bruce shaw handbook 2012
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Ireland
Middle East
United States
Riyadh
Program management for data centres, HQ offices and retail stores for Mobily
Dublin
New bio-pharmaproduction facility for Amgen
Iowa & Virginia
Cost management of data centres for Microsoft
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2 BRUCE SHAW HANDBOOK 2012
CONTENTS
Global Construction
Developing Markets Offer Business Development Opportunities 6
15 Largest Construction Markets in 2010 7
15 Largest Construction Markets in 2020 7
Construction Output Growth Rates in Developed Countries 9
Construction Output Growth Rates in Emerging Markets 9
Index of International Construction Costs 9
Top 20 International Contractors 10
Top 20 International Design Firms 11
Global Inflation % 12
Overview of Percentage Change in Global Output 12
Oil Production / Consumption Statistics 13
Europe European Market Review 16
Production Index in the Construction Sector 17
Construction Output - Annual Variation 17
Top 15 European Contractors 18
Top 15 European Design Firms 18
Construction Cost - New Residential Building 19
Consumer Inflation v Construction Inflation 20
EU Labour Costs and Productivity 20
EU Procurement Timescales 21
EU Procurement Thresholds 21
Currency Movements - Euro vs Various European Currencies 21
Ireland
Ireland Market Review 24
Value of Construction Output 24
Construction Output 24
Gross National Product 24
Construction Purchasing Managers Index Report 25
Historical Property Performance Total Return % 25
Bruce Shaw Tender & Cost Indices 26
SCSI Tender Price Index 27
Consumer vs Construction Price Inflation 27
Annual Numbers Employed in Construction 27
Bruce Shaw Average Irish Construction Costs 28
Basic Hourly Wage Rates 30
Basic Hourly Wage Rates Mechanical & Electrical 30
The Top Irish Main Contractors 31
The Top Irish Services Sub-Contractors Turnover 31
Annual Housing Completions 33
New Housing Completions by Type 33
SCSI Rebuilding Costs per sq.m 34
Planning Charges 35
Fire Certificate Charges 35
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United KingdomUK Market Review 38
UK Construction Output 39
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
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
2012 Olympics 48
Euro vs Sterling 48
5 Middle East
Middle East Market Review 52
GCC Hydrocarbon Dependence 52
GCC Stimulus Packages 52
Value of Projects by Country 53
Middle East Commodity Prices 54
Prices of Building Materials in Abu Dhabi 54
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
United States
US Market Review 62
Value of Construction Output Public / Private 63
US Construction by Type of Work 63
Annual Construction Cost Index 64
US Regional Building Cost Index 64
Employment in Construction 64
Change in U.S. Employment in Construction 65
US Earnings in Construction 65
Top US Contractors 66
Top U.S. Design Firms 67
Euro vs. Dollar 67
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BRUCE SHAW HANDBOOK 2012 3
CO
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South East Asia continued Malaysia Market Review 96
GDP Growth Rate 96
Average Construction Costs 97
Currency Exchange Rates 97
Vietnam Market Review 98
GDP Growth Rate 98
Average Construction Costs 98
Currency Exchange Rates 99
Indonesia Market Review 100
Average Construction Costs 100
Currency Exchange Rates 101
ChinaChina 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
Top 20 Chinese Design Firms 109
Currency Exchange Rates 109
GhanaGhana Market Review 113
Ghana Key Statistics 113
GDP forecast 113
Value of Construction Output 114
Construction Output Growth Rate Forecast 114
Average Construction Costs 114
Inflation Index 115
Building Cost Index & Consumer Price Index Comparison 115
Construction Companies Active in Ghana 116
Currency Exchange Rates 116
Topical IssuesEnergy and Power Generation 120
Financial Robustness of Contractors 122
Building Information Modelling (BIM) 124
The Changing Shape of Retail 126
Challenges for Consultant Project Managerswithin current market conditions 128
About Bruce ShawBruce Shaw 132
Cost Management 133
Project Management 137
Consultancy Services 138
Health & Safety Consultancy 142
Bruce Shaw Corporate & Community Activities 144
Bruce Shaw Senior Personnel 146
Our Clients 148
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Caribbean
Caribbean Market Review 70
General Statistics for the Caribbean 70
Caribbean Country Review
Bahamas 71
Barbados 71
Bermuda 71
Cayman Islands 71
Cuba 71
Curacao 72
Dominican Republic 72
Haiti 72
Jamaica 73
Puerto Rico 73
St Lucia 74
Trinidad & Tobago 74
Turks & Caicos Islands 74
Construction Costs 74
Average Cost Range 75
IndiaIndia Market Review 78
Average Construction Costs 78
Construction Cost Indices 79
Top Infrastructure Companies in India 79
US Dollar vs. Rupee 79
Australia & New Zealand
Australia Market Review 83
Australian Key Statistics 83
Australia
Value of Construction Output 84
Building Cost Index by Capital City 84
Building Cost Index & ConsumerPrice Comparison 85
Dwelling Unit Commencements 85
Average Construction Costs 85
List of Tier 1 Main / Building Contractors 86
Currency Exchange Rates 86
New Zealand
New Zealand Market Review 87
New Zealand Key Statistics 87
Value of Construction Output 87
Numbers Employed in Construction 88
Dwelling Unit Commencements 88
Average Construction Costs 88
List of Tier 1 Main/Building Contractors 89
Currency Exchange Rates 89
South East AsiaSouth East Asia Market Review 93
Carrying Out Business Throughout the World 93
Singapore Market Review 94
Value of Construction Output 94
Average Construction Costs 95
Currency Exchange Rates 95
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4 BRUCE SHAW HANDBOOK 20124 BRUCE SHAW HANDBOOK 2012
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BRUCE SHAW HANDBOOK 2012 5
G LO B A L C O N S T R U C T I O N 1
BRUCE SHAW HANDBOOK 2012 5
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6 BRUCE SHAW HANDBOOK 2012
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 trading environment in many economies within
the Eurozone is defined by austerity and tightening
public finances 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.
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
financial crisis, a return to growth in 2013 will likely
prove too soon for those countries whose public
finances 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 fiscal stimulus particularly in relation to
infrastructure development.
Whilst continued year on year growth is also
predicted for the Australian construction market,
fears are being expressed that the significant 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 .
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 significant growth as the new
governments seek to recommence stalled projects
and to implement social enhancement programmes
including the development of housing and
educational facilities.
Developing Markets Offer Business Development Opportunities
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.
GLOBAL CONSTRUCTION
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1
BRUCE SHAW HANDBOOK 2012 7
SECTION 1 GLOBAL CONSTRUCTIONG
LO
BA
L C
ON
ST
RU
CT
ION
15 Largest Construction Markets in 2020 $ 12.7 trillion (forecast)
15 Largest Construction Markets in 2010 $ 7.5 trillion
Sou
rce: Glo
bal C
on
structio
n P
erspectives &
Oxfo
rd E
con
om
icsSo
urce: G
lob
al Co
nstru
ction
Persp
ectives & O
xford
Eco
no
mics
Output in China and India will continue to achieve
significant 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 inflation. China is also
facing significant 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 significantly reduce any risks
posed by such a bubble for the wider economy.
One country to watch in 2012 is Russia which is
expected to see significant market growth as natural
gas and oil production increase with a corresponding
increase in investment, infrastructure and
development for upcoming sporting events.
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 firms
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.
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GLOBAL CONSTRUCTION
One country to watch in 2012 is Russia which is expected to see significant market growth as natural gas and oil production increase.
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BRUCE SHAW HANDBOOK 2012 9
1
SECTION 1 GLOBAL CONSTRUCTION
Construction Output Growth Rates in Developed Countries
Index of International Construction Costs 2011
Construction Output Growth Rates in Emerging Markets
Average % pa Rates of Change
Average % pa Rates of Change
Sou
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bal C
on
structio
n P
erspectives an
d O
xford
Eco
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mics
Western Europe Northern America Asia Pacific (Developed)
8.0
6.0
4.0
2.0
0
-2.0
-4.0
-6.0
-8.0
2005-2010 2010-2015(f) 2015-2020(f)
Sou
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on
structio
n P
erspectives an
d O
xford
Eco
no
mics
12.0
10.0
8.0
6.0
4.0
2.0
0
Eastern Europe South and Central America
Asia Pacific(Emerging)
Middle East and North Africa
Sub Saharan Africa
2005-2010 2010-2015(f) 2015-2020(f)
Sou
rce: Bru
ce Shaw
160
140
120
100
80
60
40
20
0
Ind
ia
Ch
ina
Ro
man
ia
Hu
ng
ary
Po
lan
d
UA
E
Gre
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Spai
n
USA
Ire
lan
d
Ital
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Au
stra
lia UK
Ge
rman
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Fran
ce
Swe
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Jap
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Swit
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and
Cze
ch
Re
pu
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10 BRUCE SHAW HANDBOOK 2012
GLOBAL CONSTRUCTION
The Top 20 International Contractors
Sou
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ec
ord
Sou
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gin
ee
ring
Ne
ws R
ec
ord
Rank Revenue2011 2010 Firm $ bn
1 1 HOCHTIEF, Germany 27.42
2 2 VINCI, France 16.56
3 4 BECHTEL, U.S.A. 12.50
4 5 BOUYGUES, France 12.43
5 6 SKANSKA, Sweden 11.63
6 7 SAIPEM, Italy 11.60
7 9 FLUOR CORP., U.S.A. 11.57
8 3 STRABAG, Austria 10.87
9 10 TECHNIP, France 7.94
10 11 FCC, Spain 7.46
11 13 CHINA COMMUNICATIONS CONST. GROUP, China 7.13
12 18 GRUPO ACS, Spain 6.56
13 8 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
Rank Revenue2011 2010 Firm $ bn
1 1 CHINA RAILWAY CONSTRUCTION CORP., China 76.21
2 2 CHINA RAILWAY GROUP, China 73.01
3 6 CHINA STATE CONST. ENGINEERING CORP., China 48.87
4 3 VINCI, France 45.11
5 5 CHINA COMMUNICATIONS CONST. GROUP, China 40.42
6 4 BOUYGUES, France 30.67
7 8 CHINA METALLURGICAL GROUP CORP., China 29.91
8 7 HOCHTIEF, Germany 28.98
9 10 GRUPO ACS, Spain 20.63
10 9 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
Based on Total Firm Contracting Revenue
The Top 20 International Contractors Based on Contracting Revenue from Projects Outside Home Country
2011 ranking is based on 2010 construction contracting revenue.
2011 ranking is based on 2010 construction contracting revenue.
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BRUCE SHAW HANDBOOK 2012 11
1
SECTION 1 GLOBAL CONSTRUCTION
The Top 20 International Design Firms
The Top 20 International Design Firms
Rank Revenue2011 2010 Type of Firm Firm $ bn
1 2 EC WORLEYPARSONS, Australia 2.85
2 1 E FUGRO, The Netherlands 2.83
3 3 EA AECOM TECHNOLOGY CORP., U.S.A. 2.63
4 5 E AMEC PLC, U.K. 2.46
5 7 EAC JACOBS, U.S.A. 2.26
6 6 E ARCADIS, The Netherlands 2.12
7 4 EC FLUOR CORP., U.S.A. 2.06
8 9 EA DAR AL-HANDASAH CONSULTANTS, Egypt 1.78
9 10 EC KBR, U.S.A. 1.74
10 8 EC SNC - LAVALIN INTERNATIONAL, Canada 1.67
11 11 EC M + W GROUP, Germany 1.55
12 43 EC BALFOUR BEATTY, U.K. 1.46
13 12 EC TECNICAS REUNIDAS, Spain 1.29
14 13 EC BECHTEL, U.S.A. 1.22
15 14 E MOTT MACDONALD GROUP, U.K. 1.12
16 19 E ARUP GROUP, U.K. 0.96
17 24 EAC URS CORP., U.S.A. 0.94
18 62 E AURECON, Singapore 0.93
19 16 E TECHNIP, France 0.91
20 29 EA ATKINS, U.K. 0.89
Rank Revenue2011 2010 Type of Firm Firm $ bn
1 1 EA AECOM TECHNOLOGY CORP., U.S.A. 5.92
2 2 EAC URS CORP., U.S.A. 5.04
3 3 EAC JACOBS, U.S.A. 4.75
4 6 EC WORLEYPARSONS, Australia 3.65
5 5 EA CH2M HILL, U.S.A 3.60
6 7 E AMEC PLC, U.K. 3.40
7 4 EC FLUOR CORP.,U.S.A 3.13
8 8 E FUGRO, The Netherlands 3.00
9 9 EC SNC-LAVALIN INTERNATIONAL, Canada 2.85
10 10 E ARCADIS, The Netherlands 2.65
11 15 EC M + W GROUP, Germany 2.36
12 13 E 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 BALFOUR BEATTY, U.K. 1.74
18 22 EC CHINA COMMUNICATIONS CONST. GROUP, China 1.67
19 16 E MOTT MACDONALD GROUP, U.K. 1.62
20 21 EC HYDROCHINA CORP., China 1.53
Sou
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Sou
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Based on Total Firm Revenue
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
2011 ranking is based on revenue for design services performed in 2010.Key to Type of Firm: A architect; E engineer; C contractor
GL
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12 BRUCE SHAW HANDBOOK 2012
GLOBAL CONSTRUCTION
Global Inflation 2011
Overview of Percentage Change in Global Output
Sou
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: Inte
rnatio
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on
etary Fu
nd
/ ww
w.g
lob
al-rates.c
om
Sou
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rnatio
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nd
2010 2011 2012(f) 2013(f)Advanced Economies
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%
Middle East & North Africa 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%
January 2012
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BRUCE SHAW HANDBOOK 2012 13
1
Rank Country Barrels / 2011 2010 Day
1 1 United States 19,150,000
2 2 European Union 13,730,000
3 3 China 9,189,000
4 4 Japan 4,452,000
5 5 India 3,182,000
6 6 Russia 2,937,000
7 7 Brazil 2,654,000
8 9 Saudi Arabia 2,643,000
9 8 Germany 2,495,000
10 10 Korea, South 2,251,000
11 11 Canada 2,209,000
12 12 Mexico 2,073,000
SECTION 1 GLOBAL CONSTRUCTION
Oil Production
Oil Consumption
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Staff / pictures
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Rank Country Barrels / 2011 2010 Day
13 13 France 1,861,000
14 14 Iran 1,845,000
15 15 United Kingdom 1,622,000
16 16 Italy 1,528,000
17 17 Spain 1,441,000
18 18 Indonesia 1,292,000
19 23 Singapore 1,080,000
20 21 Netherlands 1,009,000
21 22 Taiwan 1,002,000
22 20 Thailand 988,000
23 19 Australia 960,800
24 24 Venezuela 746,000
Rank Country Barrels / 2011 2010 Day
1 2 Saudi Arabia 10,520,000
2 1 Russia 10,130,000
3 3 United States 9,688,000
4 5 China 4,273,000
5 4 Iran 4,252,000
6 6 Canada 3,483,000
7 7 Mexico 2,983,000
8 8 United Arab Emirates 2,813,000
9 9 Brazil 2,746,000
10 15 Nigeria 2,458,000
11 10 Kuwait 2,450,000
12 12 Iraq 2,408,000
Rank Country Barrels / 2011 2010 Day
13 11 Venezuela 2,375,000
14 13 European Union 2,276,000
15 14 Norway 2,134,000
16 16 Algeria 2,078,000
17 17 Angola 1,988,000
18 18 Libya 1,789,000
19 19 Kazakhstan 1,610,000
20 21 Qatar 1,437,000
21 20 United Kingdom 1,393,000
22 23 Azerbaijan 1,041,000
23 22 Indonesia 1,030,000
24 24 India 954,000
Note: 2011 rank is based on based on 2010 production / consumption levels
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14 BRUCE SHAW HANDBOOK 2012
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BRUCE SHAW HANDBOOK 2012 15
2E U R O P E
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16 BRUCE SHAW HANDBOOK 2012
EUROPE
Deficit, 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 deficits 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 financing 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
& 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 financial
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 profit 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.
European Market Review
Governmental austerity measures and financing problems in the private sector have resulted in a decrease in building construction of 2.2% in the EU27.
Primark, Zaandam
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BRUCE SHAW HANDBOOK 2012 17
2
SECTION 2 EUROPEE
UR
OP
E
Production Index in the Construction Sector
Construction Output Annual Variation
Sou
rce
: Eu
rostat
115
110
105
100
95
90
85
80
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.
11-2
00
2
05
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03
11-2
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3
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11-2
011
Sou
rce
: Eu
rostat
Total Q4-10 Q1-11 Q2-11 Q3-11
Belgium -3.1 5.4 2.3 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
France -5.4 2.8 -0.6 2.0
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
Hungary -10.5 -6.6 -9.5 -13.7
Malta 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
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
Euro area, seasonally adjusted series Trendline
EU27, seasonally adjusted series Trendline
% change compared with the same quarter of the previous year
2005=100
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18 BRUCE SHAW HANDBOOK 2012
EUROPE
Rank Turnover 2011 2010 Firm bn
1 1 VINCI, France 34.21
2 2 BOUYGUES, France 23.26
3 3 HOCHTIEF, Germany 21.98
4 4 GRUPO, Spain 15.65
5 8 EIFFAGE, France 13.45
6 6 FCC, Spain 12.18
7 7 SKANSKA, Sweden 11.10
8 5 STRABAG , Austria 9.69
9 9 BALFOUR BEATTY, U.K. 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
2011 ranking is based on 2010 construction revenue
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
Sou
rce
: En
gin
ee
ring
Ne
ws R
ec
ord
Sou
rce
: En
gin
ee
ring
Ne
ws R
ec
ord
The Top 15 European Contractors
The Top 15 European Design Firms
Based on Total Revenue
Based on Total Firm Revenue
Rank Revenue2011 2010 Type of Firm Firm bn
1 1 E AMEC, U.K. 2.58
2 2 E FUGRO, The Netherlands 2.28
3 3 E ARCADIS, The Netherlands 2.01
4 4 EA WS ATKINS, U.K 1.63
5 EC BALFOUR BEATTY, U.K. 1.32
6 5 E MOTT MACDONALD GROUP, U.K. 1.23
7 6 E ARUP GROUP , U.K. 1.04
8 7 EC TECNICAS REUNIDAS, Spain 1.02
9 9 E GRONTMIJ , The Netherlands 0.92
10 8 E WSP GROUP, U.K. 0.83
11 11 E RAMBOLL GROUP, Denmark 0.81
12 EC EGIS, France 0.81
13 E MOUCHEL, U.K. 0.73
14 14 EC TECHNIP, France 0.70
15 13 E POYRY, Finland 0.69
-
BRUCE SHAW HANDBOOK 2012 19
2
SECTION 2 EUROPEE
UR
OP
E
Parklake Plaza, Bucharest
Construction Cost - New Residential Buildings
Notes: N/A = Not available e = Estimated value
Belgium 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
Denmark 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
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 N/A 111.5 N/A N/A N/A N/A
Cyprus 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
Sou
rce
: Eu
rostat
Index (2005=100)
2009 2010 2011Q1 Q3 Q1 Q3 Q1 Q3
-
20 BRUCE SHAW HANDBOOK 2012
EUROPE
Sou
rce: Eu
rostat
5%
4%
3%
2%
1%
0%
-1%
-2%
-3%
-4%
Consumer Inflation vs Construction Inflation 2008-2011
EU Labour Costs & Productivity 2011
2008 2009 2010 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 100 26.15
Italy 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 figures 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
European Union Average Consumer Inflation New Residential Construction Cost
-
BRUCE SHAW HANDBOOK 2012 21
2
SECTION 2 EUROPEE
UR
OP
E
Sou
rce: ww
w.eten
ders.g
ov.ie
EU Procurement Timescales 2012
EU Procurement Thresholds 2012
Currency Movements Euro v Various European Currencies
Prior Indicative Notice (PIN)
Publish at least 52 days prior to date contract
notice is dispatched to avail of reduced time limits
(max. 12 mths).
Open Procedures
Time Limit for Receipt of Tender
If no PIN: not less than 52 days
If PIN: General rule minimum time 36 days and in
any case not less than 22 days from date contract
notice is dispatched
Restricted Procedure
Time Limit for Receipt of Expressions of Interest
Not less than 37 days from date contract notice is
dispatched
Time Limit for Receipt of Tenders
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
Accelerated Restricted Procedure
Time Limit for Receipt of Expressions of Interest
is dispatched
Time Limit for Receipt of Tenders
tender is dispatched
Negotiated Procedure with Prior Publication
of a Contract Notice
Time Limit for Receipt of Application
is dispatched
Negotiated Accelerated Procedure with Prior
Publication of a Contract Notice
Time Limit for Receipt of Application
is dispatched
Contract Award Notice
Time Limit for Receipt of Issue
Works
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
bodies outside the Utilities sector.
Utilities
Works Contracts /
Prior Indicative Notice 5,000,000 For entities in Utilities sectors covered by GPA
Supplies and Services 400,000 For entities in Utilities sectors covered by GPA
Note: The above thresholds are valid until 31 December 2013
Sou
rce
: Eu
rop
ean
Ce
ntral B
ank
BulgarianlevBGN
CroatiankunaHRK
CzechkorunaCZK
DanishkroneDKK
HungarianforintHUF
PolishzlotyPLN
RomanianleuRON
RussianroubleRUB
TurkishliraTRYYear
2012* 1.96 7.54 25.72 7.44 314.63 4.47 4.34 40.83 2.40
2011 1.96 7.44 24.59 7.45 279.37 4.12 4.24 40.88 2.34
2010 1.96 7.29 25.28 7.45 275.48 3.99 4.21 40.26 2.00
2009 1.96 7.34 26.43 7.45 280.33 4.33 4.24 44.14 2.16
2008 1.96 7.22 24.95 7.46 251.51 3.51 3.68 36.42 1.91
2007 1.96 7.34 27.77 7.45 251.35 3.78 3.34 35.02 1.79
2006 1.96 7.32 28.34 7.46 264.26 3.90 3.53 34.11 1.81
2005 1.96 5.59 29.78 7.45 248.05 4.02 1.81 26.38 1.68
*Note: Based on January exchange rates
Sou
rce: ww
w.eten
ders.g
ov.ie
-
22 BRUCE SHAW HANDBOOK 2012
-
BRUCE SHAW HANDBOOK 2012 23
I R E L A N D 3
-
24 BRUCE SHAW HANDBOOK 2012
IRELAND
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.
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 profile failure of both construction and
consultancy firms.
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.
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 fit-outs for both
Irish and overseas occupiers. If global financial
concerns can be overcome and some confidence
recovered locally hopefully 2013 will see the start
of a slow recovery for the industry.
Ireland Market Review
Construction Output 2007-2011
2007 2008 2009 2010 (f) 2011 (f)
Value of Output at Current Prices (m) 38,601 32,593 18,048 11,733 8,500
Change in Value of Output (%) 0% -16% -45% -35% -28%
Construction Output as % of GNP 23.7 21.1 13.7 9.2 6.8
Sou
rce: DK
M /
Dep
artmen
t of th
e
En
viron
men
t /B
ruce Sh
aw
2007 2008 2009 2010 2011(f)
GNP at Current Prices (m) 163,413 154,673 132,233 128,207 125,500
% Change in GNP 5.4% -5.3% -14.5% -3.0% -2.1%
Sou
rce: CSO
/E
SRI
Gross National Product (GNP) 2007-2011
Value of Construction Output m 2000-2012
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 DKM2010
(F)
BS2010
(F)
BS2011
(F)
BS2012
(F)
Sou
rce: DK
M / D
epartm
ent o
f En
viron
men
t, Heritag
e
& Lo
cal Go
vernm
ent / B
ruce Sh
aw
DKM / Dept. of Environ. 10 Forecast Bruce Shaw Forecast
By the end of this year output in the industry will have fallen by 82% from its peak.
-
SECTION 3 IRELAND
BRUCE SHAW HANDBOOK 2012 25
3Increasing rate of growth
Increasing rate of contraction
50 = no change on previous month
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
50
40
30
20
60
70
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
1,000
800
600
400
200
0
15
10
5
0
-5
-10
-15
-20
All Property Index
Ind
ex
Val
ue
(sh
ade
d a
rea)
% re
turn
pe
r qu
arter
All Property Retail Office Industrial
Dec. 96 Dec. 01 Dec. 06 Dec. 11
Sou
rce; IPD
/ SCSI
Sou
rce; Ulster B
ank
Construction Purchasing Managers Index Report June 2001January 2012
IRE
LA
ND
-
26 BRUCE SHAW HANDBOOK 2012
IRELAND
The first 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 inflation 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 inflation.
It is important to distinguish between construction
input costs and tender prices. The former reflect the
actual costs of labour and materials while the latter
reflect 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
reflect 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 financial
strength of contractors and their ability to obtain
performance guarantee bonds before entering
into construction contracts.
Bruce Shaw Tender & Cost Indices
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012(f)
190
180
170
160
150
140
130
120
110
100
Average Tender Price Construction Input Cost
Sou
rce
: Bru
ce
Shaw
Bruce Shaw Tender Price & Cost Indices 2001-2012
Tender % 6 -2 -4 4 4 3 0 -12 -17 -6 2 3
Cost % 9 3 3 2 3 3 3 3 -2 -3 -2 -1
Contractors and sub-contractors have realised that below cost tendering is not sustainable in the long run
-
SECTION 3 IRELAND
BRUCE SHAW HANDBOOK 2012 27
3
Sou
rce
: CSO
280
260
240
220
200
180
160
140
120
100
Jan
-Mar
05
Ap
r-Ju
n 0
5
Jul-
Sep
05
Oc
t-D
ec
05
Jan
-Mar
06
Ap
r-Ju
n 0
6
Jul-
Sep
06
Oc
t-D
ec
06
Jan
-Mar
07
Ap
r-Ju
n 0
7
Jul-
Sep
07
Oc
t-D
ec
07
Jan
-Mar
08
Ap
r-Ju
n 0
8
Jul-
Sep
08
Oc
t-D
ec
08
Jan
-Mar
09
Ap
r-Ju
n 0
9
Jul-
Sep
09
Oc
t-D
ec
09
Jan
-Mar
10
Ap
r-Ju
n 1
0
Jul-
Sep
10
Oc
t-D
ec
10
Jan
-Mar
11
Ap
r-Ju
n 1
1
Jul-
Sep
11
Sou
rce
: Soc
iety o
f Ch
artere
d Su
rveyo
rs Irelan
d
155
150
145
140
135
130
125
120
115
110
105
100
1h 2h2001
1h 2h2002
1h 2h2003
1h 2h2004
1h 2h2005
1h 2h2006
1h 2h2007
1h 2h2008
1h 2h2009
1h 2h2010
1h 2h2011
SCSI Tender Price Index 2001-2011
Consumer v Construction Price Inflation 2001-2011
Annual Numbers Employed in Construction (000s)
Sou
rce
: CSO
/ Bru
ce
Shaw
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011*
15%
10%
5%
0%
-5%
-10%
-15%
-20%
Construction Price Inflation Consumer Price Inflation *2011 Consumer Price Inflation figure based on Jan 11-Nov 11
IRE
LA
ND
-
28 BRUCE SHAW HANDBOOK 2012
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
Commercial Offices
Suburban Naturally Ventilated
Shell & Core 1,100 1,450 per sq.m 10-15%
Developer Standard 1,200 1,550 per sq.m 15-20%
Extra for Air Conditioning 150 300 per sq.m
City Centre Air Conditioned
Shell & Core 1,450 2,050 per sq.m 15-20%
Developer Standard 1,600 2,250 per sq.m 20-25%
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%
Corporate HQ 1,250 1,550 per sq.m 25-35%
Open Plan Work Station 950 2,600 each
High Tech Industrial
Shell & Core 700 1,250 per sq.m 20-25%
Developer Standard 800 1,250 per sq.m 25-45%
Residential
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%
Individual House Rebuilding Costs (see page 34)
Sou
rce
: Bru
ce
Shaw
UCD Science Centre South
-
SECTION 3 IRELAND
BRUCE SHAW HANDBOOK 2012 29
3
IRE
LA
ND
Sou
rce
: Bru
ce
Shaw
Average Costs Cost Range M&E
Shopping Centres
Anchor Unit 600 750 per sq.m 10-15%
Unit Shops 800 1,200 per sq.m 10-15%
Mall 1,400 2,500 per sq.m 20-25%
Retail Fit Out 1,100 1,550 per sq.m 25-30%
Site Development Business Parks
Roads & Primary Services 145,000 455,000 per hectare
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
Education
Primary Level (DOE Jan 11) 930* per sq.m 10-15%
Second Level (DOE Jan 11) 930* per sq.m 15-20%
Third Level 1,300 2,100 per sq.m 20-25%
Leisure
Hotel Building 1,400 2,350 per sq.m 25-35%
FF&E 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%
Sports Hall 850 1,300 per sq.m 10-15%
Swimming Pool 1,900 2,600 per sq.m 20-35%
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 specifications 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 inflation.
* Basic Building Cost only (incl. VAT). External allowances of 12.5% and abnormal costs should be added.
-
30 BRUCE SHAW HANDBOOK 2012
IRELAND
Basic Hourly Wage Rates
Basic Hourly Wage Rate Mechanical & Electrical
Sou
rce: Reg
istered A
greem
ent fo
r the
C
on
structio
n In
du
strySo
urc
e: M
EB
SCA
/ EC
A
Mechanical
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
Blackrock Clinic
Craftsman 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
-
SECTION 3 IRELAND
BRUCE SHAW HANDBOOK 2012 31
3The Top Irish Main Contractors
The Top Irish Services Sub-Contractors Turnover
Rank Firm Revenue m Revenue m 2011 2010 2010 2011
1 1 JOHN SISK & SON LTD 568.25 420.00*
2 2 BAM CONTRACTORS LTD. 270.30 250.00
3 5 WALLS CONSTRUCTION LTD. 169.04 180.00
4 6 P.J. HEGARTY & SONS LTD. 125.00 80.00
5 9 JOHN PAUL CONSTRUCTION LTD. 108.77 71.50
6 3 SIAC CONSTRUCTION LTD. 128.00** 60.00***
7 13 J.J. RHATIGAN & CO LTD. 44.00 58.00
8 4 ROADBRIDGE LTD. 118.00 44.00
9 11 BENNETT (CONSTRUCTION) LTD. 50.00 42.30
10 14 COLLEN CONSTRUCTION LTD. 33.12 37.15
11 12 GLENMAN CORPORATION LTD. 27.80 28.50
12 8 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
Sou
rce
: Ind
ividu
al Co
mp
anie
s Au
dito
rs / Co
mp
anie
s Re
gistratio
n O
ffic
e
Sou
rce
: Ind
ividu
al Co
mp
anie
s Info
rmatio
n / C
om
pan
ies R
eg
istration
Offi
ce
Rank Firm Revenue m Revenue m 2011 2010 2010 2011
1 1 MERCURY ENGINEERING GROUP 204.23 265.00*
2 2 JONES ENGINEERING LTD. 121.36 150.00
3 3 DORNAN ENGINEERING LTD. 71.90 73.90
4 4 KIRBY GROUP ENGINEERING LTD. 57.91 64.84
5 5 SUIR ENGINEERING LTD. 49.85 52.16
6 7 L. LYNCH & CO. LTD. 33.64 46.17
7 6 WINTHROP ENGINEERING LTD. 38.32 37.74
8 8 DESIGNER GROUP 30.90 31.71
9 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
* This figure is Irish turnover only. Total worldwide turnover figure for Mercury Engineering Group in 2011 was 535m
Notes: * This figure is Irish turnover only. Total worldwide t/o figure for Sisk
in 2011 was 958m ** This figure is Irish turnover only. Total worldwide t/o figure for SIAC
in 2010 was 138m *** This figure is Irish turnover only. Total worldwide t/o figure for SIAC
in 2011 was 177m
This figure is Irish turnover only. Total worldwide t/o figure forRoadbridge in 2010 was 143m
This figure is Irish turnover only. Total worldwide t/o figure for Roadbridge in 2011 was 175m
IRE
LA
ND
-
IRELAND
Looking forward, there are some glimmers of hopethat 2012 will see construction output bottom out after 5 years of massive decline.
-
SECTION 3 IRELAND
BRUCE SHAW HANDBOOK 2012 33
3HousingCompletions Social % Private % Total
2001 4,875 9.3% 47,727 90.7% 52,602
2002 5,763 10.0% 51,932 90.0% 57,695
2003 6,133 8.9% 62,686 91.1% 68,819
2004 5,146 6.7% 71,808 93.3% 76,954
2005 5,559 6.9% 75,398 93.1% 80,957
2006 5,208 5.6% 88,211 94.4% 93,419
2007 6,671 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
Sou
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: De
partm
en
t of th
e E
nviro
nm
en
t, H
eritag
e &
Loc
al Go
vern
me
nt
Sou
rce
: De
partm
en
t of th
e E
nviro
nm
en
t, H
eritag
e &
Loc
al Go
vern
me
nt
New Housing Completions by Type 20012011
Annual Housing Completions 20012011
IRE
LA
ND
HousingCompletions House % Apartment % Total
2001 41,576 79.6% 10,626 20.4% 52,202
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
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34 BRUCE SHAW HANDBOOK 2012
IRELAND
SCSI Rebuilding Costs per sq.m March 2011
No. of Typical Dublin Cork Galway Waterford LimerickBedrooms Size Area Area Area Area Area
Terraced 2 70 sq.m 1,820 1,402 1,375 1,373 1,395
3 95 sq.m 1,743 1,320 1,295 1,304 1,316
Semi Detached 3 95 sq.m 1,759 1,339 1,317 1,314 1,321
4 118 sq.m 1,738 1,319 1,301 1,291 1,277
Detached 4 118 sq.m 1,767 1,338 1,307 1,332 1,332
Detached Bungalow 4 146 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.
Sou
rce
: SCSI
Notes:
1. The figures shown in the table are a minimum base cost guide for
your house insurance.
2. The figures 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 flats because of split responsibilities for shared areas. The insurance of apartments is covered in the block service charge. Owners should confirm with their management companies / agents that their apartment block has been
valued for insurance purposes, and that the insured value is current.
3. The figures assume a basic quality specification with normal foundations, brick or block walls, concrete tiled roof, concrete ground floor and timber first floor, softwood flush 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 fittings, built-in wardrobes, finishes and any other items not normally included
in an estate type house (e.g. fire alarm).
4. House contents such as carpets, curtains, furniture, etc. are not
covered by the figures.
5. No allowance has been made for the cost of out-buildings, patios or boundary walls. The figures do however allow for a concrete path
around the house, for driveway repairs and regrassing.
6. The figures 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 calculatedto 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 inflation during the duration of the policy and
the period between any loss occurring and reinstatement.
Citi Bank, City RDiL Project
St. Vincents Private Hospital
-
SECTION 3 IRELAND
BRUCE SHAW HANDBOOK 2012 35
3
Planning Charges 2012
Fire Certificate Charges 2012
Christchurch Cork, refurbishment and conservation of a listed building
Class of Development 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
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
Type of Application Charge
Option 1Standard Application 2.90 per sq.m up to a maximum of 12,500
Option 2A Seven Day Notice Application 5.80 per sq.m up to a maximum of 25,000
Option 3A Revised Fire Safety Certificate Application 2.90 per sq.m up to a maximum of 12,500
Option 4A Regularisation Fire Safety Certificate Application 11.60/sq.m up to a maximum of 50,000
Sou
rce: Local P
lann
ing
Au
tho
ritiesSo
urce: Lo
cal Plan
nin
g A
uth
orities
IRE
LA
ND
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36 BRUCE SHAW HANDBOOK 201236 BRUCE SHAW HANDBOOK 2012
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BRUCE SHAW HANDBOOK 2012 37
U N I T E D K I N G D O M 4
BRUCE SHAW HANDBOOK 2012 37
-
38 BRUCE SHAW HANDBOOK 2012
UNITED KINGDOM
After a number of challenging years in the UK
construction industry the prospects for 2012 do not
indicate any significant improvement in activity. The
continued combination of factors such as the lack of
access to debt finance 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 inflation continue to
keep the prospect of a sustained recovery subdued.
The UK Government spending cuts announced in
late 2010 have begun to make a significant 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 significant
fall. The new work growth is mainly propped up by
a recent increase in private housing as well as some
significant 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
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 financing 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
significantly 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 profile 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.
UK Market Review
The south-east and particularly London are enjoying significantly more activity.
-
BRUCE SHAW HANDBOOK 2012 39
4
SECTION 4 UNITED KINGDOM
140
120
100
80
60
40
20
0
Sou
rce
: Natio
nal O
ffic
e fo
r Statistics,
C
on
struc
tion
Statistics B
ranc
h
New Work Repair & Maintenance
UK Construction Output bn 2001-2012
2010 Public Sector Output bn 2010 Private Sector Output bn
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
New Housing 14.3
Infrastructure 7.8
Industrial 3.6
Education 2.2
Healthcare 2.1
Offices 6.1
Entertainment 4.7
Retail 5.6
Miscellaneous 2.6
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
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40 BRUCE SHAW HANDBOOK 2012
UNITED KINGDOM
UK Tender Price Index 2001-2012
UK Regional Tender Price Index 2011
300
250
200
150
100
50
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012(f)
Tender % 7% 3% 15% 0% 3% 8% -4% -12% -4% 9% 1%
Sou
rce
: BC
IS. Ten
de
r Pric
e In
dic
es
Natio
nal
NorthWest
EastAnglia
SouthEast
GreaterLondon
WalesScotland EastMidlands
NorthEast
WestMidlands
Yorks &Humber
NorthernIreland
SouthWest
215
210
205
200
195
190
185
Sou
rce
: BC
IS. Ten
de
r Pric
e In
dic
es
Re
gio
nal
Victoria Palace Theatre
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BRUCE SHAW HANDBOOK 2012 41
4
SECTION 4 UNITED KINGDOMU
NIT
ED
KIN
GD
OM
Number of Employed and Self-Employed in Construction: UK
Resource Cost Index of Non-Housing Building 2001-2012
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.
2001 2002 2003 2004 2005 2006 2007 2008 2009 2011 2012(f)
Combined Index Labour & Plant Materials
240
220
200
180
160
140
120
100
Sou
rce
: Natio
nal O
ffic
e fo
r Statistics
C
on
struc
tion
Statistics B
ranc
h
000s
2,700
2,600
2,500
2,400
2,300
2,200
2,100
2,000
2005 2006 2007 2008 2009 2010 2011
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
Sou
rce
: Natio
nal O
ffic
e fo
r Statistics
C
on
struc
tion
Statistics B
ranc
h
-
42 BRUCE SHAW HANDBOOK 2012
UNITED KINGDOM
Sou
rce
: BC
IS.Stan
dard
Ho
urly B
ase R
ates fo
r Labo
ur.
Standard Hourly Base Rates for Labour 2011
The Top UK Main Contractors
Sou
rce
: Bu
ildin
g M
agazin
e
Rank Turnover 2011 2010 Firm bn
1 1 BALFOUR BEATTY 6.74
2 2 LAING OROURKE 3.53
3 3 CARILLION 2.72
4 6 KIER 1.42
5 4 SKANSKA CONSTRUCTION 1.28
6 5 MORGAN SINDALL 1.25
7 7 BOVIS LEND LEASE 1.09
8 12 KELLER 1.07
9 10 COSTAIN 1.02
10 8 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 9 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
Job Type Base rate
Building Craft Operative 13.21
Building Skill Rate 1 12.59
Building Skill Rate 2 12.11
Building Skill Rate 3 11.32
Building Skill Rate 4 10.68
Building General Operative 9.90
Technical Plumber 19.06
HVAC Senior Craftsman 17.16
Electrical Technician 23.03
Mechanical Technician 23.03
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BRUCE SHAW HANDBOOK 2012 43
4
SECTION 4 UNITED KINGDOM
The Top UK Architects
The Top UK Engineering Firms
Note: Ranked by number of Chartered Architects registered as of 2011
Note: Ranked by number of Chartered Engineers registered as of 2011
Sou
rce
: Bu
ildin
g M
agazin
eSo
urc
e: B
uild
ing
Mag
azine
Rank 2011 2010 Firm Staff
1 1 BUILDING DESIGN PARTNERSHIP 360
2 2 FOSTER & PARTNERS 315
3 3 ATKINS 228
4 4 CAPITA SYMONDS 176
5 5 AEDAS 155
6 15 NPS PROPERTY CONSULTANTS LTD 128
7 8 3DREID 126
8 9= ARCHIAL GROUP PLC 117
9 7 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
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
Rank 2011 2010 Firm Staff
1 1 ATKINS 2,218
2 3 URS SCOTT WILSON 1,893
3 2 MOTT MACDONALD 1,705
4 - JACOBS ENGINEERING UK LTD 1,135
5 4 ARUP GROUP LTD 1,118
6 - AECOM 1,022
7 5 HALCROW GROUP LTD 990
8 7 CAPITA SYMONDS 691
9 8 PARSONS BRINCKERHOFF LTD 686
10 9 WATERMAN GROUP PLC 589
11 6 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
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44 BRUCE SHAW HANDBOOK 2012
Sou
rce
: Bru
ce
Shaw
UNITED KINGDOM
Bruce Shaw Average UK Construction Costs 2012
Average Costs Cost Range
UNITED KINGDOM
Bruce Shaw Average UK Construction Costs 2012
Average Costs Cost Range
Commercial Offices
Over 20 storey offices premium grade facilities and common finishes with lifts, provision for air conditioning, and sprinklers excluding Developers CAT A fitout
2,250 2,500 per sq.m
Over 20 storey offices A grade common finishes with lifts, provision for air conditioning, and sprinklers excluding Developers CAT A fitout
1,950 2,250 per sq.m
Up to 20 storey offices medium grade facilities and common finishes with lifts, provision for air conditioning and sprinklers excluding Developers CAT A fitout
1,650 1,950 per sq.m
Up to 8 storey offices medium grade facilities and common finishes with lifts, provision for air conditioning, and sprinklers excluding Developers CAT A fitout
1,200 1,550 per sq.m
Up to 2 storey offices - medium grade facilities and common finishes with provision for air conditioning, no lift and no sprinklers excluding Developers CAT A fitout
800 1,050 per sq.m
Developers CAT A fitout including raised floors, carpets, ceilings, fan coil units with ducts and grilles, lighting and power distribution
300 500 per sq.m
Category B fit-out from institutional Category A specification; standard corporate accommodation; open plan 15 per cent offices
500 1,350 per sq.m
Category B fit-out from institutional Category A specification; standard corporate accommodation; banking / legal 50 per cent offices / cellular
1,000 2,250 per sq.m
Retail
Regional shopping complex high standard including major stores, specialty shops and enclosed malls
1,250 1,500 per sq.m
Suburban supermarkets; excluding fitout 750 950 per sq.m
Retail Park; shell excluding fit-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
Residential
Single project home up to 250 sq.m medium standard, double brick with normal site cost for flat 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
Hotels (New Build excluding FF&E)
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
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BRUCE SHAW HANDBOOK 2012 45
4
SECTION 4 UNITED KINGDOM
Industrial
Up to 10m high warehouse basic standard, metal clad walls, no sprinklers (up to 5,000 sq.m)
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
Car Parking
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
Underground, concrete structure, excavation, lifts, mechanical ventilation, sprinklers (35 40 sq.m/car)
1,100 1,300 per sq.m
Data Centre(excludes shell construction, incoming power & fibre upgrades, comms equipment)
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 perkilowatt (IT load)
Tier Level 3 Fit out of existing shell, fully built (day 1 & 2), technical load between 1,500-2,000 kW/sq.m
8,000 11,000 perkilowatt (IT load)
Tier Level 4 Fit out of existing shell, fully built (day 1 & 2), technical load between 1,500-2,000 kW/sq.m
12,000 16,000 perkilowatt (IT load)
Average Costs Cost Range
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 specifications for each type of building and do not account for any site abnormal costs.
Region Factor Wales 0.96
Midlands 0.97
East 1.00
South West 0.98
North 0.91
Region Factor South East 1.09
London 1.12
Scotland 0.96
Northern Ireland 0.85
Approximate Regional Variance
Sou
rce
: Bru
ce
Shaw
UN
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46 BRUCE SHAW HANDBOOK 2012
UNITED KINGDOM
House Building Starts and Completions 2001-2011
Average Procurement Lead-in Times in Weeks
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Sou
rce
: Natio
nal O
ffic
e fo
r Statistics
Housebuilding Starts Housebuilding Completions
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 - Profiled 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
0 5 10 15 20 25 30 35
Sou
rce
: Natio
nal O
ffic
e fo
r Statistics
Notes: All times based on generic 5 storey 100,000 sq.ft. office block in city. As of July 2011.
UNITED KINGDOM
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 - Profiled 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
0 5 10 15 20 25 30 35
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BRUCE SHAW HANDBOOK 2012 47
4
SECTION 4 UNITED KINGDOM
Confidence 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.
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
specifically in London, however the current mortgage
market is dictating sales figures. 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
first-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 first-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 figures 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.
The UK Housing Market 2012
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48 BRUCE SHAW HANDBOOK 2012
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 film 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. Westfield Stratford City sits next door
to the Olympic Park, and with a total retail floor
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.
2012 Olympics
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
0.62
Jan
-05
May
-05
Sep
-05
Jan
-06
May
-06
Sep
-06
Jan
-07
May
-07
Sep
-07
Jan
-08
May
-08
Sep
-08
Jan
-09
May
-09
Sep
-09
Jan
-10
May
-10
Sep
-10
Jan
-11
May
-11
Sep
-11
Jan
-12
Sou
rce
: Eu
rop
ean
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UNITED KINGDOM
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SECTION 4 UNITED KINGDOMU
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It is hoped that the Olympic Games will offer our economy the upturn it needs to help bring it out of the recession.
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50 BRUCE SHAW HANDBOOK 2012
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BRUCE SHAW HANDBOOK 2012 51
5M I D D L E E A S T
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52 BRUCE SHAW HANDBOOK 2012
MIDDLE EAST
GDP in the Gulf Cooperation Council (GCC)
countries is still largely based upon a hydrocarbon
industry as illustrated in the graph below.
In the UAE, the IMF forecasts real GDP to grow
by 3.8% in 2012 and inflation 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.
Macro economic data indicates that construction
activity in Saudi Arabia grew by 11.6% in 2011 with
inflation 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.
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.
Middle East Market Review
100%
80%
60%
40%
20%
0
Sou
rce
: Natio
nal A
uth
oritie
s and
De
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An
alysis
GCC Hydrocarbon Dependence (% of GDP)
GCC Stimulus Packages
Bahrain KSA Kuwait Oman Qatar UAE
Public Sector / Social Services OtherHydrocarbons
Sou
rce
: ME
ED
Insig
ht
CountryPackage
Amount ($m)% of GDP Main Package Contents
Bahrain 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
Establishment of monthly unemployment benefit of $390
Saudi Arabia 96,600 16.7 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 benefits
Expand indefinitely the 15% inflation allowance for state employees that had been phased in over the past three years
UAE
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