydropower that converts the energy of tides into
useful forms of power mainly electricity. Although
not yet widely used, tidal power has potential for
future electricity generation.
Solar
According to a 2011 projection by the International
Energy Agency, solar power generators may produce
most of the worlds electricity within 50 years,
dramatically reducing the emissions of greenhouse
gases that harm the environment. The solar thermal
power industry is growing rapidly with 1.2 GW under
construction as of April 2009 and another 13.9 GW
announced globally through 2014.
Biomass
Biomass is plant matter used to generate electricity
with steam turbines & gasiers to produce heat,
usually by direct combustion. Examples include
forest residues (such as dead trees, branches and
tree stumps), yard clippings, wood chips and even
municipal solid waste. Biomass power plant size is
often driven by biomass availability in close proximity
as transport costs of the (bulky) fuel play a key factor

At Bruce Shaw we understand the needs of todays

power generation sector and have the experience to
meet the challenges. Our specialist service includes:
'FBTibility studies and Cost Benet Analysis
7BMVF&OHJOFFSJOHBOE-JGF$ZDMF$PTUJOH
4USBUFHJDQSPDVSFNFOUBEWJDFBOETUBLFIPMEFS
management
$POUSBDUBEWJDF
1SFBOE1PTUDPOUSBDUDPTUDPOUSPM
1SPKFDU.Bnagement and Risk Management
We have a strong working relationship with a number
of clients in the energy sector due to the level of
expertise and service we provide. Whether you want
to upgrade and enhance existing assets or develop
new projects we are available to join your team.
Some Bruce Shaw projects

.BZP1ower 50 MW Biomass Plant
)VOUTUPXO.8(BT5VSCJOF
-BOFTCPSPVHI.81FBU'JSFE1MBOU
4IBOOPOCSJEHF.81FBU'JSFE1MBOU
4PVUIFSO*SFMBOd 450 MW Gas Fired CCGT
in the plants economics.
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(Claim Management)
Geothermal Energy
&4#/FUXPSLT$PSL)BSCPVS$BCMF$POUSBDU
Geothermal energy is thermal energy generated

and stored in the Earth. Geothermal power requires
no fuel (except for pumps), and is therefore immune
to fuel cost uctuations. However, capital costs
are signicant. Drilling accounts for over half the
costs, and exploration of deep resources entails
signicant risks.
Mayo Power
BRUCE SHAW
HANDBOOK 2012
121
TOPICAL ISSUES

Source: GWEC

TOPICAL ISSUES
Financial Robustness of Contractors

by Willie Aherne
Each year, billions are spent on contracts for the procurement of works, services and
supplies. Poor contract performance due to deterioration in a contractors nancial position,
or in a worst case insolvency, is increasing. This usually results in a loss of time or money even
if bonds are in place. A signicant additional hidden cost is the senior management time
consumed while managing a difficult contract.
Prevention is better than cure and so it is essential to
undertake a thorough assessment of a contractors
nancial robustness before entering into a contract
in the rst instance. The comprehensiveness of the
assessment should be determined by the value and
complexity of the contract.
When assessing the nancial robustness of a
contractor, Bruce Shaw usually starts with a review
of the contractors nancial statements with a
particular focus on the following:
Auditors Report
An unqualied audit opinion provides assurance
that the nancial statements of a contractor give
a true and fair view and are representative of the
state of its affairs. Qualied audit opinions are
a cause for concern and require careful
consideration.
It is inherently assumed that a company carries on
its business as a going concern, and will continue
to do so in the near future unless there are specic
reasons such as pending insolvency, liquidation or
cessation of trade.
Auditors frequently use an emphasis of matter
paragraph within their audit reports to highlight
122
BRUCE SHAW
HANDBOOK 2012
certain parts of nancial statements or directors

reports relating to ongoing concern issues. This is
understandable given the prevalence of difficult
trading conditions, lower property values and the
signicant challenges in securing new or
replacement credit lines from banks.
Cashow
Strong cashow is essential in any business. High
projected turnover and prot become irrelevant if
weak cashow puts strain on a contractors
business. The issue is compounded if the
contractor has insufficient credit lines or has few
liquid assets on its balance sheet to carry it
through a difficult period.
Balance Sheet
The balance sheet is a useful indicator of nancial
strength. While the quantum and quality of Net
Assets enable an assessment of worth, the level of
unencumbered assets, net current assets and cash
balances provide a measure of liquidity and in turn
a contractors capacity to sustain a difficult trading
period. Bruce Shaw also focuses on liabilities
falling due in the near term, particularly bank debt
which may need to be renanced.
SECTION
Other
The notes to the accounts sometimes highlight
matters which may impact on a contractors
business. Examples of this include details of
guarantees provided to group companies,
contingent liabilities, pension liabilities, provisions,
charges on assets, restrictions on cash balances,
over reliance on a small number of customers or
contracts, etc. The directors report or notes to the
accounts may also provide information regarding
the status of the contractors order book.
TOPICAL ISSUES
There will be instances where the assessment

outlined above should extend to other group
companies as a result of parent company guarantees
or situations where a contractor is exposed to,
or reliant on, the performance of another group
company.
Undertaking assessments in the manner outlined
above should reduce the possibility of making awards
to contractors that may subsequently have difficulties
performing due to deterioration in their nances.
On larger projects, it is equally important to
continue to monitor a contractors nancial
position post contract award to re-conrm its
nancial robustness or facilitate early remedial
action should the need arise.
The nancial statements provided by contractors are

often outdated and there is a risk that the underlying
nancial condition of a contractor may have changed
substantially since its nancial statements were
approved. Hence, the nancial analysis should
include a review of the following where possible:
Management or Interim Accounts
These accounts can provide a useful update on its
trading performance.
Business Projections
While business projections are difficult to verify,
they do provide some, albeit limited, assurance on
a contractors future protability.
Contractor Declarations
Declarations should be sought to conrm that
there are no legal, tax or regulatory investigations
or proceedings taking place, insurance or other
claims pending, unreported contingent liabilities or
losses arising, incidences of insurance applications
being refused, etc. Details should be sought where
such matters do arise.
The following third party sources may provide further
information on a contractors nancial situation:
Source
Benets to the Assessment Process
Companies Registration
Office
late lings are sometimes evidence of

distress
searches provide details of charges on
assets
Revenue
tax clearance certicates indicate that

a contractors taxes are in order at the
date of issue
Credit Ratings /
Bankers Letter
these provide information on a

contractors credit quality
Performance Bonds /
Insurance
third party evidence conrming availability

provides some, albeit limited, assurance
on nancial robustness
Media
media news clips and articles may identify

issues prompting further investigation
BRUCE SHAW
HANDBOOK 2012
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13
TOPICAL ISSUES
Prot and Loss

The prot and loss account provides useful
information on turnover, the protability of a
contractor, performance trends and exceptional
items that have affected its business.
13
TOPICAL ISSUES
Building Information Modelling (BIM)

by Alan Fox
Historically the methodology for the coordination and communication of construction

project information was facilitated using standard software packages. Microsoft Excel,
Word and 2D computer aided design software packages are still commonly used and are
the principal applications in the toolkit of a design team. However there are limitations
associated with using these applications which revolve around integration and coordination
of data from different sources.
Some issues that can occur include:
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documents
"NJOPSDIBOHFUPBOZPOFESBXJOHPSEPDVNFOU
could necessitate manual adjustment of other
documents
4PNFDPPSEJOBUJPOJTTVFTNBZOPUCFJEFOUJFE
until construction commences
The aforementioned issues and associated problems
cost Clients, Consultants and Contractors time and
money both directly and indirectly. The BIM process
attempts to alleviate some of these problems by
improving the general process.
What is BIM?
BIM is a business process supported by software that
acts as a single coordinated database. This software
is capable of storing the construction information
for an entire project. At the forefront of the database
is a 3D Model, which is a visual representation of the
nished project. The building components or objects
within the 3D Model carry their own individual
properties such as geometry, material, quantities etc.
#*.BMTPFYUFOETCFZPOEBEESFTTJOHJTTVFTTVDIBT
cost, project and facilities management and provides
a way to work concurrently on most aspects of
building life cycle processes.
Co-ordinated
Output
2D PLANS
AND ELEVATIONS
Intelligent
Input
DOOR AND WINDOW

SCHEDULES
Engineers
Architect
Consultant
Client
CONSTRUCTION
DETAILS
3D BIM MODEL
Quantity
Surveyor
SPECIFICATIONS
Contractor
3D RENDERING
AND WALKTHROUGHS
Benets of BIM
Apart from the obvious benet of possessing a 3D
model of the nished building, there are a number of
other benets, which include:
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4FDUJPOTBOEFMFWBUJPOTPGUIFCVJMEJOHDBOCF
In an ideal world, a project will be fully designed

and coordinated prior to commencing on site and
BIM encourages this method of thinking. The graph
on the next page shows the relationship between
the traditional design process (3) and the preferred
design process/BIM (4). The BIM method of
management is more practical and efficient.
It eliminates many of the uncertainties that
sometimes arise in the traditional design process
and can effectively reduce the extent of additional
costs and delays.
generated automatically
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into one fully coordinated drawing
"VUPNBUJDJEFOUJDBUJPOPGDMBTIFTCFUXFFO
building components
"ny changes made, will automatically be reected
in all other documentation
$PTU&TUJNBUFTDBOCFQSPEVDFEBDDVSBUFMZ
and quickly
124
BRUCE SHAW
HANDBOOK 2012
$POUSBDUPSTDBOFBTJMZFYUSBDURVBOUJUJFTGPS
ordering materials
SECTION
13
TOPICAL ISSUES
&PSU&FDU
Traditional Versus Preferred Design Process
13
TOPICAL ISSUES
5JNF
1%
4%
%%
$%
13
$"
01
Ability to impact cost

and functional capabilities
Cost of design changes
Traditional design process
Preferred design process (BIM)
PD: Pre-design SD: Schematic design DD: Design Development CD Construction documentation PR: Procurement OP: Operation
It is important to note however that as with most

software packages, the software is only as good as
the information being fed into it.
Implications for Quantity Surveyors
With the introduction of BIM, the Quantity Surveyor
will need to adapt and understand the BIM process
and the capabilities of the associated software. Bruce
Shaw recognise the importance of BIM and other IT
Developments and have invested in software such as
CostX to ensure we keep our competitive edge and
continue to provide a rst class service to our Clients.
BIM allows the user to obtain automatic (BIM
predened) quantities and also measure any 3D
shapes with CostX. So unlike, 2D drawings, BIM
allows both manual takeoff and automatic import
of quantities. This data can then be transferred to
Cost Plans or Bills of Quantities.
Major advantages of CostX include:
%JSFDUNFBTVSFNFOUGSPNTDBOOFE 1%' $"%
drawings and 3D BIM
1PXFSGVMTQSFBETIFFUCBTFEXPSLCPPLTMJWFMJOLFE
to the drawings
"CJMJUZUPDPNQBSFESBXJOHTBOEBVUPNBUJDBMMZ
highlight changes
&YUSFNFMZFDJFOUBOEBDDVSBUF
/PSFRVJSFNFOUGPSQBQFSDPQJFTPGESBXJOHs
One of the biggest challenges for BIM is
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contractors, engineers and the architect on a
common platform. Integrated Project Delivery
(IPD) is the best solution.
Integrated Project Delivery (IPD)

Integrated Project Delivery (IPD) is a project delivery
approach that integrates people, systems, business
structures and practices into a process that
collaboratively harnesses the talents and insights
of all participants to optimise project results, increase
value to the owner, reduce waste, and maximise
efficiency through all phases of design, fabrication,
and construction. Team leadership under IPD will
vary from project to project depending on a number
of considerations, such as contractual relationships
and the skills of individual team members. The
Integrated Project Coordinator (IPC) is primarily
a facilitator, and may be a retained third party or
one of the team members. In many cases the
responsibilities will migrate. For example, the
main designer may be the IPC during the design
phases while the main contractor takes on that role
as the project moves into construction. Given Bruce
Shaws direct relationship with Developers / Clients
and given our expertise in the construction sector,
Bruce Shaw could very easily take the role of IPC
in future projects.
Although BIM is a relatively new technology, its
prominence is increasing worldwide. According to
the McGraw Hill Construction Smart Market Research
Report published in 2010: The Business Value of BIM
in Europe: Getting Building Information Modelling
to the Bottom Line in the United Kingdom, France
BOE(FSNBOZPGUIFJOEVTUSZJOUIF6OJUFE
States and 36% of Western Europe have adopted BIM.
In June 2011 the UK government published its BIM
Working Party Strategy This report announced
the Governments intention to require collaborative
3D BIM (with all project and asset information,
documentation and data being electronic) on
all its projects exceeding 5million by 2016.
BRUCE SHAW
HANDBOOK 2012
125
TOPICAL ISSUES
The Changing Shape of Retail

by Paul Body
The global recession and the advent of new technology are changing the demand for
traditional retail space. Over the last 15-20 years (up to the recession) retail expenditure
growth was exceptionally strong, driven largely by high rates of borrowing, low ination/
interest rates and strong house price ination. The global recession has corrected such
unsustainable growth and the forecast for the next 10 years is much lower.
The retail sector is constantly evolving due to
changing customer demands and more informed
purchasing decisions. This is driving many retailers to
consolidate their businesses. However this is having
a negative input on the smaller retailers who cannot
adapt to these demands and this in turn may bring
on their demise and that of the traditional high
street shop.
Retail Globalisation
Among developed countries, the UK continues to
lead the world as the most international retail market.
Europe maintains its ability to attract the worlds top
retailers, with 60% of the worlds top 250 retailers
having a presence in Europe. Although Europe
continues to dominate, emerging economies such
as China, Russia and the UAE have gained signicant
ground in the past 12 months.
In the current climate diversifying and nding new
areas of growth and protability are key. Even as sales
through traditional routes of physical stores decline,
online retail sales have grown. As a matter of process,
customers collect all sufficient information on
product features, prices, warranties, availability and
environmental impact and then compare these with
competitors products, before purchasing. More time
is spent researching on the internet about products
they wish to purchase.
Multi-channel
It is an exciting time to expand into new markets
with the inuence of globalisation and the harnessing
of technology like mobile phones, smart-phones,
126
BRUCE SHAW
HANDBOOK 2012
tablets and social media platforms creating a

multi-channel shopping experience. A factor
promoting multi-channel retailing is consumer
tendencies to mix channels during their purchasing
drive with a very particular way of choosing the
product they want, how they want it and with
a variety of delivery options.
Some retailers have started implementing multichannel strategies, such as alternative delivery
options, integrated customer service and aligned
marketing efforts that facilitate both researching
and buying across channels.
Multi-channel consumers are spending more
per visit than those who shop solely or on-line.
Research shows:
PGBMMPOMJOFUSBOTBDUJPOTJOWPMWFETPNF
research in store.
3FUBJMFSTFOKPZIJHIFSPOMJOFTBMFTJOBSFBTXIFSF
they have a physical presence.
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of them access the internet through their mobile
device and 19% browse the internet once a week
or more frequently.
Social Media Networking
The rapid evolution of social media networking sites
such as Facebook and Twitter have also become
important in terms of inuence on customer
behaviour and purchasing, habits that the retail
industry needs to pay attention to. In a recent
European Internet users survey 46% of users agreed
SECTION
13
TOPICAL ISSUES
13
TOPICAL ISSUES
that customer ratings and reviews help them decide

whether or not to purchase a product or service.
Therefore it is essential for retailers to adopt social
media marketing practices.
In the current climate, diversifying

and nding new areas of growth
and protability are key.
Social Retailing
Notwithstanding the above, online shopping can be
EVMMBOEVOJOTQJSJOHIPXFWFSUIFSFBSFPQQPSUVOJUJFT
out there which combine technology and interaction
creating an in-store experience that combines social
networking and shopping. This has come to be
known as Social Retailing. The Social Retailing
technology uses an in-store three-paneled magic
mirror that can send photos or videos of shoppers
in outt options to their friends emails, mobiles and
social networking sites for instant opinions. The
technology also allows customers to see what others
have purchased, and also view similar options that

are not in stock but can be purchased online and
delivered to their homes.
Future Outlook
Even though retail sales showed signs of recovery
towards the beginning of 2010, there is still
scepticism regarding the retail outlook for the
developed countries. Western Europe remains
depressed, restrained by markets such as Ireland,
Spain and the UK, which continue to face problems
such as high government borrowing, household
debt and unemployment. Despite this, global retail
sales growth is expected in terms of volume growth
with the global retail market expected to return
to comparable pre 2008 levels by 2012.
In summary, as Multi-channel shopping is
continuing to take a greater slice of the retail
spending cake, retailers will be forced to review
their store portfolios. For the majority, a continued
bricks and mortar presence is necessary but
rationalisation is inevitable.
Traditional vs Online Retail Growth

Source: EIU, Datamonitor, IMAP

Traditional Retail Growth

Online Retail Growth
BRUCE SHAW
HANDBOOK 2012
127
TOPICAL ISSUES
Challenges for Consultant Project Managers within current market conditions

by David Wilson
Construction activity in many European countries has remained in a depressed state over
the last year. Many potential developments have been postponed due to market uncertainty,
lack of funding, and central government cut backs. This has resulted in many Contractors,
Sub-Contractors, Suppliers and Consultants being forced to cut costs and overheads, in order
to maintain commercial viability in difficult market conditions.
This scenario has led to signicant challenges for
Consultant Project Managers, given that construction
related organisations now need to plan, design,
fabricate, supply, construct and operate construction
related projects with fewer and leaner resources
than before.
Characteristics emerging from these market
conditions and corresponding challenges faced by
Consultant Project Managers include the following:
combined with compressed project time

constraints that often emanate therefrom.
1SPKFDU.BOBHFSTCFJOHDPNNJTTJPOFEMBUFS
on in the project cycle, as a means of reducing
Client costs.
2VBMJUZDPOUSPMTUBOEBSETESPQQJOHEVFUPB
reduction of on-site management, with right
rst time construction being more difficult
to achieve.
3FEVDFEQSPEVDUJWJUZSVOTCZ4VQQMJFSTEVFUP
*OBEFRVBUFNBOBHFNFOUSFTPVSDFTXJUIJO%FTJHO
Contracting and Supply related organisations.
(SFBUFSJODJEFODFPGPSHBOJTBUJPOTGBJMJOHUP
perform to previous standards, due to knowledge
decreased demand, resulting in longer lead times

for many materials, specialist goods and
equipment.
-BUFEFMJWFSZPGTQFDJBMJTUHPPETBOENBUFSJBMT
and past experience being lost through
due to ner tolerances associated with just in
redundancies, and/or non-replaced retirements.
time fabrication, and logistical problems linked
*OFDJFOUEFDJTJPONBLJOHXJUIJOQSPKFDUSFMBUFE
organisations.
further aeld.
3FEVDFEGPDVTPOEFMJWFSJOHWBMVFFOHJOFFSFE
design.
constraints, often accentuated by an elongated
chain of approval within lending organisations,
BRUCE SHAW
$PNQFUJUJWFUFOEFSMFWFMTJOBNBSLFUXJUISJTJOH
costs, leading to increased challenges for cost
-BTUNJOVUFBQQSPWBMTCZ$MJFOUTEVFUPGVOEJOH
128
to commercial conditions in Europe and
HANDBOOK 2012
and program management.

&MPOHBUFEEFTOBHHJOHQFSJPETBOEBTTPDJBUFE
inconvenience for Clients and Tenants.
SECTION
13
TOPICAL ISSUES
13
TOPICAL ISSUES
Given this back-drop, Consultant Project Managers

still need to deliver projects for their Clients within
Time, Cost, Quality and Functionality constraints.
Some of the measures adopted by Bruce Shaw in
managing these changes and associated risks are
outlined below:
1MBDJOHNPSFGPDVTVQPOUIFEFMJWFSZPGSPCVTU
management resources within each organisation
involved with the project, facilitating effective and
efficient decision making.
Successful project management

requires a good understanding
of on-going changes within the wider
economy and construction industry.
&ODPVSBHJOHNPSFKPJOFEVQNBOBHFNFOU
between organisations on a joint venture/
consortia basis, to ll the decit of suitable
managers and span the knowledge and
experience gaps that have arisen.
3FJUFSBUJOHUPPVS$MJFOUTUIFCFOFUTPG
appointing Bruce Shaw as Project Managers early
on in the project cycle, given the contribution
we make in relation to project strategy, project
planning, project risk management, and
co-ordination of third parties, including
4FMFDUJOHNBUFSJBMTBOETQFDJBMJTUFRVJQNFOUUIBU
can realistically be procured, designed, fabricated
and delivered within project constraints.
1SFQBSJOHUFOEFSEPDVNFOUBUJPOUIBUTBUJTGBDUPSJMZ
addresses project risk in order to minimise
program and cost related issues so easily
encountered in this difficult market.
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implementation and management of Quality
Control Systems on site.
"MMPDBUJOHBEEJUJPOBMSFTPVSDFTGPSFDJFOUMZ
managing the increased risk of remaining snags
between Handover and Project Close Out.
Successful project management requires a good
understanding of on-going changes within the wider
economy and construction industry. Once current
shifts and trends have been identied, and the project
related risks understood, Bruce Shaws Project
Managers are well placed to put in place a strategy
and plan that will enable the project to be
successfully delivered for the Client.
With our extensive experience across a wide range
of sectors, working in a diverse range of regions and
countries, Bruce Shaw looks forward to successfully
managing our Clients projects throughout the
challenging year ahead.
funders and tenants.

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resourced to develop value driven solutions for
the Client, with these obligations being reinforced
at fee tender and pre-appointment stages.
BRUCE SHAW
HANDBOOK 2012
129
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A B O U T B R U C E S H A W 14
BRUCE SHAW
HANDBOOK 2012
131
ABOUT BRUCE SHAW
Bruce Shaw
Bruce Shaw is an independent international
construction consultancy rm with over 40 years
experience, providing and supporting our clients
worldwide with the full spectrum of our construction
services through our Global network of offices.
During the past year, Bruce Shaw has continued to
grow, with the opening of offices in Vietnam and with
major expansion into China.
Our culture is to continue to build upon and improve
these services throughout our network of offices and
global resources.
Our dynamic teams have earned a reputation for

managing projects with a range of quality services
that consistently delivers on time and on budget.
Our priority, through our solution driven approach,
is to help our clients and their teams achieve their
objectives and realize maximum value from
their activities.
We pride ourselves on the quality of our client care
approach and this is reected in the repeat
commissions we are awarded, which accounts for
70% of our business.
Our services are internationally accredited to the ISO

9001 quality standards and 14001 environmental
standards.
We are always on hand to support clients with expert

advice and direction in such areas as:
The Bruce Shaw organisation is structured into a

multiplicity of dedicated project service teams with
specic skill sets, which are tailored to the particular
requirements of clients globally and project types.
These teams include Quantity Surveying / Cost
Management, Project Management, Safety
Management, Consultancy and Procurement along
with, Public Private Partnership Consultancy, Supply
Chain Consultancy, Legal Technical Support and
Insolvency Technical Support.
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Bruce Shaw use and invest in the latest technology to

achieve superior accuracy, higher quality and faster
delivery for our clients. Our specially developed
in-house documentation and IT infrastructure is
tailored to the specic needs of our clients and has
been central to our success, which in turn leads to a
faster project delivery, greater cost efficiency and
maximum value for money.
Bruce Shaw selects the highest calibre staff for our
projects and our teams of professionals are amongst
the highest regarded in the industry.
We continue to promote and invest in our
Graduate Training Scheme which provides practical
experience for those wishing to prepare for their
nal examinations, such as the Assessment of
Professional Competence, achieving chartered status
to the Royal Institute of Chartered Surveyors (RICS),
Society of Chartered Surveyors Ireland (SCSI),
Chartered Institute of Purchasing & Supply (CIPS)
or M.Sc in Strategic Procurement.
132
BRUCE SHAW
HANDBOOK 2012
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1111'*
Bruce Shaw continues to be at the forefront in
providing expert advice and services to our clients
throughout all stages of projects. This in turn leads
to faster project delivery, greater cost efficiency
and maximum value for money from the built asset
investment.
SECTION
14
ABOUT BRUCE SHAW
Cost Management
14
1 Pre-Contract Stage
ABOUT BRUCE SHAW
Initial Cost Advice / Feasibility Studies

To obtain the best value for money, the viability of
each project is carefully examined. Cost must be
weighed against aesthetics, quality, space and time,
and an acceptable budget agreed. Close
collaboration at this stage between the project team
members will bring maximum benets to the client.
Bruce Shaw leads this process and explores all
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impact on over 70% of overall development costs.
The company offers experience across a range of
feasibility studies, from high cost urban regeneration
schemes to low-rise residential dwellings to luxury
hotels.
Budget Estimating & Cost Planning
Bruce Shaw establishes the initial budget cost by
reference to cost data derived from previous
projects and by measurement and pricing of the
key elemental quantities. The budget is allocated
amongst the various building elements to establish
limits within which each element is allowed develop.
As the scheme progresses, each element is checked
to ensure it remains within its limit and the overall
scheme remains within budget. Our role is to
challenge the design / design choices on behalf
of the client, to ensure all cost limits are maintained
/ achieved.
Value Engineering
Value engineering is a cost management technique
that seeks to balance cost, reliability and performance
of materials with the most appropriate methods of
construction to achieve maximum value.
Bruce Shaw implements the most up-to-date value
engineering techniques during a projects design
stages to ensure that the most economicallyeffective solutions are adopted, consistent with the
clients design and operational requirements.
During the early stages of a project, Bruce Shaw
convenes and chairs value engineering workshops,
designed to ensure that a correct balance between
cost and functionality is achieved and adopted by
all parties.
Whole Life Costing

Bruce Shaws approach to lifecycle costing considers
and optimises the full range of costs which accrue
from the construction of an asset right through its
anticipated life span. Whole life costing is a key driver
in both public and private sector works and is
considered a necessity in PPP and PFI projects in
terms of long-term operation, risk and the lifecycle
replacement of key components.
Bruce Shaw helps clients to establish the most
cost-effective investment decision by focusing
not only on the capital costs but on the total cost
of the asset. This is done by undertaking a detailed
exercise, ideally at initial design stage, to establish
trade-offs on capital, maintenance and operations/
occupancy costs.
As a serious player in the PPP/PFI market, Bruce
Shaw can produce whole life cost models that
incorporate an industry-accepted cost structure
which is compliant with ISO 15686-5. Bespoke
software incorporates BCIS and Bruce Shaws own
in-house data to inform decision-makers at all
stages of a project.
BRUCE SHAW
HANDBOOK 2012
133
ABOUT BRUCE SHAW
Sample Benchmark Study Cost per MW Element for Data Centres

Source: Bruce Shaw
20,000,000
15,000,000
10,000,000
5,000,000
0
Dublin 1
Dublin 2
Total for Soft Costs
Western
Europe 1
Western
Europe 2
Total for Equipment
Benchmarking
By identifying drivers for improving value, cost, time
and quality, whilst still ensuring the best value is being
achieved, benchmarking can play a signicant role in
informing the decision-making process.
Bruce Shaw has developed one of the largest
bespoke construction cost databases in Europe over
the past decade.
It is a central source of live project data and can be
utilised to produce detailed elemental benchmarking
studies at various stages of construction development
(see graph above).
In this way, the best possible international standards
are met and value is achieved at early budget
estimating and cost planning stages.
Cost Benet Analysis
Government guidance for the appraisal and
management of capital expenditure in the public
sector requires that all capital expenditure proposals
for projects over a dened monetary threshold
should be subject to a Cost Benet Analysis. Bruce
Shaws in-house team is experienced in preparing
these reports and in developing a detailed assessment
of capital costs, on-going operating costs, direct and
indirect revenues, and the macroeconomic benets
and costs of proceeding with a project. Bruce Shaw
also undertakes post project reviews for clients.
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BRUCE SHAW
HANDBOOK 2012
Dublin 3
Dublin 4
Total for Electrical
Dublin 5
UK (London)
Total for Mechanical
Paris
Total for CSA
Risk Assessment
At all stages of the project we will review the relevant
risks pertaining to that stage of the project. We utilise
Quantitative Risk Assessment (QRA) techniques in
assessing these risks. Risks may include construction
cost overrun, programme risks, changes in legislation
or unforeseen site difficulties. The results will be
presented using the latest @ Risk software. This will
present a combination of possible scenarios utilising
a statistical simulation process and ensure informed
decisions can be made at critical project junctures
(see ow chart on facing page).
Advice on Contract / Procurement Procedures
Bruce Shaw examines all possible contract/
procurement options and advises on the most
appropriate option for a specic project. Contractual/
tendering options include the traditional method of
tendering, two-stage tendering, negotiated contracts,
management contracts, design and construct
contracts and construction management contracts.
Bruce Shaw has no allegiance to any particular
forms or methods of procurement and has current
experience of all of the major options available. The
company does not subscribe to a rst past the post
philosophy but in attainment of best value.
Bruce Shaw advocates identifying, prior to selecting
a procurement route, the key criteria and drivers for
a project, which is typically a balance between
programme control, the process for achieving cost
certainty, equitable risk allocation, maximising off-site
fabrication, specialist sub-contractor involvement
and contemporary management principles.
SECTION
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ABOUT BRUCE SHAW
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Preparation of Contract Documentation

Once the most appropriate Procurement Option has
been selected, Bruce Shaw prepares the conditions
under which contractors will tender the project
including Preliminaries / General Conditions. We also
provide advice on the adequacy of the levels of
insurance, liquidated damages, dates for completion
etc. Finally we prepare the tender documents
including detailed Bills of Quantities, Instructions
to Tenderers and Forms of Tender.
One of the primary post-contract tasks is to

nancially manage the contractor in accordance
with the terms of the contract and Bruce Shaws
strategy is simple - progressive close-out of risk
and ensuring that the Final Account is agreed on
a rolling basis with the Contractor, i.e. it is real time.
By creating, at the outset, a strong working
relationship with the Contractor, inviting him to
contribute to the project process, respect and
trust will be bred that will lay the foundations for
a successful team ethos.
2 Post-Contract Stage
Cost Control during Construction
Bruce Shaws integrated cost management systems
provide the transition whereby its cost planning
systems supported by risk and opportunity and
contingency management are applied to on site
cost management and control.
Monthly risk-and-opportunity meetings at which

contractor participation is encouraged is part of the
Bruce Shaw approach. The risk and opportunity
register is used as a primary post-contract cost
management tool.
BRUCE SHAW
HANDBOOK 2012
135
ABOUT BRUCE SHAW
Valuation of Work
Monthly valuations of work-in-progress are carried
out in order to make stage payments to the
contractor. This includes the physical measurement
of the work on the site and materials delivered. Cash
ow projections are provided to indicate the clients
anticipated monthly expenditure throughout the
construction stage.
Change Management
Central to cost control during the construction stage
is the determination to complete the project within
the original budget. Through accurate recordkeeping and good physical control in the eld, Bruce
Shaw continuously monitors changes and updates
cost reports to show the current position to the
client.
If a cost over-run is projected, evasive action can
be taken by making design adjustments to achieve
cost reductions and so return the project to its
planned budget.
Settlement of Final Account
Bruce Shaw negotiate with the Contractor to sign-off
the cost of work as each element is complete. The
advantage of this approach to the Client is that there
is a rolling Final Account which can be speedily
agreed upon project completion with no surprises.
The further advantage to the Contractor is that he is
paid in full for changes completed and agreed as the
project proceeds.
Central to cost control during the construction stage
is the determination to complete the project within
the original budget.
136
BRUCE SHAW
HANDBOOK 2012
Capital Allowances
The vast majority of businesses incurring capital
expenditure on the construction of commercial
property can benet from tax relief in the form of
Capital Allowances, with the most widely available
tax allowance being that incurred with expenditure
on plant and machinery.
Bruce Shaw can maximise clients capital allowances
recovery levels and have valuations agreed by the
relevant tax authorities as efficiently as possible.
Enhanced Capital Allowances (ECAs) of 100% rst
year tax relief can be claimed by businesses on
specic energy-saving equipment. The value of ECAs
in the modern property environment is recognised by
Bruce Shaws Cost Managers as a signicant benet
to businesses in writing-off the whole cost of their
investment against taxable prot.
Insurance Valuations
Among the services provided by Bruce Shaw is
building insurance valuations. The company provides
support for insurers and loss adjusters who are
preparing reconstruction cost appraisals for damaged
buildings, as well as for property owners portfolios.
Accurate valuations of rebuilding costs are essential
in avoiding over-insurance and in minimising
exposure to under-insurance.
Bruce Shaws building insurance valuations service
can include property damage assessment, scope of
works recommendations, review and re-inspection of
claims, risk management, closing assistance and
mediation/arbitration.
Accurate insurance valuations ensure sufficient cover,
minimise premiums, facilitates negotiations with
tenants, validates against published benchmark data
and provides information for the asset database.
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14
ABOUT BRUCE SHAW
Project Management
14
A key element in the success of a project is

developing a full understanding of the drivers behind
an organisation, and the motivation for the project in
hand. Through gaining this understanding, a project
can be effectively addressed, to ensure the clients
objectives are not only met, but exceeded.
Our team of professional Project Managers are
amongst the most experienced in the industry, and
have worked on a wide variety of landmark projects
worldwide. It is this breadth of experience that
enables us to take a fresh and pioneering approach in
establishing a strategic framework to address the
unique requirements of every project, however large
or small.
Throughout a project lifecycle, our project managers
employ a range of bespoke management tools to
control the project delivery, including:
Programme / Scheduling Management
Very early in a project we will look to establish the key
milestones for a project and develop a Master
Programme which underpins the timescales for the
delivery of each phase.
Re-Engineering Management
Bruce Shaw has expert experience in assisting
organisations who are relocating, expanding,
downsizing and re-organising. We advise on
strategies to ensure seamless transition specic to the
constraints and opportunities unique to each project,
and manage these strategies to successful
conclusion.
Our typical Project Management services include:
Assist in preparing the Project Brief
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Risk Management
We identify all risks which are specic to each project,
assess the implications in terms of cost, time and
quality, identify a course of action to mitigate the risk
and allocate responsibility for resolution. The Risk
Register is treated as a live document, and
maintained throughout the project lifecycle.
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Change Management
We employ a structured, documented Change
Management system which allows fully informed
decisions to be made by the Client in advance of the
change arising.
Provide total co-ordination
Client Decision Management

It is essential to the success of a project that the
Client is aware of the decisions and approvals which
are required of them. We implement a documented
system of advising the Client of these issues in
advance, and tracking the timely close-out of these
decisions and approvals throughout the project.
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BRUCE SHAW
HANDBOOK 2012
137
ABOUT BRUCE SHAW
Bruce Shaw offers a professional, personal and

comprehensive Project Management service to all its
clients. The companys policy and natural inclination
is to work very closely with clients on a personal level,
building up a relationship based on trust and
openness. This creates a strong working bond, and
greatly assists in progressing projects on a daily basis
and, in particular, in resolving the many challenges
which construction projects generate.
ABOUT BRUCE SHAW
Consultancy Services
Bruce Shaw provides a wide range of project
support services and independent services ranging
from nancial to investment, including Public Private
Partnerships, to legal support and procurement.
"EWJDe and guidance on general public

procurement issues, including compliance with
procurement rules and guidelines: the EC Treaty
and E.U. procurement directives, international
agreements, national regulations and guidelines
Procurement & Supply Chain Management

Bruce Shaw Procurement and Supply Chain teams
have a track record working with clients in both the
public and private sector.
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An extensive knowledge and understanding of

property whether capital expenditure or
maintenance and operations allows Bruce Shaw
to provide strategic advice on how to achieve and
maximise nancial efficiencies and improved
performance.
3FTPMWing contractual disputes or, if unsuccessful,

managing formal resolution process, e.g.
mediation, arbitration, legal proceedings
We recognise the importance of engaging with

stakeholders and developing supplier relations to
drive value through intelligent procurement and
sourcing, while identifying solutions, which combine
best practice with security of performance and
deliver best value.
Public Procurement Consultancy
Our key procurement & supply chain management

services include:
8IPle life procurement activities
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tender management, evaluation, recommendation
and award
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138
BRUCE SHAW
HANDBOOK 2012
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procedural manuals
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contract and award notices
Business needs to be supported by high quality

procurement practices and supplier relationships
which deliver best value in terms of quality/price
balance, timely delivery, sustainability etc. Public
procurement is also subject to mandatory adherence
to public procurement rules. These are contained in
the Treaty on the Functioning of the European
Union (TFEU) and additionally, where contract values
exceed EU thresholds, the European Procurement
Directives and National Regulations transpose these
directives into national law.
Update on EU Public Procurement
In late December 2011, the European Commission
published the text of its proposals for the new
procurement directives to replace the current
directives on public and utilities procurements.
They have also published the text of a proposal for
a directive on the award of concession contracts
which is seeking to introduce competition in the
award of high value contracts in this category.
SECTION
The European Commission hopes that, by the end of

2012, these proposals will be adopted and that they
will come into force in Member States by June 2014.
Following the consultation process, the changes now

proposed include:
4JNQMJFEQrocedures for regional and local
contracting authorities whereby they would be
permitted to publish a general notice for their
planned procurements for the next year rather
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ABOUT BRUCE SHAW
4JNQMJDBtion of information obligations at

pre-qualication stage including self-declarations
on the fulllment of selection criteria, with only the
successful candidates/tenderer(s) being required
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-JNited scope for negotiation being introduced to
improve the quality of an offer, but there would be
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5IFQSPNotion of e-procurement. It is planned
to achieve full electronic communication in
public procurement within two years of the
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"Editional measures being introduced to facilitate
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through dividing projects into Lots and lower
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"OBUJPOal oversight authority being appointed
which would be in charge of monitoring and
control of public procurement. It would be able to
provide immediate feedback on the functioning of
the policy and the potential weaknesses in national
legislation and practice. It would also be used to
reinforce the ght against corruption and favoritism
with contracting authorities being obliged to
transmit the text of concluded contracts, over
certain values, to the oversight body, which will
have power to scrutinise these contracts.
Many of the features of the public procurement
proposals will also apply to the utilities directive
proposal which will also include changes that only
apply to the utilities sector.
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purchase of new innovative services, goods and
works, provided they can be delivered to agreed
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improved and no longer being conned to
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"MJNited class of social services being introduced
with particular rules for contracts in excess of
500,000. Where the contracts are of lower value,
Member States would be able to determine the
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BRUCE SHAW
HANDBOOK 2012
139
14
ABOUT BRUCE SHAW
The background to this initiative was that the

European Commission considered that the
procedures needed to be modernised due to factors
such as the current economic situation and demands
for procurement to be more environmentally friendly,
focused on social standards and to be more
innovative. During 2011, the Commission carried out
a consultation process with public procurement
stakeholders to evaluate the impact and effectiveness
of current EU procurement and aspects that need to
be changed. The Commission considered that it was
important to consult widely with those involved in
day-to-day procurement. The Commission published
a green paper in January 2011 (Towards a More
Efficient European Procurement Market) which
highlighted a number of areas for possible reform
such as simplication of the procedures, particularly
for small local and regional governments, easier
cross-border bidding, improved access for European
companies to markets outside the EU, customising
the rules for services of particular social signicance
and introducing better safeguards to prevent
corruption, favoritism etc.
14
ABOUT BRUCE SHAW
Framework Agreements
Framework Agreements are agreements between
one or more purchasers and providers, which set
out the terms and conditions governing specic
contracts to be awarded throughout the term of
the agreement (max.4 years).
Bruce Shaws specialist division advises a wide range
of both public and private clients on the structuring
and implementation of appropriate procurement
structures, including suitable framework agreements.
The division establishes and manages such
agreements and call-off processes or provides
professional support, as required. Framework
agreements allow for the awarding of individual
contracts in a manner that is quicker and less costly
than would be the case with separate procurements.
Normal public procurement rules, including
European Treaty principles, apply to establishing a
framework agreement. Call-off contract proposals
must be evaluated using the award criteria declared
at the establishment of the framework.
PPP / PFI Consultancy
Bruce Shaw provides a range of specialist services
to public and private sector clients covering all
facets of PPP/PFI projects, from initial concept and
business case development through to nal delivery
and operation.
For private sector clients, Bruce Shaw provides
bid management support on design, build, nance
and operate/maintain projects, with an extensive
scope of works which includes coordinating tender
submissions through to acting as SPV Manager
and Employers Agent. The company also assists
in bringing consortia together and identifying the
right partners for design, construction, facility
management and equity sponsorship.
For public sector clients, Bruce Shaw offers expert
knowledge of all forms of PPP, assisting them with
structuring projects and then bringing them to
market. The multi-disciplinary nature of Bruce
Shaws business allows it to fully consider market
trends in construction, nance and consortia
appetite for taking risks. Client support includes
preliminary and detailed appraisal of projects and
value-for-money analysis.
Business Solutions
Bruce Shaw is aware that in todays competitive
marketplace, efficiency is the key for the successful
and protable management of any organisation.
The rst challenge though, comes in identifying
inefficiencies or where a business can be impoved,
followed by the challenge of implementing new
initiatives through smooth transition.
140
BRUCE SHAW
HANDBOOK 2012
At Bruce Shaw we provide the expertise, experience

and innovation to identify, undertake and deliver such
services as Procurement and Supply Chain
Management, Supply Base and Performance
Management and Business Solutions.
The Management Services team has a proven record
of working with clients on both large and small
projects, to drive efficiencies through smarter
procurement, streamlining and integrating processes
and introducing dened ways of working.
Services include:
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monitoring of control measures
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contract arrangements
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of co-ordinated duties documentation
Independent Certier / Technical Adviser
As an independent certier, Bruce Shaw works as
a technical advisor to leading nancial institutions
seeking due diligence on development proposals
prior to formal commitment of funding. The
companys initial report comprises a review of all
the projected costs and examines various aspects
of the projects viability.
Bruce Shaws advisory team highlights risk areas and,
where appropriate, recommends actions to mitigate
or remove the impact on the project.
Services provided by Bruce Shaw include: scope
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and review of construction progress against
budgeted cost and schedule.
Financial Assessment of Contractors
Bruce Shaw undertakes comprehensive nancial
analysis of contractors and service providers in the
construction industry. Our in-house team of
chartered accountants are suitably qualied to
review nancial statements, credit ratings, nancial
projections, company lings and other publicly
available data. This review process should assist with
determining the adequacy of contractors resources
to remain going concerns and full contractual
obligations. For the public sector, in addition to
undertaking nancial reviews, Bruce Shaw can also
prescribe the nancial information requirements and
criteria for tender pre-qualication processes and the
subsequent awarding of public contracts.
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14
ABOUT BRUCE SHAW
14
ABOUT BRUCE SHAW
Environmental Services / Sustainability Consultancy

Bruce Shaw provides the full spectrum of
construction cost consultancy services to clients
seeking to develop projects using sustainable
technology solutions and clients delivering
engineering and construction projects in the
renewable energy sector such as wind, hydro,
biomass and solar.
The companys approach is based on the provision
of real-time analytical cost information to inform
decision-makers at all stages of project delivery. An
integrated design process that includes sustainability
and renewable energy solutions at the outset enables
Bruce Shaw to provide dened cost advice on the
impact of BREEAM, LEED, CRC, ECAs and others.
Specialist teams provide advice on many sustainable
energy-efficient technologies and initiatives such as
biomass boilers, BMS, CHP, RHIs, solar heating and
wind turbines, to name a few. Clients availing of
this service include public and private sector
organisations across all construction types such
as commercial buildings, energy generation, high
tech manufacturing, IT and pharmaceuticals.
Dispute Resolution Support
Technical support to those involved in legal action
or Alternative Dispute Resolution forms an integral
part of Bruce Shaws consultancy services, with
advice on all aspects of dispute resolution such
as mediation, conciliation, adjudication, arbitration
and full litigation.
Bruce Shaw interface with clients and their other

consultants legal or advisors to provide all
technical support, information and reports to assist in
the resolution of any dispute. Senior staff members
have acted as Expert Witnesses by preparing status
reports, as well as strategic, technical and nancial
assessments and appraisals.
Insolvency Support / Bond Recovery
Drawing on its expertise in cost management,
value engineering and project management,
Bruce Shaw provides technical support on
various insolvency cases.
In the case of a construction-related receivership,
examinership or liquidation process, Bruce Shaw
explores the opportunities available to maximise
recovery of amounts due through the application
of expert knowledge in construction, contracts,
remedies, value engineering processes and bonds
and collateral warranties.
In providing specialist support services to insolvency
professionals and bond providers, Bruce Shaw
can provide valuations on construction works
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contractor claims and determine the likely recovery.
For employers, Bruce Shaw provides detailed

investigation and analysis of data, transactions, interim
valuations, defective works and diverse claims. For
contractors, the company assists in the preparation
and negotiation of the technical elements of
contractual claims and accurate bills of quantities.
BRUCE SHAW
HANDBOOK 2012
141
ABOUT BRUCE SHAW
Health & Safety Consultancy

Bruce Shaws Health & Safety team specialises
in providing a range of services in design safety
management, as well as construction safety
management which involves assessing and
evaluating contractors performance on health
& safety.
Safety legislation places signicant duties and
responsibilities on employers, contractors, designers
and clients engaged in construction projects and
Bruce Shaw has extensive experience in working
with these parties to ensure workplaces are designed
and managed with safety in mind.
Bruce Shaw provides advice and guidance on all
aspects of health & safety legislation, design safety
co-ordination, safety auditing and compliance.
These services extend across a wide range of sectors
including retail, commercial, residential, industrial,
healthcare and education.
As CDM Coordinator (CDMC), our role is to:

On Appointment
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they must take to comply with CDM Regulations
/PUJGZUIF)FBMUIBOE4BGFUZ&YFDVUJWF
Throughout the Project
'BDJMJUBUFHPPEDPNNVOJDBUJPOCFUXFFOUIFDMJFOU
designers and contractors
1SPWJEFBEWJDFBOEBTTJTUBODFUPUIFDMJFOUUP
enable them to comply with their duties
Design Stage
*EFOUJGZ1SF$POTUSVDUJPO*OGPSNBUJPO
$PPSEJOBUFaspects of design work
Tender Stage
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Design and Principal Contractor team
Services Provided
Bruce Shaw services include:
"EWJDFBOEHVJEBODFPOBMMBTQFDUTPGIFBMUI
safety legislation
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$POTUSVDUJPO4BGFUZ.BOBHFNFOU TBGFUZBVEJUJOH
and compliance
$%.$PPSEJOBUPS $%.$
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2007
Construction Stage
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Construction Health and Safety Plan
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Health and Safety implications of any
signicant change in design
1SFQBSFUIF Health and Safety File
Handover Stage
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Our services can be tailored to suit individual clients

and project needs, both for one-off projects or
through establishing long-term client relationships.
Whether new build construction work, building
refurbishment, term services, maintenance or
facilities management, Bruce Shaw work closely and
efficiently with Clients management and project
teams, liaising with the Health and Safety Executive
where necessary.
Current Trends in Health & Safety in Ireland
Our Approach to CDM Co-ordinator in the UK
The improvements are not only due to reduced

numbers in the industry but also to a collective
and sustained emphasis on improving the safety
management culture or to put it simply, the way
we do things around here.
We act as a key project advisor in respect of CDM

Co-ordination. We believe that the role is one of
compliance and requires an in depth knowledge of
the construction process, careful attention to detail,
an ethos of assessment, recording of salient
information and the desire to ensure that
performance and quality are paramount.
142
BRUCE SHAW
HANDBOOK 2012
While fatalities and serious injuries are down

from previous levels the issues affecting health
& safety and the implications for everyone involved
in the construction industry are changing and
need to be watched. The reduction in fatalities
and serious injuries is to be welcomed with the
acknowledgement that even one accident is
too many.
SECTION
Standards
Reputations
and Standings
Project Works
Health & Safety

Culture
Safety in design and planning forms the bedrock of

effective safety management. In many cases this is
accurate and meaningful information getting the
right information to the right people at the right time.
This is a collective process driven by the Project
Supervisor (Design Process) (PSDP) together with
designers and other parties,
There are a number of key issues to keep an eye on
in 2012:
Legislation & Responsibilities
Ireland still possesses one of the most demanding
legislative frameworks in Europe. While much of the
safety legislation is EU led there are particular issues
and requirements in Ireland which make legislation
and the responsibilities important:
4BGFUZMFHJTMBUJPOSFMBUJOHUPDPOTUSVDUJPOQSPKFDUT
is included in a number of pieces of legislation
which directly affect a range of people including
the client company, designers, contractors and
safety professionals
Competency in Health & Safety

The levels of competency (in health & safety) are
and have been for some time on an upward spiral.
Requirements in regard to health & safety as well as
individual actions are subject to on-going change.
A knowledge of legislation is rarely sufficient it is
the ability to transfer legislative requirement to
a particular issue or situation together with the
standard of practice that is key. Risk assessment
remains the cornerstone to this process.
Ghost Estates, Empty Sites and Buildings
Defunct sites and buildings are a case in point
of trends in health & safety - current issues of this
nature demand require their individual assessment
(in regard to their status) under employer led law as
well as their status as workplaces. An understanding
and clarity of control and responsibility of all
workplaces is fundamental to safety in Ireland
and Irish legislation, supported by meaningful
and veriable safety management systems and
procedures this is not always a clear cut process
and there are indirect responsibilities which may
not be fully appreciated.
5IFSFBSFTJHOJDBOUJOEJWJEVBMSFTQPOTJCJMJUJFT
placed on senior managers in charge of work
places out
.BOZTUBUVUPSZSPMFTBSFDPNCJOFE GPSFYBNQMF
employer, design, contractor, landlord etc
Safety Legislation
Standards H&S
Make Appointments
Assess Competence
Company Standards
Client
Company
Set Requirement
Inuence Safety
Provide
Information
Best Practice
Communications
BRUCE SHAW
HANDBOOK 2012
143
14
ABOUT BRUCE SHAW
Best Practice
Directors & Managers
ABOUT BRUCE SHAW
Green Energy
The change to sustainable and new energy sources
bring their own, sometimes signicant safety issues
which can only be addressed from a very early stage
far earlier than with current requirements. The risks
are varied and while not new have to be assessed and
evaluated differently particularly in regard to the
identication and procurement of supporting
information to be able to make that assessment.
Legislation
Clients
in Construction
14
ABOUT BRUCE SHAW
Bruce Shaw Corporate

and Community Activities
Bruce Shaw strives to be an active and responsible
contributor to the communities we work in. As such,
Bruce Shaw makes corporate contributions to
charitable organisations on an ongoing basis.
Below are some of the charitable organisations and
events that are supported by Bruce Shaw and its
employees.
Bruce Shaw also actively encourage our employees

to participate in various charity events throughout the
year, these have included:
Irish Kidney Association
The Irish Kidney Association

Focus Ireland
Over the Wall
The Childrens Sunshine Home
The Childrens Fund for Health
Barnardos
Flora Marathon
Marie Curie Cancer Care
MyCharity Ltd.
National Maternity Hospital
Niall Mellon Township
Orbis Plane Pull
Preda Foundation
Temple Street Childrens Hospital
Self Help Africa
In addition to charitable donations Bruce Shaw has

also provided pro-bono services to worthy charitable
organisations; most notably to the Rose Project for
the building of the new Bwaila Maternity Hospital in
Malawi. The 100-bed facility is situated in the capital
Lilongwe and replaced a rundown facility built in
1939. As 30% of expectant mothers in Malawi are
HIV positive, part of the role of the new facility is
to prevent the high rate of HIV transmission from
mother to child. Bruce Shaw Group Chairman
Brendan OMara was the Project Director for this
project and continues to be involved in various
Rose Project projects on an ongoing basis.
BRUCE SHAW
The Irish Kidney Association provides help and

support to patients and the families of those going
through renal failure, subsequent organ transplant
and throughout the patients life. They also administer
the National Organ Donor Card Scheme.
We would urge all to consider becoming an organ
donor and to Give the Gift of Life
St. Michaels House
144
In July 2011, Liam Goggin, Senior Surveyor with

Bruce Shaw, took part in the 180Km Ring of Kerry
Charity Cycle in aid of the Irish Kidney Association.
With the generous help of Bruce Shaw Liam and his
dometiques raised in excess of 5,000 for this
worthy cause.
HANDBOOK 2012
Movember
During November each year, Movember is
responsible for the sprouting of moustaches on
thousands of mens faces in Ireland and around the
world. Men must start off at the beginning of the
month clean shaven and then grow a moustache for
the entire month. The aim of which is to raise vital
funds and awareness for mens health, specifically
prostate cancer. Neil Vaughan our Bruce Shaw
Project Manager Director took part and together
with the team raised 645.
SECTION
ABOUT BRUCE SHAW
White Collar Boxing Event

In November 2011, two members of our Dublin staff;
Aidan Tuite and Alex ODonnell participated in a
White Collar Boxing Event for Charity. The lads spent
two months in intensive training for the fight, and
on the night, both were successful in their respective
bouts, with ODonnell recording a Knock-out.
A significant amount of money was raised for a
number of charities including; Our Ladys Hospital
for Sick Children in Crumlin, and MS Ireland. A large
and very vocal contingent from Bruce Shaw attended
on the night to cheer the lads on.
Over the Wall

Bruce Shaws London office staff participated in
the London Marathon in April 2011 and Standard
Chartered Great City Run in July 2011, raising 5,170
for Over The Wall, a charity that provides residential
activity camps for children affected by serious illness.
Over the last four years, Bruce Shaws London office
has raised nearly 15,000 for this amazing charity.
In 2012 the London team will participate in the
Standard Chartered Great City race again.
BRUCE SHAW
HANDBOOK 2012
145
14
ABOUT BRUCE SHAW
Joyce Country Challenge

On the 5th July 2011, Des OBroin and Tony Kelly
of Bruce Shaw took part in the 5th annual Joyce
Country Hillwalking Challenge which gave them the
opportunity to walk one of Irelands hidden gems,
the circuit of Lough Nafooey. All monies raised went
to the Galway/Mayo Hospice.
14
ABOUT BRUCE SHAW
Bruce Shaw Senior Personnel
146
John Ballance
john.ballance@bruceshaw.com
Paul Kehoe
paul.kehoe@bruceshaw.com
Paul Body
paul.body@bruceshaw.com
Peter McHale
peter.mchale@bruceshaw.com
Paul Boylan
paul.boylan@bruceshaw.com
John McIlwaine
john.mcilwaine@bruceshaw.com
Colm Buckley
colm.buckley@bruceshaw.com
Andrew Murray
andrew.murray@bruceshaw.com
Gerard Campbell
gerard.campbell@bruceshaw.com
Des OBroin
des.obroin@bruceshaw.com
Philip Cleary
philip.cleary@bruceshaw.com
Saran OByrne
saran.obyrne@bruceshaw.com
Felix Collins
felix.collins@bruceshaw.com
Brendan OMara
brendan.omara@bruceshaw.com
Steven Cooke
steven.cooke@bruceshaw.com
Frank OSullivan
frank.osullivan@bruceshaw.com
Rennie Dalrymple
rennie.dalrymple@bruceshaw.com
Chris Patrick
chris.partick@bruceshaw.com
Patrick DArcy
patrick.darcy@bruceshaw.com
Rosni A Rahman
rosni@bartonbruceshaw.com.sg
Richard Fogarty
richard.fogarty@bruceshaw.com
Patrick Ryan
patrick.ryan@bruceshaw.com
Niall Greene
niall.greene@bruceshaw.com
Derry Scully
derry.scully@bruceshaw.com
Hainah Haiyon
Hainah@bartonbruceshaw.com.sg
Neil Vaughan
neil.vaughan@bruceshaw.com
James Henderson
james.henderson@bruceshaw.com
Aidan Walsh
aidan.walsh@bruceshaw.com
Richard Joyce
richard.joyce@bruceshaw.com
David Wilson
david.wilson@bruceshaw.com
BRUCE SHAW
HANDBOOK 2012
SECTION
14
ABOUT BRUCE SHAW
Willie Aherne
willie.aherne@bruceshaw.com
Tony Madden
tony.madden@bruceshaw.com
Stephen Ashe
stephen.ashe@bruceshaw.com
Chris Matthews
chris.matthews@bruceshaw.com
Michel Brosnan
micheal.brosnan@bruceshaw.com
Brian McCay
brian.mccay@bruceshaw.com
John Butler
john.butler@bruceshaw.com
Pat McDevitt
pat.mcdevitt@bruceshaw.com
Paul Butler
paul.butler@bruceshaw.com
Oliver McGuckin
oliver.mcguckin@bruceshaw.com
Gary Comerford
gary.comerford@bruceshaw.com
Eamon OConnor
eamon.oconnor@bruceshaw.com
Ray Condell
ray.condell@bruceshaw.com
Colin Park
colin.park@bruceshaw.com
Jonathan Cooke
jonathan.cooke@bruceshaw.com
Jasmine Quek
Jasmine.quek@bartonbruceshaw.com.sg
Niall Cox
niall.cox@bruceshaw.com
Michael Riordan
michael.riordan@bruceshaw.com
Aideen Gannon
aideen.gannon@bruceshaw.com
Andy Smyth
andy.smyth@bruceshaw.com
Steve Harper
Steve.Harper@bruceshaw.com
Joanne Surgeon
joanne.surgeon@bruceshaw.com
Niall Harrington
niall.harrington@bruceshaw.com
Elizabeth Thomlinson
elizabeth.thomlinson@bruceshaw.com
Austin Hickey
austin.hickey@bruceshaw.com
Elaine Ting
Elaine@bartonbruceshaw.com.sg
Jenny Johnston
jenny.johnston@bruceshaw.com
Mark Wearen
mark.wearen@bruceshaw.com
Mark Keane
mark.keane@bruceshaw.com
Terence Woulfe-Flanagan
terence.woulfeanagan@bruceshaw.com
Tony Kelly
tony.kelly@bruceshaw.com
Daniel Wright
daniel.wright@bruceshaw.com
14
ABOUT BRUCE SHAW
Kevin Kinsella
kevin.kinsella@bruceshaw.com
BRUCE SHAW
HANDBOOK 2012
147
ABOUT BRUCE SHAW
Our Clients
Abbott International
Digital Realty Trust
National Asset Management Agency (NAMA)
ABN Amro
Dublin Airport Authority
National Development Finance Agency
Albany Properties
Durkin Estates
Aberdeen Asset Managers
Easons
National Institute for Bioprocessing

Research and Training
Al Khozama Management Company
Elan
National Maternity Hospital
Al Sharq Investments
Electric Ireland
National Roads Authority
A&L Goodbody
Electronic Data Systems
National University of Ireland
Allied Irish Bank
Ellier Developments
Natwest Bank
Anderson Group
Equity Bank
Nissan
Aramco Overseas
Espirit
Northern Bank
Arnotts
Fluor
Novartis
Arthur Cox
Fujitsu
O2
Aryzta AG
Four Seasons Hotels
Office of Public Works
Amgen
Gatwick Airport Limited
Bahrain Bay Developments
Glen Dimplex Group
Bahrain Tourism Company
Green Property Company
Ballymore Properties
Greencore
Bank of Ireland
Grosvenor
Bank of Scotland
Guidant
Barratt Homes
Hampstead Homes
BD Medical
Harcourt Developments
B&Q
Hard Rock Caf
Belfast Harbour Commissionaires
Hayward Gallery
Belfast International Airports
NBOS
Bellway Homes
Health Services Executive
BIH Housing Association
Hewlett Packard
Bloom Developments
Hilton Hotels
Bord Gis Eireann
Hochtief PPP Solutions Ltd.
Bovis Lendlease
Howarth Homes plc
Blood Transfusion Services Board
Hypo Real Estate Holding AG
British Land
IBM
British Museum
iGuzzini SPA
British Telecom
ING Real Estate
Burger King
Institutes of Technology, Ireland
ByrneWallace
Intel
Caelum Developments
Investec Bank
Castlelands Construction
Irelandia
Castlethorn Construction
Irish Aviation Authority
St. Lukes Hospital
CB Richard Ellis
Irish Prison Service
St. Vincents Hospital
Central Bank & Financial Services Authority

of Ireland
Johnson & Johnson
Tamouh Investments
John Lewis Partnership
Chase Manhattan
Taylor Wimpey
JP Morgan Chase
Chartered Accountants Ireland
The Savoy Group
Childrens University Hospital
King Abdullaziz City for Science

and Technology
Titanic Quarter
Church Commissioners for England
KPMG
Citibank
Krediet Bank
City & Country
Laganbank Development
Communicorp
Lambeth College
County & City Councils, Ireland
Lancer Asset Management
Ulster Bank
County & City Councils, U.K.
Lidl
Ulster Rugby
Cork University Hospital
Mace
United House
Credit Suisse
Macquarie Capital
University of Ulster
Crest Nicholson
Marks & Spencer
Victoria Dock Developments
Crosbie Properties
Mary Immaculate College
Victoria Palace Theatre
Dalkia
Matheson Ormsby Prentice
Visa Europe
Daunton Soar
Mater and Childrens Hospital
Ward Homes
David Lloyd Leisure
McCann Fitzgerald
Warner Chilcott
Dell
Menolly Homes
Wates Group
Department of Education & Science Ireland
Mentor Graphics
Westeld Shopping Towns
Depfa Bank
Merrill Lynch
Whitbread
Deutsch Bank
Merrion Hotel
William Ewart Properties
De Vere Estates
Ministry of Foreign Affairs
William Fry
Deloitte
Microsoft
Willis Insurance
Diageo
Mobily
Windsor Motors
Digicel
Morrison Homes
Wyeth Medica
148
BRUCE SHAW
HANDBOOK 2012
Oger International
Park Developments
Parkway Properties
Paul Newman New Homes
Pedra Developments
Pepsi
Premier Group WLL
Pzer
Pricewaterhouse Coopers
Primark / Penneys
Queens University of Belfast
Redrow Homes
Ritz Carlton
Roads Service Northern Ireland
Royal Dublin Society
Royal Sun Alliance
Salvation Army
Santana Residential Park
Saudi Arabia Ministry of Education
Saudi Aramco
Saudi Oger Ltd.
Sentry Hospitality
Serco
Shelbourne Senior Living
South Eastern Education & Library Board
Translink
Treasury Holdings
Trinity College Dublin
UCD
University College Dublin
Bruce Shaw
working in 150 cities
in over 40 countries.
Office Locations
BAHRAIN
Building No 1468
P.O. Box 10963
Manama
T +973 17 746 892
F +973 17 746 893
DUBLIN
Kestrel House
Clanwilliam Place
Dublin 2
T +353 1 661 4711
F +353 1 661 4722
SAUDI ARABIA
Akaria, Building 16, Olaya Street
P.O. Box 67718, Riyadh 11517
Kingdom of Saudia Arabia
T +966 (0) 1215 1857
F +966 (0) 1215 1862
BARBADOS
West Coast Mall
Holestown St. James
Barbados
T +1 246 432 7957
F +1 246 432 7958
INDIA
B - 278 Ground Floor
Chitranjan Park
New Delhi - 110019
T +91 11 26273625
F +91 11 26275929
SHANGHAI
No. 617 Da Lian Rd. (w)
Ming Yao Building
Shanghai, P.R. China
T +86 21 6587 0216
F +86 21 6587 0185
BELFAST
Murrays Exchange
1 Lineld Road
Belfast BT12 5DR
T +44 (0)28 9032 1056
F +44 (0)28 9023 0940
LIMERICK
Bruce Shaw House
6 Hartstonge Street
Limerick
T +353 61 493 515
F +353 61 493 516
SINGAPORE
No. 1 Grange Road
#09 02 Orchard Building
Singapore 239693
T +65 6298 5833
F +65 6294 1609
BUCHAREST
Clopotarii Vechi Street No. 18
Sector 1 Bucuresti
Romania
T +40 312 294 200
F +40 312 294 210
LONDON
Artillery House
11-19 Artillery Row
London, SW1P 1RT
T +44 207 799 1100
F +44 207 799 1101
SYDNEY
Level 4 56 Clarence Street
Sydney, NSW 2000
Australia
T +61 432 368 120
F +61 2 9922 6017
CORK
Hanover House
South Main Street
Cork
T +353 21 427 4474
F +353 21 427 6415
MANCHESTER
Pall Mall Court
61-67 King Street
Manchester, M2 4PD
T +44 161 618 1811
F +44 161 618 1100
UNITED ARAB EMIRATES

5th Floor Corniche Tower
Corniche Road, P.O. Box 7127
Abu Dhabi, UAE
T +971 2 627 0088
F +971 2 627 0087
NEW YORK
275 Madison Avenue
6th Floor
New York 10016
T +1 212 878 8818
F +1 212 878 8817
VIETNAM
Level 6 Melinh Point Tower
2 Ngo Duc Ke St District 1
HCMC Vietnam
T +84 8 3520 2785
PARIS
9 / 11 Alle de lArche
Paris La Dfense 92671
France
T +33 1 70 92 37 91
F +33 1 49 97 1700
www.bruceshaw.com

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3

Iowa & Virginia

Developing Markets Offer Business

15 Largest Construction Markets in 2010

Public Sector Output

Private Sector Output

UK Tender Price Index

UK Regional Tender Price Index

Resource Cost Index of UK non-housing building

15 Largest Construction Markets in 2020

Construction Output Growth Rates

Index of International Construction Costs

Top 20 International Contractors

Top 20 International Design Firms

Overview of Percentage Change in Global Output

Oil Production / Consumption Statistics

Numbers of Employed & Self Employed

Standard Hourly Base Rates for Labour

Top UK Main Contractors

Top UK Engineering Firms

Bruce Shaw Average UK Construction Costs

House Building Starts and Completions

Average Procurement lead in times

The UK Housing Market 2012

European Market Review

Production Index in the Construction Sector

Construction Output - Annual Variation

Top 15 European Contractors

Top 15 European Design Firms

Middle East Market Review

Construction Cost - New Residential Building

GCC Hydrocarbon Dependence

Consumer Ination v Construction Ination

GCC Stimulus Packages

EU Labour Costs and Productivity

Value of Projects by Country

Middle East Commodity Prices

Prices of Building Materials in Abu Dhabi

Currency Movements - Euro vs Various

Value of Construction Output

Gross National Product

Construction Purchasing Managers Index Report

UAE, Bahrain and Qatar in Brief

Saudi Arabia in Brief

Saudi Arabia Key Budgetary Allocations

Saudi Arabia Housing Requirements by Region

Regional Building Cost Comparisons

Top 10 Infrastructure Projects in the GCC

Middle Eastern Design Firms

GCC Nations Main Contractors

GCC Single Currency Update

Historical Property Performance Total Return %

Bruce Shaw Tender & Cost Indices

SCSI Tender Price Index

Consumer vs Construction Price Ination

Value of Construction Output Public / Private

Annual Numbers Employed in Construction

US Construction by Type of Work

Bruce Shaw Average Irish Construction Costs

Annual Construction Cost Index

Basic Hourly Wage Rates

US Regional Building Cost Index

Basic Hourly Wage Rates Mechanical & Electrical 30

The Top Irish Main Contractors