Product category:
Surveyors and consultants
News Release from: EC Harris | Subject: Global Building Costs
Edited by the Buildingtalk Editorial
Team on 03 July 2008
EC Harris research on Global Building
Costs
Against the global economic slowdown and the falling value of the pound, there remains a huge variation in building costs across the EU.
Paul Moore, Head of Cost Research at EC Harris unveils Global Building Costs Summer 2008 Research The UK remains one of the more expensive places in the world to build (fifth after Denmark, Switzerland, Ireland and Sweden), with costs 20% higher than France and Germany, and more than double many Eastern European states
This article was originally published on Buildingtalk on 10 Jul 2008 at 8.00am (UK)
Related stories
Delivery of National Affordable Housing Programme
EC Harris has aided five of its developer clients to pre-qualify as Preferred Partners for the National Affordable Housing Programme.
EC Harris makeover for Ealing Primary School
An EC Harris led team has completed a 'Changing Rooms' type makeover in Southfield Primary School in Ealing as part of National School Environments Week.
EU expansion continues to influence the European construction industry.
The European Union now consists of 27 member states, with Croatia set to join in 2009-10, and Macedonia and Turkey keen to follow.
Many of the newer member states have experienced strong growth over the last year, with countries such as Bulgaria and Poland showing Building Cost Inflation at 20% to 30%.
Further reading
EC Harris leading role in delivering T5 project
EC Harris has been instrumental in supporting the successful delivery Terminal 5, BAA's new GBP4.3 billion international gateway to the UK, on time and on budget.
EC Harris to help deliver 2 new Academies in Hull
EC Harris has been appointed by the Department for Children, Schools and Families to project manage two new academies that will accommodate more than 3,200, 11 to 18 year olds, in Hull.
EC Harris help deliver Scotland new Forth crossing
Leading international consultancy EC Harris has been appointed to provide budgetary, risk and programme management services as part of a consortium on the new GBP4.2bn Forth Replacement Crossing.
The figures come from a survey of EC Harris offices worldwide, with data collected in cost per m format.
The research shows that the even the low construction costs in Eastern European countries, such as Serbia and Hungary, are still almost twice those of Indonesia, Malaysia and Taiwan, while costs in Africa - Ghana and South Africa - are running at around 25% of those in the UK.
This paper gives a brief summary of the International Building Costs Price Book which is available to staff members of EC Harris.
The graphs overleaf show how costs vary in 46 countries around the world and are referenced against costs in South East England.
The full publication gives cost per m figures for 44 different building types across all sectors, including offices, retail, leisure, residential and hotels.
Costs Generally.
Building costs are affected by a number of factors, including building type, location, etc.
However, the costs are based on 'average design'and 'average accessibility' on an unrestricted site with no abnormal requirements.
Buildings will always be built where costs fall outside the bands given, and it is possible for buildings to exceed the top end of a range if there is a very high level of specification, e.g purpose made fittings, Building Management System, Uninterruptible Power Supply, etc.
It has been assumed that all buildings are 'International', and constructed to Western European specification standards.
However, there will always be differences in specification for the same building constructed in different countries.
Even within Western Europe, the insulation and heating requirements, for example, will be very different in Sweden or Spain.
Where buildings are constructed to local standards, costs can be substantially cheaper than those given, particularly in some Third World countries; whereas building to a high specification in the same countries can incur a 'penalty' since workers may have to deliver to a higher standard than is normally expected.
Other factors, such as procurement and contract choice, also affect building costs.
The cost and efficiency of site labour is another key driver of construction costs.
However, the link between labour rates and construction prices is not always direct; cheap unskilled labour (less than $10 in many Third World countries) is often low productivity.
Sourcing of materials, in particular MandE engineering plant can have a profound effect on prices; on high value schemes, contractors are likely to look worldwide for MandE 'kit' which can have a significant effect on out-turn costs.
• EC Harris: contact details and other news
• Email this article to a colleague
• Register for the free Buildingtalk email newsletter
• Buildingtalk Home Page
Search the Pro-Talk network of sites
