The 20 Most Expensive Cities for Construction Work in the 2nd Half of 2022
The cost data/model is based on the average cost of a Center City Hotel 3 - 4 star (7 to 20 story high) & a Class “A” Office Building.
The values in the table exclude the following:
- Land purchase/demolition work
- Architectural/engineering costs & fees
- Construction management costs & fees
- Furniture & fixtures
- Owner’s costs
International construction costs have increased by 12% to 23% in the last 12 months. The following are the results of our research. The reasons for this are:
- Supply chain issues/construction material price hikes
- Sky-high inflation
- The ongoing Russia – Ukraine conflict
- Fuel – gasoline/diesel – energy cost spikes
- China’s extended COVID lockdowns that are now into their 5th month
- Shortages of skilled labor/qualified sub-contractors
- Delivery delays of construction materials/components such as windows, curtain wall systems, elevators/escalators, process pipe fittings & valves, instrumentation devices, plumbing & electrical fixtures
We are starting to see structural steel, rebar, cement & lumber/plywood product costs gradually trend downwards from their highs six months ago, however, prices are still significantly higher than they were 12 to 18 months back.
For additional benchmarks and similar types of construction costs, refer to our (9) 2022 Global Construction Costs Databases.
Make sure you’re using the most accurate construction cost data available; Compass International’s cost data accounts for the seven issues described above.
