BRUCE SHAW HANDBOOK 2012 CONTENTS 7 Caribbean 10 South East Asia Continued
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3 United States United Ireland Middle East Dublin New bio-pharma production facility Iowa & Virginia for Amgen 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 UK Market Review 38 Development Opportunities 6 UK Construction Output 39 15 Largest Construction Markets in 2010 7 Public Sector Output 39 15 Largest Construction Markets in 2020 7 Private Sector Output 39 Construction Output Growth Rates UK Tender Price Index 40 in Developed Countries 9 UK Regional Tender Price Index 40 Construction Output Growth Rates Resource Cost Index of UK non-housing building 41 in Emerging Markets 9 Numbers of Employed & Self Employed in Construction 41 Index of International Construction Costs 9 Standard Hourly Base Rates for Labour 42 Top 20 International Contractors 10 Top UK Main Contractors 42 Top 20 International Design Firms 11 Top UK Architects 43 Global Inflation % 12 Top UK Engineering Firms 43 Overview of Percentage Change in Global Output 12 Bruce Shaw Average UK Construction Costs 44 Oil Production / Consumption Statistics 13 House Building Starts and Completions 46 Average Procurement lead in times 46 2 Europe The UK Housing Market 2012 47 European Market Review 16 2012 Olympics 48 Production Index in the Construction Sector 17 Euro vs Sterling 48 Construction Output - Annual Variation 17 Top 15 European Contractors 18 5 Middle East Top 15 European Design Firms 18 Middle East Market Review 52 Construction Cost - New Residential Building 19 GCC Hydrocarbon Dependence 52 Consumer Inflation v Construction Inflation 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 UAE, Bahrain and Qatar in Brief 55 European Currencies 21 Saudi Arabia in Brief 56 Saudi Arabia – Key Budgetary Allocations 56 3 Ireland Saudi Arabia – Housing Requirements by Region 57 Regional Building Cost Comparisons 57 Ireland Market Review 24 Top 10 Infrastructure Projects in the GCC 58 Value of Construction Output 24 Middle Eastern Design Firms 58 Construction Output 24 GCC Nations Main Contractors 59 Gross National Product 24 Construction Purchasing Managers’ Index Report 25 GCC Single Currency Update 59 Historical Property Performance Total Return % 25 Bruce Shaw Tender & Cost Indices 26 6 United States SCSI Tender Price Index 27 US Market Review 62 Consumer vs Construction Price Inflation 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 Certificate Charges 35 2 BRUCE SHAW HANDBOOK 2012 CONTENTS 7 Caribbean 10 South East Asia continued Caribbean Market Review 70 Malaysia Market Review 96 General Statistics for the Caribbean 70 GDP Growth Rate 96 Caribbean Country Review Average Construction Costs 97 Currency Exchange Rates 97 Bahamas 71 Barbados 71 Vietnam Market Review 98 Bermuda 71 GDP Growth Rate 98 Cayman Islands 71 Average Construction Costs 98 Cuba 71 Currency Exchange Rates 99 Curacao 72 Indonesia Market Review 100 Dominican Republic 72 Average Construction Costs 100 Haiti 72 Jamaica 73 Currency Exchange Rates 101 Puerto Rico 73 St Lucia 74 11 China Trinidad & Tobago 74 China Market Review 105 Turks & Caicos Islands 74 China GDP Annual Growth Rate 105 Construction Costs 74 Total Government Investment 106 Average Cost Range 75 Regional Building Cost Comparison 106 Shanghai Tender Price Index. 107 8 India Top 20 Chinese Contractors 108 India Market Review 78 Top 20 Chinese Design Firms 109 Average Construction Costs 78 Currency Exchange Rates 109 Construction Cost Indices 79 Top Infrastructure Companies in India 79 12 Ghana US Dollar vs. Rupee 79 Ghana Market Review 113 Ghana Key Statistics 113 9 Australia & New Zealand GDP forecast 113 Value of Construction Output 114 Australia Market Review 83 Construction Output Growth Rate Forecast 114 Australian Key Statistics 83 Average Construction Costs 114 Australia Inflation Index 115 Value of Construction Output 84 Building Cost Index by Capital City 84 Building Cost Index & Consumer Price Index Comparison 115 Building Cost Index & Consumer Price Comparison 85 Construction Companies Active in Ghana 116 Dwelling Unit Commencements 85 Currency Exchange Rates 116 Average Construction Costs 85 List of Tier 1 Main / Building Contractors 86 Currency Exchange Rates 86 13 Topical Issues New Zealand Energy and Power Generation 120 New Zealand Market Review 87 Financial Robustness of Contractors 122 New Zealand Key Statistics 87 Building Information Modelling (BIM) 124 Value of Construction Output 87 The Changing Shape of Retail 126 Numbers Employed in Construction 88 Challenges for Consultant Project Managers Dwelling Unit Commencements 88 within current market conditions 128 Average Construction Costs 88 List of Tier 1 Main/Building Contractors 89 14 About Bruce Shaw Currency Exchange Rates 89 Bruce Shaw 132 10 South East Asia Cost Management 133 Project Management 137 South East Asia Market Review 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 Value of Construction Output 94 Bruce Shaw Senior Personnel 146 Average Construction Costs 95 Our Clients 148 Currency Exchange Rates 95 BRUCE SHAW HANDBOOK 2012 3 4 BRUCE SHAW HANDBOOK 2012 GLOBAL CONSTRUCTION 1 BRUCE SHAW HANDBOOK 2012 5 GLOBAL CONSTRUCTION Developing Markets Offer Business Development Opportunities Most of us will have heard the maxim which states financial crisis, a return to growth in 2013 will likely that ‘uncertainty is the only certainty there is’. Not so prove too soon for those countries whose public many of us have heard the rest of this quotation from finances are reliant on intervention and troika funds. the great mathematician John Allen Paulos which goes on to state that ‘knowing how to live with Looking beyond Europe, the US market is likely insecurity is the only security’. For construction to see improved conditions and some growth in companies operating in many markets in Europe, 2012 although this will be hampered by ongoing uncertainty and insecurity on a level not seen difficulties for Developers seeking to secure funding since the great wars of the last century are now for their projects and the shrinking of the value the norm and efforts are focused on surviving rather of the fiscal stimulus particularly in relation to than thriving. infrastructure development. The global construction market is Whilst continued year on year growth is also forecast to grow by up to 5% in 2012 predicted for the Australian construction market, and the rate of increase is likely to fears are being expressed that the significant property outpace that of global GDP over the price rises observed in recent years which have next 10 years. occurred on the back of commodities led economic growth could also be a bubble which will burst soon The trading environment in many economies within with inevitable consequences. Commentators in the Eurozone is defined by austerity and tightening Australia hold opposing views as to what will happen public finances with the fate of the Euro itself being next and what has to be done if anything to cool the less than certain. The duration of this environment market with many of the voices again echoing the can now be measured in years rather than months refrain that this time, it’s different. The Canadian and the impact on construction is plain to see as the market will also continue to grow strongly as it growth trends across Europe in all construction mirrors Australia with a commodities led boom albeit sectors since 2008 have been negative. with less exposure to rising property values . Analysis of the recent contraction in European The Kingdom of Saudi Arabia and Qatar will continue construction output indicates that the contraction to see strong growth in 2012. The changing politics was not evenly spread. In 2011 for example, we see of a number of the Arab nations such as Egypt and Poland at one extreme experiencing upwards of 12% Libya may also see significant growth as the new growth whilst at the other end, Spain saw their governments seek to recommence stalled projects construction output contract by over 19%. Whilst and to implement social enhancement programmes many European nations have reached the bottom of including the development of housing and their construction cycles hastened no doubt by the educational facilities. 6 BRUCE SHAW HANDBOOK 2012 SECTION 1 GLOBAL CONSTRUCTION Output in China and India will continue to achieve Demographic trends may also see notable growth in 1 significant growth albeit not in double digits and South American and South East Asian markets albeit it is possible that governments in both countries at lower rates of expansion than those of the BRICs. will take action to cool their markets in the face of (Brazil, Russia, India and China). GLOBAL CONSTRUCTION rapidly increasing construction inflation. China is also The global construction market is forecast to grow facing significant increases in property values and by up to 5% in 2012 and the rate of increase is likely whilst it is being said that what is being referred to to outpace that of global GDP over the next 10 years as China’s Housing Bubble is different than those as the developing economies forge ahead led by observed elsewhere, quick action by the Chinese China and India.