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International construction cost advice

In a global marketplace, companies striving for growth or efficiency will consider alternate locations to enter or develop their businesses. Plans of this nature often involve investment in facilities, either new build construction or refurbishment. It is therefore it is often essential to understand the cost of construction prior to committing any funds.

How can RICS help?

We can help you get the construction data you need in a robust an auditable format to help underpin your international business plans.

Depending on the level of project detail that you have available, we can either support with our detailed construction cost databases or provide you with a robust location factor to apply to data from another country, supporting early stage investment appraisals.

The cost of construction varies significantly around the world. There are a number of issues that cause this variance; the most common of which are listed to the right . By quantifying these issues, a location factor can be applied to cost data from a base country to give indicative project costs in any location around the world.

RICS have developed a location factor methodology which considers the cost drivers for your project to inform a project-specific location factor. The methodology also identifies the data and assumptions used within the calculation to give the user confidence in the results provided.

In order to use the location factor approach, it is important to be confident in the base cost you are applying the factors to. If you need to understand your base costs, whether you have data or not, then we can help. We have multi-disciplinary specialists who can analyse and develop base cost models to suit any project.

To calculate a location factor, we need accurate and reliable data to base any calculation on. BCIS Consultancy have collected and analysed construction costs for over 200 countries globally. Coupled with its network of members in over 100 countries worldwide, we have a unique insight into construction costs and practices on an international basis.

Factors effecting international construction:

Labour

  • Salaries and wage levels
  • Availability of labour locally (and levels of imports)
  • Productivity (due to climate, supervision, security etc)
  • Local taxes, insurances and associated unions
  • Living costs (for any imported labour)


Materials

  • Availability of material locally (and levels of imports)
  • Associated freight / transport
  • Taxes and import duties
  • Currency / exchange rates of exporting countries
  • Inflation of importing / exporting countries


Plant

  • Availability of plant locally (and levels of imports)
  • Age and efficiency of plant
  • Fuel costs
  • Labour costs (for operated plant)